Fourth Stimulus Check For Americans? Here’s What To Expect
(UnitedHeadlines.com) – The IRS issued three economic impact payments, also called stimulus payments. The first, a $1200 payment, began in April 2020. The IRS issued a $600 allotment in December 2020 and January 2021, and taxpayers received $1400 starting in March 2021 as a third and final stimulus payment. Shortly after the third payment, inflation took hold of the economy and outpaced wage increases, causing many to question whether Congress might issue a fourth stimulus check this year.
Sadly, the answer is a clear “no” from Congress. Yet, that’s not stopping 11 states from contributing toward economic relief for their constituents to fight rising gas and grocery prices.
11 States Provide Relief
A list of 10 states appeared in a June 9 article by Forbes about states issuing tax relief and rebate checks, often due to budget surpluses. A June 24 article from Cal Matters detailed a California gas rebate program that Governor Gavin Newsom (D) and state legislators have negotiated. Details for all 11 states are listed below.
California: Up to $1050 per Family Gas Rebate
California politicians negotiated a graduated rebate based on income as follows:
If a household income is at or below $75,000 annually for individuals or $150,000 for couples filing jointly, each taxpayer will receive $350, and if they have at least one dependent, they will receive an additional $350. A two-parent family could see up to $1050, while a single parent would receive $700.
As household income goes up, the rebate award decreases. Individuals making up to $125,000 annually or $250,000 for couples filing jointly would receive a gas rebate of $250 per taxpayer plus another $250 for any dependents, and individuals making up to $250,000 annually or $500,000 for couples filing jointly would receive $200 per taxpayer plus another $200 for any dependents.
California has a $31 billion budget surplus. The gas rebate plan is forecast to cost $9.5 billion as part of an overall $12 billion relief plan.
Colorado: Up to $1500 Tax Rebate
Single taxpayers in Colorado can expect tax rebates of $750, while couples filing jointly will see a rebate of $1500 based on legislation Governor Jared Polis signed in May and numbers released in a statement on June 21. Every resident who filed 2021 taxes by June 30 can expect payment by September. Taxpayers who file by October 2022 via extension will receive their rebates in January 2023.
Delaware: Up to $600 Tax Rebate
In May, the state began sending $300 relief rebate payments to residents based on their 2020 tax returns. Most residents who filed taxes should have received their payments by June. Couples who filed jointly should each have received a check ($600 per family). Residents with questions should check the Delaware Department of Finance’s website for answers or check on the status of their rebate.
Georgia: Up to $500 Tax Rebate
After filing both 2020 and 2021 returns, taxpayers may receive rebates up to $250 for single filers, $375 for those filing as single heads of household, and $500 for married couples filing jointly. Historic budget surpluses allowed Governor Brian Kemp to authorize tax rebates and enact legislation. Even residents who only live in the state part of the year or those who owe arrears could see some money back. To find more answers or obtain more information, visit the Georgia Department of Revenue.
Hawaii: Up to $300 Constitutional Refund
Residents earning less than $100,000 annually will receive a $300 refund if they file their 2021 taxes before December 31, 2022. Taxpayers earning above the cap will receive a $100 refund.
Idaho: Up to 12% State Tax Rebate
This year, Idaho will issue more than 800,000 rebates worth about $350 million to residents. Governor Brad Little enacted legislation in February providing a $75 rebate or up to 12% of their state taxes, whichever is greater. Full-time residents who filed 2020 and 2021 tax returns and grocery-credit refund returns can expect a direct deposit into their accounts. For residents without direct deposit, the state will issue checks. Residents can monitor the status of their rebates.
Indiana: Up to $250 Tax Rebate
Residents filing their 2021 taxes individually will receive a one-time $125 tax rebate based on a budget. Married couples filing jointly will receive a single rebate of $250. The state will issue funds via direct deposit. If direct deposit isn’t possible, the state will issue checks later this summer. For more information, residents can visit the Indiana Department of Revenue website.
Maine: $850 Direct Relief Payment
Governor Janet Mills expects to send out more than 858,000 direct relief payments totaling more than $729 million to many of her citizens. Individuals making less than $100,000 or less than $150,000 as head of household are eligible to receive checks for $850. Couples filing jointly can make up to $200,000 and would receive a check totaling $1700.
Residents, even those who typically don’t file, have until October 31, 2022, to submit their 2021 taxes to qualify for the relief payments. The state will begin issuing payments in June. Maine also increased the amount it’s returning for 2021 to the state’s Earned Income Tax Credit recipients.
Minnesota: $750 First Responder and Front-line Workers Payment
Governor Tim Walz enacted legislation to pay some first responders and front-line workers a one-time $750 payment. Workers must apply for the Minnesota Front-line Worker Pay Program, and applications close on July 22.
While Walz has negotiated fiercely for a sizable tax rebate for his citizens, GOP lawmakers would prefer to make tax cuts permanent. The state currently has a $7 billion surplus.
New Jersey: Up to $1500 Property Tax Credit
On June 15, Governor Phil Murphy introduced a $2 billion tax relief program for 2023 that will affect over 2 million New Jersey families. The Affordable New Jersey Communities for Homeowners and Renters (ANCHOR) program proposes property tax relief as follows:
- Households making less than $150,000 annually would receive a $1500 tax credit per year on their property tax bills, affecting more than 870,000 homeowners
- Households making between $150,000 and $250,000 annually would receive $1000 in tax credit per year on their property bills, affecting more than 290,000 homeowners
- Renters making up to 150,000 annually would receive $450 in state tax credit per year to offset rent increases caused by rising property taxes
So, while residents won’t physically receive a check, they can look forward to tax rebates in 2023.
New Mexico: Up to $1500 Tax Rebates and Relief Payments
Governor Michelle Lujan Grisham enacted three programs to return money to New Mexico residents.
- A $500 tax rebate for married couples filing joint returns making less than $150,000 annually and a rebate of $250 for single filers making less than $75,000. Rebates will be sent automatically to qualifying taxpayers who have filed a 2021 return beginning in July 2022.
- The state will issue a $500 tax rebate for single filers or a $1,000 rebate for couples filing jointly and heads of households. The rebates will be sent automatically to taxpayers who have filed a 2021 return. No application is required. The state will issue two equal payments of $250 or $500 in June 2022 and August 2022.
- The state will issue relief payments of $1,000 for New Mexicans who don’t file income tax returns distributed on a first-come, first-serve basis. The state encourages residents to file taxes because they might be eligible for additional financial benefits. Applications for the relief payments will be available through the New Mexico Human Services Department at yes.state.nm.us beginning May 2, 2022. Payments will begin no later than July 3, 2022.
So, while Congress may not send out a fourth stimulus check, these 11 states are sharing the bounty. Are you in one of these generous states? Could your state be next?
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