3.3 C
Monday, February 6, 2023

State Stimulus Checks Keep Coming In 2023: Here Are States That Are Continuing With Inflation Relief Payments

The American economy was severely affected economically by the COVID-19 pandemic. It was the timely intervention of the federal government that saved Americans. They were saved from facing the full-frontal fury of an economy that had totally shut down for months.

The American government immediately implemented a series of packages to support individuals and also made separate arrangements to save the business and other bodies. The federal stimulus checks continued in some form or another and lasted through 2021.

- Advertisement -

Federal payments continue to trickle in for those who have not collected any or all of the stimulus checks issued in 2021. This included the American Rescue Plan Act’s third stimulus check, the expanded Child Tax Credit stimulus checks, and the Expanded Income Tax Credit.

Although the federal stimulus checks have run out long since, close to 10 million individuals and households are still owed payments from 2021. This includes the third stimulus check. The federal government has prevailed upon the IRS to reach out to such individuals through personal letters and invite them to collect their payments. This is being done through a simple tool that allows them to file their first income tax return.

Letters From IRS Reach Over 9 Million Households For Stimulus Check

The sole purpose is to ensure that non-filers get to file their income tax returns for the first time and collect the pending stimulus checks. Over 9 million letters have been sent by the IRS to households that may qualify for unclaimed stimulus checks. The tax authorities did not have the records of these individuals and families but gleaned their data from other sources.

Stimulus check
stimulus check
- Advertisement -

Millions of Americans do not earn enough within the ambit of income tax returns. Their earnings are too low for them to file an income tax return. Thus, citizens who earned the least and deserved the stimulus checks the most were denied multiple rounds of federal stimulus checks. This happened because there was no record of their existence with the IRS, though they are American citizens.

Secondly, such individuals and families are wary of linking up with the tax authorities. They are under a false conception that filing entails paying taxes. As a result, many low-income families are willing to forgo the federal stimulus checks if it means entering the record of the tax authorities.

The IRS has also reached out to help those experiencing homelessness during the pandemic. it reminded people who do not have a permanent address or even a bank account that they still qualified for the Economic Impact Payments and other tax benefits linked with the pandemic and the economic recession that it led to.

While the stimulus checks went out automatically to most households, the IRS could not send out payments to many eligible Americans. The relevant information was not available to the tax agency.

To help the homeless, the rural poor, and the chronically underserved individuals and families, the IRS reached out to employers, community groups, and others. This enabled them to share information about the Economic Impact Payments, and also gather as much data about such households.

The IRS continues to cooperate directly with groups both inside and outside the tax community. This is to gather information directly from people experiencing homelessness and other groups to help them receive the payments.

State Stimulus Checks Continue Into 2023 Even As Irs Reaches Out To Millions

Even as the federal payments ground to a halt in 2022, close to 20 states sent out stimulus checks. This was sent as inflation relief as residents across American states battled against rising prices that were relentless across the whole of 2022.

While most state stimulus checks were sent out to residents in the first and second quarters of 2022, a few states have timed their payments for the last quarter. The stimulus checks continue to be paid well into the festive season.

To counter the federal inactivity in the line of stimulus checks, several states continue to send out financial relief to their residents. And the trend is expected to continue into 2023.

California is among the states that timed their stimulus checks for the last quarter. The Golden State decided on the payment in June and the order was signed by Democrat Governor Gavin Newsom that month.

Stimulus Check
Stimulus Check

The state had initially decided on a gas debit card worth $400 for each of the vehicles registered in the state. Families were to get a maximum of two cards each. But Democrat legislators in the state prevailed upon the Governor to change to a direct stimulus payment on the lines of the earlier two rounds of the Golden State Stimulus Checks.

The state initiated a Middle-Class Tax Rebate of up to $1,050 in 2022 with payments linked to the Adjusted Gross Income of the California income tax return for 2020 that were filed before October 15, 2021.

Individual filers with a 2020 AGI of up to $250,000 and married couples filing jointly and with an AGI of 2020 of up to $500,000 are eligible for the tax rebate payments.

Residents of Colorado who filed their state income tax returns for 2021 on time received a stimulus check of $750 for individuals, and double the amount for joint filers. Filers who applied for an extension and filed their income tax return by the October 17 deadline are still awaiting their payments and it is expected to drag on till the end of January 2023.

Idaho approved a rebate in the 2022 special session that will go out by the end of the first quarter of 2023. The rebate amount is greater than 10% of the income tax liability for 2020, or $300 for single filers and double that amount for joint filers. The Tax Commission of Idaho has anticipated that around 800,000 stimulus checks will be sent out for a total bill to the state of around $500 million.

New Jersey has declared a $2 billion property tax rebate that will benefit two million of the state residents. The amount of the rebate stimulus check is linked to income. Homeowners with an AGI of up to $150,000 will qualify for a $1,500 rebate and that earning between $150,000 and $250,000 will get a $1,000 rebate.

- Advertisement -

Follow Us


Latest news