New Stimulus Check For 2.5 Million Americans: $3 Billion Plan Includes Child Tax Credit Payments

Stimulus Check Social Security Payment
Stimulus Check

Even as most states put a stop to future inflation relief stimulus checks and other plans to help low and moderate-income residents, a handful of states continue with measures that will put substantial money in the hands of residents. 

The beneficiaries in the state round of stimulus checks were supported as record inflation led to a drastic drop in purchasing power despite a rise in wages post the pandemic. People were buying less than before the pandemic even though they were earning more than they did earlier. 

The hike in prices pushed the states to give some form of support to residents even as all forms of federal stimulus checks dried up in 2021.  Right from the last quarter of 2021, inflation rates began the relentless rise that caused it to breach the 9% mark in June 2022. 

By the end of 2022, it eased somewhat but remained several times above the pre-pandemic figures.

But by the start of the new year, even state stimulus checks dried up and by the first quarter of 2023 it was only the remnants of the inflation relief payments declared in 2022 that were being sent out. 

States such as California deferred their inflation relief payments for the festive season of 2022. While most payments were sent out by the end of 2022, delays in payments caused by the postal service ensured that these payments continued till the end of the first quarter of 2023.

As we move to the last month of the second quarter, the stimulus check payments are few and far between. But some states, mostly ruled by the Democrats, have announced fresh measures, though the latest round of payments is more focussed and is more of an experiment in minimum support wages. 

 States Considering More Stimulus Checks In 2023

It has been a long journey from the total shutdown immediately after the pandemic and the present case. For now, it has more to do with inflation relief and support for low and moderate-income Americans. 

Back in 2020, things appeared beak with the pandemic raging and total uncertainty about the next course of action that the administration had to take. 

Then began a tentative experiment in stimulus checks that over the next two years would seem to cover the total expense of the large number of Americans living below a certain middle-class income level. 

The whole experiment in social support policy was a ray of light amid the darkness of the past three years. 

The announcement of the economic impact payments was a huge relief for Americans even as they stared at the prospect of starvation, homelessness, and rent and credit default.

Most stimulus check payments that continue into the second quarter are remnants of schemes declared way past in 2022. The Middle-Class Tax Refund that sent between $200 to $1,050 to each family or individual was decided upon way back in the middle of 2022 but the payments were timed to coincide with the festive season. 

The Franchise Tax Board, the tax agency of California, declared stimulus checks for residents depending on their filing status, and the Adjusted gross income for 2020. Claimants should also have filed their tax returns by October 15, 2021, and have lived in California full-time for at least six months in 2020.

The people claiming the Middle-Class Tax Refund stimuli scheme should also not be claimed as a tax dependent for 2020 on any other filer’s income tax return. They should also not cross the Adjusted Gross Income limit for California which is $250,000 for individuals and double that amount for married couples filing jointly. 

The highest stimulus check amount went to joint filers with a joint Adjusted Gross Income of less than $150,000, with each filer getting $350 each plus another $350 if they include a dependent in their returns for 2020. The total thus came to $1,050, the most generous of the stimulus checks sent out by states. 

Minnesota Among A Handful Of States To Declare Stimulus Checks In 2023

Minnesota is among the American states that are enjoying a huge budget surplus. And like California did with the Middle-Class Tax Reflund, the inflation relief payment by the Golden State in 2022, the Gopher State is also considering sending out a part of that surplus to millions of families.

Minnesota is weighing sending a total of up to $2,600. The direct payments are one part of the overall 2-year budget plan of the state and could end up being worth $65 billion. Other proposals that Minnesota plans to implement include increased education spending, health, housing, and public safety. 

In January this year, Gov. Tim Walz announced his plan of gifting resident taxpayers the largest package of tax cuts in Minnesota’s history. And the goodies do not end there. The ambitious plan also includes giving ut as many as 2.5 million individuals and households stimulus checks that could add up to $2,600.

Eligibility For The Minnesota Stimulus Check

Like with other stimulus checks and inflation relief payments, there are certain criteria for receiving the Minnesota stimulus check that includes both the AGI for 2020 and also their tax filing status. Individuals with an Adjusted Gross Income of up to $75,000 a year would receive $1,000 in their bank account.  

Married couples filing jointly and with an AGI of up to $150,000 will receive a stimulus check of $2,000. Families with children will also receive a rebate of $200 a child. An amount will be allowed for a maximum of three children. So for a married couple with three children, the benefit would rise to $2,600.

The new budget for two years would include a reduction in the state tax on Social Security benefits for around 350,000 residents, the legalization of marijuana, and the $1.1 billion child tax credit payments. Around $670 million has been sanctioned to launch a paid medical and family leave program.