Amidst the relentless rise in prices, one more state has started giving out inflation relief stimulus checks and over 23 million residents are on track to receive payments up to $1,050. It is the third round of stimulus checks from the Golden State through the first round of relief to combat inflation. Other states too are in line for payments in November.
Ever since the federal economic impact payments and most other federal pandemic relief measures were discontinued in 2021, people had been burdened by the relentless rise in prices across the spectrum from gasoline to groceries.
For the first time in 4 decades, inflation rates have inched closer to the 10% mark and touched 9.1% in June. It has consistently stayed above the 8% mark that has been marked by prices almost doubling for key products including gasoline.
Gov. Gavin Newsom said a day before the administration began dispatching the stimulus checks that the government realizes that Californians are facing the burden of high expenses including the highest prices of gasoline. He said that the state was putting money into the pockets of residents by sending out refunds worth up to over a thousand dollars to help individuals and families pay for everything from gasoline to groceries.
California has been one of the most affected states as gasoline prices remain almost double the national average and have again crept past the $7 per gallon mark in October after ending September at a high of $6.4.
The first of the payments for the Middle-Class Tax Refund began going out on October 7. A majority of the payments will reach residents within a couple of days as an overwhelming number of the payments are through direct credit to the bank accounts of beneficiaries.
The tax board of California, the Franchise Tax Board has published specific information for when people will receive their payment. The board has informed us that it expects to send out 90% of the total stimulus checks through transfers for the cashback in October 2022.
The earliest beneficiaries are those who received either of their Golden State I and II payments through direct transfers. They will get their cash back between October 7 and October 25. The rest of the direct transfers will be initiated between October 28 and November 14, 2022.
Being Eligible For The California Stimulus Check
The Franchise Tax Board has said that residents are eligible to receive the one-off tax refund if they have filed their 2020 income tax returns by October 15, 2021. They must also have been a resident of California for at least 6 months in the 2020 tax year and should also be a resident of the state on the date the payment is issued.
Potential beneficiaries must also meet the adjusted gross income limits for 2020 that have been divided into three layers with the payout different for each. They must also not be claimed as a dependent by another filer in the 2020 tax year.
The Middle-Class tax refund stimulus check has been tiered into three distinct AGI brackets. Individual residents with an AGI of above $250,000 in the 2020 tax year and joint income tax filers with combined income above $500,000 are not eligible for any stimulus check.
The highest payout is for individuals and families in the lowest tier. Individuals earning up to $75,000 will receive a stimulus check for $350 plus an equal amount more if they declare any dependent. For joint filers earning up to $150,000, the stimulus check comes to $350 each for the couple plus another $350 if they include any dependent in their tax file.
The total thus comes to $1,050 for a married couple in this income bracket, the highest payout possible under this round of stimulus checks.
For individuals earning between $75,001 and $125,000, the cash-back amount comes to $250 plus an equal amount for a dependent. For married couples filing jointly, the stimulus check amount is $250 for each filer plus another $250 for any declared dependent. The income range allowed for this amount for joint filers is between $150,001 and $250,000. The maximum amount allowed under this slab is $750 for a joint filing couple with a dependent.
The highest slab under which the Middle-Class Cash Back is allowed is in the range between $125,001 and $250,000 for individuals and between $250,001 and $500,000. The check amount comes to $200 for individuals and $400 for joint filers plus another $200 for any dependents.
Illinois Send A $700 Stimulus Check
Illinois has put together a relief package worth an estimated $1.83 billion which includes two rebate components, income, and property tax, and also a temporary cut in sales tax for multiple items that should be going out between September and November.
Individuals with an AGI below $200,000 in 2021 will receive a $50 rebate on their income tax while a couple with joint filing and income below $400,000 will get double that. Filers will also get $100 for each dependent up to 3 dependents. Thus, a family of five can get a $500 stimulus check. The payments started going out in September and will continue into November, according to the Illinois Dept. of Revenue.
The Family Relief Plan of Governor J. B. Pritzker also includes several rebates and tax holidays that include a suspension of the sales tax levied by the state for a year. A permanent expansion of the earned income credit has also been allowed, and it will go up from 18% to 20% of the federal credit.
Taxpayers in Massachusetts are eligible for a 13% refund on their income tax which comes to nearly $3 billion in tax refunds. The money enjoyed a 20.5% surge in revenue in 2022 over the previous year. The present surplus is the largest in the state’s history and far exceeds the $1 billion surplus collected by the commonwealth in 2019.
Under state laws, the government is required to refund $2.941 billion to its taxpayers. Initially, the state has settled on issuing stimulus checks this fall to those having an income tax liability for 2021. But the credit shall also be applied to all current taxpayers proportionate to their income tax liability incurred by filers in the immediately preceding tax year.