2022-2023 Inflation Relief Stimulus and State Tax Rebate Checks Now Being Paid

2022 Inflation Relief Stimulus Checks Payment

Over the last few years millions of people got used to stimulus checks and government relief programs to bail them out of tough financial situations.

With rising inflation hitting the pocketbooks of nearly every individual and business, governments are back to handing out free money to those who qualify – generally based on income.

However, action is now being taken at the state level via additional checks or tax rebates, versus the federal level where no additional funding for stimulus checks was or is likely to be approved.

Fortunately states are flush with money from prior COVID funds and higher tax collections. This has allowed many states to use some of their budget surpluses to help taxpayers deal with the impacts of higher inflation and tougher economic conditions. 

Here are the states are taking action to provide economic relief current and into next year:

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California Stimulus Checks

California’s Gov. Gavin Newsom’s office announced an inflation relief package that includes direct refunds, a.k.a inflation relief stimulus checks. This is on top of CA Golden Stimulus checks paid last year.

The latest CA stimulus check, paid like state tax refunds were, will be based on earned income and dependents per the following tiers:

Tier 1: Tax filers with incomes up to $75,000/$150,000 (Single Filers/Joint Filers)

Tax filers in this lowest income tier will get $350 per tax filer, plus an additional $350 if tax filer has at least one dependent. There are no extra payments for multiple dependents.

So a single and joint filer in this tier with no dependents gets $350 and $700 respectively. A family of 4, with 2 kids and 2 qualifying adults will get an extra dependent payment bring their total check to $1,050.

Tier 2: Tax filers with incomes above Tier 1 levels but below $125,000/$250,000 (Single/Joint)

Filers in this tier will get $250 per qualifying tax filer, plus an additional $250 if at least one dependent. So a single filer with no dependents would get $250, versus the maximum $750 a qualifying family could get.

Tier 3: Tax filers with incomes above Tier 2 levels but below $250,000/$300,000 (Single/Joint)

Filers in this tier will get $200 per tax filer, plus an additional $200 if at least one dependent. So a single filer with would get $200, versus the maximum $600 a qualifying family with 2 adults and 2 children could get.

Nearly 17.5 million Californians will benefit from the above payments, once the budget is approved. Which is highly likely given Democrats control the state legislatures.

Any one making above Tier 3 income qualifying thresholds would not be eligible for these inflation relief stimulus tax refunds.

The 2022 inflation relief stimulus payments will be sent via direct deposit or debit card by late October, based on the tax filing or relevant state agency information

Massachusetts Excess Tax Refunds

Taxpayers will receive refunds equal to about 14% of their tax bill for 2021, thanks to state tax law (Chapter 62F) that require excess tax revenue (above an audited cap) to be redistributed to those who paid personal income taxes in Massachusetts.

In FY22, total state tax revenue collected exceeded the allowable revenue threshold for FY22 as defined by Chapter 62F. Approximately $3 billion must to returned to tax payers.

If you have already filed a 2021 tax return you should get your additional refund payment by mid-December 2022. If you file late, you will be paid in 2023.

Colorado Cash Back Programs

Most Coloradans received a one-time $750/$1500 (single/married) tax rebate check in the mail under the Colorado Cash Back program.

You will need to have filed a state tax return (e-file for free) and will have received your check by Sep 30th, 2022. This refund will be paid based on the tax return or Property Tax/Rent/Heat Credit (PTC) Rebate application filed for 2021.

Anyone who moved to Colorado in 2022 is not eligible for this refund mechanism, as full year residency is required.

Illinois Tax and Homeowner Rebates

Starting in September, residents who filed a return and earned less than $200,000 (single) or $400,000 (married) will get $50 and $100 rebates. They will also get $100 per dependent, for a maximum of three dependents ($300).

Per the Illinois Revenue website, there is an additional $300 rebate for homeowners whose gross income does not exceed $500,000.

Virginia Cost of Living Rebate

Virginia residents with a tax return filed in 2021 are eligible to receive a one-time rebate of $250 for single filers and $500 for joint filers.

Eligible tax payers will get their rebate checks (mail or direct deposit) by October 31st or within four months of their file date for late filers.

South Carolina Tax Rebates

Tax Rebates up to $800 were provide to residents who had a tax liability for 2021 and had filed a state tax return by Oct 17th. However this won’t help people who didn’t end up owing state taxes last year.

New York Homeowner Tax Rebate Credit

New York is providing a homeowner tax rebate credit to nearly 2.5 million residents under a new, one-year program based on their tax filings, qualifying STAR credit/exemption and income (less than $250,000).

If you qualify, you don’t need to do anything and a rebate will automatically be mailed to you by the NY Department of Taxation and Finance.

The state is also sending checks as part of a $475 million program to qualifying eligible low-income families and workers who claim the state’s child tax credit (CTC) or earned-income tax credit (EITC). The average payment is $270 and will be automatically be sent to qualifying tax payers that have filed a prior year tax return.

New Jersey ANCHOR property tax rebates

New Jersey is rolling out its Affordable New Jersey Communities for Homeowners and Renters (ANCHOR) program which expands eligibility via property tax rebates for those who owned or rented their principal residence (main home) on October 1, 2019. The following are qualifying income limits.

  • Homeowners with income of $150,000 or less will receive $1,500.
  • Homeowners with income of more than $150,000 and up to $250,000 will receive $1,000.
  • Renters with income of $150,000 or less will receive $450.

You will need to apply by filing your ANCHOR benefit application by January 31, 2023, with direct deposit or rebates to be made by Spring of 2023.

Other States Who Have Sent Payments

Delaware, Florida, Georgia and Idaho have also all mailed some form of support or stimulus payment earlier in 2022. You can check their state tax or revenue websites for details on your payment.

Many states may follow suit nd hand out inflation relief payments to lower income earners in the coming months. I’ll post updates if this happens and you can follow along via the options below.

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Ironically extra stimulus or direct relief payments will likely stoke more inflation as the money will quickly be spend on buying even more goods and services.

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6 thoughts on “2022-2023 Inflation Relief Stimulus and State Tax Rebate Checks Now Being Paid”

  1. I’m just really wanting to know the information about the 4th Stimulus Check… I don’t know if I can get it.. because I just moved back to CA in Aug. Of 2021. Do I have to fill out a form or anything to get my 4th Stimulus Check? Or will it be mailed to me just like the last 3 stimulus checks?

    Reply

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