 |
| Inflation stimulus checks are coming to these states |
Inflation stimulus checks are coming to these states
Wait, are people really talking about stimulus money again? That's right, just when you thought they were long gone, here come the inflationary stimulus checks. The goal of these is, you guessed it, to help fight inflation, not to stimulate the economy like those other checks did. After all, that might have something to do with why we have this murderous inflation in the first place.& But that is a topic for another day. . .
So what's the deal with inflationary stimulus checks? Is your state on the list to give one out?& Let's see what all the fuss is about.
What are inflation stimulus checks?
Inflation stimulus checks are relief funds set aside to help people cope with the high costs of food, gas, and just about everything else (thanks to inflation). With inflation at its highest rate in about 40 years, it's no surprise that states are trying to do something to help combat insane prices these days.
Since 2020,& we've all learned a thing or two about stimulus checks, right?& But these inflation relief checks are a little different in that they come from the state level, not the federal government. On top of that, their whole purpose is not really to stimulate the economy here, but to help people cover high gas and grocery prices.
What states are giving out inflation stimulus checks?
Remember how some states handed out their own state stimulus checks after the pandemic? Well, these states are upping their game and handing out their own inflation relief checks now. & See if your state is on the list:
Alaska
Alaskans received an energy relief payment of $662 & added on top of the annual Permanent Fund dividend & that all Alaskans receive (this year it was $2,622).1 & Yes, Alaskans get a dividend from oil revenue of the state.
California
Let California have an inflation relief control plan that is massive, just like the state. After a pitch by Gov. Gavin Newsom earlier in the year to combat inflation and gas prices, the state secured a $17 billion inflation relief package for California residents. Inflation relief payments from $200 to $1,050 began going out to 23 million Californians in October, either via direct deposit or debit card.2
Colorado
Colorado follows something called the Taxpayer Bill of Rights (TABOR), which requires the state to repay additional tax revenue that is over its spending limit. Because of that, Colorado cash-back checks of $750 for individual filers and $1,500 for joint filers were sent to Coloradans in September.& All Coloradans who filed a 2021 tax return are eligible for the payment.3
Delaware
In May, Delaware began issuing $300 inflation relief checks to First State taxpayers.4 The payments were part of Delaware's 2022 Relief Rebate Program.
Florida
The Sunshine State sent $450 per child to foster parents & as part of the Hope Florida Program.& The payments were made to help 59,000 foster families deal with rising prices.5
Georgia
If you live in Georgia, then you probably have tax refunds on your mind. Taxpayers in the Peach State got a one-time tax credit of up to $500 after filing their 2021 state tax returns. 6
Hawaii
In Hawaii, the governor used his state of the state address to float the idea of sending direct payments to taxpayers in the form of tax refunds.& Hawaiians received direct inflation relief payments of either $100 or $300 (depending on income)& starting in September.7
Idaho
In the Gem State, taxpayers get two tax refunds to cushion the impact of inflation. Idaho paid $75 for each taxpayer and dependent or 12% of its 2020 taxes, whichever was greater, earlier this year. A second payment of $300 for individual filers and $600 for joint filers, or 10% of their 2021 tax bill, whichever is greater, has been sent to taxpayers beginning in September.8
Illinois
The Land of Lincoln began mailing out individual income tax refunds and property tax refunds in September. Individual reimbursements are $50 per person and $100 per dependent (up to three per family). The property tax refund is worth up to a maximum of $300 based on the amount you paid in property tax.property in Illinois.9
Indiana
Most Hoosier state residents received inflation relief in the form of two automatic taxpayer refunds (ATRs) that began in May. Taxpayers received up to $325 per person via direct deposit or check.10
Kansas
Earlier this year, Governor Laura Kelly of Kansas proposed a one-time tax refund of $250 ($500 for married couples filing jointly). But her proposal was rejected by the Kansas Legislature.11
Kentucky
& In February, Bluegrass State Senators proposed a $500 rebate for individual taxpayers to fund themselves from the state budget surplus.& But the billion-dollar plan failed to pass the Kentucky House of Representatives.12
Maine
Maine sent its residents checks for $850 to help pay for living expenses. An estimated 858,000 taxpayers received inflation relief checks.13
Massachusetts
Massachusetts scrapped a plan to give residents & one-time stimulus payments of $250 per person ($500 for married taxpayers) to help them pay for high gas prices & deal with inflation. Instead, the State of the Bay will give eligible taxpayers a refund of 14% of their 2021 income tax liability. The refunds come from the state budget surplus & are expected to be sent out in November.14
Minnesota
In the North Star State, Governor Tim Walz proposed the idea of cutting $1,000 inflation relief checks to help with record inflation prices on things like gas and food. The governor's proposal was rejected, but the state created a Frontline Worker Program that awarded $487 to just over 1 million Minnesotans who worked on the front lines during COVID-19.
New Jersey
When New Jersey expanded the ANCHOR (New Jersey Affordable Communities for Homeowners and Renters) tax relief program, it became one of the largest tax relief programs in the state's history. The plan includes $2 billion in direct property tax relief, with tax credits of $1,000 or $1,500 paid to homeowners and $450 given to renters. The application period is still open and payments will begin in the spring of 2023.16 And that's in addition to the Middle Class Tax Rebate, which gave taxpayers with at least one dependent up to $500.17
New Mexico
& In the Land of Enchantment,& the governor signed a bill that put a couple of different inflation relief checks in the hands of the people.& They were one refundable child tax credit ($175 per child) & two refundable income tax refunds. The first tax refund ($250 for individual filers & $500 for joint filers) came out in July. A second refund ($500 for single filers & $1,000 for joint filers) was sent to filers in equal payments in June & August. Add it all up and families in New Mexico received a payment of up to $1,500.18
New York
& The Empire State recently announced that 1.75 million low-income New Yorkers will receive & an average payment of $270 to combat inflation.19& This is in addition to the Homeowners Tax Refund Credit (HTRC)& that helped New York homeowners offset inflation by giving them property taxes.& relief.20 & The exact amount of the check depended on things like their income & the city they called home.
Oregon
& Beaver State sent one-time assistance payments of $600 to low-income households & earlier this year.21 & If you qualified for the Oregon Earned Income Tax Credit,& you were eligible for the assistance payment.
Pennsylvania
Pennsylvania targeted tax refunds for people with disabilities (ages 18 and older), widows and widowers (ages 50 and older), and all residents 65 and older. Keystone State residents who qualified and met the income requirements received $650 and can apply for a bonus rebate of $455. If they owned a home, they received $975 and qualified for a bonus of $682.22
Rhode Island
The cost of everything related to childcare has gone up.& To help with those expenses,& Rhode Island created a Child Tax Rebate of $250 per child (up to a maximum of $750 for three children). & Families began receiving their payments in October.23
South Carolina
Just in time for the holidays,& people living in the Palmetto State will see inflation rebate checks coming their way in November or December.& Any South Carolina resident who has paid at least $100 in taxes will receive a $100 income tax refund check (with a maximum refund of $800).24
Virginia
Virginia is for lovers, and also for inflationary stimulus checks. After some back and forth, the state finally decided ogive taxpayers one-time tax refunds of $250 for individuals and $500 for joint filers.& Payments started going out in September depending on when you filed your return.25
How do states pay for inflationary stimulus checks?
It's time for everyone to ask: who pays for all this? & Most states are funding these inflation rebate checks through their state budget surpluses. cool cool & But what the heck does that mean?& Well, it's like when you do your monthly budget & you have some money left over. Basically, the states budget how they plan to spend the cash throughout the year.& When they have money left over, that's the state budget surplus.& That “extra money” is how these states are paying for those inflation relief checks.
& So where did those surpluses come from?& Many states have earned record sales tax revenue due to inflation.& When groceries & other necessities cost more, you end up paying more sales tax. & all the states also received lots of federal aid money during the pandemic that increased their budget surpluses.
& Most states haven't said exactly how much of their surplus & they're giving back to taxpayers,& but some have been pretty open about it. In places like Maine,& the state is returning more than half of the budget surplus to the pockets of taxpayers.26
Will the Federal Government distribute Inflationary Stimulus Checks?
Ooh, he's trying. With the way the government likes to cut checks these days, we're actually surprised it hasn't handed out inflationary stimulus checks yet.& But so far,& there are no inflation stimulus checks coming from the federal level anytime soon.
With that being said, some senators got together to try to get something going as far as gas stimulus checks go. It's called the Gas Rebate Act of 2022, legislation that would provide a $100 monthly rebate (and $100 for each dependent) to help Americans deal & with these crazy gas prices we're seeing.27& The Gas Rebate Act was supposed to send out payments in any month when the national average price of gasoline is $4 or more,& but never really got much support in the Senate.
While a proposed federal gas tax exemption also failed to get a vote, several states decided to have their own gas tax exemptions.
Whether You're Getting An Inflation Stimulus Check Or Not, You Need A Budget
Here's a crazy idea: Instead of waiting for Uncle Sam to step in and save the day with an inflation stimulus check, give yourself a raise to deal with inflation. Granted, it may not be as easy as snapping your fingers, but it's as easy as budgeting.
& Most people feel like they got a raise after making their first budget! That's because making a monthly budget actually puts you in control of your money. & When you tell your money & where to go instead of wondering where it went,& you feel like you just got a raise. & with this record inflation that we're having,& that will really come in handy.
The easiest way to budget?& Our free budget app, EveryDollar.& It's an amazing, stress-free way to do your first budget.& So if you live in a state that is cutting an inflationary stimulus check, EveryDollar has got your back when it comes to putting that money to work for you. & let's face it, that's a lot more than the government can say.
