New Mexico Among States Repeating Inflation Relief Stimulus Checks In 2023: Will Universal Basic Income Become A Reality In America

0
130
stimulus check

Even when inflation squeezed Americans in 2022, around 20 states moved in and sent out inflation relief checks and tax rebates in 2022. But with record inflation, the one-off payments have not been able to provide the amount of relief that Americans need at this moment.  

Even as consumers nationwide feel squeezed by rising prices due to inflation, over twenty states moved in with various forms of support including tax rebates, tax relief, stimulus checks, and preloaded debit cards. 

The 2022 stimulus checks given by the New Mexico government were through two tax rebates that were spaced over three months in 2022. The final round of the 2022 inflation relief payments was sent out in August last year. 

Stephanie S. Clarke, the revenue and taxation secretary, had said that New Mexicans desperately needed the money. She also said that the administration was working quickly to get these rebates and relief payments into their hands. 

By August 15, around 2.4 million rebates have been issued to residents of the state. And for those who did not receive the stimulus check, the state gave them ample time.  

The New Mexico tax rebates given for inflation relief were the result of 2 distinct pieces of legislation. One was passed during the regular session of the New Mexican legislature and the second was approved at a special session. Combined they provided up to $1,500 to eligible filers. 

The payment proved crucial for the people as the pandemic was followed in quick succession by the record hike in prices that set inflation at the highest level in over 4 decades.

The executive director of Voices for Children of New Mexico, Amber Wallin, said that the relief was crucial, to begin with. She had said that the money helped the weaker section of society. Women, households with children members, and Blacks and Hispanics were particularly affected by the relentless economic challenges; first with the pandemic and later as rising prices decimated whatever it touched.

The 2022 New Mexico Tax Rebate in July went out to files who had filed their New Mexico tax return for 2021 and complied with several guidelines. 

Married couples filing jointly received $500.  While heads of household and surviving spouses with an adjusted gross income (AGI) of $150,000 maximum. For single filers, the stimulus check came to $250. The same amount went to married couples who filed their income tax returns separately and had a gross adjusted income AGI) of up to $75,000.

The rebates in July 2022 were just one of the three payments that New Mexico taxpayers received that year. Residents received the second rebate in two parts. While the first part was sent in May and June, the second installment went out in August. 

The second round of New Mexico rebates did not have income restrictions attached to it and were issued in the following manner.

$1.000 went to married couples who filed jointly. The same amount was received by surviving spouses, and heads of household. They received two equal payments of $00 in June and August. 

Individual filers and married couples filing separately received $500 and this amount was distributed as two stimulus checks of $250 each and was paid in June and August. 

Claiming The New Mexico Tax Rebate 

The residents of New Mexico did not have to make any application or do anything else other than file their income tax returns for 2021. The Revenue and taxation department of the state sent out the stimulus checks ordinarily based on the income tax return they had submitted for 2021.

Taxpayers who provided bank or financial institution details when they filed their income tax returns for 2021 automatically received their stimulus checks for 2022 from the New Mexican authorities. Others received their New Mexico stimulus checks for 2022 as a paper check sent through the US Postal Service. 

The tax rebates went out to filers even if they had filed their New Mexico state income tax returns with an Individual Tax Identification Number (ITIN) or with a Social Security number. This was a great move as it helped the authorities send out payments even to the sizable immigrant population of New Mexico. Those who filed their income tax returns with an ITIN did not have to furnish immigration documentation. 

The way New Mexico structured the second round of stimulus checks made it possible to send out the stimulus check to the largest number of the immigrant population. 

Non-Filers Stimulus Check

The southern state even set aside $20 million as economic relief payment for that section of residents whose income was too low for them to file any income tax returns

But in this case, the payments were available on a first-come, first-served basis and went out to low and moderate-income households whose low income permitted them not to file their income tax return for the state. 

Married couples and single filers with dependents received $1,000 while single individuals without dependents received $500.

Wallin considers the Move by the New Mexican authorities as one of the most creative solutions undertaken by a state, and she said that the money would go to folks who needed it the most. 

The application for the economic relief stimulus checks was closed and the $20 million earmarked for this proposal was spent. But residents of New Mexico can still claim their tax rebate stimulus check if they file their New Mexico stimulus check for 2021 on or before May 31 this year. 

For those who did not receive their stimulus check despite filing their 2021 state income tax returns. They can also call the Dept of Revenue and Taxation at 1-66-285-2996.

Further relief for New Mexico residents came in the form of a refundable child tax credit stimulus check of up to $175 for each child. There was also an income tax exemption for five years for retirees from the armed forces. 

Other additional benefits included the exemption of most Social Security income from state income tax, a reduction in the gross receipts tax rate levied by New Mexico to 5%, and a one-off refundable income tax stimulus check of $1,000 for full-time hospital nurses in 2022.