The Internal Revenue Service (IRS) has announced that most state inflation relief payments will not be taxed. This decision comes as a result of the IRS’s new policy, which is designed to provide tax relief to those affected by inflation.

The IRS has also announced that California’s Middle Class Tax Refund does not need to be reported as taxable income. This decision is expected to provide financial relief to many taxpayers in the state.

However, the IRS has come under fire recently for its handling of certain issues. The agency’s watchdog has called out its latest misstep, which was related to its failure to accept certain tax payments.

Residents of more than a dozen states do not need to report “special payments” for welfare or disaster relief on their federal returns, according to the IRS. This includes California, where many are wondering if more inflation relief checks are on the way.

The IRS has not yet provided any further information about its new policies. However, taxpayers should stay informed to ensure they are taking advantage of all available tax relief.

For more information on the IRS’s new policies, view the full coverage on USNN.