20 states compensate their residents for extra expenses due to inflation: who and how much can get
As high inflation puts an additional financial burden on Americans, some states are helping with lump sum stimulus payments to offset the damage from higher prices. FOXBusiness.
At least 20 states are offering lump sums or extended tax credits to help residents cope with inflation as both Republican and Democratic governors use balances in COVID-19 funds to offset inflation.
Some states have already delivered payments, while others plan to send them next year.
The payout comes at a time when consumers are experiencing a price shock for the first time in years. Although inflation has shown signs of slowing - prices rose 7,7% year-on-year in October and 0,4% month-on-month - it is still hovering near its highest level in 40 years.
In which states are payments made and who can claim the money.
Gov. Gavin Newsom, a Democrat, approved a state budget that includes inflation checks of up to $1050 for a married couple with at least one dependent. Payments that come from California's $97 billion covid funds will be sent either as direct deposits or debit cards by 2023.
The first payments came in October.
- Single tax payers who earn less than $75 a year will be eligible for $000 plus another $350 if they have dependents.
- Couples filing jointly and earning less than $150 a year will receive up to $000 plus $700 for all dependents, for a total of $350.
Payouts are reduced for higher earnings.
Technically, this money represents a tax refund that will return about $9,5 billion to residents of the state.
Residents who filed their 2021 tax returns by June 30 received a check for $750 by September. Joint applicants will receive up to $1500.
Applicants who receive an extension and apply by the October 17 deadline will receive their tax refund by the end of January.
Gov. Jared Polis, a Democrat, signed the reimbursement bill into law at the end of May.
Connecticut residents are eligible for "child tax credits" of up to $250 per child (maximum for three children, or $750) if their adjusted federal gross income does not exceed $100 for individual applicants and $000 for married couples filing jointly .
Applications for benefits were to be submitted at the end of July. The state began sending payments at the end of August.
Delaware residents who filed their 2020 state tax returns received a one-time payment of $300 earlier this year. Couples who applied jointly received $300 per person. The aid was intended to help Delaware residents deal with higher food and gasoline prices.
Gov. Ron DeSantis, a Republican, announced this summer that his administration is sending checks of up to $450 per child to low-income families. Approximately 59 families will be eligible for the money.
Florida is paying for this initiative by reallocating the $35,5 million it received from President Biden's COVID-19 relief package, the American Rescue Plan.
According to the Florida Department of Children and Families, eligible recipients include adoptive parents, relatives and non-relatives, and families receiving funds from the Florida Temporary Assistance to Needy Families or Guardianship Program.
Most families received the money ahead of the state's tax holiday, which ran from July 25 to August 7.
Georgia residents who filed their 2020 and 2021 tax returns will be eligible for benefits based on their tax status:
- Single declarations: $250 maximum.
- Head of Household: $375 maximum.
- Married couples filing jointly: $500 maximum.
The state was able to approve benefits thanks to a historical budget surplus.
Earlier this year, the Hawaii legislature approved a tax credit that provides $300 to residents who earned less than $100 in 000. Those who have earned more than $2021 will receive a lump sum payment of $100.
The Department of Taxation said payments could begin processing at the end of August, with most payments sent by the end of October.
In February, Gov. Brad Little, a Republican, signed into law legislation providing $75 to every taxpayer and dependent, or 12% of their 2020 state income tax, whichever is greater.
Idaho began mailing checks in March. You can check the status of your benefits online.
Earlier this year, Illinois approved a $1,83 billion relief package that includes both income tax and property tax relief.
Under the law, individuals who earned less than $200 in 000 will receive a $2021 tax credit. Couples who filed a joint return and earned less than $50 in 400 will receive a lump sum payment of $000.
Applicants may receive an additional $100 per dependent, up to a maximum of three dependents. A family of five can receive up to $400.
In May, the state began paying $125 to all residents, regardless of income, thanks to Indiana's automatic tax refund law. Lawmakers later added another $200 payment.
Taxpayers who filed a 2021 state tax return and have an adjusted gross income of less than $100 will receive $000 if they are single. If they file as head of household, they will receive $150, and if they are married and file together, will receive a one-time payment of $000. Couples who apply jointly can receive $200.
Any residents who pay their 2021 Massachusetts personal income tax and file their 2021 return by October 15, 2023 will receive a tax refund in aid.
The amount of the refund is about 14% of the state income tax. You can use this onlinetoolto calculate how much you owe.
Nearly $3 billion will be returned to eligible taxpayers in November and December.
Gov. Tim Walz, a Democrat, signed a bill in May authorizing a $750 payment for workers whose activities are related to COVID-19. Eligible individuals must work at least 120 hours in Minnesota between March 15, 2020 and June 30, 2021.
Employees with direct care responsibilities for COVID-19 patients must have an annual income of less than $175 between December 000 and January 2019. If employees did not work directly with COVID-2022 patients, the pay threshold is reduced to $19 for the same period.
Applications closed on July 22.
Property tax rebates are available to New Jersey residents who owned or rented a primary home in the state on October 1, 2019. To qualify, homeowners cannot have a household income above $2019 in 250; for tenants, the limit is $000.
Individuals can apply for the benefit until December 30, 2022.
Qualifying homeowners can receive a maximum payout of $1500, and renters can receive up to $450.
Earlier this year, Gov. Michelle Loujan Grisham approved a measure offering residents $250 if their annual income is less than $75 and $000 for joint filing couples, heads of households, and surviving spouses with incomes of less than $500.
The August benefit is in addition to previous payments of $250 and $500 sent in June.
In June, homeowners began receiving property tax breaks, averaging $1050.
To qualify, New Yorkers must be eligible for 2022 School Tax Relief (STAR) and have school tax liabilities in excess of STAR benefits. Individuals must also have 2020 income of $250 or less.
In addition, New York is delivering payments to people who received at least $100 on one or both state child loans or earned income loans for the 2021 tax year. To be eligible for the money, your 2021 New York State tax return must be filed by April 18, 2022.
Oregon provided a "lump sum" to low-income residents who claimed a state income tax credit on their 2020 state income tax return and lived in the state from July 1 to December 31, 2020.
Payments are $400 per family.
The state began delivering payments in June 2022. By law, Oregon stopped sending payments after July.
In July, the state established the Property Tax and Rent Relief Program, providing $121,7 million from the fund to people with disabilities, senior homeowners and renters. Those who are eligible for the program must attend myPath website or submit a paper application by December 31, 2022.
Payments will be delivered via direct deposit or cheque.
The maximum standard benefit is $650, but some homeowners may qualify for additional benefits of $975.
Rhode Island provides a “Child Tax Relief” to eligible families—married couples with a gross income of $200 or less, and individuals with a gross income of $000 or less.
Recipients must also reside in Rhode Island.
You may be interested in: top New York news, stories of our immigrants, and helpful tips about life in the Big Apple - read it all on ForumDaily New York.
Each eligible family will receive $250 per child, up to a maximum of $750. Payments are only available to children who are 2021 years of age at the end of 18.
The state began delivering payments in October.
Some taxpayers are eligible for a lump sum payment of up to $800. It is expected that the details of receiving the payment will be published later this year.
Lawmakers approved a one-time tax break in June. Taxpayers filing by July 1 will receive a $31 relief until October 250 if they are single, while couples filing jointly will receive up to $500. You must file your tax return by November 1 to receive the exemption.
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