Should Walz Checks Be Taxable?

[BobKamman]

@IRonMaN knows whereof I speak.  Minnesota last year sent out payments to many taxpayers, to make them feel better about Covid or whatever, same as more than 20 states did in 2022.  And IRS said this time last year that those 2022 payments would not be taxable, because either they came under a "general welfare" exclusion, or a "disaster relief" exclusion.  But now Minnesota has been told by IRS that these payments are taxable.  Or at least they have to be reported on Form 1099-MISC (or maybe 1099-G?).  

Same thing has happened in Arizona.  Our Department of Revenue is just getting around to telling taxpayers that IRS has ruled the payments in October 2023, to people who claimed a dependent tax credit on their 2021 return, is taxable.  I am having trouble figuring out how this is different from what California and many other states did in 2022, with some payments not being made until 2023.  

The law allowing the Arizona rebates was signed May 11, 2023, which happens to be the official last day of the Covid disaster.  Meanwhile, I found a story that says the Minnesota governor (his name is Walz) complained that his state's payments were only 15 days late.  But what was the deadline?  Why should there be one?  

[IRonMaN]

It seems to be a popular news item in Minnesota as of late.  I don’t know what the magical formula is to determine why some state payments are tax free but others aren’t. But in the bigger picture of life, the maximum payment was around $1300 so nobody should have a humungous tax liability from it.  I’m more worried that Illinois is going to be suffering from another supply problem with Fireball now that Mr Fireball has more time on his hands to enjoy his favorite beverage.

[PATAX]

@IRonMaN if Illinois does have a supply problem, then Brother Cooley will cross the state line and snatch up as much Fireball as he can fit in his car, he will even fill up the gas tank with Fireball, and when he gets back he will siphon it out.