One state is opening more than 3 million payments starting this weekend, joining a list of others sending rebates to residents

One state is opening more than 3 million payments starting this weekend, joining a list of others sending rebates to residents

Inflation aid is on the way: One state is using more than 3 million payments starting this weekend as it joins a list of others sending rebates to residents

Inflation aid is on the way: One state is using more than 3 million payments starting this weekend as it joins a list of others sending rebates to residents

Taxpayers in Virginia could see a spike in their bank accounts this weekend.

The state is conducting a test run Friday and Saturday as it begins rolling out about 3.2 million payments in checks or direct deposits to help people afford higher costs. And it is not the only state that sends money.

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Those in California should be on the lookout for the money coming as soon as next month.

Many experts and economists are worried about an impending recession. And with all this uncertainty, it’s clear that American families are struggling and could use some extra support right now.

Some experts speculate that an impending recession could force the federal government to issue a new round of stimulus checks as they have done during the pandemic and in past economic downturns.

And while the federal government has not yet answered the call for additional funding, some states are stepping in to provide some relief to residents.

State rebates

Many states had historic surpluses in the past year due to inflation that raised the prices of goods and pandemic spending. Total state tax collections increased more than 17% in the fourth quarter of 2021 compared to the previous year, according to the Tax Policy Center.

“If aid is given directly, direct payments are much more useful than income tax cuts, or gas tax holidays,” says Lucy Dadayan, senior research associate at the Brookings-Brookings Center for Urban Tax Policy.

Here is a list of the states that are being offered. Make sure you don’t lose your head.

California

At the end of June, the Gov. Gavin Newsom to Twitter to to advertise rebates.

Millions of Californians are getting a rebate check of up to $1,050 to help offset the high cost of gas and other goods, known as the middle-class tax rebate.

Singles making under $75,000 will get $350 and married couples under $150,000 will get $700, if a couple has a dependent that means they’ll get an extra $350, for a total of $1050.

Colorado

Coloradans will get $750 in cash back this summer to help with the increased costs of gas, groceries and other items.

It will be delivered in the mail in August or September to anyone who filed their tax return by the end of May 2022. About 3 million people should receive the check.

Delaware

A rebate relief program was signed in Delaware in April. It’s a one-time payment of $300 per adult to help with the high cost of groceries and gas.

People who filed their 2020 and 2021 taxes should have received checks by the end of May. The government says it is working to make the payment available to those who did not file their taxes by the end of October.

You can check the status of your rebate here).

Florida

Families in Florida are getting a [one-time payment of $450 per child] ( https://www.flgov.com/2022/07/15/first-lady-casey-desantis-makes-major-announcements-to-support-the-hope-florida-a-pathway-to-prosperity-initiative /) for those who are eligible.

This includes foster parents, caregivers and families receiving money from the Florida Temporary Assistance for Needy Families program.

Florida First Lady Casey DeSantis made the announcement in July. Almost 60,000 families are expected to receive the funds.

Georgia

People in Georgia are entitled to a rebate on their 2020 and 2021 taxes, thanks to excess income. Bill 1302 was signed into law in March.

Married couples can get up to $500 back, if you file jointly. Individual filers can receive up to $250 and people filing as a household can receive a maximum of $375.

Hawaii

The state government in Hawaii passed a bill that gives tax filers a rebate of $300 if they make less than $100,000 and $100 for filers who earn above that threshold. The tax department says they are still working on how to roll out the measure and no details have been released yet.

Idaho

People in Idaho should expect an email informing them of their rebate. Full-time residents who filed taxes in 2020-2021 are eligible.

The government is using two ways to calculate the amount, $75 or 12% of your 2020 Idaho state taxes, whichever is greater.

The tax commission says it will issue about 25,000 payments per week, which can be expected by direct mail deposit. You can check the status of your rebate here.

Illinois

In Illinois, direct rebate checks will be given to working families. Relief checks of $50 will be sent out to individuals and $100 per dependent of up to three children per family at a cost of $685 million.

Indiana

The government in Indiana expects to give more than 4 million $125 checks to residents thanks to large state revenues, which grew by 14%.

The Department of Revenue says money would start arriving in bank accounts in May and would continue until mid-summer. You are eligible if you filed a resident tax return for 2020 and 2021.

Kentucky

Tax filers in Kentucky will receive rebates of up to $500 for single filers and $1,000 for filers.

In addition, Gov. Andy Beshear proposed a one-year reduction in the sales tax rate from 6% to 5%.

Maine

Maine residents are receiving one of the highest relief payments in the country. Gov. Janet Mills signed the supplementary budget into law in April. It will see people receive a one-off payment of $850 as inflation relief.

The money comes from the state’s surplus of $729.3 million.

To be eligible for the payment, residents must file a tax return by the end of October 2022.

Single filers must have a federal adjusted gross income of less than $100,000, $150,000 if filing as head of household or $200,000 for couples filing jointly.

Massachusetts

The Massachusetts Senate approved $250 stimulus checks for taxpayers.

Single filers earning between $38,000 and $100,000 can expect a one-time payment of $250, while married couples filing jointly will receive $500. Payments are expected to begin in the fall.

Minnesota

The state of Minnesota passed legislation that gave frontline workers a one-time payment of $750.

Applications closed on July 22 but Gov. Tim Walz is still pushing lawmakers to pass a bill to send $1,000 rebate checks to Minnesotans to cover things like rising gas and food prices.

The proposed plan would see people earning less than $165,000 get $1,000 and couples earning less than $275,00 get $2,000.

New Jersey

New Jersey residents with at least one dependent child and a tax balance of $1 or more will receive a rebate of up to $500, known as the Middle Class Rebate. Payments will be issued as a separate check from your tax return.

The New Jersey Department of Taxation will begin sending checks on July 2nd.

New Mexico

The state of New Mexico is giving out financial relief in the form of a $750 stimulus to help with rising grocery and gas costs. Two laws were passed in the state that provide rebate and relief payment.

Depending on income, an eligible person will receive two or three payments of $250. Payments for families will be $500.

Taxpayers should have already received one of those payments by direct deposit or check. Another payment will be made later this summer. You can check the status of your return here.

Oregon

The Oregon Department of Revenue has issued one-time payments of $600 to eligible households, which means a single person, a couple or a family living together.

Eligible households qualified for the Oregon Earned Income Tax Credit (EITC) on their 2020 tax filing and lived in Oregon for the second half of 2020.

Rhode Island

Rhode Island residents are getting a one-time stimulus check expected this fall.

The stimulus is coming in the form of child tax credit. Eligible families will receive $250 per child for up to three children.

South Carolina

Towards the end of the year taxpayers in South Carolina will be receiving refund checks of up to $800.

If you live in South Carolina, how much you get depends on your tax liability. But to qualify for these checks, you must have filed your 2021 taxes.

Virginia

Gov. Glen Youngkin signed the budget in June that will see income tax refunds of up to $250 for individuals and $500 for married couples and eliminate the 1.5% state grocery tax.

Concerns have been expressed that stimulus payments have fueled inflation but Dadayan says relief money would not have as much of an impact as supply chain issues, the war in Ukraine and gas prices.

Ivory Johnson, certified financial planner and founder of Delancey Wealth Management, says stimulus spending goes beyond helping the taxpayer, it can be a preventative measure for states.

“The states are doing that because they either know, ‘I send them money, or they file for unemployment, or they file for disability or they file for Medicaid.’ These are things that the state has to pay for,” says Johnson.

Stimulus expenditure pending

Several other states are considering tax breaks and have pending legislation, including:

New Hampshire

Lawmakers in New Hampshire have proposed a one-time rebate of $25 for owners of vehicles registered in the state between July 2021 and June 2022 to help with fuel costs.

Kansas

Governor Laura Kelly passed a budget amendment in April announcing a one-time $250 tax rebate for all Kansans who file a 2020 tax return in 2021. It will cost the state a total of $460 million but was not finalized before the end of the session legislative. .

North Carolina

State Senators proposed a one-time payment of $200 for all licensed drivers in the state. The Gas Tax Refund would be funded out of the state’s $1.3 million revenue surplus.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

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