Stimulus updates to know for August 2022
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In 2020 and 2021, American consumers and businesses have been inundated with various forms of stimulus in an effort to keep the economy stable during the worst of the coronavirus pandemic. Since then, lawmakers and even the general public have repeatedly tried to push through more stimulus.
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Although the economy rebounded strongly from the flash recession of 2020 – which only lasted two months – it contracted for consecutive quarters to start 2022, which could portend another recession. In light of this, many Americans are hoping for additional stimulus, from the federal government or individual states, to stave off economic weakness. But are any of the proposals really on the verge of materializing?
Here are the latest stimulus updates you need to know for August 2022.
As of August 2022, the federal initiative for additional stimulus payments looks weak. Although the Biden administration has offered limited relief for soaring gas prices via discount cards or a gas tax waiver, neither has yet gained traction in Washington.
The discussion about additional direct stimulus payments has also quieted considerably. However, with America looking set to slide into a recession, such ideas could pick up momentum later in the year.
So far in 2022, the states have done a much better job of securing additional funds for the American people than the federal government, and others are taking steps to do so. Here is the latest information on the approval and distribution of state stimulus measures in 2022.
Dubbed the “middle class tax refund,” California will send stimulus payments to residents between October 2022 and January 2023. Payments will vary depending on your income, filing status, and whether you have or not dependents.
Basically, people earning less than $75,000 will get $350, and couples with incomes of $150,000 or less will get $700. Payments increase if you have dependents and decrease if you earn more than these limits. The income ceiling is set at $500,000 for couples, heads of families and surviving spouses, or $250,000 for singles.
In May, Colorado allowed tax refunds of $750 for single filers and $1,500 for joint filers. Colorado residents who filed their 2021 state taxes by June 30 should receive their checks by the end of August. Those who file their state tax returns by October 17 will receive their refund checks in January.
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Delaware was an early player in the state stimulus game, sending out $300 relief checks starting in May.
Florida is sending payments of $450 per child to 59,000 low-income families.
Georgia is another state that took action in early 2022, sending $250 to individuals, $500 to couples and $375 to heads of households starting in May.
Starting the last week of August, Hawaii will begin rolling out $300 refunds for taxpayers earning less than $100,000 per year or couples earning less than $200,000 per year. Those who earn more will be eligible for $100 refunds.
Idaho residents started receiving stimulus payments in March, but taxpayers had to do a bit of math to figure out what they would get. The law provided for payments of $75 or 12% of the amount they paid on their Idaho state taxes in 2020, whichever was greater.
In May, Indiana began sending payments of $125 to each taxpayer in the state, or $250 for couples.
Maine began paying eligible taxpayers $850 in June 2022, with the balance to be paid on an ongoing basis through the end of the year. To qualify, taxpayers had to have an AGI of less than $100,000 for single filers, less than $150,000 for heads of families, or less than $200,000 for joint filers.
Some 667,000 Minnesota frontline workers have qualified for a $750 stimulus payment, although applications are now closed. Among other factors, workers had to have worked at least 120 hours in a Minnesota frontline between March 15, 2020 and June 30, 2021, and they also had to meet income requirements.
On July 2, New Jersey began mailing tax refunds of up to $500. The refund amount was limited to the amount of tax paid after the credits, up to a maximum of $500.
The New Mexico Legislature approved a number of refunds for residents in 2022. Payments of $250 were sent in July 2022 to single taxpayers earning less than $75,000, while $500 was allocated to joint filers with an income of less than $150,000. Additionally, all taxpayers who filed a 2021 return were to receive $500, or $1,000 for joint filers, heads of families and surviving spouses. These payments have been split into equal amounts payable in June 2022 and August 2022.
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