If you’re one of the millions of Americans who received a federal income tax rebate in 2023, congratulations! You’re not alone: more than 150 million taxpayers will be getting money back from Uncle Sam next year. While there are plenty of people out there who might be unhappy about this—especially if they work for the government or a public utility—it’s no secret that many people like getting extra cash back at tax time. But what if you don’t live in one of those states? Should you still expect to receive a rebate? Let’s take a look at which states are sending out rebates this year and which ones aren’t.
The tax rebate of 2022 is a one-time payment to taxpayers who filed taxes in 2022, and it was sent out between April 1 and May 31, 2023. It was usually around $1,000 for the average taxpayer, but it varied based on income level and other factors.
Most states will continue sending this rebate next year. That includes California, Connecticut, Illinois, Iowa, Louisiana and New York. Some states are still undecided about whether or not they will continue sending rebates to their residents next year; these include Michigan and Minnesota.
Stimulus Check: What Rebates Are Still On?
Why do some states send out a rebate while others don’t? There are many reasons why a state might choose not to send out a refund after the initial wave of payouts in 2023: Most notably because they have already collected enough taxes (California) or because they want to force people into filing their taxes early (New York). It’s also possible that some states could change their mind between now and next year’s deadline—which is January 31st!
New York will send out a rebate in 2023. New York is one of the states that will continue to send out tax refunds next year.
New Yorkers, rejoice! Your state won’t be leaving you hanging for long, as NY will not only be sending out rebates this year but also continuing the practice into 2023.
As for Colorado, the state’s tax rebate program will continue to send refunds in 2023. The flat income tax rate of 4.63% is the lowest in the country, and it applies to most wage earners who earn less than $200,000 per year.
Colorado also has no state sales tax, but local governments can collect taxes on goods and services sold within their boundaries.
Washington State will be sending out tax rebates next year.
Washington residents can expect to receive $1,200 in the mail from the state starting in the first week of January. This is on top of what you’ll get back from your federal refund, if you’re eligible for one.
There are some exceptions: If you file jointly and make more than $52,000 per year or file as an individual and make more than $25,000 annually, you won’t be receiving a rebate next year.
You may be surprised to know that Texas is the second largest state in the United States with a population of over 27 million. This means that it has a large economy, budget and tax base. After seeing how much money was paid out by this state, I thought it would be good to find out if they’re going to continue sending out refunds next year.
The answer? Yes!
Even though we don’t know exactly how much money will go back into taxpayers accounts, we do know for sure that Texans will get their refund checks again next year.
Nebraska taxpayers will receive a tax rebate worth $500 in 2023. The money is meant to offset the federal income tax increases that occurred under the Tax Cuts and Jobs Act of 2017, which was passed by Congress and signed into law by President Donald Trump in December 2017.
How much should you expect?
Although there isn’t any official word yet on how much each state will receive, we expect most states will continue sending out rebates next year based on this past year’s amounts. This could change as these numbers won’t be officially released until later in 2020 or early 2021, but we’ll have an idea soon enough!