Even though the last wave of the federal government stimulus checks was distributed over two years ago, at least three distinct states are still offering comparable tax refund payments this autumn.
3 States Sending Stimulus Checks
In 2022, state legislators and governors took steps to return funds to citizens to assist them in coping with inflation and the pandemic’s residual economic effects. As a result, state stimulus checks were popular. These initiatives were made feasible in part by federal funding as well as state income that exceeded projections the previous year, which resulted in record financial reserves and surplus state budgets. In the latter months of 2023, three states—Alabama, Arizona, and Virginia—remain to offer one-time tax rebates. This is unusual because the majority of the states that previously offered similar payouts in the form of stimulus checks ended their programs last year.
Arizona Stimulus Funds
Arizona taxpayers with dependents are scheduled to receive refunds by November 15. For children under 17, Arizona will refund taxes at the rate of $250 per dependent, with a limit of $750 for 3 dependents. Taxpayers will receive $100 for each dependent who is over the age of 18. Earlier in the year, during budget deliberations, the Arizona Freedom Caucus pushed for the rebates, claiming that part of the state’s excess money ought to go toward helping citizens cope with inflation. The rebates will go to about 750,000 individuals who filed their returns in 2021, provided they claimed a particular benefit on their return for that year. The funds will be disbursed by the state via check or direct deposit.
Alabama Tax Refunds
It is anticipated that Alabama will soon start issuing $150 tax refunds for single people and $300 for married. Money will be distributed to approximately 2 million individuals who submitted tax forms for 2021. If the Department of Revenue has the taxpayers’ bank account information, they will receive direct deposits; if not, cheques will be mailed to their addresses. The purpose of the rebates is to balance off the sales taxes residents spent on grocery taxes, which helped create an excess in the state’s Education Trust Fund. Although the reimbursements are a one-time tax credit, the residents will eventually pay less in taxes. The tax credits were created by legislation, and the Department of Revenue is not allowed to start paying them until November 30. With a $2.8 billion surplus, the state dropped its retail sales tax from 4% to 3% on September 1st. Next year, the levy may be lowered to 2%.
Virginia Tax Credits
Individuals who have tax liability in 2022 that is, money owed to the state after deducting tax credits, deductions, and subtractions will receive $200 in refunds from the state of Virginia. There is a $400 one-time tax refund available to joint filers. Refunds for residents who file taxes by July 1st will be sent by November 30th. November 1st is when 2022 taxes must be filed to receive the rebate.
Other State Relief Programs
On Monday, October 16, the deadline for claiming Georgia’s surplus tax refund is approaching. A few other state relief programs have concluded recently. Requests for Montana’s property tax rebate of up to $675 must be postmarked by October 2. In August and September, Minnesota distributed around 2.1 million rebate checks for a one-time $260 program to every qualified taxpayer, totaling roughly $1 billion in payouts. Programs may be necessary depending on variables including income, dependents, and tax filings. They are comparable to the COVID-19 stimulus payments in that they provide residents with one-time assistance to deal with difficulty.