More stimulus checks are on the way, at least for people in select states. The federal government has not discussed any plans for nationwide payments. It’s unlikely that the U.S. will see another round for the entire country as many experts have attributed the cash influx to rising inflation. But six state governments have confirmed that they will be dolling out further payments over the coming month, though amounts, dates and conditions vary. A few states, such as New Mexico, have already issued fourth-round payments. Others, including Massachusetts, are still awaiting updates on further payments. But for residents in six states, stimulus checks are coming this month, or at least being sent out. Some payments may not be received until October.
These checks represent attempts to governors to continue stimulating their economies amid rising uncertainty. President Joe Biden has recently issued a student loan forgiveness plan designed to ease the financial burden of many Americas. However, the Federal Reserve expects interest rates to rise even further, which will mean a longer period of inflation. Fear of a housing market crash continues to abound as a result. As InvestorPlace assistant news writer Shrey Dua notes, “housing may well be an unfortunate casualty of a transitioning U.S. economic environment.” While it transitions, many Americans are still struggling. For this reason, further stimulus checks may be needed.
Let’s take a look at which states are preparing to start mailing out payments.
States Issuing Stimulus Checks
- Alaska: In June 2022, Governor Mike Dunleavy signed the state’s budget. The Anchorage Daily News reported that it included “$3,200 in payments to Alaskans that include a one-time $650 energy relief payment and a $2,550 Permanent Fund dividend.” While Senate Democrats called immediately on the governor to issue the payments quickly due to Alaska’s high energy costs, Dunleavy later announced that dividend payments would be sent out on Sept. 20 with paper checks arriving around Oct. 3.
- Colorado: Newsweek reports that “Colorado Governor Jared Polis signed a law in May this year that would provide a $750 tax rebate for individual filers and a $1,500 rebate for joint filers.” The state’s Department of Revenue has indicated that Colorado residents who filed taxes before June 30 will receive their Colorado Cash Back checks by Sept. 30. Residents who filed before Oct. 17 will receive theirs by Jan. 31, 2023.
- Hawaii: Thanks to Act 115, Hawaii residents will be receiving rebates of either $300 or $100, depending on their income. According to the state’s Department of Taxation, Act 115, “provides a one-time constitutional refund to each qualifying resident taxpayer who files an individual income tax return for the 2021 tax year on or before December 31, 2022.” However, it does not apply to anyone who can be claimed as a dependent or has been convicted of a felony. As Newsweek notes, “single filers whose federal adjusted gross income is less than $100,000 annually can receive a $300 rebate, while those who make more than $100,000 per year will receive a $100 rebate.”
- Illinois: Payments in Illinois will be issued a little sooner. The state is offering income and property tax rebates on a one-time basis for qualifying residents which will be issued on Sept. 12. NBC Chicago reports that “The income tax rebate calls for a single person to receive $50, while those who file taxes jointly are poised to receive a total of [$100.] Residents with dependents will receive a rebate of up to $300 — $100 per dependent, with a maximum of three.” It adds that “Qualified property owners will receive a rebate equal to the property tax credit claimed on their 2021 IL-1040 form, with a maximum payment of up to $300.”
- Minnesota: In April 2022, Minnesota Governor Tim Walz signed the Frontline Worker Pay program into effect. The policy allowed residents who worked on the frontlines during the Covid-19 pandemic to apply for additional pay. A local news source reports, though that while “nearly 1.2 million people applied for the bonus [pay,] 214,209 were rejected.” The $500 million pool set aside for the frontline workers will be divided evenly, with payments being sent out in either September or October.
- Virginia: Like other states on this list, Virginia is issuing a one-time tax rebate, slated for distribution in September. The state’s tax department informed residents that “Not every taxpayer is eligible. If you had a tax liability last year, you will receive up to $250 if you filed individually, and up to $500 if you filed jointly.” While payments should be released in September, it is likely that many qualifying residents will see theirs hit their bank accounts until October.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
