If you got inflation relief from Georgia, the IRS wants you to wait to file taxes

A sign hangs outside the Internal Revenue Service building in Washington, on May 4, 2021. The IRS issued guidance Friday, Feb. 3, 2023, recommending that taxpayers hold off on filing their tax returns for 2022 if they received a special tax refund or payment from their state last year due to the agency’s uncertainty about the taxability of the payments. (AP Photo/Patrick Semansky, File)

We’re two weeks into tax season, but the IRS is urging people in at least 19 states to hold off on filing their tax returns. The reason? The agency is still figuring out how to handle special tax refunds and other payments states issued in 2022.

Many of the payments have been dubbed inflation relief checks. But even on the basic level, they reflect a hodgepodge of rules and eligibility requirements.

Taxpayers from California to Maine now find themselves in this confusing situation, as the IRS works to apply its rules to a wide range of programs. The agency has promised to share clarification this week, “for as many states and taxpayers as possible.”