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Is a 4th Stimulus Check Coming? Latest News On State Rebates – Forbes Advisor

· California's new budget includes payments of $700 for couples filing jointly making under $150,000 annually. Individual taxpayers within this 
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Video Stimulus news update

With little immediate relief from the federal government in sight to respond to record inflation, some states are taking matters into their own hands. Seventeen states will send—or have already sent—payments to taxpayers in the coming months.

Unlike previous pandemic relief measures, these payments are much more targeted and most offer considerably lower dollar amounts. That’s not because governments have developed a stingy streak. Rather, it’s about helping Americans weather rising prices without making inflation worse.

“Plans focused on specific sectors or groups, such as gas cards or disbursements based on income thresholds, in theory could help ease the pain caused by prices of specific goods or services…without putting as much pressure on prices more broadly,” says Andrew Patterson, senior international economist at Vanguard.

Here’s how the federal and state governments plan to bring taxpayers relief in a world of surging prices.

Approved State Stimulus and Rebate Check Programs

Seventeen states have already approved legislation to get tax rebates flowing to their residents. Here’s how those payments are coming along:

California: Up to $1,050 Rebate

California’s new budget includes payments of $700 for couples filing jointly making under $150,000 annually. Individual taxpayers within this income cap will receive $350. Eligible households will also receive an additional $350 if they have qualifying dependents.

Taxpayers with incomes at $75,000 or above will receive a phased benefit with a maximum payment of $250. Households will get an additional amount up to $250 if they have qualifying dependents.

Californians can expect to receive payments between October 2022 and January 2023 via direct deposit and debit cards.

Read more: California Families To Receive Stimulus Checks Up To $1,050

Colorado: $750 Rebate Payments

Colorado will send tax rebates of $750 to individual filers and $1,500 for joint filers this summer. Colorado residents for the entire 2021 tax year who are 18 or older and filed their 2021 state income tax return are eligible for the payment.

Only physical checks will be sent out in an effort to prevent fraud. Distribution of payments has begun: Taxpayers who filed an income tax return by June 30 will receive their check by September 30; Those who filed an extension can expect their check by January 31, 2023.

Read more: ​​Everything You Need To Know About The Colorado Stimulus Check

Delaware: $300 Rebate Payments

In May, Delaware started sending “relief rebate” payments of $300 to taxpayers who filed their 2020 state tax returns. The one-time payment is possible due to a budget surplus. Couples filing jointly will receive $300 each.

Payments were distributed to most eligible Delaware residents in May. Instructions to claim the rebate haven’t yet been released for residents who haven’t filed a 2020 state tax return. Instructions are anticipated to be announced by Oct. 17.

Check your rebate status or get answers to frequently asked questions from the Delaware Department of Finance.

Florida: $450 Payments

Some Florida households with children will receive a one-time payment of $450 per child as part of the Hope Florida—A Pathway to Prosperity program run by the Department of Children and Families.

Eligible recipients include foster parents, relative and non-relative caregivers of children, participants in the state Guardian Assistance Program, and families receiving Temporary Assistance for Needy Families (TANF) cash assistance. The money comes from pandemic aid funds intended for households receiving TANF payments.

You don’t have to do anything to receive your payment; if eligible, you’ll get your payment automatically by check. Delivery was anticipated to take place by mail on or before July 25, when the state’s back-to-school tax holiday began.

A letter accompanying the check states, “To offset the costs of rising inflation, especially with a new school year approaching, the State of Florida is giving you $450 for each child in your care,” according to the Tallahassee Democrat.

Georgia: $250 Rebate Payments

Thanks to a historic state budget surplus, Georgia residents who filed both their 2020 and 2021 tax returns are eligible to receive rebate payments based on their tax filing status:

  • Single filers: Maximum $250
  • Head of household: Maximum $375
  • Married filing jointly: Maximum $500

If you owe income tax or other payments to the state such as delinquent child support payments, you may receive a smaller rebate. Partial-year residents may also receive a smaller rebate.

Residents who filed their taxes before Gov. Brian Kemp signed the legislation will receive their rebates via a separate payment. The state expected to send all rebates for returns filed by April 18 by early August.

Read more: Marcus Personal Loans: 2022 Review | NextAdvisor with TIME

Georgia taxpayers can learn more via the Georgia Department of Revenue.

Hawaii: $300 Rebate Payments

In January, Gov. David Ige proposed sending a tax rebate to every Hawaii taxpayer. Taxpayers earning less than $100,000 per year would receive $300, and those earning more than $100,000 per year would receive $100. Dependents are eligible for the rebate, too.

Taxpayers who filed their 2021 state income tax returns by July 31, 2022 can expect to receive their returns in September or October. For residents filing their 2021 return between Aug. 1 and Dec. 31, you can expect your payment up to 12 weeks after filing.

Idaho: $75 Rebate Payments

In February, Idaho Gov. Brad Little signed a bill that allocates $350 million for tax rebates to Idahoans. There are two criteria for eligibility:

  • Full-time Idaho residency and filed 2020 and 2021 tax year returns, OR
  • Full-time Idaho residency and filed grocery-credit refund returns.

The payments began in March. Each taxpayer will receive either $75 or 12% of your 2020 Idaho state taxes, whichever is greater (check Form 40, line 20 for your tax amount reported). The rebate is applicable to each individual taxpayer and each dependent.

The tax commission will first issue rebates to taxpayers who received refunds via direct deposit, then send paper rebate checks.

State residents can also check the status of their rebate online.

Illinois: $50 Rebates

In April, Illinois Gov. JB Pritzker included rebate checks for state taxpayers in the state’s budget.

Rebates are available for residents making less than $200,000 per year ($400,000 per couple filing jointly). Each individual will receive $50, with an additional $100 per eligible dependent (up to three kids per family).

Rebates are expected to begin being issued the week of September 12; it will take “several months” to issue them all, according to the Illinois Department of Revenue.

Indiana: $325 Rebate Payments

Like Georgia, Indiana found itself with a healthy budget surplus at the end of 2021, and it has authorized two rebates to its residents.

In Dec. 2021, Gov. Eric Holcomb announced that Indiana taxpayers would get a $125 one-time tax refund after they file their 2021 taxes.

There’s no income requirement. Residents must have filed a state tax return for the year 2020 by Jan. 3, 2022, as well as a 2021 Indiana tax return by April 18, 2022, to be eligible. Payments started in May and are expected to continue through mid-summer, according to a state information page.

Taxpayers who file jointly will receive a single deposit of $250.

A second rebate was approved in August to grant another $200 per taxpayer.

Most taxpayers will receive their refunds by direct deposit, and the second payments will start rolling out in late August. If you changed banks or don’t have direct deposit information on file, you’ll receive a paper check.

A printing delay put mailing the first round on hold for several months, but mailing is slated to resume in mid-August. Checks mailed at that time will contain payments for both rebates, for a total of $325 per taxpayer.

Distribution of printed checks is expected to take place through early October. The state is also expected to release information on how to claim your rebate if you did not file your 2021 tax return by the April deadline.

For more information, visit the state Department of Revenue website.

Maine: $850 Direct Relief Payments

Gov. Janet Mills signed a supplemental budget on April 20 to authorize direct relief payments of $850 for Maine taxpayers.

Full-time residents with a federal adjusted gross income of less than $100,000 ($150,000 if filing as head of household, $200,000 for couples filing jointly) are eligible. Couples filing jointly will receive one relief check per taxpayer for a total of $1,700.

Taxpayers are eligible for the payment regardless of whether they owe income tax to the state. Residents who did not file a state tax return for 2021 can file through Oct. 31 to claim their payment.

Read more: Fed Hikes Rates Another 0.75%, Citing Inflation | Charles Schwab

The one-time payments, which are being funded by the state’s surplus, started rolling out via mail in June to the address on your 2021 Maine tax return.

The supplemental budget also includes an increased benefit for Maine’s earned income tax credit (EITC) recipients.

Read more: Everything You Need To Know About Maine Stimulus Checks

Minnesota: $750 Payments for Frontline Workers

Some frontline workers can receive a one-time payment of $750, thanks to a bill signed by Gov. Tim Walz in early May.

Eligible workers must have worked at least 120 hours in Minnesota between March 15, 2020 and June 30, 2021, and were not eligible for remote work. Workers with direct Covid-19 patient-care responsibilities must have annual income of less than $175,000 between Dec. 2019 and Jan. 2022; workers without direct patient care responsibilities must have an income of less than $85,000 annually for the same period. Applications for the payment are now closed.

Walz recently proposed using the state’s $7 billion budget surplus to fund a generous relief package, proposing that Minnesotans receive tax rebate checks of $1,000 per person. Doing so would require action from the state legislature.

New Jersey: $500 Rebate Checks

In fall 2021, Gov. Phil Murphy and the New Jersey state legislature approved budget measures to send one-time rebate checks of up to $500 to nearly 1 million families.

New Jersey is also sending $500 payments to those who file taxes using a taxpayer identification number instead of a Social Security number. The Excluded New Jerseyans Fund applies to nonresident and resident aliens, their spouses and dependents.

New Mexico: $500 Rebates

In early March, Gov. Michelle Lujan Grisham signed a law to send multiple rebates to state taxpayers.

Taxpayers earning under $75,000 annually (under $150,000 for joint filers) will receive a rebate of $250 ($500 for joint filers). The rebate was issued in July and sent automatically to taxpayers who filed a 2021 state return.

Another rebate was issued to all taxpayers. Single filers received $500, and joint filers received $1,000. This rebate was split into two equal payments, delivered in June and August 2022. The funds were sent automatically to taxpayers who filed a 2021 state return.

A taxpayer earning under $75,000 annually could potentially receive up to $750 with the combined rebates.

Residents who don’t file income tax returns should have received a rebate in July. Single individuals without dependents received $500; households with married couples or single adults with dependents received $1,000.

If you file your 2021 state income tax return by May 31, 2023, you’ll receive your rebate by direct deposit or check. If you owe tax from your 2021 return, it will be deducted from your rebate amount.

Read more: New Mexico Residents To Receive Tax Rebate Of Up To $500

Oregon: Direct Payments of $600

In March 2022, the Oregon legislature voted to approve one-time $600 payments to some residents. Taxpayers who were eligible to receive the earned income tax credit (EITC) on their 2020 state tax return, and who lived in Oregon for the last six months of 2020, were eligible to receive one payment per household.

The state used federal pandemic aid to provide these direct payments to low-income residents, and more than 236,000 households received a payment. All payments were distributed by direct deposit or mailed check between June 23 and July, 1 2022.

The Oregon Department of Revenue website contains FAQs for residents with concerns about receiving their payment.

Rhode Island: $250 Rebate per Child

Rhode Island will send a one-time payment of $250 per child, thanks to a state budget surplus.

Households can receive a payment for up to three dependent children. Those children must have been listed as your dependents on your 2021 federal and state income tax returns.

Taxpayers must earn $100,000 or less ($200,000 or less for a two-income household) to be eligible for the payment.

Child Tax Rebate checks will be issued automatically starting in October 2022.

South Carolina: Rebate Checks of up to $800

Read more: What Are the Best Budgeting Apps of September 2022?

A budget plan approved in June earmarked $1 billion for a tax rebate that will provide a one-time payment of up to $700 for some taxpayers.

Rebate amounts will be determined after Oct. 17 (the filing extension deadline for 2021). Then rebates will be distributed prior to Dec. 31. If you received your 2021 refund by direct deposit, you’ll also receive your rebate to that account. You can estimate your rebate by following the instructions on the state Department of Revenue rebate news website.

Virginia: $250 Rebates

The Virginia General Assembly approved a one-time tax rebate in June. Taxpayers who are eligible and filed their income taxes by July 1 should receive their rebate by Oct. 31. You must file your taxes by Nov. 1 to receive the rebate, according to the Virginia Department of Revenue.

Taxpayers who received a refund via direct deposit will receive the rebate of $250 per taxpayer ($500 for a couple filing jointly) to that same bank account; other eligible taxpayers will get a check in the mail.

Pending State Gas Rebate and Stimulus Programs

While not yet approved by their state legislatures and signed into law, five states have introduced legislation for gas rebates, direct stimulus check payments, grocery tax cuts and income tax rebates for their residents.

Kentucky

The Kentucky Senate approved a $1 billion rebate for taxpayers thanks to the state’s budget surplus, but the bill has been languishing since it reached the House of Representatives. Eligible Kentuckians would receive a one-time payment of up to $500 and up to $1,000 per household.

The state legislature has adjourned for the year, so it’s not likely residents will see relief in the near future.

Massachusetts

When the Massachusetts legislative session closed in late July, state lawmakers were considering an economic development bill that included $1 billion in tax relief, to be paid to individuals in $250 rebates.

Without movement on that proposal, residents must wait to find out in the fall if state revenues have exceeded the amount permitted. If that threshold is surpassed, the surplus will be returned to taxpayers. The state auditor’s office is expected to declare how much revenue will be returned by Sept. 20. Residents could receive about 7% of the amount of income tax they paid to Massachusetts in 2021. For someone with a $75,000 income, that would mean a rebate of about $250, state officials told WBUR.

Montana

A group of Republican lawmakers in Montana has called for a special session of the state legislature to authorize a rebate to residents, instead of waiting for the scheduled January 2023 session.

They want to spend part of the state’s estimated $1 billion-plus surplus on rebates for taxpayers, including a rebate of up to $1,000 for homeowners and up to $1,250 to residents who paid state income tax. The rebates would go to people who lived in Montana in 2020 and 2021.

The legislature will vote by mail on whether to convene for a special session before considering the proposal.

North Carolina

North Carolina has a $6.5 billion budget surplus, which some Democratic lawmakers want to use to deliver tax rebates. A bill in the general assembly would grant $200 checks to residents (namely, licensed drivers over 18), but has been met by opposition by state Senate Republicans who would rather see long-term tax reduction rather than a one-time rebate.

Pennsylvania

Pennsylvania has legislation pending that would provide direct assistance to nearly help nearly 250,000 households pay for expenses like childcare and household expenses. Under Gov. Tom Wolf’s PA Opportunity Program, households with an income of $80,000 or less would be eligible for a one-time $2,000 payment.

The payments would be funded with the state’s surplus; however, state Republicans argue it could worsen inflation.

$100 Per Month Federal Energy Rebate Payment

In March, Reps. Mike Thompson (D-CA), John Larson (D-CT) and Lauren Underwood (D-IL) introduced the Gas Rebate Act of 2022. The act would send energy rebate payments of $100 per month to eligible taxpayers through the end of 2022, and offer an additional $100 per dependent per month.

Payment eligibility would be structured similarly to previous stimulus payments. Married filers filing jointly with incomes up to $150,000 and single filers earning up to $75,000 would receive the full payment, with phase-out levels for higher incomes.

The legislation would need to make its way through Congress before payments can begin. It hasn’t yet been discussed at the committee level.

What’s Next for State Stimulus Checks?

Even with all these measures making their way through various legislatures, Americans remain crunched between what they need and what they can afford.

And while gas rebates and stimulus checks can help buffer the blow of rising prices, there are those who remain leery of sending out additional payments, especially with past pandemic relief programs believed to have contributed to our current rate of inflation.

Jaime Peters, assistant dean and assistant professor of finance at Maryville University in St. Louis, explains that for some lawmakers, “inflation-related stimulus payments will simply feed the beast,” putting even more money into the market where the supply of goods can’t meet demand.

This creates a conundrum for families who are coming up short on the supply of funds to get the goods they need each day.

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