The absence of federal stimulus checks led to many American states stepping in to help out their residents as record inflation rates spiked up the prices of goods and services. From a normal 2.5% in 2021, inflation levels zoomed up to a touch of 9.1% by the middle of June 2022 and it has not eased much since then.
While most states went for various support measures right in the first three quarters of 2022, some states like California have put off their payments to coincide with the holiday season. Though California started with its Middle-Class Tax Rebate payments at the start of the last quarter in the first week of October, the payments will continue till January 14, 2023.
From the second week of October, millions of Californians started receiving stimulus checks of up to $1,050 in the form of debit cards or through direct bank deposits to their accounts. Residents who are set to receive their payments through debit cards will have their payment delayed as it will involve delivery through the US Postal Service.
The Golden State posted a record $97 billion budget surplus for last year and is sending out rebates of between $200 and $1,050 to residents depending on their Adjusted Gross Income as shown in their 2020 California state income tax returns.
California Went For A Third Stimulus Check After Earlier Considering Gas Cards Worth $400
Governor Gavin Newsom had earlier in May 2022 mooted a gas card worth $400 for every vehicle registered in California. Households were eligible for a maximum of two cards bringing in an $800 maximum for every household. Residents who did not own cars were eligible for transit cards that would bring them an equivalent amount.
But Democratic Party legislators prevailed up Gov. Newsom to go for the third round of stimulus checks for residents affected by the record inflation. California was one of the states disproportionately affected because of high tax rates and fuel quality that pushed up prices of gasoline to above normal.
Residents will qualify for the Middle-Class Tax Rebate (MCTR) stimulus check if they have filed their California state income tax return for 2020 by October 15, 2021, and have an Adjusted Gross Income that is below $250,000 for individuals and $500,000 for joint filers.
Taxpayers who include a dependent will get an identical amount given to the filer. They will get a single amount, irrespective of the number of dependents.
The payments have been divided into three tiers will the highest amount going to filers with an AGI below $75,000 for individuals and below $150,000 for married couples filing jointly. Each filer will get $350 while married couples with get $350 each. If dependents are included in the tax file, the tax filer will get an extra $350.
So for joint filers in this tier with a dependent, the total comes to $1,050, the highest under this round of stimulus checks.
For filers with an individual AGI for 2020 state returns between $75,001 and $125,000, and for joint filers with an AGI between $150,001 and $250,000, the individual stimulus check amount is $250 plus the same amount for any dependent. The maximum total under this category comes to $750.
For filers with an individual AGI between $125,001 and $250,000, and joint filers with an AGI between $250,001 and $500,000, the stimulus check amount is $200 for each filer plus another $200 for any dependent. The maximum payable under this tier is $600.
No tax rebate is given by the government for any individual or joint filers with an AGI above these figures.
Residents who received the previous rounds of stimulus checks, the Golden State I and II through direct deposits received the MCTR through the same process. For paper filers, the payments are sent through debit cards mailed through the US postal service.
The Franchise Tax Board of California has said that 95% of the payment are expected to be completed by the end of 2020. The remaining payments will be completed by January 14, 2023. Residents should expect a delay of at least two weeks for the debit cards to be delivered by mail.
Colorado Stimulus Check Details
Of all the states sending out stimulus checks in various forms to residents, few states have been as generous as Colorado. The Centennial State has issued $750 for individuals and $1,500 for married couples filing jointly. Virtually every taxpaying resident will get the stimulus check, also known as the Colorado Cash Back payment.
A senior official with a non-partisan advocacy group, Sarah Barnes says that the economic downturn following the pandemic has been especially hard for families in Colorado and that combined with the rising cost of ling has directly impacted families in the low and moderate-income category.
Eligible taxpayers in the state who have filed their Colorado income tax return or have applied for a PTC Rebate (Property tax, rent, or heat credit rebate), by June this year will receive theirs by the end of September. Most stimulus checks under the Colorado Cash Back scheme have already hit mailboxes but they are expected to continue through the holiday season.
Residents who filed for an extension on their state income tax returns till October 17, 2022, will receive their Colorado Cash Back stimulus check by the end of January next year.
The Colorado Cash Back was the result of an amendment in the Taxpayer’s Bill of Rights (TABOR) of Colorado that requires the state government to return excess state revenue to its residents.
Originally the refunds were planned to be around $400 for every taxpayer but a strong economic result has helped the state to boost the individual stimulus check to $750 and the check for married couples filing jointly to $1,500.
Additionally, while other states have put various restrictions on payments including income limits, on beneficiaries, the TABOR payments of Colorado have no such criteria. Anyone meeting a simple set of criteria will get the payments. To receive the payment they must be at least 18 years on December 31, 2021, and must be a resident of the state for the whole of 2021. Beneficiaries must also file their 2021 state tax returns or apply for the PTC rebate.