State relief payments may be excludable from income for most taxpayers, the IRS announced. On Feb. 10, the tax agency said that taxpayers in 21 states can exclude from income certain special relief payments they received from their states, though the rules vary. In the following states, payments made for general welfare or for disaster relief are excludable: AK, CA, CO, CT, DE, FL, HI, ID, IL, IN, ME, NJ, NM, NY, OR, PA and RI. For taxpayers in AK, the exclusion only applies to supplemental energy relief payments received. In addition, taxpayers in GA, MA, SC, and VA must meet certain requirements in order to exclude state relief from income. Here are the details: https://bit.ly/40Qd6n7
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