As the holiday season gets into gear, some Americans will be struggling financially more than ever due to high inflation.
Increased prices continue to stretch many families' budgets, with a recent poll finding that a majority of Americans are concerned about how they'll afford gifts this year.
While another federal stimulus check remains unlikely, some states are sending out direct payments to help their residents cope with rising costs.
California
California authorized direct payments of up to $1,050 to help residents cope with inflation earlier this year.
The state's Franchise Tax Board said that more than $5 billion has already been distributed through the program, known as the Middle Class Tax Refund.
However, some recipients won't see their payments until December or January. Direct deposit payments for those who received Golden State Stimulus payments last year have already been issued to bank accounts, the agency said.
But Californians who changed their banking information since filing their 2020 tax return will receive a debit card that will be mailed between December 17 and January 14. Debit cards for those who received prior stimulus payments that way will be mailed by December 10, and all other debit cards will be mailed by January 14.
Colorado
State lawmakers passed a law earlier this year to send direct payments to Colorado in the form of a tax refund.
Under the Colorado Cash Back program, individual filers will receive a $750 check, while joint filers will receive $1,500.
Most residents will have already received the payments, but those who filed for an extension and submitted their state tax return by the October 17 deadline can expect their payment by January 31, 2023.
Idaho
In September, Idaho Governor Brad Little signed into law a $500 million income tax rebate.
Full-time Idaho residents who filed taxes in 2020 and 2021 will receive 10 percent of the tax amount on their 2020 income back or $300—whichever is greater. Joint filers will receive at least $600.
The Idaho Tax Commission said it started processing the rebates in September and will continue to process them through 2022 and early 2023. About 75,000 payments will go out weekly, according to the commission.
New Jersey
One-time payments of at least $500 started going out to eligible New Jersey residents this month.
The payments are being sent to residents who were not eligible for federal stimulus payments and filed 2021 state income tax returns using an Individual Taxpayer Identification Number.
The program is giving $500 to every ITIN holder on the tax return, meaning a married couple filing jointly and claiming two dependents will receive $2,000 if all four have ITINs.
The New Jersey Division of Taxation said it began mailing payments this month and residents should contact the agency if they have not received it by December 15.
Pennsylvania
The state has been sending out one-time payments to eligible, older Pennsylvanians approved for a rebate on property taxes or rent paid in 2021.
The maximum standard rebate is $650, but those who qualify for supplemental rebates can receive as much as $975.
The income limit is $35,000 a year for homeowners and $15,000 annually for renters, with half of Social Security income excluded. The deadline for applications is December 31.
Meanwhile, Pennsylvania Governor Tom Wolf has called for state lawmakers to pass legislation that would send $2,000 checks directly to eligible Pennsylvanians.
South Carolina
South Carolina lawmakers in June approved a $1 billion tax rebate. The South Carolina Department of Revenue said it began issuing the rebates, which are capped at $800, earlier this month.
Payments are currently being sent out for those who filed their 2021 state income tax returns by the October deadline. However, those who file their returns between October 17 this year, and February 15, 2023, will receive their payments in March 2023.
Virginia
The Virginia General Assembly passed a law earlier this year approving a one-time tax rebate.
Individual filers will receive a rebate of up to $250 while joint filers can receive up to $500.
Those who filed their 2021 tax return by September 5 will have already received their rebate. Rebates to those who filed after that date are being issued in the order that taxpayers filed their returns, according to the Virginia Department of Taxation.
To receive the rebate, eligible taxpayers must have filed their tax return by November 1, 2022.
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 financial assistance programs, I can provide valuable insights into the strategies adopted by various U.S. states to address the financial challenges brought about by high inflation during the holiday season. My expertise is grounded in a comprehensive understanding of economic policies, tax laws, and government initiatives.
The article discusses several states that have taken measures to alleviate the economic burden on their residents. Let's break down the key concepts used in the article:
-
California:
- The state authorized direct payments of up to $1,050 through the Middle Class Tax Refund program.
- Over $5 billion has been distributed, and payments are made through direct deposit or mailed debit cards.
-
Colorado:
- The Colorado Cash Back program provides tax refunds, with individual filers receiving $750 and joint filers receiving $1,500.
- Payments have been distributed, but those who filed for an extension can expect their payment by January 31, 2023.
-
Idaho:
- Governor Brad Little signed a law for a $500 million income tax rebate.
- Full-time residents who filed taxes in 2020 and 2021 will receive a percentage of their tax amount, with payments processed through 2022 and early 2023.
-
New Jersey:
- One-time payments of at least $500 are sent to eligible residents who filed 2021 state income tax returns with an Individual Taxpayer Identification Number (ITIN).
- The program provides $500 for each ITIN holder on the tax return, with payments mailed in December.
-
Pennsylvania:
- One-time payments are sent to eligible older Pennsylvanians approved for a rebate on property taxes or rent paid in 2021.
- The maximum standard rebate is $650, with an income limit and a call for legislation to send $2,000 checks directly to eligible residents.
-
South Carolina:
- Lawmakers approved a $1 billion tax rebate, capped at $800.
- Rebates began issuance for those who filed by the October deadline, while others will receive payments in March 2023.
-
Virginia:
- The Virginia General Assembly approved a one-time tax rebate, with individual filers receiving up to $250 and joint filers up to $500.
- Payments were issued based on the filing date, and eligible taxpayers must have filed their tax return by November 1, 2022.
These initiatives reflect the diverse approaches taken by states to address economic challenges, providing direct financial assistance to residents through tax rebates and one-time payments. The article underscores the ongoing efforts of state governments to support their citizens during a period of economic strain, offering a nuanced perspective on financial relief programs across the United States.
