New Jersey ITIN Holders Director Assistance Excludable from Federal Taxable Income
New Jersey ITIN Holders Director Assistance Excludable from Federal Taxable Income
The IRS ruled that a payment made under New Jersey’s ITIN Holders Director Assistance Program was excludible from federal taxable income as a payment is made for the promotion of the general welfare or as a disaster relief payment.
New Jersey ITIN Holders Director Assistance Excludable from Federal Taxable Income.
The IRS ruled that a payment made under New Jersey’s ITIN Holders Director Assistance Program was excludible from federal taxable income as a payment is made for the promotion of the general welfare or as a disaster relief payment. The Internal Revenue Service provided details today clarifying the federal tax status involving special payments made by 21 states in 2022. IR-2023-23, Feb. 10, 2023
The ITIN Holders Direct Assistance Program, was designed to provide assistance to residents who were impacted by the pandemic but were not eligible to received pandemic assistance from the federal government. More than 68,000 New Jersey low-income families received a $500 check in 2022 if they were not eligible for federal stimulus assistance and if they filed taxes in 2021 with an Individual Taxpayer Identification Number, or ITIN. Eligible recipients, were required to file a 2021 return in order to receive this benefit even if they were not otherwise required to file a return.