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Continue to ChatState Stimulus Money Might Be Taxable if You Live in These States The IRS won't be taxing money related to the pandemic or disasters, but other state payments may need to be reported. https://orbitbrain.com/blog/state-stimulus-money-might-be-taxable-if-you-live-in-these-states-the-irs-wont-be-taxing-money-related-to-the-pandemic-or-disasters-but-other-state-payments-may-need-to/