Key Insights into the 2023 State Stimulus Checks

When the Covid-19 pandemic took a grip on the U.S. economy in March 2020, the federal government moved swiftly to release several stimulus packages with an aim to provide a lifeline to businesses and consumers alike. Even though federal payments have long since been discontinued, some states have taken it upon themselves to continue offering assistance. Many of these initiatives concluded in 2022, but a few states still have 2023 payments on their calendars. In this article, we will delve into which states still have upcoming payments for this year.

California, for instance, approved inflation relief checks of up to $1,050 in 2022, with most of these payments having already been distributed. However, an estimated 5% of these checks are projected to be dispatched by January 15, 2023. These refund amounts, which start at $350, depend on a combination of income, household size, and tax filing status. Individuals earning $250,000 or more and couples making at least $500,000 do not qualify for this relief.

In Colorado, residents who timely filed their 2021 taxes likely received payments of $750 for singles and $1,500 for joint filers by September 30. But those who filed an extension by the October 17 deadline might still expect their payment to arrive by January 31, 2023.

On the other hand, Idaho’s 2022 Special Session refunds will be disbursed at the end of March 2023. The refund amount depends on the taxpayer’s 2020 income tax liability and is either 10% of that amount or $300 for single filers and $600 for joint filers, whichever is greater. The state’s Tax Commission anticipates sending around 800,000 payments amounting to as much as $500 million.

New Jersey plans to distribute $2 billion in property tax rebates to two million residents. The rebate amounts are income-based, with homeowners earning up to $150,000 qualifying for $1,500 and those earning between $150,000 and $250,000 receiving $1,000. Renters, too, are eligible for $450, provided they earn at least $150,000. Payments are slated to arrive by May 2023 at the latest.

Pennsylvania launched its payment distribution to older renters, homeowners, and individuals with disabilities in July 2022. However, the deadline for filing a claim was December 31, 2022. This means payments will continue to be sent out in 2023 to qualifying residents who managed to file their paperwork on time. The maximum standard rebate is $650, with eligible individuals potentially receiving as much as $975 in supplemental rebates, as defined by the state.

Meanwhile, South Carolina initiated the issuance of rebate checks of up to $800 to qualifying residents in November 2022. Those who filed their tax returns before the October 17 deadline received their payments by the end of 2022. However, those who filed after October 17 — but before February 15, 2023 — will receive their payments in March 2023.

Hawaii residents who earned under $100,000 in 2021, or $200,000 if filing jointly, are expected to receive a one-time tax rebate of $300. Individuals who earned more than $100,000 and couples who earned more than $200,000 qualify for a payment of $100. Direct deposits started being made at the end of August. However, taxpayers who filed their 2021 state tax returns between July 31 and December 31, 2022, will receive direct deposit up to 10 weeks after the tax department accepts their return, or 12 weeks if they requested a physical check.

In Idaho, Governor Brad Little authorized the provision of $600 tax rebates. Payments started in September and will continue into early 2023 as taxpayers file their returns and qualify for a refund. More details on the Idaho tax rebate can be found here.

Massachusetts taxpayers are eligible to receive a rebate of approximately 14% of their state tax obligation. Individuals who filed their 2021 return before October 17 of last year should have received their refund in December. Taxpayers who filed later and up to September 15, 2023, should receive their payment one month after their return is filed. More details can be found on the state’s website.

New Mexico residents can still receive a refund of $500 for single filers and $1,000 for joint filers. Residents have until May 2023 to file their 2021 income taxes and qualify for a refund.

Michigan’s Democratic Governor Gretchen Whitmer has announced plans for the state to provide all residents who filed taxes last year with a $180 relief check. With a $9-billion surplus, the state wants to share the wealth with all Michigan taxpayers in 2023. However, this is yet to be approved by the state legislature.

While it’s unlikely that the federal government will issue a fourth stimulus check this year due to a divided Congress and the impending end of the Covid-19 state of emergency in May, there’s a greater chance that states will take action. Many states currently have large budget surpluses due to unspent Covid-19 relief funds from the federal government, as well as a surge in state tax revenue resulting from recent inflation.

Lawmakers seeking to curry favor with constituents may decide that another stimulus payment is in order and may consequently move forward with passing additional bills in 2023, resulting in more money being distributed. This is particularly likely if inflation persists or if the country enters a recession and people find themselves needing some extra help that states feel they can provide using their surplus resources.

As for which states will decide to use their budget surplus funds to put money into residents’ bank accounts, it’s too early to say for certain. However, as the legislative season progresses, it will be important to keep an eye on local news to know whether more payments are forthcoming.

It’s far more likely that states will take action on stimulus assistance than the federal government, so anyone expecting more money this year should pay close attention to what their local politicians are doing – and perhaps even consider contacting their representatives to voice support for another check if they feel one is necessary.

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