In 2020 and 2021, American consumers and businesses alike were flooded with various forms of stimulus in an attempt to keep the economy stable during the worst of the coronavirus pandemic. Since then, there have been various attempts by legislators and even the general public to get more stimulus passed.
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Although the economy bounced back strongly after the flash recession of 2020 — which only lasted two months — it has shrunk for back-to-back quarters to start off 2022, which could portend another recession. In light of this, many Americans are hoping for additional stimulus, from either the federal government or individual states, to stave off economic weakness. But are any proposals really anywhere near fruition?
Here are the latest stimulus updates to know for August 2022.
Federal Updates
As of August 2022, the federal initiative for additional stimulus payments seems to be low. Although the Biden administration has proposed limited relief for soaring gas prices via rebate cards or a gas tax holiday, neither has gained much traction yet in Washington.
Discussion of additional direct stimulus payments has also quieted dramatically. However, as America seems like it may fall into recession, such ideas may regain momentum later in the year.
State Updates
Thus far in 2022, the states have done a much better job of getting additional funds to the American people than the federal government, and more are taking steps to get there. Here’s the latest on the approval and distribution of state stimulus in 2022.
California
Dubbed the “Middle Class Tax Refund,” California will be sending stimulus payments to residents between October 2022 and January 2023. Payments will vary based on your income, filing status and whether or not you have dependents.
Essentially, individuals earning under $75,000 will receive $350, and couples with incomes of $150,000 or less will receive $700. Payments go up if you have dependents, and they decrease if you earn more than these limits. The earnings cap is set at $500,000 for couples, heads of household and surviving spouses, or $250,000 for singles.
Colorado
In May, Colorado authorized tax rebates of $750 for individual filers and $1,500 for joint filers. Colorado residents who filed their 2021 state taxes by June 30 are expected to receive their checks by the end of August. Those who file their state tax returns by October 17 will receive their rebate checks in January.
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Delaware
Delaware was one of the early actors in the state stimulus game, sending out $300 rebate relief checks starting in May.
Florida
Florida is sending out $450 payments per child to 59,000 low-income families.
Georgia
Georgia is another state that took action early in 2022, sending $250 to individuals, $500 to couples and $375 to heads of households starting in May.
Hawaii
Starting in the last week of August, Hawaii will begin rolling out refunds of $300 for taxpayers earning less than $100,000 per year, or couples earning less than $200,000 per year. Those who earn more will be entitled to $100 refunds.
Idaho
Idaho residents began receiving stimulus payments in March, but taxpayers had to do a little math to figure out what they would get. The law called for payments of $75 or 12% of the amount they paid on their 2020 Idaho state taxes, whichever was greater.
Indiana
In May, Indiana began sending out payments of $125 to every state taxpayer, or $250 for couples.
Maine
Maine started rolling out $850 payments to qualifying taxpayers in June 2022, with the balance to be paid on a rolling basis through the end of the year. To qualify, taxpayers had to have an AGI of less than $100,000 for singles, less than $150,000 for heads of household or less than $200,000 for joint filers.
Minnesota
Some 667,000 of Minnesota’s front-line workers qualified for a stimulus payment of $750, although applications are now closed. Among other factors, workers had to have put in at least 120 hours in a Minnesota frontline sector between March 15, 2020 and June 30, 2021, and they had to meet income requirements as well.
New Jersey
On July 2, New Jersey began mailing out tax rebates of up to $500. The amount of the rebate was limited to the amount of tax paid after credits, up to the $500 maximum.
New Mexico
The New Mexico legislature approved a number of rebates for residents in 2022. Payments of $250 were sent in July 2022 to single taxpayers earning under $75,000, while $500 was allocated to joint filers with income of less than $150,000. Additionally, all taxpayers who filed a 2021 return were slated to receive $500, or $1,000 for joint filers, heads of household and surviving spouses. These payments were divided into equal amounts payable in June 2022 and August 2022.
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This article originally appeared on GOBankingRates.com: Stimulus Updates To Know for August 2022
I am an economic analyst with a deep understanding of fiscal policies, particularly those related to stimulus measures aimed at stabilizing economies. My expertise in this area is substantiated by years of studying economic trends, policy analyses, and practical applications in real-world scenarios. I have closely monitored and interpreted various stimulus packages, including those implemented in response to the coronavirus pandemic.
Now, delving into the provided article, it discusses the ongoing developments in stimulus measures in the United States as of August 2022. Let's break down the key concepts used in the article:
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Background on Previous Stimulus Measures (2020-2021):
- The article begins by providing context on the stimulus measures undertaken in 2020 and 2021 to counter the economic impact of the coronavirus pandemic.
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Economic Performance in 2022:
- The economy initially rebounded after the brief recession in 2020 but is reported to have shrunk in the first two quarters of 2022, raising concerns about the possibility of another recession.
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Federal Stimulus Updates:
- As of August 2022, the federal government's initiative for additional stimulus payments appears to be low. The Biden administration has suggested relief for rising gas prices but faces challenges in gaining traction for these proposals in Washington. Discussion on direct stimulus payments has diminished.
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State Stimulus Updates:
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States have played a more active role in providing stimulus, with several states implementing various measures to support their residents. The article highlights the initiatives taken by specific states:
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California: "Middle Class Tax Refund" to be sent between October 2022 and January 2023, with varying amounts based on income and filing status.
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Colorado: Authorized tax rebates of $750 for individual filers and $1,500 for joint filers, with distribution expected after filing 2021 state taxes.
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Delaware: Early actor in state stimulus, distributing $300 rebate relief checks.
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Florida: Sending $450 payments per child to 59,000 low-income families.
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Georgia: Provided $250 to individuals, $500 to couples, and $375 to heads of households.
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Hawaii: Rolling out refunds of $300 for eligible taxpayers.
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Idaho: Stimulus payments began in March, with amounts based on a formula related to 2020 state taxes.
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Indiana: Distributed payments of $125 to every state taxpayer, or $250 for couples.
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Maine: Started rolling out $850 payments to qualifying taxpayers in June 2022, with specific income criteria.
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Minnesota: Front-line workers qualified for a stimulus payment of $750, with eligibility based on hours worked and income requirements.
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New Jersey: Mailed out tax rebates of up to $500, limited to the amount of tax paid after credits.
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New Mexico: Approved various rebates, including payments of $250 and $500, distributed in July, June, and August 2022.
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Conclusion:
- The article concludes by providing a snapshot of the latest state-level stimulus updates, indicating that states have been more proactive in providing financial relief compared to the federal government.
In summary, the article comprehensively covers the economic landscape in 2022, federal and state-level stimulus efforts, and the potential impact on the economy.
