I heard the blurb this morning on national news... they were focused on Cali but mentioned a dozen other states or so...........   

Sure, EITC & Retirees will take the worst hit (especially those in the SS window where every $ causes an extra $ of SS to become taxable)

The IRS works for the Administration.... Ya think they'll do the right thing???

If I were in an affected state I would certainly prepare the returns now, but not print or file. Just explain that the IRS has its head up it's bottom (again). It's wiser to wait than get a letter from IRS adding P&I.

Certainly beats filing a bunch of amendments. 

EDIT:  <<I am assuming that these rebates may be taxable if someone itemizes>>

I don't think that statement is correct.  it's not a refund, but a distribution by the States of extra Pandemic monies it got from the Feds to the lower income population.   

The Whole thing sounds kinda stupid.