Although state and federal stimulus check programs have all but indeed, several states have payments lined up. More programs from local governments are also on the horizon and should be reaching millions of Americans this year.
A total of 14 states and local bodies will include stimulus checks for residents, mostly against their tax returns this year. Though some of the payments are based on distribution delays in 2022, a number of new schemes and programs have been freshly declared in 2023.
The federal administration allocated around $2.3 trillion in payments to American households during the peak period of the COVID-19 pandemic. The initial payment in 2020 under the CARES Act helped Americans get $1,200 each and another $500 for each child. The program concluded and was followed by the second stimulus check.
The third and the most generous was the American Rescue Plan Act. This all-comprehensive act was signed in March 2022 by President Biden immediately after coming to power a few weeks earlier.
The Rescue Plan allocated a generous amount to states, cities, and other local bodies to tackle pandemic-linked emergencies. These funds helped states send out inflation relief payments to residents even as the federal payments dried up in 2022.
With prices of gasoline, groceries, and even services at an all-time high, Americans were back to the desperate situation that they faced in the initial weeks of the pandemic. And this time they did not have the federal stimulus checks to fall back on. The Rescue Plan was not confined to the direct stimulus checks and also made provisions for organizations including the healthcare sector, educational institutions, and businesses.
The rapid injection of such large money helped the economy recover rapidly after the pandemic and prevented a repeat of the Great Recession of the first decade of this century.
The lack of federal stimulus checks in 2022 also affected tax refunds. Tax refunds are a major source of income for millions of low and moderate-income Americans. For many, it is the largest stimulus check, or any check for that matter, that they receive in a year.
The Internal Revenue Service warned Americans that refunds in 2023 would turn out to be smaller based on several factors. The main reason was the absence of stimulus checks, including the expanded version of the Child Tax Credit stimulus check. Taxpayers received little additional stimulus payments with their tax refund due to the lack of Economic Impact Payments in 2022.
Further, filers who did not itemize and take resources of the standard deduction could not deduct their charitable contributions like they were able to do on their income tax returns for 202 in 2022.
The IRS initially cautioned that the state stimulus checks may be subject to federal taxes. It even advised filers to delay filing their returns while the agency considered its options. But it finally ruled that the state stimuli s check would generally not be subject to taxes.
Many residents of Georgia, South Carolina, Massachusetts, and Virginia did not have to include special state tax refunds for 2022 only if they met certain special requirements.
State Stimulus Checks Continue In June With The New Mexico Rebates
Starting the third week of June, residents of New Mexico received another round of stimulus checks. The third round from the southern state was a relief against rising prices. The 2023 stimulus check comes after the first two rounds came in quick succession between June and August 2022.
New Mexicans will receive tax rebates worth up to $1,000 from the state over four days this month. Residents who have filed their income tax returns for 2021 are eligible and will not have to submit any more papers.
Filers who have selected their option regarding filing status and have entered their bank details will have their funds delivered through direct deposit to their account. The amount was dispatched on June 20 and will be credited to individual and joint accounts in the next two to three days. The rest of the beneficiaries will be issued paper stimulus checks which will be printed between June 20 and 29.
The stimulus checks will be dispatched by the first week of July. But it could be a couple of weeks before beneficiaries receive the payment through paper checks as it takes time if sent through the US Postal Service.
Governor Michelle Grisham Wants To Share The State Surplus Through The Stimulus Checks
Governor Michelle L. Grisham (D-NM) pointed out to the rebates in a statement and said that it continues to be a personal priority. She pointed out that prices of essentials continued to be very high. She added that it was important that residents of the state continued to share in the success that the state has achieved in the past few years.
The state had a fiscal year surplus thanks to the high prices of oil. The state is expected to send back around $673 million to its residents. This rebate payment is part of a larger trend that is being witnessed across American states and cities. States are moving toward the concept of Universal Basic Income and point out that it improves the economy instead of being a drain on resources.
Filers who have moved out of the state since filing their income tax returns for 2021 can now update their address through the self-service portal. It is called the Taxpayer Access Point and is accessible on the Revenue and taxation department website of New Mexico. They can also go for a change of address form from the department.
While taxpayers who have submitted their banking information will be the first to get the payment, others opting for the paper check will have to wait. Taxpayers who have yet to file their 2021 New Mexico state income tax returns have been given sufficient time to file them. The deadline is still almost a year away on May 31, 2024. But a delay in filing the income tax return will only delay the process of the stimulus check that you will get from the New Mexico government.