California Legislative Republicans Secure Victory for Families with Exemption of Tax Refund at Federal Level

Millions of Californians No Longer Have to Worry about Being Taxed for the Middle Class Tax Refunds

Today the IRS issued guidance on state tax payments that affirms Californians will not have to count the Middle Class Tax Refund as income on their federal tax filings. The move comes after California Senate and Assembly Republicans formally requested that President Biden exempt the 18 million residents who received Middle Class Tax Refunds from having those rebates taxed at the federal level.

“Taxing Californians on their tax refund is double dipping. With inflation already squeezing Californians, the federal government should not be taking more money out of working families’ pockets. I’m pleased to hear that the Biden Administration listened to our calls and will be exempting the Middle Class Tax Refund from federal income tax," said Senator Rosilicie Ochoa Bogh (R-Yucaipa).

Earlier this week, members of the California Senate and Assembly Republican Caucuses signed on to a letter delivered to President Biden calling for the federal government to exempt those rebates from federal tax income.