The inflation rate in America has increased by 7.7% this October compared to exactly a year ago as revealed by the 12-month indicator of change in the consumer price index. It is the indicator for the inflation rate for services and goods in the US. and the absence of further stimulus checks from the federal administration, it has continued to be the primary reason Americans continue to be economically troubled despite an all-around healthy increase in wages.
The annual inflation rate in America has gone up from 3.2% in 2011 to 8.3% in 2022. This has significantly reduced the purchasing power of the dollar has weakened significantly in recent years, drastically limiting the purchasing power of low and moderate-income citizens. the stimulus checks made up for the economic downturn fooling the pandemic for two years. And its withdrawal has left millions of Americans in economic despair.
While countries all around the world are facing extremely high inflation levels and that includes developing countries. But the rate of inflation in America is high even when compared to the European nations.
The initial estimate by the US Bureau of Economic Analysis of the 3rd quarter of the Gross Domestic Produce revealed that consumer spending has been remarkably resilient in the face of surging inflation. The personal consumption expedition increase at an annualized rate of 1.4% in the third quarter after adjusting for inflation. This has partially offset the decline of 8.5% in gross private-domestic investment.
Consumers have kept spending despite the rising prices through the 3rd quarter. Service spending too has increased at an annual rate of 2.8% in the same quarter. American spending on accommodation, food service, transportation, and healthcare has been healthy.
But the economic buoyancy of 2021 is missing as stimulus checks have come to a halt in 2022 and it is only the state support to residents in the form of stimulus checks that have continued to partially offset the steep increase in prices of almost everything from groceries to gasoline.
Festive Season Stimulus Checks To Continue Into the First Quarter Of 2023
States replaced the federal administration in issuing stimulus checks in 2022 as the political gridlock in Washington ensured that 2021 would see the end of federal stimulus payments. The expanded Child Tax Credit was the last of the federal payments in 2021, though part of the CTC payments was set off against the 2021 income tax returns that were filed in the first quarter of 2022.
The state stimulus checks were paid to help residents against the financial constraints caused by record inflation that began rising over a year back. it led to price rises across sectors and affected everything from gasoline to groceries.
The state stimulus checks were limited in scope and the amount expended was nowhere near the amount sent by the federal administration. . But what has stood out was the recognition that the stimulus check payments can be a way out of an emergency of this nature.
While the California stimulus check was the largest in the last quarter of the month, few payments have been as generous as Colorado. The Centennial State has decided to mail a $750 stimulus check for individuals and double that amount for joint state filers under the Cash Back program of Colorado.
Sarah Barnes, the director of Colorado Children’s Campaign, a family prosperity initiative for non-partisan advocacy, said that many families in the state continued to suffer from the economic reverses that happened under the pandemic. The rise in prices has led to a spike in the cost of living. She stressed that only direct payments could have an immediate impact and help support families directly.
A majority of the Cash Back stimulus check has already hit mailboxes in the last quarter of 2022. To avail of the offer, tax filers should have submitted their state tax returns or should have applied for the PTC Rebate (property tax, rent, or heat credit rebate) by June 2022. Such filers will receive their Colorado Cash Back by September 2022.
Filers who have gone for an extension on their income tax returns for 2021 and have applied for the October 17 extension of the deadline will receive their stimulus check by January next year.
Eligibility And Details Of The Colorado Stimulus Check
The cash-back payments were part of an amendment to Colorado’s Taxpayer Bill of Rights (TABOR). Under this law, excess revenues earned by the state are required to be returned to residents by the Colorado government.
The refunds were expected to be $400 for each taxpayer, but the strong economic performance of the state ensured that the TABOR stimulus checks were boosted and almost double to the present price of $750 for individual filers and $1,500 for joint state income tax filers.
While most states have gone for other forms of restriction, including income limits on those receiving the payments, TABOR stimulus checks are free of such strings. There is no need for filers to produce dependents who must qualify for the stimulus check. Any state tax filer who meets certain criteria.
They must be at least eighteen years of age as of December 2021 and must also be a resident of the state for all of 2021. They must also file their income tax returns for Colorado 2021 or apply for a PTC Rebate (Property Tax/Rent/Heat Credit Rebate).
Residents who have filed their income tax return for 2021 but moved out of the state this year still qualify for the Colorado Cash Back. even filers who do not owe any taxes or those who are claimed by another filer will still receive the stimulus check if they have filed their state income tax returns in Colorado for 2021.
Refunds Also Likely For Colorado Tax Filers In 2023
Even though the Colorado Cash Back direct payments were only approved for the 2021-2022 fiscal year, tax filers can expect to receive the TABOR refunds also in the future with the government in Colorado expecting a budget surplus over the next three years. But instead of stimulus checks, the eligible filer will either get a rebate on their tax payments or get a refund stimulus check.