The IRS recently issued guidance on state tax payments that affirms Californians will not have to count the Middle Class Tax Refund as income on their federal tax filings. The move comes after California Senate and Assembly Republicans formally requested that President Biden exempt the 18 million residents who received Middle Class Tax Refunds from having those rebates taxed at the federal level.
“Taxing Californians on their tax refund is double dipping,” said Senator Rosilicie Ochoa Bogh. “With inflation already squeezing Californians, the federal government should not be taking more money out of working families’ pockets. I’m pleased to hear that the Biden Administration listened to our calls and will be exempting the Middle Class Tax Refund from federal income tax.”
Earlier this week, members of the California Senate and Assembly Republican Caucuses signed on to a letter delivered to President Biden calling for the federal government to exempt those rebates from federal tax income.