Stimulus Update: Millions to Receive Stimulus as an Increasing Number of States Share Budget Surpluses
- With state coffers overflowing, some are sharing the wealth with residents.
- More states can be expected to join this list that already includes California, Illinois, New York, and others.
If you live in one of these states, you may be in for more stimulus funds.
Last week, only four states had firm plans to provide stimulus to state residents. Today, there are six more. Here, we list all 10 and let you know what each state plans to provide.
California has several stimulus packages running simultaneously. First, there's Golden State Stimulus l, earmarked for Californians who typically receive California Earned Income Tax Credit (CalEITC) or file their taxes with an Individual Taxpayer Identification Number (ITIN). There's also Golden State Stimulus II, going out to those who received wages of $0 to $75,000 for the 2020 tax year.
In addition, Gov. Gavin Newsom unveiled a proposal to send $11 billion in relief funds to state residents in the form of $400 debit cards. The governor also wants to freeze gas tax increases and provide Californians with three months of free public transportation.
Under Newsom's plan, vehicle owners would be eligible for $400 for each vehicle owned, up to $800.
While such a stimulus plan might be inconceivable in many states, California boasts the largest economy in the U.S. If it were a sovereign nation, California would represent the fifth largest economy globally.
If passed by the veto-proof supermajority of Democrats in the state legislature, Californians could begin receiving debit cards and free public transportation as early as July.
Delaware is giving single tax filers a rebate of $300. Couples filing jointly are set to receive $600. These funds are available to Delaware residents who filed a 2020 tax return and also to those who did not earn enough to file taxes in 2020.
This week, Georgia will begin sending checks for up to $250 to single tax filers, up to $375 to head of household filers with dependents, and up to $500 to married couples filing jointly. The rules are pretty simple: To be eligible, a person must have filed tax returns for both 2020 and 2021, and no one is permitted to receive a larger refund than they paid in state income taxes in 2020.
Thanks to Gov. David Ige's proposal, Hawaiian residents who earn less than $100,000 will receive a check for $300, with families of four receiving up to $1,200. Hawaiians earning more than $100,000 will receive $100 each. Even for residents who don't have an immediate need for the money, it's a little more to put back into the economy or save for a rainy day.
Idahoans are in the process of receiving stimulus in the way of rebates. Eligibility requirements are straightforward. To qualify, a person must:
- Be a full-year resident of the state in 2020 and 2021.
- Have filed an Idaho individual income tax return or a Form 24 for 2020 and 2021.
Based on 2020 tax returns, Idahoans are due one of the following, whichever is greater:
- $75 per taxpayer and dependent
- 12% of the tax amount reported on Form 40, line 20, or line 42 for eligible service members using Form 43.
Those who have not yet filed taxes for one or both of those years have until Dec. 31, 2022 to file and receive the rebate.
There are several stimulus plans playing out in the state of Illinois. Here's what Gov. J.B. Pritzker and Democratic legislative leaders have agreed to:
- Suspension of inflation-based increase in the gas tax for six months.
- 12-month freeze on the 1% state sales tax on groceries.
- A property tax rebate check of up to $300 sent to homeowners.
- Lowering of the tax rate on school supplies and clothing from 6.25% to 1.25% between Aug. 5-14.
- $50 back from the state to single people earning less than $200,000 per year and $100 back for joint filers earning $400,000 or less.
- $100 to parents or guardians for each dependent, up to three.
A one-time check for $125 will be deposited into the bank accounts of Indianans after they've filed their 2021 tax returns. Beginning this month and continuing through May, taxpayers can expect this refund if they:
- Filed an Indiana resident tax return for 2020 before Jan. 3, 2022 and filed a 2021 Indiana return by April 18, 2022.
- Included direct deposit checking or savings account information on their 2021 Indiana return.
Taxpayers who elected not to receive refunds via direct deposit or filed for an extension of time to pay their 2021 state taxes will receive a mailed check. The state auditor plans to send those checks in July and August.
Maine was one of the first states to decide to send one-time stimulus payments. To be eligible for an $850 payment:
- Single tax filers must earn less than $100,000 per year.
- Heads of households must earn less than $150,000 per year.
- Married couples filing jointly must make less than $200,000 annually.
The first round of checks is expected to be sent in June.
Gov. Michelle Lujan Grisham signed a package providing a $500 rebate to single New Mexican taxpayers and $1,000 to married couples filing jointly. The rebate will be spread out over two checks, with the first going out by the end of June and the second sent in August. Residents who filed 2021 tax returns will automatically get the money, and no further steps are needed.
In addition to these rebates, the state legislature passed another tax package earlier this year. Single New Mexicans earning less than $75,000 will receive another rebate of $250. Married couples filing jointly and earning less than $150,000 per year will receive $500.
In New York, the state legislature has approved a new property tax credit for low and middle-income households. Those with incomes below $250,000 and Enhanced STAR recipients are expected to receive an average rebate of $970, while those earning below $75,000 will receive an average of $1,050. The average benefit in New York City is expected to be closer to $425.
In addition, New York's $0.16 gas tax has been suspended by the legislature through the end of 2022.
The number of states dipping into budget surpluses to provide stimulus is ever-growing, with several debating the subject in state legislatures. It will be interesting to see how many more come up with practical ways to help their economies while lifting their constituents.
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