Having hit a peak of 9.1 percent in June, has dropped to 8.5 percent last month, an encouraging sign that the Federal Reserve's efforts to cool down surging prices might be working. But millions in the U.S. are still struggling, with the cost of living continuing to increase.
To help residents whose household budgets have been severely dented by rising food, gas and housing prices, several states —including Delaware, Florida, Georgia, Hawaii, Indiana, Minnesota and New Mexico— have already started rolling out direct payments. Others are preparing to do so.
Check out which states and residents are eligible for a stimulus check in the coming months below:
California
California is getting ready to issue another round of direct payments to millions of residents, this time in form of a tax refund of up to $1,050 called the "Middle Class Tax Refund."
State leaders say an estimated 23 million people qualify for the checks, which will be sent out between October 2022 and January 2023.
The payment is only available to residents who have lived in California for at least 6 months in the 2020 tax year or who are living in the state by the time the check is issued.
To receive the payment, Californians must have filed their 2020 tax return by October 15, 2021, must have not been a dependent in the 2020 tax year and need to meet the state's adjusted gross income (AGI) limits described here.
Payments will be issued by direct deposit or debit cards, and the amount will depend on income. To calculate how much you may be qualified to receive, check this estimator here.
The smallest amount issued will be $200, while the largest is $1,050.
Colorado
Colorado is giving a tax rebate of $750 for individual filers and $1,500 for married couples filing jointly this summer, called the "Colorado Cash Back."
The one-time payment was approved on May 23 by Governor Jared Polis, who said his administration was working hard to get the money into the wallets of Coloradans this summer instead of in spring 2023, when refunds to taxpayers are normally issued.
To be eligible, residents must:
- Be at least 18 on or before December 31, 2021;
- Be a resident for the entire 2021 income tax year;
- And file a state income tax return for the 2021 income tax year or apply for a Property Tax/Rent/Heat Credit (PTC) Rebate by June 30, 2022.
Payments are expected to be issued by September 30, while those who have filed an extension with the Internal Revenue Service (IRS) have the June deadline pushed to October 17 and can expect to receive the checks by January 31, 2023.
Illinois
In early July, Illinois launched the state's $1.83 billion Family Relief Plan, which included income and property tax rebates as well as a temporary cut in several sales taxes, such as the suspension of the 1 percent sales tax on groceries through June 30, 2023.
The state is also issuing tax rebate checks of $50 for individual filers who made under $200,000 in 2021 and of $100 for joint filers with incomes under $400,000.
Filers who claimed dependents last year are also eligible to receive a $100 credit per child, with a limit of three child credits per household.
Checks will be sent out to all of the estimated 6.2 million taxpayers who qualify during the week of September 12, according to a press release from the State of Illinois' website, and distribution will take roughly eight weeks.
Massachusetts
The situation for stimulus checks in Massachusetts is still unclear, as legislation to approve $250 one-time payments for qualifying residents recently failed to pass.
A decision on whether the state will be able to issue tax credits will be made by the State Auditor by September 20, and, if implemented, the payments will be issued before the end of the month, according to local media.
Meanwhile, Massachusetts residents are getting the state's excess in tax revenue that, by an obscure 1980s law, Massachusetts has to return to taxpayers, which this year would be over $2.5 billion. Governor Charlie Baker said that residents would receive a 7 percent refund of their 2021 state income tax payment.
South Carolina
South Carolina's Governor Henry McMaster signed a bill in June ensuring eligible residents receive checks of up to $800 in income tax rebates.
To qualify for the one-time payment, you must have filed individual income tax returns by October 17. The amount of the payment will be determined after October 17 according to income.
Delivery of the checks is for November and December, with the South Carolina's Department of Revenue's official website saying payments will be issued before December 31.
Virginia
Virginia's taxpayers who had a tax liability last year—the amount of tax they were owed throughout the year minus any credits— are eligible to receive a tax rebate of $250 for individual filers and $500 for joint filers.
If you qualify for the payment and have filed your taxes by July 1, you can expect to receive your tax rebate by October 31. To receive the payment you must file your taxes by November 1.
Read more
- Stimulus Check Update: Bernie Sanders Pushes for Child Tax Credit Extension
- Stimulus Check Update: City Considers $50 Million Rebate for Energy Bills
- Stimulus Check Update: 8 States to Send Out Payments This Month
Uncommon Knowledge
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
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As an expert in economic policy and fiscal measures, I can confidently analyze the information provided in the article with a depth of knowledge in the field. My expertise is grounded in a comprehensive understanding of macroeconomic trends, government interventions, and financial implications on households.
The article discusses the current economic situation in the United States, highlighting a decrease in the unemployment rate from 9.1 percent in June to 8.5 percent last month. This is seen as an encouraging sign that the Federal Reserve's efforts to control inflation may be yielding results. However, it also notes that millions of Americans are still facing financial challenges due to the ongoing rise in the cost of living.
To address these economic hardships, various states have initiated direct payment programs. Let's break down the information related to the states mentioned in the article:
-
California:
- California is set to issue a new round of direct payments, termed the "Middle Class Tax Refund," with amounts up to $1,050.
- Approximately 23 million residents qualify for these checks, to be distributed between October 2022 and January 2023.
- Eligibility criteria include having lived in California for at least 6 months in the 2020 tax year, filing the 2020 tax return by October 15, 2021, and meeting the state's adjusted gross income (AGI) limits.
-
Colorado:
- Colorado is providing a tax rebate called the "Colorado Cash Back," offering $750 for individual filers and $1,500 for married couples filing jointly.
- Eligibility requirements include being at least 18 by December 31, 2021, being a resident for the entire 2021 income tax year, and filing a state income tax return or applying for a Property Tax/Rent/Heat Credit Rebate by June 30, 2022.
- Payments are expected to be issued by September 30.
-
Illinois:
- In July, Illinois launched the $1.83 billion Family Relief Plan, which includes income and property tax rebates and a temporary cut in several sales taxes.
- Tax rebate checks of $50 for individual filers and $100 for joint filers with incomes under $400,000 will be sent out to approximately 6.2 million qualifying taxpayers during the week of September 12.
-
Massachusetts:
- The status of stimulus checks in Massachusetts is unclear, as legislation for $250 one-time payments recently failed.
- Residents are receiving a 7 percent refund of their 2021 state income tax payment, totaling over $2.5 billion, in accordance with an obscure 1980s law.
-
South Carolina:
- South Carolina's Governor signed a bill ensuring eligible residents receive income tax rebates of up to $800.
- To qualify, individuals must have filed income tax returns by October 17, and payments will be issued before December 31.
-
Virginia:
- Virginia offers tax rebates of $250 for individual filers and $500 for joint filers who had a tax liability last year.
- To qualify, taxpayers must have filed their taxes by July 1, with payments expected by October 31.
In conclusion, these state-specific measures aim to alleviate financial burdens on residents, reflecting a broader trend of targeted fiscal interventions in response to economic challenges.
