New Mexico Governor Announces Plans To Deliver Economic Relief Stimulus Checks To Residents

Stimulus Check
stimulus check

Governor Michelle L. Grisham announced plans in January to deliver more economic relief to residents as she introduced legislation to send one-off stimulus checks to around 875,000 taxpayers in the state of New Mexico. The state legislature finally passed a $1.1 billion tax relief measure on Saturday as the annual session drew to a close.

Lawmakers tapped into an oil-related windfall and have made concerted attempts to break through the firmly entrenched poverty. The tax refunds and stimulus checks will go out to working families with children members, the governor has also promised increased incentives and reduced tax rates for the private industry.

Back in 2022 when the federal economic support measures linked to the pandemic dried out, the New Mexico government issued two tax rebates spread over 3 payments. The recent round of payments was sent out in August 2022. By the middle of that month, around 2.4 million rebates were issued. Those who did not receive the fund by that date had time to reclaim their stimulus check.

The Earelier Stimulus Checks From The New Mexico Government

The New Mexico tax rebate was the result of two separate legislations. One was passed during the regular session of the legislature and the second was approved through a special legislative session. Together they gave stimulus checks worth $1,500 to residents.

stimulus check

Such relief was especially crucial for residents, especially for women, parents, Hispanics, Blacks, and other marginalized communities; people who had been affected particularly severely by the recent challenges to the economy brought about by the pandemic and followed by the highest inflation in decades.

Who Received The New Mexico Stimulus Checks?

The earlier rounds of stimulus checks in July 2022 were for taxpayers who had filed their 2021 income tax return for the state and also met several guidelines.

$500 went out to married couples who filed jointly, surviving spouses, and heads of household who had an adjusted gross income (AGI) of $150,000 or less. For single taxpayers and married couples filing separately, the stimulus check amount was $250 if their Adjusted Gross Income was $75,000 or less.

The July rebates were the first of the three stimulus checks that were given to residents of New Mexico. The second part of the payments was split into two equal payments. The first was sent in May and June 2022, while the second followed in August 2022.

These rebates were not subject to the AGI of residents. $500 went to individual filers and married couples who filed separate returns. it was distributed in two equal payments of $250 each in June and August. For married couples filing jointly, the stimulus check came to $1,000. The same amount went out to the head of household, and surviving spouses distributed as two separate checks of $500 each in July 2022 and August 2022.

Filers did not have to file any extra papers to receive the New Mexico stimulus check. The payments went out automatically to those who had filed their New Mexico income tax returns for 2021 through the Dept. of Taxation and Revenue.

Those who sent out direct information of deposit while filing their income tax returns online received their payments directly to their account through bank transfers. Others received their stimulus check through the US Postal Service.

For the first time, the rebates went out to filers regardless of whether they used an individual Tax Identification Number or a Social Security number while filing their returns. This helped the sizable immigrant population of New Mexico avail of the state stimulus check as residents with an ITIN do not require immigration documentation.

The state government of New Mexico structured its payments in a way that was accessible to the broadest array of state residents, including the huge population of Mexican immigrants.

The state also set aside $20 million in economic relief for residents who did not file taxes owing to income below the filling limit. That money was given on a first-come-first-serve basis. It went out to low and moderate-income families and individuals. Beneficiaries received $500 for individuals without dependents and double that amount for married couples and individuals who had dependents.

It was one of the most innovative economic measures taken by the states during the record inflation of 2022. It ensured that the majority of the deprived population received the support of the government largesse.

Present Measures For Both Tax Filers And Residents Not Required To File Taxes

The rising consumer prices that have strained household budgets across the nation have prompted the governor and the legislature to scramble to push bills before the end of the legislative session of 2023.

With less than a week to go before the end of the legislative session of 2023, lawmakers ramped up efforts to push through the crucial bill. One piece of reform that made rapid progress was the tax reform package that provides much relief for workers in New Mexico.

stimulus check
Stimulus Check

The bill has also made the tax code of the state more equitable and supplied incentives. It was an initiative that was much needed say experts. The package also included many factors that included the rate of personal income tax and an increase in the Child Tax Credits for residents.

But the legislation will lead to another basic round of stimulus checks for residents of New Mexico who have paid the 2021 state income tax returns. Individual single filers should b getting $500 while joint filers should be in line for double that amount.

As the tax scale in New Mexico is graduated, every taxpayer in the state is in line for a tax deduction. The amount will be huge as the state has been seeing a record surplus in revenues. With the bill becoming law, a $1.1 billion tax relief package was passed on Saturday. The proposed credits would also offset $2,500 for the purchase of electric vehicles and $4,000 for low earners. The tax on alcohol has been increased by 20% to pay for treatment of addiction programs. This has garnered praise from legislators, while a section of legislators has complained that the increase is not big enough.

Earlier the state legislature gave the go-ahead for a $9.6B general budget plan that obliges an increase in annual funding by %1.2B, or 14% of the total for the fiscal year July 2023 to June 2024.