Stimulus check update: 2023 payments being sent out to 14 states (2024)

A total of 14 states will include stimulus payments with residents' tax returns this year.

Qualifying citizens in California, Colorado, Delaware, Idaho, Illinois, Indiana, Maine, Massachusetts, New Jersey, New Mexico, Pennsylvania, Rhode Island, South Carolina and Virginia will either receive checks based on distribution delays in 2022, or the launching of new programs.

Congress allocated about $2.3 trillion in payments to U.S. households during the throes of the COVID-19 pandemic. Due to the passing of the Coronavirus Aid, Relief, and Economic Security Act, each individual received three rounds of payments totaling $1,200 each plus $500 per child. The program concluded in 2021.

The Internal Revenue Service (IRS) said that "refunds may be smaller in 2023" based on several factors, including taxpayers not receiving an additional stimulus payment with their tax refund due to no Economic Impact Payments in 2022.

"In addition, taxpayers who don't itemize and take the standard deduction won't be able to deduct their charitable contributions like they were able to on their 2021 returns," the IRS said.

On April 11, the IRS said that taxpayers in 21 states who filed their federal income taxes early in this year's filing season and reported certain state 2022 tax refunds as taxable income "should consider filing an amended return."

Residents in the following states don't need to report state payments on their 2022 tax return: California, Colorado, Connecticut, Delaware, Florida, Hawaii, Idaho, Illinois, Indiana, Maine, New Jersey, New Mexico, New York, Oregon, Pennsylvania and Rhode Island. Alaskan residents only apply based on receiving the special supplemental Energy Relief Payment received.

Many other citizens in Georgia, Massachusetts, South Carolina and Virginia will not include special state 2022 tax refunds as income for federal tax purposes if they meet certain requirements, the IRS added.

A full list of individual states and any special state refunds or rebates can be found on the IRS' State Payments chart.

CALIFORNIA

California's Franchise Tax Board said the state's Middle Class Tax Refund has benefited approximately 32 million California taxpayers and their dependents. Payments were expected to be issued between October 2022 and January 2023 and ranged between $200 and $1,050 based on income, dependents and tax filing status.

Payments ranged from $200 to $1,050 depending on income, dependents and tax filing status. Most have already been issued, though the tax board clarifies that "payments requiring additional review are still being processed."

Residents would have been eligible for the money if they filed their 2020 tax return by October 15, 2021, met the California adjusted gross income limits and were not claimed as a dependent in the 2020 tax year. They also had to be a California resident for six months or more in 2020.

COLORADO

Colorado Governor Jared Polis signed a law in May 2022 giving Coloradans a tax rebate of $750 for individual filers and $1,500 for joint filers. The payments were described as "immediate relief" to residents and were sent as part of checks in 2022 and not 2023.

Residents were supposed to file their returns by October 17, 2022, to be eligible. Those who applied for an extension prior to that date and are still awaiting payment can call the Colorado Department of Revenue or go to the state's Department of Taxation website.

DELAWARE

The 2022 Delaware Relief Rebate Program passed via a state House bill in 2022 and created a one-time $300 payment dubbed as a "relief rebate" aimed to combat inflation and gas costs in the COVID aftermath. Payments began being issued in May 2022 to those who had already filed their 2020 resident personal income taxes by the due date.

From May 2022 through February 2023, over 787,000 payments were reportedly made to adult residents who timely filed their 2021 tax returns. Those experiencing delayed payments for whatever reason can visit the state website for updates.

IDAHO

The Special Session rebate approved in September by the Idaho Legislature provided taxpayers with a payment worth either 10 percent of their 2020 income tax liability, or up to $300 ($600 for joint filers)—whichever was greater—if they were full-time residents in 2020 and 2021 and also filed an Idaho individual income tax return or a Form 24 to qualify.

ILLINOIS

The Illinois Family Relief Plan began July 1, 2022, and included an estimated $1.83 billion in relief, including income and property tax rebates and a temporary cut in several sales taxes.

Individuals who made less than $200,000 in 2021 were said to receive $50 income tax rebates, while couples filing jointly with incomes under $400,000 would receive $100. Tax filers will also receive $100 per dependent they claimed on their 2021 taxes, up to three dependents.

Income and property tax rebates were reportedly issued automatically to all of the estimated 6.2 million taxpayers who qualify under the plan based on their submitted 2021 tax returns. Rebates were scheduled for initial distribution the week of September 12, taking roughly eight weeks for completion.

INDIANA

Indiana residents who filed a tax return for the 2020 tax year by December 31, 2021, were eligible and should have received $125 and $200 automatic taxpayer rebates in 2022 as a direct deposit or a check (either separately or combined), for a total of $325 (or $650 for those filing jointly).

Eligibility requirements originally differed and those who were not eligible for the initial $125 rebate may now be able to claim the $200 rebate as a refundable tax credit only if they received Social Security benefits in 2022 and are not claimed as a dependent on someone else's income tax return.

MAINE

Maine, as part of its 2023 Emergency Winter Energy Relief Plan, offered $450 payments to those who filed their 2021 Maine tax return by October 31, 2022, and were full-time residents and not claimed as a dependent on another tax return. All payments were anticipated to be made by the end of March 2023.

MASSACHUSETTS

Massachusetts residents are eligible if they filed their 2021 returns by October 17, 2022, with the refund equal to approximately 14 percent of their 2021 state income tax liability. Payments were initially sent November 1 and should have been received by eligible taxpayers by December 15. Those who filed after October 17 but submitted prior to September 15 of this year should receive payments within a month.

NEW JERSEY

Income-based rebates are being sent to qualifying New Jersey-based residents and should arrive by May 23. Homeowners earning up to $150,000 qualify for $1,500, and those earning between $150,000 to $250,000 will receive $1,000. State renters who earn less than $150,000 per year can receive $450.

NEW MEXICO

New Mexico single tax filers received $500 and married couples, heads of households and surviving spouses are said to receive $1,000. Rebates are anticipated to be distributed by June.

PENNSYLVANIA

Pennsylvanians, including older renters, homeowners and those with disabilities, were eligible to submit returns between July 2022 and December 31. Those who qualify should receive between $250 and $975 based on income and renting or owning homes.

RHODE ISLAND

Rhode Island rebates initially distributed last October went to eligible taxpayers who received $250 per child, maxed out at $750, if the child was 18 years or younger at the end of 2021. Those who qualified included married couples who filed jointly and had a federal adjusted gross income of $200,000 or less, while other filing cases depended on federal adjusted gross income being $100,000 or less.

SOUTH CAROLINA

South Carolina started sending tax refund checks in November, totaling up to $800 in some cases. Taxpayers had to file returns prior to October 17, though those who filed before February 15 of this year remain eligible and will receive payments at an undeclared time this calendar year.

VIRGINIA

Virginians with a 2021 tax liability who filed by November 1, 2022, were eligible for the state's one-time rebate payment of up to $250 for single filers and $500 for joint filers. Those who filed by September 5 should have already received their rebate, while those who filed after that date should expect their rebates later this year.

Rebates require 'broader' federal relief

Leonardo Freitas, an entrepreneur and business developer who is also chairman and managing director of Washington, D.C.,-based law firm Hayman-Woodward, told Newsweek via email that the COVID pandemic "created unprecedented challenges for the U.S. economy and the livelihoods of millions of Americans."

Another concern resulting from billions in stimulus payments is the potential impact on state budgets. He highlighted California, Illinois and New Jersey as examples of states deliberating the pros and cons of such policies—weighing the potential benefits to their residents against the financial burden on their budgets, as he described.

"While the decision by some states to provide additional stimulus payments is understandable given the ongoing economic challenges posed by the pandemic, it is important that these efforts are accompanied by broader relief efforts at the federal level," Freitas said. "The federal government has provided significant funding to states for pandemic-related relief efforts, and it is crucial that these efforts are coordinated and strategic to maximize their impact and minimize any potential negative consequences."

Cathy Zhang, associate professor of economics at Purdue University, told Newsweek via email that she doesn't expect such stimulus payments to broadly impact the U.S. economy in terms of aggregate observables like consumption, savings or investment.

"At the household level, these stimulus checks will most likely [be] used to cover monthly household expenditures like groceries, gas and child care," Zhang said. "As most households are aware, prices [of] groceries and gas particularly have gone up over the past year due to inflation. Most employers are not responding with commensurate raises or wage increases, so these additional costs will likely be a main use of funds for any stimulus payments."

Update 04/17/23, 4:13 p.m. ET: This story was updated with comment from Cathy Zhang.