2022 California Relief Payments Not Taxable

Update to our previous post, the Internal Revenue Service has clarified the tax treatment for special payments made by California in 2022 to offset the impact of inflation on gas prices. IRS has determined these payments will not be taxable at the Federal level, conforming to State guidance to treat these payments as non-taxable. This guidance applies to taxpayers in 21 states which received similar payments from their respective states. The full news release from IRS can be read here.