>Could they make this shit any more confusing?

What they're doing, which is treating it like any other tax refund, actually is the simple thing, since it's just applying all the ordinary rules, the way most people assumed they would.

OK, those ordinary rules are complicated (but only if you itemize, which most don't)

But this particular refund check not being "special" compared to other refund checks is the simple thing.

Want to argue it shouldn't be taxable at all? Well, that wouldn't go over too well, because it actually is a refund of taxes paid, and for a handful of people it is very large refund - which is to say money they've never paid federal taxes on. So if you were going to make it not taxable for little people, but still taxable for the handful who got big checks, then you have to go make it complicated again by writing new limit or phaseout rules.

That's why ruling it should be treated like any other refund check is the simplest thing that could have actually worked.