IRS says do this to get money back if you paid taxes on your California refund

David Lightman
Updated ·2 min read
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File an amended federal income tax return if you already filed your federal taxes and reported your California inflation relief as income, the Internal Revenue Service said Tuesday.

The IRS said on Feb. 10 that the 2022 California Middle Class Tax Refund was not subject to federal tax.

But many people had already filed their federal returns for 2022 and did pay tax on the refunds.

Tuesday, the IRS said anyone in that situation “should check their tax return to make sure they paid tax on a state refund before filing an amended return.”

If they need to file an amended return, anyone who submitted their original 2022 return electronically can file electronically again and choose direct deposit for the refund they may be receiving.

“Filing electronically cuts out the mail time and including direct deposit information on an electronically submitted form provides a convenient and secure way to receive refunds faster,” the IRS said Tuesday.

Consumers can also file a paper version of Form 1040-X, Amended U.S Individual Income Tax Return, and receive a paper check.

That form should be mailed to Department of the Treasury, Internal Revenue Service, Austin, TX 73301-0052.

If you file a paper return, direct deposit is not available.

To check the status of the amended return, go to Where’s My Amended Return?

The Tuesday announcement ends, at least for now, a season of confusion over the refund.

The IRS didn’t give an answer, even, on whether or not the refund should be claimed as income until tax season was already underway, prompting questions from filers and CPAs across the state.

Community members continued to reach out to The Sacramento Bee, asking what they should do if they already filed their taxes and made the claim. Would the IRS correct it for them? When pressed in mid February, the agency’s only guidance was to wait.

“The failure to have identified and resolved this issue before the filing season suggests that someone, or everyone, was asleep at the switch,” National Taxpayer Advocate Erin Collins wrote on her blog in February of the IRS.