With various states declaring fresh stimulus checks for their residents, it appears that residents in those states are in for more support to see them through 2023. But the present round of stimulus checks has been more focused and will benefit mostly low and moderate-income households.
Last year was marked by two significant developments. One was the end of almost all forms of federal stimulus checks, especially the economic impact payments and the expanded version of the Child Tax Credit stimulus check.
The second significant development was the increase in prices that affected almost all products and services. From gasoline to groceries, there was a significant upward trend in prices which was almost 50% in some cases. Gasoline prices saw the highest increase and that in turn affected the cost of all products.
To counter the desperate situation, states moved in quickly and sent out various forms of inflation relief in the form of stimulus checks, tax rebates, direct bank transfers, one-off payments, and sales tax waivers on specific products.
States that began their payments in the last quarter of 2022 continued sending pending stimulus checks well into the new year. But some states have also gone for fresh payments that were announced in 2023. The payments are expected to continue into the second quarter and many are expected to drag on for the whole of 2023.
Inflation rates continue to be way higher than the pre-pandemic levels despite easing to some extent starting in the last quarter of 2022. But despite the fall in inflation in recent months, the situation continues to be grim for low and moderate-income families, especially those who did not benefit from the series of stimulus checks given by the federal and state governments.
State Stimulus Checks In the Second Quarter Of 2023
Around 7 states are sending out stimulus checks that will continue into the second quarter and the payments are not spillover from the last quarter of 2022. These are the freshest announcement or fresh payments of stimulus checks that were sanctioned earlier.
Lawmakers in South Carolina approved a tax refund of a maximum of $800 when the state budget was approved last summer. That rebate stimulus check went out to several residents in 2022.
The good news is that the state stimulus check will not be subject to federal income taxes. The same goes for the South Carolina administration. Due to the effect of Hurricane Ian, the South Carolina stimulus check will be delivered in two phases and depends on the date the beneficiaries have filed their income tax returns for 2021 with the state of South Carolina.
Residents who filed by the October 17, 2022 deadline have majorly received the stimulus checks.
Idaho state administration has approved 2022 Special Session rebates that will be paid out by the first half of this year. The rebate amount is greater than $300 for individual filers, double for joint filers, or ten percent of the 2020 income tax liability of the taxpayer.
The Idaho state tax commission expects that there will be around 800,000 payments in total which will add up to $500 million.
New Jersey is sending out $2 billion which has been earmarked as a property tax rebate. Around 2M residents are expected to benefit from this support announced by the state. The rebate amount is linked to income. A homeowner with an Adjusted Gross Income of up to $150,000 will qualify for a $1,00 stimulus check while residents in the $150,000 to $250,000 are set to receive a stimulus check of $1,000.
Renters are also in line for stimulus checks from the New Jersey government. They will receive $450 as long as their state Adjusted Gross Income is $150,000 or less. Payments are expected to go out in the second quarter of 2023 but not later than May 2023.
The maximum standard rebate is $650 but residents who qualify for the supplemental rebate may receive as much as $975.
Residents of Maine are getting a payment of $450 that will help them cover the cost of heating in the bitter cold of the state. Checks will go out to around 880,000 residents of the state, the same number of people who received the first of the state stimulus checks that were given around a year ago by the state of Maine.
The present Winter Energy Relief stimulus check began to be mailed in the last week of January 2023. All payments are expected to go out by March 31. The government informed that Governor Janet Mills had already signed the bill to send the $450 heating stimulus check to eligible Mainers. The money is expected to go a long way toward helping residents stay warm.
Massachusetts taxpayers are set to receive a refund that comes to around 14% of their tax liability to the state. Taxpayers who have already filed their 2021 income tax returns before October 17, 2022, received the refunds earlier than December last year. But filers who filed after and will do so till September 15 this year will receive their stimulus checks a month after they file.
New Mexico residents have already received two rounds of stimulus checks, one of the few states that have given residents multiple stimulus checks for inflation in 2022. In this third round taxpayers can still receive a stimulus check of $500 for single filers and $1,000 for joint filers. Residents can file their 2021 income tax returns by May 2023 and also qualify for a refund.
While the Middle-Class Tax Rebate has almost ended in California, a new relief check of $500 is set to kick off in Sonoma County. This pilot program was implemented under the Pathway to Income Equity.
This program will help 305 pregnant and parenting families and help them to alleviate acute financial distress. The First Five Sonoma County is heading the operation and has partnered with the county’s community organizations.
The funding is also local and comes from the County administration, the City of Healdsburg, Petaluma, Santa Rosa, and money from the Rescue Plan Act of 2021.
The aim of the pilot program that will run for two years is to help ensure that children in the county can afford their education and grow in a stable environment.