The Internal Revenue Service (IRS) has announced that California’s ‘Middle Class Tax Refund’ will not be subject to federal taxes. This announcement comes after the IRS issued late guidance on state stimulus checks and said that California’s Middle Class Tax Refund does not need to be reported as taxable.

The Middle Class Tax Refund is a state program that provides tax refunds to California taxpayers who make up to $75,000 a year. The refund is up to $1,000 for single filers and up to $2,000 for joint filers.

The IRS had previously urged taxpayers to delay filing their taxes due to the COVID-19 pandemic. However, the IRS has now issued guidance on state stimulus checks and said that taxpayers can file their taxes without fear of being taxed on their Middle Class Tax Refund.

This announcement will provide much-needed relief to California taxpayers who were previously uncertain about how the Middle Class Tax Refund would be treated by the IRS. With the IRS now providing guidance on state stimulus checks, taxpayers can now file their taxes with confidence.