Major “stimulus check” announcement in Texas for current fiscal year 2023
In a recent statement, the Internal Revenue Service has provided valuable information regarding stimulus payments in Texas for the current tax year 2023.
The IRS has clarified that, for tax year 2023, most state stimulus payments will not be taxable on federal income tax returns, although exceptions may apply, especially for itemized deductions. It is recommended that you seek advice from a tax professional before filing your return.
About Stimulus Checks
Although federal stimulus checks ended a few years ago, more than 20 states provided financial relief in the form of tax rebate checks or inflation relief payments last year. Such relief is also popularly referred to as a stimulus check.
This trend continues in 2023, with some states still offering refunds to eligible residents.
The IRS has issued important information about special state rebate payments received last year. Those who counted these payments as taxable income may have overpaid taxes, suggesting the filing of an amended tax return.
For those who have not yet filed their 2022 federal return, it is crucial to determine whether your state’s stimulus payment is taxable or should be reported as income.
Texas Stimulus Checks
Eligibility criteria, amounts, and deadlines for this year’s state payments vary by state. In the case of Texas, it issues annuity payments based on the Teacher Retirement System (TRS).
Dates in November and December 2023 have been set for issuance of annuities either through paper checks or direct deposit, encouraging beneficiaries to opt for direct deposit for faster access.
When to enroll?
Individuals can enroll for direct deposit through their MyTRS account, and it is essential to be cautious during data entry. TRS advises allowing five business days for mail delivery if a paper check is received. In case of problems, individuals can contact the TRS helpline.
In Texas, annuity payments are based on the Teacher Retirement System and are issued each month on the last business day. Paper checks will be mailed on November 29, 2023, and deposits will be directed to accounts on November 30, 2023. Meanwhile, checks will also be mailed on December 28, 2023, and deposits will be available in the account on December 29, 2023.