It is three years since the pandemic struck America and people continue to be affected by the economic upheaval that it unleashed. The support initiated by the federal government immediately after continued for the whole of 2020 and 2021. But the stimulus checks dried up in 2022, and it was up to the states to continue with some form of support, But it was never as comprehensive as the federal payments and rebates.
2022 was an economic disaster for low and middle-class Americans as inflation reached historic levels. And with the relentless rise in prices, particularly of staple goods, several government institutions initiated stimulus checks and tax refunds. This provided relief for low and moderate-income citizens. Although the inflation rate is down in recent months, the situation is grim enough to warrant continuing support.
Support Continues As State Stimulus Checks Spill Over Into 2023
In California, the Middle-Class Tax Rebate goes out to a handful of Californians who are yet to get it. The inflation relief stimulus check initiated by Governor Gavin Newsom was passed by the state legislature in June last year. But the payment started only in the last quarter of 2022 in line with the holiday season.
The bulk of the state stimulus checks, the third by the Golden State following the pandemic, was paid before the end of the year. The initial payments to residents who filed their returns online went through direct bank deposits.
The second part of the payments to residents who physically filed their returns on paper was sent by debit cards through the US Postal Service. The state will send out the stimulus checks to around 26 million of its 40 million residents.
Residents of Hawaii with an Adjusted Gross Income of less than $100,000 in the 2021 tax year, or less than double that amount if they filed jointly, received a one-off stimulus check of $300 in the form of a tax refund. Individuals with an AGI of over $100,000 and couples earning over $200,000 qualified for a stimulus check of only $100.
The direct transfer to accounts started in August 2022. But taxpayers who filed their income tax returns for the state for 2021 between July 31 and December 31, 2022, will receive a direct deposit that could be up to 10 weeks after the income tax department accepts their return. It could go up to 12 weeks if the filer requests a physical check.
Idaho Governor Brad Little authorized a $600 tax refund. The payments were started in September 2022 but have continued into the first quarter of this year as more residents file their income tax returns and become eligible for tax refunds.
Idaho is giving eligible taxpayers two rebates in 2022, one of the few states to do so. The 2022 Special Sessions rebate was passed by the state Legislature on September 1, 2022, and was signed by the Governor. House Bill One authorized a tax rebate to residents of Idaho who have been so for a full year for which the stimulus check was paid.
House Bill 436 was signed on February 4 of the same year by Governor Little and provided tax rebates to residents of Idaho who have been one for the full year of 2021.
The amount for each of the stimulus checks is different. But the process of application and the qualifications to get them were the same. The amount of the stimulus check was based on the most recent and approved income tax details for 2020 that were used at the time of the issue of the rebates.
The amount of the Special Session rebate for 2022 was based on the greater of the two. It was either $300 for individual income taxpayers and included filing status of Single filers, Heads of Household, Qualifying widows and widowers, and Married couples filing separately. For joint filers, the amount was doubled to $600.
Or it was 10% of the tax amount that was declared on line 20 of Form 40 or line 42 of Form 43 for eligible service members who applied on that form.
For the amount of the rebate for 2022, the greater of the two was chosen. It was either $75 for each taxpayer and their dependent. Or it was 12% of the tax amount that was declared on line 20 of Form 40 or line 42 of Form 43 for eligible service members who relied on that form.
The state administration sent emails about the rebate on behalf of Governor Little and the state legislature. The emails went out to residents who e-filed their returns for 2021, as the administration only has their mail addresses.
Any Idahoan was eligible for the tax rebates if they have been a full-year resident of the state in 2020 and 2021. They must also have filed a state individual income tax return or Form 24. Non-residents and part-year residents do not qualify for the Idaho state stimulus check.
An Idahoan is considered a full-year resident if they have a home in the state for the entire year and spends at least 270 days of the year is considered for the stimulus check. They can also be someone who has been domiciled in the state for the whole year.
Domiciled is the term used to indicate the place where a resident has a permanent home. It is also where they intend to return whenever they are away for work or other issues.
It should be the center of the filers’ business and personal life. If they are stationed in Idaho on active military duty they are considered a resident of the state where they are domiciled.
Residents who have filed their 2020 and 2021 state income tax returns by December 31, 2022, automatically qualify for the rebates. The state administration started processing the payments for the Special Session rebate for 2022 in late September. They were issued to eligible taxpayers in the order of the date on which they received the state income tax returns for 2021. The first to get the payments were filers who will receive the rebate through direct bank deposits. Then it will be the turn of filers who receive their amount by a paper stimulus check.