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Monday, August 8, 2022

More States Go For Legislation To Give Residents Stimulus Checks Soon: Inflation Relief Payments Become A Reality For 3 More States

It has been over a year since the federal administration announced a stimulus check. The Economic Impact Payment under the American Rescue Plan Act was the most generous of the three rounds of payment and gave citizens a $1,400 stimulus check for every eligible person and their dependents.

But the record inflation has made it more than necessary for the administration to intervene and this time it has been the states. Several states have already moved in to support their residents with inflation relief payments. But such payments are not always direct transfers to beneficiary accounts or a paper check in the mail.

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State stimulus checks have taken various forms that include tax rebates, waivers of sales taxes, gas and transit cards, and also direct stimulus checks through the mail or bank transfers.

These payments will support people who are having a truly difficult time and help them pay for their gasoline and other essential items, pay their rent, mortgage, and utilities, or just support them during this period of record inflation.

Over A Dozen States Have Already Initiated Legislation On The Inflation Stimulus Checks

Over a dozen states have already moved to legislate on the issues and some states have even secured the support of the opposition in the legislature.

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Residents of Maine are among the first states to begin receiving their stimulus checks to taxpayers who have filed their income tax returns for 2021. Individuals will be eligible for stimulus checks of $850 if their earnings are less than $100,000 as individuals and $150,000 as joint filers.

The Maine state stimulus checks started reaching residents in June and will continue to go out through December. People who are yet to file their returns have until October to file their returns. But residents have been advised to file their returns immediately to get their payments earlier.

Legislators in the state of New Jersey have approved a new child tax credit stimulus check that will send a $500 payment to low earners. This plan comes under the record $50.6B budget passed by the New Jersey legislature controlled by the Democrats and has already reached the desk of Governor Phil Murphy.

Sources close to him said that they expect him to sign the bill by Thursday, as revealed by the Associated Press.

The bill would lead to the creation of the New Jersey CTC stimulus check program and give refundable $500 credit for all children under 6 years and earning $30,000 or less a year.

The credit stimulus check would lose $10 for an increase of $1,000 in earnings till it touches the $80,000 mark, which is the maximum income for which a resident can get the credit payment. Families will receive a $300 minimum per child for households earning the maximum permissible per year.

The initiative by the New Jersey administration comes with a $156.3M price tag according to the Legislative Services office. Around 374,000 children below the age of 6 in 2022 will be eligible to claim the tax credit. Families of around 180,700 children can claim the full stimulus check of $500 while around $99,500 will get the minimum $300 payment.

The budget has also made provisions for a homeowner property tax credit. A direct relief of $1,500 will go out to around 870,000 families earning $150,000 or less. Further, a $1,000 payment will go out to families earning between $150,000 and $250,000.

Renters have also been included in the generous scheme with those earning $150,000 getting the assistance of $450.

Senator Paul Sarlo, the Chairman of the Budget Committee said that the provision of the budget will make the lives of many New Jersey residents more affordable as renters and homeowners will get extensive relief in property tax.

Republicans in the state have been critical of the legislative measures as the CTC stimulus check does not cover children over six. They have also pointed out that families would not get the benefit before the 2024 tax season.

The Democrats in the Senate are also reportedly close to signing another bill that would a penalty known as the inflation rebate on big pharma. The ruling Democrats have pushed to lower the cost of prescription drugs and have finalized a deal on the matter.

Sources say that certain requirements in the proposed bill would permit Medicare to deal directly with drug manufacturers to lower the cost to consumers and also cap the cost incurred by Medicare patients to $2,000.

The bill also proposes to impose the inflation rebate rule on drug companies so that they are forced to pay back to consumers when prices move above inflation.

New Mexico To Start Giving Fresh Stimulus Checks Of Up To $500

New Mexicans are set to start receiving a state stimulus check as the state moves in to save residents from the record inflation that has affected prices around the world.

Governor Michelle L. Grisham and the state legislature have approved rebates and economic relief measures as revealed by the tax and revenue department of New Mexico. While state residents received stimulus checks in the last two months. But the present stimulus checks will be subject to certain limits on income. 

Married couples who file jointly, surviving spouses, and household heads will receive a $500 rebate this month if their income is $150,000 or below. Individual filers will receive a $250 stimulus check if their income is $75,000 or less.

Residents who have filed their 2021 returns before will automatically receive the rebates. They have until May 31 of next year to get the payments. The payments will come either through direct deposits or a paper check delivered by the US Postal Dept.

The New Mexican legislature has approved $20M to be distributed to state residents who do not have to file their returns. While families will get a $1,000 stimulus check, individuals without dependents will get $500.

The state is accepting applications for such relief checks from May 2 and will close once the $20M fund runs out. While the date for application ended on May 31, residents who filed for the payment will receive the payments either through direct deposits or paper checks by the end of July 2022.

Gov. Grisham said that the state Treasury would be returning hundreds of millions in relief to families in the state. The tax department of the state has put out a questionnaire for residents about the relief payments and tax rebates for people wishing to learn more.

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