Have you been feeling the pinch of record inflation with little relief from the federal government? Well, you’re not alone. As the cost of living continues to rise, many people are eagerly waiting for some form of financial assistance. Fortunately, 19 states have taken matters into their own hands and are sending or have already sent stimulus payments to taxpayers. While these payments may not have a significant impact on overall inflation, they could provide some relief for specific sectors or groups. Let’s take a closer look at how different states are planning to support their residents during these challenging times.
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Approved State Stimulus and Rebate Check Programs
1. Alaska: $3,200 Payments
In Alaska, most residents receive an annual payment through the Permanent Fund Dividend program. However, this year, they also received an extra $650 energy relief payment. The Permanent Fund Dividend surged to a record $3,284 per eligible recipient in 2022, thanks in part to rising oil costs. Recipients who opted for direct deposit should have already received their payment in September, while those who requested a paper check should expect it by October.
2. California: Up to $1,050 Rebate
California’s Middle-Class Tax Refund program aims to provide relief to an estimated 23 million eligible residents. Individual taxpayers earning $75,000 or less can expect a one-time payment of $350, while couples filing jointly earning $150,000 or less will receive $700. Additionally, eligible households with qualifying dependents will receive an extra $350. The majority of payments were issued in October, either through direct deposit or debit card.
3. Colorado: $750 Rebate Payments
Colorado is providing tax rebates of $750 to individual tax filers and $1,500 to joint filers. To be eligible, residents must have filed their 2021 state income tax return and be 18 years of age or older. Physical checks were sent out to prevent fraud, with most eligible residents receiving their refunds by September. Those who filed an extension can expect their checks by January 2023.
4. Delaware: $300 Rebate Payments
Delaware distributed “relief rebate” payments of $300 to taxpayers who filed their 2020 state tax returns. Couples filing jointly received $300 each. The budget surplus allowed for this one-time payment, which was distributed to most eligible residents in May 2022. A second application period was open from November 1 through December 15, 2022, for those who missed the initial distribution.
5. Florida: $450 Payments
Florida households with children received a one-time payment of $450 per child as part of the Hope Florida—A Pathway to Prosperity program. Eligible recipients included foster parents, caregivers, and families receiving Temporary Assistance for Needy Families (TANF) cash assistance. The payments were sent by mailed check and were expected to be delivered before the start of the back-to-school tax holiday in July.
6. Georgia: $250 Rebate Payments
Thanks to a historic state budget surplus, Georgia residents who filed their 2020 and 2021 tax returns were eligible for rebate payments. The maximum rebate amount varied based on tax filing status, with single filers receiving up to $250, head of household up to $375, and married couples filing jointly up to $500. Eligible recipients who filed their taxes by April 18 should have received their refund in August.
7. Hawaii: $300 Rebate Payments
In Hawaii, taxpayers earning less than $100,000 per year received a $300 rebate, while those earning more than $100,000 per year received $100. Dependents were also eligible for the rebate. The payments were sent by direct deposit for those who filed their 2021 state income tax returns by August 31, 2022. For those who filed between July 31 and December 31, the checks were expected to be issued within 10 to 12 weeks after acceptance.
8. Idaho: $75 Rebate Payments
Idaho allocated $350 million for tax rebates to its residents. Eligibility criteria included full-time Idaho residency and filing 2020 and 2021 tax year returns, or full-time Idaho residency and filing grocery-credit refund returns. Payments started in March, with each taxpayer receiving either $75 or 12% of their 2020 Idaho state taxes, whichever was greater. A second tax rebate of $300 for individual filers and $600 for couples filing jointly was authorized in September.
9. Illinois: $50 and $300 Rebates
Illinois residents are eligible for two rebates in 2021. The individual income tax rebate provides $50 per individual and an additional $100 per eligible dependent for residents with an adjusted gross income of less than $200,000 per year. The property tax rebate is equal to the property tax credit claimed on the tax return, up to a maximum of $300, for residents making $250,000 or less. The rebates started rolling out in September and will continue for several months.
10. Indiana: $325 Rebate Payments
Indiana authorized two rebates for its residents. The first rebate is a one-time tax refund of $125 for taxpayers who filed their 2020 and 2021 taxes. The second rebate is an additional $200 per taxpayer. Most taxpayers received their refunds by direct deposit, while those who changed banks or didn’t have direct deposit information on file received a paper check. Those eligible for the $200 payment will need to file a 2022 tax return before January 2024 to claim the credit.
11. Maine: $850 Direct Relief Payments
Maine authorized direct relief payments of $850 for its taxpayers with an adjusted gross income of less than $100,000. Couples filing jointly received a relief check of $1,700. The one-time payments, funded by the state’s surplus, started rolling out in June via mail to the address on the 2021 Maine tax return.
12. Massachusetts: 14% Tax Rebates
Massachusetts lawmakers are disbursing tax rebate payments to eligible taxpayers. The rebate amounts to 14% of their 2021 tax liability, with certain offsets taken into account. Residents and non-resident filers who filed a 2021 state tax return on or before September 15, 2023, will be eligible for the refund. The refunds started being issued in mid-December, with the timeline varying based on the date of filing.
13. Minnesota: $488 Payments for Frontline Workers
Frontline workers in Minnesota received a one-time payment of $488 in October. These payments were made to eligible workers who worked at least 120 hours in Minnesota between March 15, 2020, and June 30, 2021, and were not eligible for remote work. The application period for these payments has closed.
14. New Jersey: $500 Rebate Checks
New Jersey approved a budget measure to send one-time rebate checks of up to $500 to nearly a million families. The state also sent payments to those who file taxes using a taxpayer identification number, including nonresident and resident aliens. The Excluded New Jerseyans Fund applied to nonresident and resident aliens, their spouses, and dependents. The application period for this fund has ended.
15. New Mexico: $500 Rebates
New Mexico provided relief payments of at least $400 to low-income residents. In addition, all taxpayers received a refundable income tax rebate of $500 for single filers and $1,000 for joint filers, split into two equal payments. Low-income relief payments were distributed based on a limited budget allotment, while the income tax rebates were sent automatically to taxpayers who filed a 2021 state return.
16. Oregon: Direct Payments of $600
Oregon provided one-time $600 payments to low-income residents who received the earned income tax credit on their 2020 state tax return. These payments were made possible through federal pandemic aid and were distributed via direct deposit or mailed check.
17. Rhode Island: $250 Rebate per Child
Rhode Island is sending one-time payments of $250 per child to eligible households. Up to three dependent children can receive a payment, with income eligibility criteria. Child Tax Rebate checks began distribution in October, with taxpayers who filed their state tax returns on extension receiving their rebates starting in December.
18. South Carolina: Rebate Checks of up to $800
South Carolina approved a tax rebate plan that will provide one-time payments to residents, with a maximum rebate of $800. The Department of Revenue offers instructions for calculating individual rebate amounts, and rebates will be distributed before the end of the year. Taxpayers who file extensions by the disaster relief deadline of February 15, 2023, will receive their rebates in March.
19. Virginia: $250 Rebates
Virginia approved a one-time tax rebate of $250 for eligible taxpayers. Those who filed their income taxes by October 17 can expect to receive their rebate by the end of the year, while those who filed during the disaster extension period won’t receive their rebate until March 2023. The rebates will be deposited into the same bank account for those who received a refund via direct deposit, while others will receive a check in the mail.
These state stimulus and rebate check programs aim to provide some relief to taxpayers during these challenging economic times. While they may not fully address the impact of rising inflation, they do provide some assistance for specific sectors and groups. If you reside in one of the participating states, make sure to stay informed about the eligibility criteria and distribution timelines.
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