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Friday, January 27, 2023

Stimulus Check Form States: Are Your States Still Sending Out Inflation Relief For Residents?

The federal stimulus checks ended with the third economic impact payment signed under the American Rescue Plan Act. It was signed by then-incoming President Joe Biden in March 2021 and provided all-around relief for millions of American individuals and families, especially in the low and moderate-income categories.

All forms of federal stimulus checks ended at the end of 2021, and no fresh schemes were announced in 2022 by the federal administration. The only payments that citizens received were pending benefits under the expanded Child Tax Credit stimulus check and other economic impact payments. The intransigence of the Republicans put an end to all schemes, including the expanded CTC stimulus checks.

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But states stepped in immediately and used funds from the Rescue Plan that were allotted to states and also budget surplus funds to support residents. 21 out of the 50 states have sent out various measures of support to residents that include tax rebates, direct bank deposits, paper checks, debit cards, and sales tax waivers for several products, including gasoline, for a fixed period.

Stimulus Check
Stimulus Check

The state stimulus checks began in the first quarter of 2022 and have continued into the festive season this year. while states such as Maine and New Mexico sent out stimulus checks earlier, California, Colorado, and some other states have fixed upon the holiday season to support their residents with various inflation relief measures.

Close To 10 Million People Also Missed Out On Federal Stimulus Checks

There are also federal stimulus checks forthcoming for citizens who have missed out on the third stimulus checks, the Child Tax Credit payments, and other federal relief measures in 2021.

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This omission was caused mainly because these people were not on the list of individuals and families recorded in the data with the Internal Revenue Service, which was responsible for all the federal payments covering the three economic impact payments and other relief measures linked to the pandemic.

Throughout the pandemic period and the post-pandemic months, the IRS and the Treasury Department were hard put to send COVID-19 relief payments to individuals and families, especially those who were not taxed filers as they had lower income and did not need to file returns regularly.

People with a limited internet connection or who were homeless, a substantial number, also missed out on federal payments throughout the pandemic period and later.

But based on data gleaned from other sources, the IRS has deduced that there could still be close to 10 million individuals who were eligible for the payments but missed out for some of the reasons mentioned above. People missed out for other reasons too, including the misconception that only taxpayers were entitled to the benefits.

But the IRS moved to set right the gaps and sent out letters to such individuals who were not in the records of the IRS. There were mailed letters to submit a simplified tax return and collect their federal payments. Such payments are substantial, with families standing to gain close to $10,000 in many cases.

The outreach efforts of the IRS and the Treasury reached out to people who failed to receive the payments and included individuals and families who had never filed a federal or state income tax return or were filing it for the first time.

Some people did not have access to a bank account. People with mixed immigrant status also missed out on their payments, as also people with limited access to the internet. The homeless made up a substantial number of people who were left out of the federal benefits linked to the COVID-19 pandemic.

Such individuals and families who qualified for the federal payments but missed out for various reasons in 2020  and 2021 were required to file simple income tax returns at ChildTaxCredit.gov and stake their claim.

State Stimulus Checks Continue Into Festive Season In 2022

Every resident of Colorado above the age of eighteen years is set to receive a stimulus check of up to $1,500 by January 2023. Residents who have filed their income tax returns for Colorado state before the end of June 2022 will receive a Colorado Cash Back, also known as the TABOR (Taxpayer Bill of Rights) refund check that will bring in $750 for individuals and double that amount for married couples who file jointly.

tax return
Stimulus Checks

The funds are being sent under a state law that states that Colorado cannot spend more taxpayer money than it generates. The Colorado Cash Back (Senate Bill 22-233) was signed by Democratic Governor Jared Polis in the summer for early disposal of the payments. But residents who filed for the October 17 extension had their payments pushed into the festive season and are set to receive their payments well into January next year.

Dave Young, the Treasurer of Colorado assured people that the stimulus checks of those who filed for an extension will arrive soon even though they may get delayed. Colorado is facing trouble printing such a huge volume of stimulus checks and cannot keep up with the required figures, hence the delay. Young informed that around 250,000 stimulus checks are getting printed every day. He requested people to be patient.

Residents who have filed their returns have to ensure that they have entered the current and right address on the record of the department, as the stimulus checks will go out to the address entered by the taxpayer. Residents who want to update their address can do so by logging into the website or creating an account on Revenue Online, or by submitting a completed address in Address Change Form (DR 1102).

The California Middle-Class tax rebate is being sent through debit cards and mailed to the residents who have filed their 2020 California state income tax returns by October 15, 2021. Filers should have an individual AGI below $250,000 or a joint AGI of less than $500,000 for 2020.

The stimulus check amount is between $200 and $1,050 and is linked to the AGI for 2020, the filing status of the taxpayers (single or joint filers), and the inclusion of dependents in the 2020 state income tax returns.

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