Money

New Stimulus Checks to Offset Inflation

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Inflation has become a never-ending refrain this year. And, it’s no surprise given inflation is at 9.1%. (The Federal Reserve tries to keep it at 2%.)

With such a high level of inflation, family budgets are tighter than ever. Although direct relief isn’t coming from the federal government, 18 states are giving their residents one-time payments, and some are also easing sales taxes on certain products.

  • California
  • Colorado
  • Delaware
  • Florida
  • Georgia
  • Hawaii
  • Idaho
  • Illinois
  • Indiana
  • Maine
  • Massachusetts
  • New Jersey
  • New Mexico
  • New York
  • Oregon
  • Pennsylvania
  • South Carolina
  • Virginia

California

California’s Budget Act of 2022 offers inflationary relief in three ways:

  • Temporary stop to sales tax on diesel
  • Financial aid to help residents cover rent and utilities
  • Income-based tax rebates

To benefit from the tax rebate payments, you must be a California taxpayer. If you’re in California, you may already have benefited from some of these measures.

Colorado

Colorado residents who filed taxes are getting cashback rebate checks of $750 for single tax filers or $1,500 for joint filers.

If you haven’t already filed your taxes, file an extension by Oct 17 so you can benefit from the rebate in January 2023.

Delaware

The 2022 Delaware Relief Rebate Program is sending one-time payments of $300 for single tax filers and $600 for joint tax filers to people who filed taxes in 2021. Money started going out in May and will continue over the summer.

Florida

Florida’s program centers on families, including foster parents, caregivers, and people who participate in the Florida Temporary Assistance for Needy Families or the Guardian Assistance Program.

Families will receive one-time payments of $450 per child. These will be issued between July 25th and August 7th.

Georgia

Georgians are benefiting from one-time tax refunds:

  • Single filers: up to $250
  • Joint filers: up to $500
  • Head-of-household filers: up to $375

Specific payment amounts will vary depending on your tax liability.

Hawaii

Similar to other states, Hawaii is taking an income-based approach to its payments:

A $300 payment is going to single tax filers making less than $100,000 and joint filers making less than $200,000.

If you earn over the amounts specified above, you’ll receive a $100 payment.

These tax refunds will be issued starting in August.

Idaho

Residents will receive a tax rebate. The amount will be the larger of

  • $75 per taxpayer and dependent or
  • 12% of their income tax amount.

To get the rebate, you must

  • have been a full-time resident in 2020 and 2021 and
  • file your taxes for those years by the end of this calendar year.

Illinois

Similar to California, Illinois is taking a broad approach to offer relief for inflation. The Family Relief Plan includes

  • Pausing grocery, gas, and property taxes
  • Tax rebate direct payments.

Taxpayers will receive $100 per dependent in addition to a set tax rebate: $50 for single filers with >$200,000 and $100 for joint filers with >$400,000.

Indiana

If you filed your 2021 taxes by April 18th, you’re eligible for a tax refund. Indiana is sending $125 to single filers and $250 for joint filers through its Automatic Taxpayer Refund program.

These refunds started in May and will continue over the summer.

Governor Holcomb is continuing to work with state legislators to use the budget surplus for an additional $225 payout.

Maine

Maine is also sending its taxpayers relief checks of $850. These checks will go to single filers making less than $100,000, head of household filers making less than $150,000, and joint filers making less than $200,000

Massachusetts

Massachusetts is focusing its inflation relief on essential workers with low incomes. These essential workers will receive $500 if they meet the requirements below:

  • Earned at least $13,500 in 2021
  • Household income is at or below 300% of the federal poverty line

Lawmakers in the House and Senate are reconciling their bills to address inflation. It’s unlikely Bay Staters will see relief from gas taxes; however, they may still benefit from one-time checks from the government — $250 for single tax filers earning between $38,000 and $100,000 and $500 for joint tax filers earning less than $150,000.

New Jersey

With its Middle Class Tax Rebate, taxpayers in New Jersey will receive a check for what they paid on state income taxes after credits up to $500.

New Jersey started sending checks in July and processing will take six weeks to complete.

New Mexico

Depending on your tax filing status, you may get a tax rebate check in June, July, and August.

July checks are for an tax rebate based on income:

  • $250 for single filers making less than $75,000
  • $500 for joint filers making less than $150,00

Checks in June and August are another income tax payment. Single filers will receive a total of $500. Joint filers will receive a total of $1000.

New York

Homeowners in New York may have received a rebate from their property taxes. To get the rebate, you needed to

  • Meet requirements for the 2022 STAR credit,
  • Earned no more than $250,000 in 2020, and
  • Have a current school tax liability greater than the 2022 STAR credit.

Oregon

You may have already received a $600 one-time payment. These payments were issued to people who claimed the Earned Income Tax Credit on their 2020 tax filing. One payment was issued per eligible tax filing to people who lived in Oregon for at least six months in 2020.

Pennsylvania

Taking a similar approach as New York, Pennsylvania is doing a property tax and rent rebate program. Pennsylvanians who are 65+, widows and widowers 50+, and 18+ with disabilities benefit from this program.

For eligibility, homeowners must make $35,000 or less per year. Renters must make $15,000 or less per year. These income limits exclude half of each Pennsylvanian’s Social Security Income.

Direct payments to Pennsylvanians has not gotten support from Republican lawmakers. However, Governor Wolf would like to use the rest of the federal COVID stimulus money to issue direct payments of $2,000 to households earning up to $80,000 per year.

Virginia

Virginians will see one-time direct relief payments starting at the end of September. Payments are anticipated to complete in October.

Only taxpayers who had a tax liability will benefit from these payments, though specific details are sparse. Single filers will benefit from $250. Joint filers will receive $500.

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