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Saturday, February 4, 2023

Tracking The State Stimulus Checks For 2023: IRS Sends Out Letters For 2021 Pending Federal Payments

With most state inflation relief payments coming to an end, people are worried as inflation remains a hostile presence for low and moderate-income families and prices continue to remain at an all-time high. Most states that opted for supporting their residents have sent out their one-time stimulus checks to residents.

The only payments remaining from the 20-odd states are payments that were not paid to beneficiaries as they sought an extension for filing their returns. States such as California and Colorado continued to send out payments in December 2022 and the payments are expected to spill over into 2023.

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Illinois sent out two tax rebates in 2022. While one was an individual rebate against individual and joint income tax, the other was a property rebate. These one-off payments are at times referred to as the Illinois stimulus checks.

The state began sending out rebates of up to $700 at the end of the third quarter but the payment will drag on for months as it is taking time to process and send out the payments for an estimated recipient list that runs to around 6 million.

So residents who have qualified for a rebate but are yet to receive their money need to be patient and wait for their payments which could spill over in January 2023.

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The Illinois tax rebates are being sent out in two different ways. It depends on how a recipient received a tax refund earlier this year on their state income tax returns for 2021. Residents who have received a refund earlier will receive their present Illinois stimulus check in the same manner of payment. It could be either by direct bank transfers or a paper stimulus check sent out through the United States Postal Service.

If potential beneficiaries have not received a refund till now, then a paper rebate stimulus check will be sent to the address listed on their tax return. And the paper check will be delayed by around two weeks. so beneficiaries have to factor in around 15 days to the date that the stimulus checks are sent by the state administration.

Stimulus Check
Stimulus Check

Other states are also sending out refunds, rebates, pre-paid debate cards, and other forms of stimulus checks in 2022. This includes the biggest of them all, California, and other densely populated states including Virginia, and New York. And they too like Illinois continue to send out stimulus checks in December and, most likely, into 2023.

State Stimulus Checks Continue Into The New Year

Although the overwhelming majority of states have sent out their inflation relief stimulus checks by the third quarter of 2022, there are several that continue into the new year. while these payments are not as big as the federal pandemic relief stimulus checks sent out in 2020 and 2021, they can still be a vital source of extra support to individuals and families forced to deal with the record rate of inflation and other economic tribulations.

With the year winding down, most states have already sent out their one-time stimulus checks to residents. But a few of them have yet to complete their disbursal by the last quarter of 2022 while other states have timed their payment in line with the festive season and the payments will continue beyond into 2023.

This is expected to be particularly helpful for qualified recipients who have extra expenses to contend with in the festive season and during the holiday. Here is a look at some states who are sending out stimulus checks this festive season.

The biggest state stimulus checks were initiated by Governor Gavin Newsom of California. The Golden State Middle-Class Tax Rebate range from $200 to $1,050 and is being sent to eligible residents this year. the payments are based on several criteria including the Adjusted Gross Income of individual and joint filers who filed their state income tax returns for 2020 by October 15, 2021.

They must also not have an adjusted gross income for their 2020 state income tax return above $250,000 for individuals and double the amount for married couples filing jointly.

Potential beneficiaries must also not be claimed as a dependent on another filer’s income tax return for 2020 and should have been a resident of the Golden State for at least 6 months in the calculating year, which is 2020.

Stimulus Check
Stimulus Check

Millions of residents of California have already received the payments with 23 million of the 40 million residents qualifying for the middle-class tax rebate. But many payments are still under process. For instance, residents who have not received their Golden State Stimulus debit cards or are in line for one for the California stimulus payments can expect their payment to be in the mail by the end of December this year.

The payments could take another two weeks to reach them through the US postal service. Residents who are scheduled to receive their stimulus checks through a debit card for their tax rebate as they have changed their bank account after filing their 2020 state income tax returns can expect a delay as the payments are expected to be issued through debit cards between December 17 this year and January 14 in 2023.

Colorado Stimulus Checks

Adult residents of the Centennial State who have filed their state income tax returns for 2021 or have applied for a Colorado PTC rebate (property tax, rent, heat credit rebate) are in line for cash back payments in 2022 and the payments are one of the most generous. Individual taxpayers will receive $750 while married couples filing jointly will receive double that amount. In early 2022, Governor Jared Polis signed a bill that provides residents with a generous tax credit.

The payments have been issued by the end of September if you have filed a Colorado income tax return or applied for their PTC rebate by end-June this year. For filers who have received an extension for their state income tax returns and filed by October 17, 2022 deadline, the payment will be issued by the end of January next year. The Colorado payments are expected to continue for the next two years as the state expects a better-than-average economic result.

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