With no quick respite in sight from the federal government in the face of historic inflation, several states are taking matters into their own hands. In the coming months, ten states will deliver — or have already sent — one-time payments to taxpayers.
These payouts, unlike earlier pandemic relief programs, are significantly more targeted and have much lower financial amounts. That isn’t because governments have become more frugal. Rather, it’s about assisting Americans in weathering higher prices without exacerbating inflation.
“In theory, plans focused on specific sectors or groups, such as gas cards or disbursements based on income thresholds, could help ease the pain caused by 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 want to provide help to taxpayers in the face of rising prices.
Payment of $100 per month in federal energy rebates
The Gas Rebate Act of 2022 was proposed by Reps. Mike Thompson (D-CA), John Larson (D-CT), and Lauren Underwood (D-IL) in March. While still in its early stages, the Act would provide qualifying taxpayers with $100 monthly energy rebates and an additional $100 per dependent.
Payment eligibility would follow the same pattern as prior stimulus payouts. The entire payment would be made to married taxpayers filing jointly with earnings up to $150,000 and single filers with incomes up to $75,000, with phase-out levels for higher incomes.
Before payments could begin, the law would have to pass via Congress. It hasn’t been brought up in the committee yet.
State Stimulus and Rebate Check Programs that Have Been Approved
Ten states have already passed legislation allowing residents to get tax refunds. This is how the payments are progressing:
Payments of $400 Rebate in Colorado
After Gov. Jared Polis signed a bill in late May, Colorado plans to send taxpayers payouts of at least $500 this year.
The exact amount is dependent on state revenue totals, but lawmakers anticipate that every full-time citizen who submits a 2021 tax return before June 30 will be paid in September.
Payments of $300 in Relief Rebates in Delaware
Delaware began delivering $300 “relief rebate” payments to taxpayers who had submitted their 2020 state tax return in May. Due to a budget excess, a one-time payment is available.
By the end of May, taxpayers should receive a cheque in the mail. Each person will earn $300 if you filed jointly with a spouse.
Residents who haven’t submitted a state tax return for 2020 are yet to get instructions on how to claim the rebate.
The Delaware Department of Finance allows residents to check their rebate status or get answers to frequently asked issues.
Payments of $250 Rebate in Georgia
Georgia citizens who have submitted both their 2020 and 2021 tax returns will be eligible for rebate payments based on their tax filing status, thanks to a historic state budget surplus.
Single filers are limited to a maximum of $250.
Maximum $375 for the head of the household
Maximum $500 for married couples filing jointly.
You may receive a lesser rebate if you owe the state money in the form of income tax or other payments, such as delayed child support payments. Residents who are just staying for a portion of the year may be eligible for a reduced reimbursement.
Residents who filed their taxes before Gov. Brian Kemp signed the bill and would receive a separate payment for their refunds.
The Georgia Department of Revenue can provide further information to Georgia taxpayers.
Payments of $300 Rebate in Hawaii
Gov. David Ige recommended sending a tax rebate to every taxpayer in Hawaii in January. Taxpayers with annual incomes of less than $100,000 would receive $300, while those with annual incomes of more than $100,000 would receive $100. The reimbursement is also available to dependents.
The reimbursement has been passed by the Hawaii legislature, but no details on how it would be distributed have been disclosed. According to the state Department of Taxation, payments might start processing in late August.
Payments of $75 Rebate in Idaho
Idaho Gov. Brad Little signed a law in February allocating $350 million in tax rebates to Idaho residents. Eligibility is determined by two factors:
OR you have a full-time Idaho resident and have submitted your tax returns for the years 2020 and 2021.
I live in Idaho full-time and have completed grocery-credit refund returns.
Payments started in March. Each taxpayer will get $75 or 12% of their Idaho state taxes in 2020, whichever is larger (check Form 40, line 20 for your tax amount reported). Each taxpayer and their dependents are eligible for the rebate.
Taxpayers who got refunds via direct deposit will receive rebates first, followed by physical rebate checks from the tax commission.
Residents of the state can also check the status of their rebates on the internet.
Payments of $125 Rebate in Indiana
At the end of 2021, Indiana, like Georgia, found itself with a substantial budget surplus. Gov. Eric Holcomb said in December 2021 that Indiana taxpayers will receive a $125 one-time tax refund after filing their 2021 taxes.
There are no financial requirements. To be eligible, residents must have filed a state tax return for the year 2020 by Jan. 3, 2022, as well as an Indiana tax return for the year 2021 by April 18, 2022. According to a state information portal, payments began in May and are scheduled to continue until mid-summer.
Taxpayers filing jointly will receive a single $250 deposit.
Direct deposit will be used by the majority of taxpayers to collect their supplementary refund. You’ll get a paper check in late summer if you’ve moved banks or don’t have direct deposit information on file.
Visit the state Department of Revenue’s website for further information. For taxpayers who do not get their payment by September 1, more information will be added.
Direct Relief Payments of $850 in Maine
On April 20, Governor Janet Mills signed a supplementary budget that authorized $850 in direct relief payments to Maine taxpayers. Full-time residents with a federal adjusted gross income of less than $100,000 ($150,000 for singles, $200,000 for married couples) are eligible. Couples filing jointly will receive a relief cheque in the amount of $1,700 per taxpayer.
Whether or not a taxpayer owes the state income tax, they are entitled to the payout.
Residents who did not file a state tax return in 2021 can claim their reward until Oct. 31.
The one-time payments, which are funded by the state’s surplus, will begin arriving in the mail on June 1 to the address listed on your Maine tax return for 2021.
Maine’s Earned Income Tax Credit (EITC) beneficiaries will get a larger payout under the supplementary budget.
$500 rebate checks are available in New Jersey.
Gov. Phil Murphy and the New Jersey state legislature adopted budget provisions in the fall of 2021, allowing over 1 million families to receive one-time rebate cheques of up to $500.
Murphy has now suggested allocating an additional $53 million to deliver $500 reimbursements to taxpayers who file their taxes with a taxpayer identification number rather than their Social Security number. Nonresident and resident aliens, as well as their spouses and dependents, would be among the newly eligible.
$500 rebates in New Mexico
Gov. Michelle Lujan Grisham signed a bill in early March that will provide several rebates to state taxpayers.
Taxpayers who earn less than $75,000 per year ($150,000 for joint filers) will receive a $250 rebate ($500 for joint filers). The reimbursement will be issued in July and will be automatically mailed to taxpayers who completed a state return for the year 2021.
All taxpayers will receive a new rebate. Filers who file alone will receive $500, while those who file jointly will receive $1,000. This rebate will be split into two equal installments, with the first arriving in June 2022 and the second arriving in August 2022. The monies will be distributed to taxpayers who filed a state return in 2021 automatically.
With the combined rebates, a taxpayer earning less than $75,000 per year could get up to $750.
In July, residents who do not file income tax returns will receive a refund. Individuals who are single and have no dependents will receive $500, while married couples or single people with dependents will receive $1,000.
You’ll get your rebate by direct transfer or cheque if you file your 2021 state income tax return by May 31, 2023. Your rebate amount will be reduced if you owe tax on your 2021 return.
Residents who do not file taxes and are not dependents of another taxpayer are eligible to apply for a relief payment through YesNM.
Front-line workers in Minnesota will receive a $750 payment.
A law approved by Gov. Tim Walz in early May will provide a one-time payment of $750 to some frontline workers. The application process for receiving this payment had yet to begin.
Walz also proposed that the state’s $9.25 billion budget surplus be used to fund a significant relief package, with each Minnesotan receiving a $500 tax refund check. However, his proposal was not included in either party’s April tax relief plans, and the state’s legislative session for the year ends in May.