“There are a variety of state programs that distributed these payments in 2022 and the rules surrounding them are complex,” the IRS said in a statement. “We expect to provide additional clarity for as many states and taxpayers as possible next week.”

Many states authorized special tax rebates last year for tax surpluses or inflation. The IRS is weighing whether to tax those federally.

“For taxpayers uncertain about the taxability of their state payments, the IRS recommends they wait until additional guidance is available or consult with a reputable tax professional,” the IRS said.

[Hey, Californians — you can thank Gavin Newsom for potentially increasing your tax liability without warning. The better way to handle that kind of effort is to simply decrease the tax rate, not to issue cash subsidies. — Ed]