Will There Be a 4th Stimulus Check? Approved State Rebate Programs

Since the federal government seems unlikely to act swiftly to counteract the unprecedented inflation rate, several states are taking matters into their own hands. Payments to taxpayers are being issued or have been sent by 17 states.

These grants are much more focused than earlier pandemic relief programs, and most offer significantly lower financial amounts. But that’s not because governments suddenly turned cheap. Instead, the goal is to mitigate the effects of inflation on the American people so that they can better withstand the storm of rising prices.

According to Andrew Patterson, senior international economist at Vanguard, “plans focused on specific sectors or groups, such as gas cards or disbursements based on income thresholds, could in theory help ease the pain caused by prices of specific goods or services without putting as much pressure on prices more broadly.”

To help citizens cope with rising costs, the federal and state governments have proposed the following measures.

Approved State Stimulus and Rebate Checks Programs

Seventeen states have passed bills to begin distributing tax refunds to citizens. Look at how those installments are progressing:

California: Up to $1,050 Rebate

A new budget in California would provide $700 in tax rebates to married couples making less than $150,000 per year. Those with incomes below the threshold will receive $350 in tax relief. If a family qualifies and has a child under the age of 18, each member of the household will get an additional $350.

Benefits are phased in, with a maximum payment of $250, for filers with incomes of $75,000 or more. A household can receive an additional $250 if it has a child or spouse who meets the requirements.

Payments to California residents are scheduled to be sent via direct deposit or debit card beginning in October 2022 and continuing until January 2023.

Colorado: $750 Rebate Payments

This summer, Colorado residents who filed as single or married filing jointly will receive $750 and $1,500 tax rebates, respectively. This payment is available to Colorado residents who were 18 or older during the entire 2021 tax year and who submitted a Colorado state income tax return.

In an effort to cut down on fraud, we will only be sending out actual paper checks. Those who submitted their tax returns by the June 30 deadline will receive their refunds by the September 30 deadline, while those who requested an extension will receive theirs by the January 31 deadline, 2023.

Delaware: $300 Rebate Payments

The state of Delaware began delivering “relief rebate” payments of $300 to residents in May. These payments are for residents who filed their 2020 state tax forms. A excess in financial resources makes this one-time payment possible. If a married couple files jointly, each member of the couple will receive $300.

Most eligible citizens of Delaware received their payments in the month of May. For those who haven’t submitted their 2020 state tax return yet, the instructions on how to receive the rebate have not been made public. The deadline for receiving instructions has been set for October 17.

Florida: $450 Payments

With the help of the Department of Children and Families’ Hope Florida—A Pathway to Prosperity program, some families in the Sunshine State will receive a lump sum of $450 per kid.

Foster parents, other relatives, and non-relative caregivers of children, as well as participants in the state Guardian Assistance Program and TANF recipient households, are all eligible to receive this benefit. The cash come from a pot set aside for those receiving TANF benefits as part of the global response to the pandemic.

You won’t need to take any action; if you qualify, you’ll receive a check in the mail with your payment. Postal mailings were scheduled to arrive on or before July 25, the start of the state’s back-to-school tax holiday.

According to the Tallahassee Democrat, a letter that came with the check said, “The State of Florida is giving you $450 for each child in your care to help cover the costs of rising inflation, especially since a new school year is coming up.”

Georgia: $250 Rebate Payments

Residents of Georgia who filed tax returns in both 2020 and 2021 will receive rebates based on their filing status thanks to the state’s historic budget surplus.

  • Maximum of $250 for those filing as single.
  • Maximum of $375 for the household head
  • Joint tax returns: $500 cap for married couples

Your rebate amount may be reduced if you have outstanding state debt, such as unpaid child support or income tax. Also eligible for a reduced rebate are people who have only lived in the state for a portion of a year.

If you filed your taxes before the bill was signed by Governor Brian Kemp, you would receive a check in the mail. All rebates claimed by April 18 were anticipated to be dispersed by the state by the beginning of August. The Georgia Department of Revenue is the place to go for answers to tax-related questions for state residents.

Hawaii: $300 Rebate Payments

Gov. David Ige suggested a statewide tax rebate in January. Those with an annual income of less than $100,000 would get $300, while those with an annual income of more than $100,000 would get $100. Members of your immediate family may also receive the discount.

Returns for 2021 state income taxes submitted by July 31, 2022, will be mailed in September or October. Payment may take as much as 12 weeks to process after a 2021 tax return has been filed by a resident between August 1 and December 31.

Idaho: $75 Rebate Payments

The state of Idaho’s residents will get $350 million in tax rebates thanks to a bill approved by Governor Brad Little in February. A candidate must satisfy both of the following conditions to be considered:

Full-time residency in Idaho and filed tax returns for 2020 and 2021, OR Full-time residency in Idaho and filed grocery-credit refund returns.

The first installment was due in March. One hundred and fifty dollars ($75) or twelve percent of your Idaho state taxes due in 2020 (whichever is larger) will be distributed to each citizen (check Form 40, line 20 for your tax amount reported). Each taxpayer and each of their dependents is eligible for the rebate.

Taxpayers who opted for direct deposit will have their rebates issued first, followed by those who requested physical checks. Online rebate status checking is also available to state residents.

Illinois: $50 Rebates

Gov. JB Pritzker of Illinois included tax rebate payments in the state budget back in April. Residents with annual incomes of less than $200,000 ($400,000 for a married couple filing jointly) are eligible for rebates. You’ll get $50, and if you have a qualifying family member, they’ll get $100 more (up to three kids per family).

The Illinois Department of Revenue estimates that refunds will begin to be distributed the week of September 12 and take “several months” to release in full.

Indiana: $325 Rebate Payments

Like Georgia, Indiana finds itself with a significant budget surplus at the end of 2021 and has authorized two rebates to its inhabitants. Indiana residents can get a one-time tax refund of $125 after filing their 2021 returns, as stated by Governor Eric Holcomb in December 2021.

There is zero monetary qualification. To be eligible, residents must have submitted their state income tax returns for both 2020 and 2021 to the state of Indiana by the respective deadlines (January 3, 2022 and April 18, 2022, respectively). According to a state resource page, payments began in May and are scheduled to last until around the middle of the summer.

Taxpayers who file jointly will get a single deposit of $250. In August, lawmakers authorized a second tax rebate, this one worth $200 more to each taxpayer. Most refunds will be issued via direct deposit, and the second installment of payments will begin to be dispersed in late August. Paper checks are issued if direct deposit information is out of date or if you have recently switched banks.

Several months were lost due to a printing delay, but mailings are expected to start around mid-August. Both rebates, totaling $325 per taxpayer, will be paid out in a single check at that time.

Distribution of printed checks is expected to take place through early October. The state is also expected to release information on how to claim your rebate if you did not file your 2021 tax return by the April deadline.

Please check the state’s Department of Revenue website for further details.

Maine: $850 Direct Relief Payments

To provide $850 in direct relief payments to Maine residents, Governor Janet Mills authorized a supplemental budget on April 20.

Permanent citizens or legal residents with an AGI under $100,000 ($150,000 for single filers or $200,000 for married filers) qualify. For married couples filing jointly, the $1,700 relief amount will be split between the two taxpayers.

The payment is made to taxpayers regardless of whether or not they owe state income tax. Residents who did not submit a 2021 state tax return have until October 31 to do so and receive their refund.

These one-time payments, made possible by the state’s surplus, began being mailed out in June to the address listed on your Maine income tax return for the year 2021.

Earned income tax credit (EITC) users in Maine will receive a larger payout according to the supplementary budget.

Minnesota: $750 Payments for Frontline Workers

In early May, Gov. Tim Walz signed a bill that will provide some frontline workers with a one-time payment of $750. Eligible workers must have worked at least 120 hours in Minnesota between March 15, 2020 and June 30, 2021, and were not eligible for remote employment.

Between December 2019 and January 2022, employees whose primary responsibility is the care of Covid-19 patients must earn less than $175,000 per year, while those whose primary responsibility is not patient care must earn less than $85,000 per year. We are no longer accepting applications for this subsidy.

Gov. Walz recently proposed giving every resident of Minnesota a $1,000 tax refund cheque, funded by the state’s $7 billion budget surplus. That needs to be addressed by the state legislature.

New Jersey: $500 Rebate Checks

In fall 2021, Gov. Phil Murphy and the New Jersey state legislature adopted budget measures to send one-time rebate cheques of up to $500 to almost 1 million families.

New Jersey is now distributing $500 payouts to anyone who file taxes using a taxpayer identification number instead of a Social Security number. All foreign nationals, including permanent residents, are subject to the Excluded New Jerseyans Fund.

New Mexico: $500 Rebates

The state’s various rebates were authorized by a bill signed by Gov. Michelle Lujan Grisham in early March. A $250 rebate ($500 for joint filers) will be issued to taxpayers with annual incomes of $75,000 or less (or $150,000 or less, respectively). Taxpayers who filed a 2021 state return received their reimbursement in July.

A new tax rebate was distributed to all filers. People who filed as singles got $500 while couples got $1,000. There will be two installments of this rebate, one in June and the other in August of 2022. Those who submitted a 2021 state tax return received their refunds automatically. An individual taxpayer with a yearly income of less than $75,000 might obtain a maximum rebate of $750.

Those citizens who don’t file income tax returns should have gotten a refund check in the mail around the middle of July. They gave $500 to anyone living alone without any dependents, and $1,000 to couples or single adults with children living in their home.

Your reimbursement will be issued as a direct deposit or paper check if you file your 2021 state income tax return by May 31, 2023. If you have a tax liability from your 2021 return, it will be subtracted from your rebate.

Oregon: Direct Payments of $600

One-time payments of $600 were approved by the Oregon legislature in March 2022. One payment per household will be sent to taxpayers who claimed the earned income tax credit (EITC) on their Oregon state tax return for 2020 and who also lived in Oregon for the final six months of that year.

More than 236,000 households in the state were given money directly from the government thanks to federal pandemic help. Between June 23 and July 1, 2022, all payments were made via direct deposit or mailed cheque.

Concerned citizens can peruse a list of frequently asked questions (FAQs) posted on the Oregon Department of Revenue website.

Rhode Island: $250 Rebate per Child

Due to a surplus in the state’s budget, Rhode Island will send parents a one-time payment of $250 per child. Up to three children living in the same household are eligible for financial support. Your federal and state tax returns for 2021 will not be complete without including those kids as dependents.

If you make less than $100,000 per year as an individual taxpayer or $200,000 as a married couple, you may qualify for this payment. In October 2022, the government will send the child tax credit cheques automatically.

South Carolina: Rebate Checks of up to $800

In June, lawmakers adopted a budget that set aside $1 billion for a tax rebate that will provide certain filers a one-time payment of up to $700.

The date of October 17th is when the rebate amount will be calculated (the filing extension deadline for 2021). This means that everyone should receive their rebates before the end of the year. This rebate will be deposited into the same account from which you received your 2021 refund. Using the state Department of Revenue’s rebate news page, you can get a rough refund estimate.

Virginia: $250 Rebates

This past June, the Virginia General Assembly passed a one-time tax rebate. If you submit your income taxes by July 1, you should get your rebate no later than October 31. The Virginia Department of Revenue states that you must file your taxes by November 1st to receive the rebate.

This rebate of $250 per taxpayer ($500 per married couple filing jointly) will be deposited into the same bank account from which the original tax refund was issued. All other qualified taxpayers will receive a check in the mail.

Pending State Gas Rebate and Stimulus Programs

Five states have proposed bills to provide rebates on gas, direct stimulus check payments, grocery tax cuts, and income tax rebates to their inhabitants, but these measures have not yet been adopted by their state legislatures or signed into law.

Kentucky

As a result of the state’s financial excess, the Kentucky Senate passed a $1 billion rebate for taxpayers, but the bill has been stuck in the House of Representatives for quite some time. Individual Kentuckians who qualify might earn up to $500, with families receiving up to $1,000. The state legislature has finished its work for the year, so people should not expect any changes anytime soon.

Massachusetts

In July, Massachusetts legislators were contemplating an economic development plan that would have provided $1 billion in tax relief, distributed as $250 rebates to individual taxpayers.

In the absence of action on that proposal, residents will not learn until the fall whether or not state revenues have surpassed the allowed amount. If the amount exceeds the target, it will be returned to the people who paid for it. By the 20th of September, the state auditor’s office should have announced the amount of revenue that will be returned. About 7% of the income tax paid by residents of Massachusetts in 2021 could be returned to them. According to state authorities quoted by WBUR, this equates to a rebate of around $250 for someone with an annual income of $75,000.

Montana

Instead of waiting until the regularly planned session in January 2023 several Republican legislators in Montana have called for a special session of the state legislature to grant a rebate to residents.

They propose to give rebates to taxpayers, such as up to $1,000 for homeowners and up to $1,250 for those who paid state income tax, out of the predicted $1 billion surplus the state is expected to have. Residents of Montana in 2020 and 2021 would be eligible for the refunds.

It will be decided by mail ballot whether or not to call a special session of the legislature before the proposal can be discussed.

North Carolina

Some Democratic lawmakers in North Carolina want to give out tax rebates using the state’s $6.5 billion budget surplus. A plan currently before the legislature would provide residents (specifically, licensed drivers over the age of 18) $200 checks, but it has been greeted with opposition from state Senate Republicans who want to see long-term tax reduction rather than a one-time rebate.

Pennsylvania

There is now pending legislation in Pennsylvania that would directly assist roughly 250,000 people to help with costs like daycare and household expenses. A one-time payment of $2,000 is available to low-income households under Gov. Tom Wolf’s PA Opportunity Program.

The state’s surplus would be used to make the payments, although several Republicans in the state are concerned that this could increase prices.

$100 Per Month Federal Energy Rebate Payment

Three Democratic representatives from California, Connecticut, and Illinois introduced the Gas Rebate Act of 2022 in March. Their names are Mike Thompson (D), John Larson (D), and Lauren Underwood (D). Through the end of 2022, the act would provide qualifying taxpayers with a monthly payment of $100 in the form of an energy rebate.

Eligibility requirements for the new payments would be similar to those for the old stimulus checks. The full payment would be made to couples filing jointly with earnings up to $150,000 and to single filers with incomes up to $75,000, with phasing off at higher income levels.

Before any payments could be made, the bill would have to make its way through Congress. No committee has yet to address this.

Next Steps for State Stimulus Checks?

The gap between what people in the United States need and can afford hasn’t narrowed despite all the current legislative efforts. Some people are wary of sending out more payments, especially since it is thought that previous epidemic relief programs led to our current pace of inflation, even though gas rebates and stimulus checks help soften the sting of rising prices.

Some politicians, according to Jaime Peters, associate dean and assistant professor of finance at Maryville University in St. Louis, believe that “inflation-related stimulus payments will simply feed the beast” by flooding an already oversaturated market with even more cash. This is a problem for households struggling to make ends meet due to a lack of money.

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