Some states in the United States, such as California and Illinois, offer economic relief checks to their residents to mitigate the impact of inflation that has skyrocketed in the country.
With consumer prices rising 9.1% year-on-year, inflation hit the highest level in more than 40 years and surpassed May’s record when prices rose 8.6% on the year, according to the Bureau of Labor Statistics.
In addition, the Consumer Price Index (CPI) for June also showed that the overall costs paid by consumers for a number of goods and services rose 1.3% from May to June.
Now some Americans are cutting back on discretionary spending and dipping into savings, said Scott Hoyt, a senior director at Moody’s Analytics. “Clearly the fact that costs are rising so much, and for many people, more than their wages, is having an impact,” Hoyt said.
These are the proposed financial aid for residents of some states:
California Gov. Gavin Newsom signed a $308 billion state budget on June 30, part of the money — $9.5 billion to be exact — will be earmarked for direct relief checks, according to an office statement. of the governor
These economic relief checks are officially named “Tax Refund for the Middle Class.” State taxpayers who reported a California Adjusted Gross Income (CA AGI) of $150,000 or less on their 2020 return could get a check for either $1,050 or $700, either Whether they have declared a dependent or not.
For the same CA AGI, but in head of household or surviving spouse status, the payment could be between $700 and $350. The California government has a calculator and table to estimate how much money you could receive.
People who meet a series of requirements will automatically qualify for the “Middle Class Tax Rebate” that will begin to be deposited to Californians from October of this year and until mid-January 2023.
In late November or December, South Carolinians will receive a full refund for those who paid up to $800 on their tax return. However, those who did not pay income taxes will not receive a refund.
In addition, from August 5 to 7, the state will have a back-to-school tax-free weekend, so a variety of products, such as clothing, school supplies, backpacks and computers, will be exempt from the state tax on sales 6%.
Coloradans who filed their taxes will be able to receive Colorado Cashback of $750 for individuals and $1,500 for joint filers.
“We’re providing real relief when Coloradans need it most. Everyone in our state is feeling the pinch of rising costs, and I refuse to let the government keep taxpayer money when it could be used to make life a little easier for the people of our state,” he said. Colorado Governor Jared Polis in a press release.
Colorado Cashback financial relief will reach residents by September 30, 2022.
In May 2022, the state Department of Finance created the 2022 Delaware Relief Rebate Program, offering a one-time direct payment of $300 per Delaware resident taxpayer.
Payments will be made over the summer to those adults who have filed their 2021 tax return.
Effective July 1, the Illinois Family Relief Plan went into effect to help residents provide relief on food, gas and property taxes.
The US$1.83 billion plan includes various tax breaks, such as a temporary tax reduction on:
Groceries: The 1% state sales tax on groceries will be waived from July 1 to June 30, 2023.
Gasoline: The fuel tax increase will be delayed from July 1 to January 2023.
School Supplies: Sales tax on clothing and school-related items will be reduced from 6.25% to 1.25% for a 10-day period from August 5-14.
Additionally, individuals who earned less than $200,000 in 2021 will receive a $50 refund and couples who filed jointly with income under $400,000 will receive $100. Taxpayers will also receive $100 for each dependent. (maximum 3) that they claimed on their 2021 tax return.
A rebate of up to a maximum of US$300 is also offered for eligible homeowners.
The City of Chicago has a separate program that offers 5,000 Chicago residents—selected through an open application and lottery—$500 per month for twelve months.
Because the state experienced a revenue surplus—an excess of income over expenses—Georgia residents could receive an additional 2020 income tax refund. For example, taxpayers who filed under the filing status of Singles may receive a maximum refund of $250, heads of household may receive a maximum of $375, and married filing jointly may receive a maximum of $500.
Many Indiana taxpayers will receive a refund of $125, under Indiana’s “Use of Excess Reserves” law. The first round of direct deposits was already issued in May and the third round took place on July 1. The Additional Taxpayer Refund (ART) will continue to be sent “as individual tax returns are received and processed” for 2020.
By July 6, the Indiana Department of Revenue had issued more than 1.5 million automatic refunds to more than 2 million taxpayers, the state government reported.
In response to the impact of the covid-19 pandemic, the governor of Hawaii, David Y. Ige, signed two bills in June to financially support its residents. SB 514 provides a tax refund per person of $300 to taxpayers who make less than $100,000 a year, and $100 to those who make more than $100,000 a year. Refunds also apply to dependents.
Additionally, HB 2510 will increase the current state minimum wage from $10.10 to $12 in October and by 2028, the hourly minimum wage will be $18.
The Maine government will send an $850 relief check to an estimated 858,000 people to help residents who are “dealing with increased costs as a result of inflation caused by the pandemic.”
To be eligible for this payment, individuals must file their tax return by October 31, 2022 as a full-year Maine resident.
Eligible residents must not be claimed as a dependent and must have a Federal Adjusted Gross Income (FAGI) of less than:
- $100,000 if filing single or married filing separately.
- US$150,000 if filing as head of household.
- $200,000 for couples filing a joint return.
Minnesota’s frontline workers will receive direct payments. To be eligible for a one-time payment of up to US$1,500, the frontline worker must meet a series of requirements.
The Minnesota government has a detailed guide in Spanish with instructions on how to request the payment and who is eligible to receive it. The application dates are from June 8 to July 22, 2022.
Starting July 2, the New Jersey government began mailing a tax refund check of up to $500 to residents who filed their 2020 tax return.
To qualify, you need to:
- Have been a resident of New Jersey for the entire year.
- Have declared at least one child as a dependent.
- Have a tax balance of $1 or more.
- Have gross income of $75,000 or less for single or married filing separately or have gross income of $150,000 or less for married filing jointly, as head of household or surviving spouse.
The state approved multiple refunds for New Mexico taxpayers, as well as relief checks for residents who are not required to file taxes.
Residents who filed their 2021 tax return as married couples filing jointly, head of household, or surviving spouses with income less than $150,000 will receive an automatic refund of $500.
Single taxpayers or married taxpayers who filed separately and have income less than $75,000 will receive an automatic refund of $250.
Payments will be made in June and August 2022.
In addition, relief checks will also be sent to New Mexico residents who do not file tax returns. Households of married couples or single persons with one or more dependents will receive $1,000, and single households will receive a payment of $500.
Pennsylvania’s reimbursement program benefits eligible residents age 65 and older, widows and widowers age 50 and older, and individuals age 18 and older with a disability.
The maximum standard rebate is $650, but supplemental rebates for qualifying homeowners can increase rebates to $975, according to the state Department of Revenue.
Eligible residents must visit the MyPATH website or submit a paper application by the extended deadline of December 31, 2022.
Starting in September, Virginia residents may receive a one-time tax refund payment. Taxpayers who filed an individual return will receive up to US$250 and those who filed a joint return will receive up to US$500.
Virginia residents must file their tax return by November 1 to be eligible for the refund.