With rising inflation now hitting the financial pocketbooks of nearly every individual and business, governments are now back to handing out free money to those who qualify – generally based on income.
However, action is now being taken at the state level, versus the federal level where no additional funding was approved in the latest IRA bill.
Here are some actions states are taking to provide economic relief:
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
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.
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.
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.