More than a dozen states are assisting residents with tax refunds, with inflation showing no sign of slowing down or posing a recession.
For example, up to 23 million Californians may receive a one-time inflation relief check starting in October. The middle-class tax refund, as Democratic Gov. Gavin Newsom referred to it, will give up to $1,050 to eligible families.
New Mexico has meanwhile sent out several rounds of tax incentives, beginning in May. More are expected this month and in August.
During the outbreak, the federal government conducted three rounds of stimulus checks. It is unlikely to send more, but were keeping an eye on the states that were paying out tax rebates and stimulus payments to residents.
For more on economic relief, check out plans for state-wide child tax credits, as well as gas rebate checks, andgas tax holidays across the United States.
California is the state of the art.
Millions of Californians will receive inflation relief checks as high as $1,050 from Newsom and state lawmakers by 2023, according to The Sacramento Bee. The checks, which come from California's $97 billion budget surplus, will be issued as direct deposits or debit cards by 2023.
The amount of income residents earn depends on their income, tax filing status, and household size.
Single taxpayers earning $250,000 or more and couples earning a combined $500,000 are not eligible for the payments.
Colorado is a state of the art.
State residents who filed their 2021 return by June 30 will receive a check for $750 by September, while joint filers will receive $1,500. Filers who received an extension and filed before the Oct. 17 deadline will receive their refund by January 31, 2023.
Delaware is a state in which the state of Delaware is located.
In April, Governor John Carney approved a measure to provide $300 stimulus checks to residents who filed their 2020 tax returns. If you filed jointly, each person receives one of the payments, which started out in May.
Georgia is on the verge of becoming a tourist destination.
Gov. Brian Kemp signed a bill in March that allows rebates to taxpayers who have filed their state returns for both 2020 and 2021. Single taxpayers can receive $250, while married couples can earn $375.
A smaller discount may be available for partial-year residents or individuals who owe income tax, delinquent child support, or other payments. More information is available on the Georgia Department of Revenue's website.
Hawaii is a state of the art.
Residents who earned less than $100,000 in 2021 will also receive a $300 tax discount this year, as will dependents. Individuals who earned more than $100,000 and couples who earned more than $200,000 will earn a $100 tax benefit.
Payments may begin processing in late August, according to the state Department of Taxation.
Idaho is a state of the United States.
In February, Gov. Brad Little signed a measure that would pay $75 for every taxpayer and dependent, or 12% of their state income tax return for 2020.
In March, checks began shipping, but you may check the status of your rebate online.
Illinois is a state of the union.
Illinois' estimated $1.83 billion budget relief package took effect on July 1 and includes income and property tax reductions as well as a temporary reduction in several sales taxes.
Individuals who earned less than $200,000 in 2021 will receive a $50 income tax rebate, while couples who file jointly with incomes under $400,000 will earn $100. Filers may also earn $100 per dependent they claimed on their 2021 taxes, up to three dependents. A family of five might earn as much as $400.
The Democratic Gov. J.B. Pritzkers' Family Relief Plan also includes several tax holidays and rebates, including:
- A suspension of the states 1% sales tax on groceries from July 1, 2022, through June 30, 2023.
- Sales taxes for qualified clothing and school supplies will be reduced from 6.25% to 1.25% from Aug. 5 to 14.
- A permanent expansion of the earned income credit from 18% to 20% of the federal credit.
- Property tax rebates for homeowners earning less than $250,000 or $500,000 if filing jointly will be available in an amount equal to the property tax credit they qualified for on their 2021 Illinois returns, up to $300.
Indiana is a state that has a strong economy.
As a result of Indiana's automatic taxpayer refund legislation, payments of $125 started going to all residents in May, but Gov. Eric Holcomb is urging legislators to send taxpayers an additional $225.
In a statement in June, the Indianapolis Star reported that Hoosiers have real needs right now, from the gas pump to buying groceries. Everyone should take advantage of the state's success.
Maine is a state of scholastic abundance.
Maine taxpayers who have an adjusted gross income of less than $100,000 and who have filed their state tax returns for 2021 are eligible for a $850 direct relief payment. Couples who file jointly will receive a single payment of $1,700.
Checks are expected to arrive before mid-July.
Minnesota is a state in the United States.
With applications accepted until July 22, some Minnesota frontline workers will receive a one-time payment of $750.
Gov. Tim Walz has called for a special session of the legislature to pass a $1,000 individual income tax rebate for individuals who earn less than $165,000 and $2,000 couples who earn less than $275,000.
New Jersey has a tax discount.
Gov. Phil Murphy has already signed on to a $500 tax credit to more than 1 million people in New Jersey. He has also supported tax cuts to taxpayers who use a taxpayer identification number instead of a Social Security number, which would include nonresident and resident aliens and their families.
Murphy announced a strategy to provide more than $2 billion in rebates to roughly 2 million New Jersey households in June. The proposal would provide as much as $1,500 to families who pay property taxes but also renters.
Check out New Mexico's rebate program.
In both May and June, The Land of Enchantment gave $500 rebate checks to state taxpayers, for a total of $500. Another rebate is scheduled for distribution in July, although it does come with certain limitations.
- Married couples filing joint returns, heads of household and surviving spouses with incomes under $150,000 are all eligible to receive a $500 income tax rebate.
- Single filers and married individuals who file separately, meanwhile, are eligible for a $250 rebate if they have incomes under $75,000.
Eligible taxpayers who have or will file their income taxes before May 1, 2023, will automatically receive rebates, either via direct deposit or paper check. A third and final round of payments will be distributed in August.
New Mexicans who do not file income tax returns may also receive economic relief, although the budget is limited to $20 million, and payments are distributed on a first-come, first-served basis. Married couples or single individuals with one or more dependents are eligible for $1,000, while individuals without dependents can receive $500.
A property tax discount in New York is available.
About 3 million New York homeowners received a property-tax rebate in June, with checks valued at$100 or more per household.
According to the New York State Department of Taxation and Finance, individuals who qualify will receive a check automatically by early July.
Virginia's tax discount
Virginians will receive $250 one-time checks, while married couples who file together will receive $500.
Could there be a second federal stimulus package?
Anything is possible, but analysts warn against relying on it, particularly since another cash injection might drive further inflation.
Michael Hayes, a professor of public policy at Rutgers University, told The Hill that there is no great solution to the inflation problem in general. Another round of stimulus checks, even if targeted to the lowest income group, would only provide short-term relief at the risk of mid-term/long-term difficulties.