Stimulus checks, at their core, are direct cash payments made by the government to eligible individuals and households. These payments are designed to provide immediate financial assistance during times of economic uncertainty, but also intended to boost local economies. Usually, American taxpayers use these funds to support local businesses, and that’s positive for them.
The primary source of funding for stimulus checks is the government’s federal budget. These funds are allocated from various departments and agencies to create a financial pool for such emergencies. Tax revenue is another significant source of funding. Governments may use a portion of the taxes collected from individuals and businesses to finance stimulus checks. This approach is often used in combination with other funding methods. Next, you’ll find some payments made in states like Idaho, Illinois, Massachusetts, and other US states.
How Are Stimulus Checks Funded?
Stimulus checks, also known as Economic Impact Payments, are funded by the U.S. Federal Government. These payments are made directly to individuals to provide immediate financial relief during times of economic hardship, such as the COVID-19 pandemic.
The funding for stimulus checks comes from the U.S. Treasury Department. Stimulus payments are effectively a form of government spending, and they are financed by government borrowing. When the government decides to issue stimulus checks, it increases its borrowing to fund the payments. The U.S. Treasury Department then issues debt in the form of Treasury bonds, notes, and bills, which investors buy. The money raised from these investors is then used to fund government spending, including stimulus checks.
In addition to these federal stimulus checks, some states have implemented their own stimulus programs to assist their residents. These state-level stimulus checks are funded by the state governments and are separate from the federal stimulus checks.
Details on State Programs That Send Stimulus Check
While many aid programs have ended, some states keep helping out by giving money.
- Idaho: Idaho plans to give around $500 million to about 800,000 people this year. This plan, called the 2022 Special Session rebate, is for people who lived in Idaho in 2020 and 2021 and paid taxes. They can get $300 or $600 or 10% of their 2020 taxes. People can check for updates on the government website.
- Illinois: Last year, Illinois said about six million people would get tax returns. It could take months for people to get their money. They can get up to $50, $100, or $300, and there’s a $300 property tax return too.
- Massachusetts: Massachusetts started giving tax refunds last November to about 3 million people. They get 14% back from their 2021 state income. People have until September 15 to file their 2021 taxes and get this money.
- Minnesota: People in Minnesota can get a one-time payment for 2021 because of a new law. Married couples can get $520 and individuals can get $260. If people moved or changed banks after 2021, they can update their info on the state website.
- Montana: Montana homeowners can get up to $1,350 in the next two years for property taxes. To get this, they must have lived in Montana for seven months last year and paid their property taxes. They can apply from August 15 to October 1.
- New Mexico: Last month, New Mexico gave out payments of $500 or $1,000 to 26,000 people. People with lower incomes got this money. Also, many people who paid taxes in 2021 can get $500 to $1,000. If they haven’t done their 2021 taxes, they have until May 31, 2024.
- Washington: This state has a tax credit for families with lower incomes. Depending on the family size, they can get $50 to $1,200. To get this, parents must have lived in Washington for half of 2022 and done their taxes. They can apply until December 31, 2023.
- California: More than half of the state’s residents are set to receive payments of up to $1,050 based on a three-tiered eligibility system. Tax filers with at least one dependent are also set to receive an additional $350, $250, or $200 based on their income
- Delaware: The state created its relief rebate program, sending a one-time direct payment of $300 per adult ($600 for joint tax filers)
- Georgia: The state’s Department of Revenue announced it would begin issuing one-time tax refunds to residents amounting to $250 for single filers, $500 for joint filers, and $375 for head-of-household filers
How to Update Personal Information to Receive State Tax Returns and Property Returns
Updating your personal information to receive state tax returns and property returns can be done in a few steps. The process can vary slightly depending on the specific state, but the general steps are outlined below.
- Update Your Address with the IRS: Start by updating your address with the IRS. This can be done by completing IRS Form 8822, Change of Address, and mailing it to the address shown on the form irs.gov. It can take four to six weeks for a change of address request to be fully processed.
- Update Your State Tax Authority: Next, contact your state tax authority to update your address. The specific process can vary by state. For instance, in Missouri, the Department of Revenue allows you to update your address online.
- Amend Your Tax Return: If you’ve already filed your tax return and need to update your address, you may need to amend your tax return. This can be done by filing an amended return with the IRS using Form 1040X, Amended U.S. Individual Income Tax Return. You can check the status of your amended return using the “Where’s My Amended Return?” tool on the IRS website.
- Check Your Refund Status: After updating your information and filing your amended return, you can check the status of your refund. Most states have an online tool to check the status of your refund. For example, California has the “Where’s My Refund?” page on the California Franchise Tax Board website smartasset.com.
Alaskans to Receive Up to $3,284 through Permanent Fund Dividend
Residents of Alaska, United States, are on the brink of receiving substantial financial relief, with direct payments totaling $3,284.00 scheduled for distribution in September through the Permanent Fund Dividend program. This initiative has been steadfast in its commitment to supporting Alaskans in managing their living expenses, with a particular focus on combating the rising costs of energy and food.
If you reside in the Last Frontier State, you might be aware that the cost of living there is one of the highest in the United States. That’s why, for example, Social Security benefits like SSDI and SSI, as well as retirement payments, are higher there compared to the 48 contiguous states and DC.
To be eligible for the stimulus checks in Alaska, individuals must meet stringent criteria, which include being a resident of the state and demonstrating a sincere intention to remain there indefinitely. Additionally, applicants are required to maintain a clean legal record and abstain from claiming residency in any other state during the dividend year.
For Alaskans, the Alaska Permanent Fund Dividend is a much-anticipated event, offering them an opportunity to better prepare for the upcoming winter, alleviate financial burdens, settle debts, and secure their financial future. These payments serve as a crucial lifeline, assuring residents that they are not alone in navigating the economic challenges of today. The impact of this year’s distribution is expected to be substantial, with a staggering $3.4 billion being disbursed from the fund. Individually, Alaskans can anticipate payments of $3,284.
