The vast majority of Americans received multiple stimulus checks during the pandemic and later even as they continued to face economic troubles. Throughout the COVID-19 pandemic, the federal government alone distributed three rounds of stimulus checks to eligible AMerican as part of emergency relief efforts.
The economic downturn following the pandemic affected not just low and moderate-income Americans. Even the middle class was affected even as the economy remained shut for months in 2020 and again in 2021.
The economic impact payments given over a space of a little more than a year were credited with managing the desperate situation that the pandemic brought up over close to 250 million Americans during and after the pandemic.
Millions Missed Out On Federal Stimulus Checks
But not all deserving Americans received the stimulus checks. And ironically millions of individuals and households with the lowest income missed out on the payments even as the agency tasked by the federal government admitted its shortcomings.
The Internal Revenue Service had limitations in its data as it could not reach out to people whose income was too low for them to file income tax returns.
The IRS sent out over 175 million payments in the third round of payment under the AMerican Rescue Plan Act signed by President Biden in March 2021. Around $400 billion went out in direct cash support and it was supplemented by indirect support through funds given to state, local, and tribal governments. The third round of the stimulus check ended in December 2021. The federal government announced that it had officially issued all the economic impact payments for which it had data.
But millions continued to receive the payment, including individuals and families whom the IRS reached out to later in 2022 with data obtained from other federal agencies.
The Child Tax Credit stimulus checks that were issued from July 2021 and continued through December 2021 were the last of the major Federal government payments and its discontinuation also marked the end of all direct federal support to Americans.
Federal Government Failed To Support Americans During The Record Inflation In 2022
Despite the smart recovery in the latter half of 2021, the American economy faced record inflation even as the world supply chain and the war in Europe fuelled inflation that touched record levels. By the middle of 2022, inflation rates had beaten decades-old records and the woes continued into 2023.
Americans found it tough to meet even the expense of basic items like food, gasoline, and home rent. The intervention of states helped matters to a certain extent, but the inflation relief measures were limited to twenty states.
Most states sent out one-off payments while some like California and New Mexico have given out multiple payments throughout the pandemic and during the inflation-affected months.
Most state stimulus checks ended by the first quarter of 2023 with California completing its payments by the first quarter of 2023.
Some States Announce Fresh Stimulus Checks In 2023
New Mexico has sent out two rounds of stimulus checks through two different pieces of legislation in 2022. The payments were given in three installments spread out over four months. One notable feature of the New Mexican stimulus check was that it supported even Immigrants and ITIN cardholders were also beneficiaries of the payments.
Now in 2023, Gov. Michelle Lujan Grisham has announced that the southern state will begin sending out the latest rounds of rebates in mid-June. This move will put over $673 million back into the hands of New Mexicans.
The Revenue and Taxation depart of the state will send rebates of $500 to individual filers and married couples filing individually. Joint filers, surviving spouses, and heads of household are set to receive $1,000.
All New Mexicans who have filed their 2021 New Mexico Personal Income Tax return and who were not declared as dependents on the income tax return of another taxpayer will automatically receive the latest round of stimulus checks.
Residents will not have to send out any application to claim the payments, which will be based on their 2020 state income tax return.
Gov. Lujan Grisham said that while the prices of necessities remain high across the nation, it was important to the government that families in New Mexico get a share of the economic boom that the state has enjoyed.
Filers received refunds by direct transfer to their bank account on their 2021 return. They will get their payment to the same account through the latest round of stimulus checks. Others who have not linked their bank accounts to their returns will receive their stimulus check from the postal service.
Delay In Filing 2021 State Income Tax Returns Could Delay Stimulus Check
The direct bank deposits will come in first while the stimulus check sent over mail will be mailed in the coming weeks starting mid-June.
Eligible residents, including both Social Security cardholders and ITIN cardholders, have until May 31, 2024, to file their 2021 state personal tax returns and qualify for the rebate.
But taxpayers who delay filing their state returns will also have their payment delayed and could see the payment pushed into 2024. The TRD secretary StephanieSchardin Clarke announced that their staff was working overtime to ensure that the next round of rebates was processed quickly and reached New Mexicans early even as they eagerly await the payments.
Filers who had changed addresses since they last filed their returns and who collected the payment through paper stimuli s checks should immediately update it. This can be done by using the Taxpayer Access Point self-service portal and also by submitting the relevant form for a change of address (Form RPD-41260).
Taxpayers of New Mexico whose banking information has changed since they submitted their 2021 income tax returns will receive the rebate by mail.
Residents who are not required to file income taxes because of their income level will have the option of applying for relief payments on a first come, first served basis through the Human Services Dept of the state.
The application is yet to be made available, and a public announcement is expected soon.