While the COVID-19 pandemic has subsided, Americans are still experiencing the effects of the lockdowns, with supply chain concerns and Russia's invasion of Ukraine now causing substantial inflation.
While Americans were eligible for federal stimulus checks during the pandemic, the federal government will not provide similar assistance to address growing living costs.
Nonetheless, despite the lack of a fourth stimulus check, numerous governments or localities have increased their efforts and are now issuing tax rebates to assist alleviate the cost of inflation, according to Marca. With inflation showing no signs of easing and mounting fear about a looming recession, more than a dozen states are providing tax refunds to people.
Starting in October, up to 23 million Californians, for example, can anticipate a one-time inflation relief check. The middle-class tax rebate, as Democratic Gov. Gavin Newsom dubbed it, will provide qualifying families with up to $1,050. Meanwhile, New Mexico has begun issuing tax rebates in stages, beginning in May. More reliefs are on the way later this month and in August, CNET reported.
Tax Rebates in Each State
During the pandemic, the federal government distributed three rounds of stimulus checks. It's unlikely to send much more, but we're keeping track of which states are giving out tax breaks and stimulus money to citizens.
California
Newsom and state lawmakers have agreed to deliver up to $1,050 in inflation relief checks to millions of Californians.
The payments, which will be made from California's $97 billion budget surplus, will be sent via direct transfers or debit cards by 2023, according to The Sacramento Bee. Individuals earning $250,000 or more, as well as couples earning a combined $500,000, are ineligible for the payouts.
Georgia
Gov. Brian Kemp signed legislation in March allowing taxpayers who filed state returns in both 2020 and 2021 to be reimbursed. Single taxpayers are eligible for $250, heads of households for $375, and married couples filing jointly for $500.
Hawaii
Residents earning less than $100,000 in 2021 will receive a $300 tax relief this year, with dependents also eligible. Individuals who garner an income of more than $100,000 and couples earning more than $200,000 will each get $100.
Colorado
State residents who submitted their 2021 returns by June 30 will receive a $750 payout in September while joint filers will receive a $1,500 check. Filers who obtained an extension and filed by the deadline of Oct. 17 will receive their refund by Jan. 31, 2023.
Delaware
In April, Gov. John Carney approved legislation authorizing $300 stimulus checks to citizens who submitted their 2020 tax forms. If you applied jointly, each person will get one of the payments, which started in May.
Idaho
In February, Gov. Brad Little signed legislation providing $75 to each taxpayer and dependent, or 12% of their 2020 state income tax return, whichever is larger. Checks began to be mailed in March, but you may check the status of your refund online.
Illinois
Illinois' projected $1.83 billion relief plan, which includes income and property tax rebates as well as a temporary reduction in many sales taxes, went into effect on July 1.
Individuals earning less than $200,000 in 2021 will receive a $50 income tax rebate while married couples filing jointly earning less than $400,000 would receive a $100 rebate. Filers can additionally receive $100 for each dependant claimed on their 2021 taxes, up to a maximum of three dependents. A family of five might make up to $400 each week.
New Jersey
Governor Phil Murphy has already authorized a $500 tax credit for nearly a million New Jersey residents. He has also advocated for payments to nonresident and resident immigrants and their families who use a taxpayer identification number rather than a Social Security number.
New Mexico
In both May and June, the Land of Enchantment handed $250 refund cheques to state taxpayers, for a total of $500. Another rebate is set to be distributed in July, although it is subject to specific conditions.
New York
About 3 million New York households received property-tax refunds of $100 or more per family in June. Those who qualify will automatically get a payment in early July, according to the New York State Department of Taxation and Finance.
Virginia
Virginia citizens will receive $250 one-time checks while married couples filing jointly would receive $500.
Indiana
As a consequence of Indiana's automatic taxpayer refund law, payments of $125 were made to all citizens regardless of income beginning in May, but Gov. Eric Holcomb is pressing lawmakers to give taxpayers an extra $225, according to the Indianapolis Star.
Maine
Maine residents who have filed their 2021 state tax returns and have a federal adjusted gross income of less than $100,000 are eligible for a $850 direct relief payment. Couples filing jointly will get a single $1,700 payment. Checks should come by mid-July.
Minnesota
Certain Minnesota frontline employees will receive a one-time payment of $750, with applications accepted through July 22. Gov. Tim Walz has also called for a special session of the legislature to adopt a proposed income tax rebate of $1,000 for individuals earning less than $165,000 and $2,000 for couples earning less than $275,000.
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Do Stimulus Checks Affect Inflation?
Inflation is a common and natural byproduct of economic growth. As companies expand, they hire more people, unemployment reduces, and households have more money to spend, which boosts demand for products and services, causing prices to rise.
The economic impact of the pandemic was neither normal nor natural, and the same might be said about today's 8.3 percent inflation rate, which is now going down after resting for months at a 40-year high.
Prices grow slowly during normal economic expansions as money slowly enters the system, thus it seems to reason that a rapid flood of trillions of stimulus funds would cause prices to rise swiftly.
There is no doubt that the payouts are to blame for at least part of it. The most solid estimate comes from the Federal Reserve Bank of San Francisco, which predicted by the end of March that government intervention might have increased the national inflation rate by three percentage points, as per Go Banking Rates.
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