In 2020, the COVID-19 pandemic brought a lot of uncertainty. But there was some good news when they said they would give money to help struggling Americans during the lockdowns and the slowed-down economy. Amidst these situations, the possibility to receive stimulus checks will be an important financial support for the households.
Throughout the pandemic’s duration, economic stimulus checks were disbursed on multiple occasions to American citizens. However, it seems that the Federal government has ceased its intention to issue further rounds of such checks. Well, we have more good news: certain states are considering the distribution of stimulus checks to their residents in the year 2023, even in the remaining months.
Why are tax rebates or stimulus checks sent to taxpayers?
Tax rebates and stimulus checks programs in the United States are a fundamental tool in the arsenal of a fair and just taxation system, and they are sent to taxpayers for a multitude of compelling reasons. These reasons not only benefit individuals but also contribute to the overall well-being of society.
First and foremost, tax rebates are a means of providing financial relief to hardworking individuals and families. Taxes are essential for funding essential public services like education, healthcare, infrastructure, and national security. However, sometimes the tax burden can become too heavy, especially for low and middle-income earners. Tax rebates serve as a way to give some of that hard-earned money back to those who need it most, helping them cover their essential expenses and improve their quality of life.
When individuals receive a rebate, they often use it to pay off debts, invest, or make purchases they had been delaying. This injection of money into the economy can stimulate local businesses, create jobs, and boost economic activity, ultimately benefiting everyone in society. It’s a win-win situation where taxpayers get relief, and the economy gets a much-needed boost.
Maine to send stimulus checks: “Winter Energy Relief Payment”
Among the list of states that are considering sending more stimulus checks is Maine, or as locals call it, the Pine Tree State. Around $450 for singles and $900 for joint filers on 2021 state tax returns are set to be disbursed. Maine residents, who were full-time state inhabitants and filed 2021 tax returns no later than October 31, 2022, are eligible for the new 2023 payment, the “Winter Energy Relief Payment.”
Qualification is determined by federal adjusted gross income (AGI) reported on 2021 Maine tax returns: $100,000 or less for singles and couples filing separately, $150,000 for heads of household, and $200,000 for married joint filers. This year, recipients got their check on March 31, 2023, so, be aware in case that the states decides to send new checks for the upcoming winter.
New Jersey “ANCHOR” stimulus checks
Tied to 2019 income and homeownership/rental status, the Affordable New Jersey Communities for Homeowners and Renters (ANCHOR) offers rebates of $1,500 to homeowners in 2019 with 2023 income of $150,000 or less. Homeowners earning $150,001 to $250,000 may anticipate $1,000. Renters with 2019 income of $150,000 or less could receive a $450 rebate. Eligible residents can also get $500 for each ITIN holder listed on their tax return through the ITIN program.
If you have received the ANCHOR Benefit Confirmation Letter, corroborating your eligibility, and you choose not to take any further action, rest assured that the state will take care of processing your application and disbursing your benefits according to the details provided in that letter.
However, should you find it necessary to update any information, you have the opportunity to do so until September 30, 2023, by submitting your own application. For all other prospective applicants, the deadline for submitting applications is set for Friday, December 29, 2023.
Pennsylvania’s “Property Tax/Rent Rebate” program
Potential financial relief awaits eligible Pennsylvania residents. Depending on your circumstances, you could receive a substantial stimulus payment through the “Property Tax/Rent Rebate” program. Here’s what you need to know:
For qualifying homeowners, the estimated amount you could receive ranges from $250 to $650. Renters who meet the eligibility criteria may be entitled to $500 or $650. Additionally, certain senior citizens could receive an impressive sum of up to $975.
To qualify for this assistance, you must be a Pennsylvania resident who is at least 65 years old, a widow(er) aged 50 or older, or a person with disabilities aged 18 or above. The program’s annual income limits are set at $35,000 for homeowners and $15,000 for renters. Importantly, 50% of your Social Security benefits are excluded from the calculation, potentially opening the door to even more financial relief.
Furthermore, if you received a property tax rebate in 2021, be aware that there will be a reduction to 70% of that amount. This program is designed to ease the financial burden for those who need it most, ensuring that deserving individuals can enjoy some financial peace of mind.
California also has a stimulus program for residents
Ranging from $200 to $1,050, contingent upon individual income, filing status, and the presence of dependents. It is advisable to consult the California Franchise Tax Board to determine the essential prerequisites.
The denizens of the Golden State might be acquainted with California’s stimulus disbursements, formerly denoted as “Middle Class Tax Refunds.” These are extended to residents who filed their 2020 California state taxes prior to October 15, 2021, and maintained full-time residency in California for at least six months during 2020.
As long as Californian taxpayers did not serve as 2020 tax dependents on another entity’s return, and their California adjusted gross income remained within the limits of $250,000 for single individuals and married couples filing separate tax returns, or surpassing $500,000 for others, the probability of receiving a payment during the initial half of 2023 is notably high.
South Carolina Estimated Amount:
Varied based on 2021 South Carolina income tax status, minus credits, capped at $800. Due to the impact of Hurricane Ian, South Carolina rebates are to be distributed in two phases. Those filing by October 17, 2022, should have already received the money, while those filing by February 15, 2023, the stimulus checks have been sent from March 31, 2023 and on. For South Carolina residents tracking their rebate, the South Carolina Department of Revenue’s tracker is an invaluable tool.
Idaho tax rebate and stimulus checks program
Determined as the greater of (1) $75 for each family member, or (2) 12% of the tax liability prior to accounting for credits and “other” taxes, coupled with the first year’s rebate payments. Alternatively, it equals the greater of (1) $600 for couples filing a joint return, or $300 for all other filers, or (2) 10% of the 2020 tax liability before factoring in credits, supplementary taxes, payments, and contributions.
The arithmetic involved might be intricate, yet it culminates in a substantial sum for the residents of Idaho. The preceding year witnessed the state providing two tax rebates to year-round residents who filed their Idaho state income taxes for both 2020 and 2021 by the conclusion of 2022. These rebate disbursements are scheduled throughout 2023 in alignment with the submission of necessary tax returns by Idaho residents in 2022.
Regular updates pertaining to the status of rebate payments and additional information can be accessed through the FAQ section on The Idaho Tax Commission’s platform.
How to Track and Claim Your Stimulus Check
- Check Your Online IRS Account: Securely access your individual IRS account online to view the total of your first, second, and third Economic Impact Payment amounts under the “Economic Impact Payment Information” section on the Tax Records page.
- IRS Notices: The IRS sends notices to the address they have on file for you. These notices include Notice 1444, which shows the first Economic Impact Payment sent for the tax year 2020, Notice 1444-B, which shows the second Economic Impact Payment sent for the tax year 2020, and Notice 1444-C, which shows the third Economic Impact Payment sent for the tax year 2021. They also send Letter 6475, which confirms the total amount of the third Economic Impact Payment and any plus-up payments you received for the tax year 2021.
- Get My Payment Tool: Eligible individuals can visit IRS.gov and use the Get My Payment tool to find out the status of their Economic Impact Payment. This tool will show if a payment has been issued and whether the payment was direct deposited or sent by mail.
- Claiming the Recovery Rebate Credit: If you did not receive the full amount of the first or second stimulus payments, you might be eligible to claim the Recovery Rebate Credit on your 2020 tax return. Similarly, if you did not receive the full third payment, you may be eligible to claim a 2021 Recovery Rebate Credit on your 2021 federal tax return. To do this, you will need the information from your online account or your letter to accurately calculate your Recovery Rebate Credit when you file your tax return.
- Filing a Payment Trace with the IRS: If the IRS Get My Payment tool gives you a date that your check was issued and you still haven’t received it, you may need to initiate a payment trace with the IRS. You can do this by calling the IRS at 800-919-9835 or by mailing or faxing a completed Form 3911, Taxpayer Statement Regarding Refund.
- Non-filer Tool: If you haven’t filed a tax return in recent years, you can use the IRS non-filer sign-up tool. This tool can be used if you didn’t file a 2019 or 2020 tax return, were not required to file a tax return, do not plan to file a tax return, or if you did not receive the full amount of the first or second stimulus payments.
- Filing a Tax Return: If you haven’t yet filed your tax return, you still have time to file to get your missed 2021 stimulus payments.
Government Financial Assistance Programs for Low-Income Individuals
The U.S. government offers a variety of financial assistance programs to help low-income individuals and families meet their basic needs.
- Supplemental Nutrition Assistance Program (SNAP): Formerly known as food stamps, SNAP helps needy families supplement their food budget to move toward self-sufficiency. Eligibility is determined by individual states that administer the program. You apply in the state where you live by contacting your state agency.
- Medicaid: This is a public health insurance program for low-income individuals and families. It provides free or low-cost health benefits to adults, kids, pregnant women, seniors, and people with disabilities. Medicaid covers 1 in 5 Americans, with a broad array of health services and limits enrollees out-of-pocket costs.
- Housing Assistance: This helps low-income families, seniors, and people with disabilities get into affordable private or government-owned rental housing. The Housing Choice Voucher Program gives certificates to rent approved units, allowing recipients to pay no more than 30 percent of their income.
- Temporary Assistance for Needy Families (TANF): TANF programs provide cash for a limited time to low-income families working toward self-sufficiency. TANF may also offer non-cash benefits such as child care or job training.
- Federal Pell Grant Program: Run by the Department of Education, this program promotes postsecondary education for students from low-income households. The grants, which do not need to be repaid, are designed for undergraduate students based on factors such as the cost of attendance at the school and expected family and student contribution.