Where Targeted Spending Goes
State and local government leaders will largely have control over the federal aid they receive directly from the stimulus plan. The U.S. Department of Treasury released more than 150 pages of guidance this week to help local leaders determine what is eligible and what is off limits.
At the state level, officials have quite a bit of flexibility, but theres some things they cannot do. The federal legislation prohibits state governments from cutting taxes with the money or using it to shore up state pension funds.
State lawmakers can use the funding to conform to recent federal changes that exempt unemployment benefits and paycheck protection loans received during the pandemic from taxes.
Minnesota Democrats and Republicans want to do that in some form, but so far havent agreed on what the forgiveness will look like or how they will pay for it. Doing all of it comes with an estimated price tag of as much as $900 million.
About 45 percent of the federal money is dedicated directly to priorities to help states improve services that were impacted by the pandemic. It includes:
- Education: $1.9 billion for emergency relief to public schools, colleges and universities.
- Child care: $735 million in grants for care, child abuse prevention and head start.
- Housing: $500 million including rental assistance, aid to homeowners and affordable housing grants.
- Health: $315 million for COVID-19 vaccine distribution, coronavirus testing, mental health grants and substance abuse prevention.
Second $600 Stimulus Check Details
While the CAA legislation, under which the stimulus payments were funded, required that the second round of payments be issued by Jan. 15, 2021, some second round Economic Impact Payments may still be in the mail and delivered by the end of February. The IRS however has confirmed has issued all first and second Economic Impact Payments it is legally permitted to issue, based on information on file for eligible people.
Get My Payment was last updated on Jan. 29, 2021, to reflect the final payments and will not update again for first or second Economic Impact Payments.
If you havent yet received your payment and GMP is not showing payment details then the IRS is recommending you claim this via a recovery rebate credit in your 2020 tax return that you will file this year. Major tax software providers have updated their software to allow tax payers to claim their missing first or second stimulus payment as a recovery rebate with their 2020 tax filing.
Under the COVID-related Tax Relief Act of 2020, the IRS has delivered more than 147 million EIPs totaling over $142 billion. Due to the lower income qualification thresholds and smaller payments this was lower than the 160 million payments made via the first stimulus check.
President Biden also recently signed an Executive Order for the IRS to provide a new tool to claim missing stimulus checks and conduct more analysis to ensure those who were unable to get their first or second check are notified around their eligibility.
Can I Claim A Stimulus Check For Someone Who Is Deceased
Yes. For the third stimulus check, people who have died on or after January 1, 2021, are eligible to receive the third stimulus check. However, for married military couples, the date of eligibility is expanded. If the person who died was a member of the military and died before January 1, 2021, the surviving spouse can still receive the third stimulus check, even if they dont have an SSN.
For the first and second stimulus check, the IRS has stated that people who died on or after January 1, 2020, are eligible to receive both payments.
If they didnt receive the stimulus payments or didnt receive the full amounts that they are eligible for, spouses or other family members can file a 2020 federal tax return and claim it as part of their tax refund or use GetCTC.org if they dont have a filing requirement. The deadline to use GetCTC.org is November 15, 2021.
Also Check: Why Have I Not Received My 3rd Stimulus Check
How Much Will It Be
It depends. The payment is based on your tax filing status and adjusted gross income. The maximum amount is $1,200 for individuals and $2,400 for families, but the payment decreases as adjusted gross income increases. There is also an additional $500 payment for each qualifying child. Individuals and families with incomes above certain amounts are not eligible. A general guide for payment amounts follows:
|Tax Filing Status|
** Eligible people will also receive an additional $500 for each qualifying child **
The Pieces Are Now In Place In Minnesota Thanks To The Results Of Last Fall’s Election
During the 2022 midterm election last fall, Minnesota’s Democrat Farm Labor Party scored the elusive trifecta: DFL Gov. Tim Walz won reelection, the DFL retained its majority in the Minnesota House and the DFL also won a majority in the Minnesota Senate.
That’s something that hasn’t happened in nearly a decade here in the Land of 10,000 Lakes. You have to go back to 2013 to find the last time just one party controlled all three parts of Minnesota’s state legislature. But could it mean an extra thousand dollar check for most Minnesotans?
Also Check: How Can I Find Out About My Stimulus Check
Stimulus Checks 202: How Many States Are Still Sending Checks
Plenty of states still have money to hand out in 2023
- Personal Finance.CalWorks Benefits 2023: Does CalWORKs pay for rent?
The landscape of US benefits at both federal and state level was completely changed in the wake of the COVID-19 pandemic, as millions of families were plunged into poverty or saw their earnings drop dramatically.
That led to the US government creating an array of stimulus packages for every state that could be distributed to the population to help to keep people and businesses afloat.
It is against many political principles in America to provide such wide-reaching welfare, but the pandemic represented a special case.
In many states, the stimulus has now run out, but in others that took longer to distribute the money there are still some that will be handing out in 2023. Here comes a look at all eight US states that are still giving out stimulus money in 2023.
Minnesota Governor Proposes Using Budget Surplus For Stimulus Checks For Taxpayers
Many Minnesota taxpayers would receive stimulus checks under a bill Assistant Majority Leader State Rep. Dan Wolgamott, DFL-St. Cloud, introduced Tuesday.
Single filers and married individuals who filed a separate return would receive $500, and married couples filing jointly or individual head of household filers would receive a one-time payment of $1,000. The stimulus checks could start arriving in mailboxes by late summer, a news release from Wolgamotts office said.
Gov. Tim Walz proposed the bill, HF 4625, which would draw funding from the states budget surplus, the release said.
To be eligible for the payments, individuals must have been residents of the state in 2020, filed 2020 individual income tax returns by Oct. 15, 2021, and filed claims for refunds in 2021 for property taxes they paid for rent property taxes in 2020.
Not eligible are:
- Earners of more than $164,400 as single individual filers.
- Earners of more than $273,470 as married couples filing jointly.
- Earners of more than $218,540 as head of household in taxable income in 2020.
- Earners of more than $136,735 as married individuals who filed a separate return.
The commissioner of revenue would receive one-time appropriations of $7.752 million in fiscal year 2022 and $215,000 in fiscal year 2023 from the general fund.
Center of the American Experiment Economist John Phelan told The Center Square in an emailed statement Wednesday that the bill wont aid Minnesotans all that much.
Recommended Reading: Update On 4th Stimulus Check For Ssi
What Are Inflation Stimulus Checks
Inflation stimulus checks are relief funds set aside to help people cope with the high costs of groceries, gas and just about everything else . With inflation at its highest rate in about 40 years, its no surprise states are trying to do something to help battle the insane prices these days.
Since 2020, weve all learned a thing or two about stimulus checks, right? But these inflation relief checks are a little different since theyre coming from the state levelnot the federal government. On top of that, their whole purpose isnt really to stimulate the economy here but instead to help people cover the high prices of gas and groceries.
California: Up To $1050 Rebate
Payments for Californias Middle-Class Tax Refund started hitting bank accounts and mailboxes at the beginning of October, with the most recent batch sent out on October 24. An estimated 23 million Golden State residents are eligible for these payments. To find out if you qualify, you can check the State of Californias Franchise Tax Board website. The Franchise Tax Board expects 90% of payments to be issued in October.
A one-time payment of $350 will go to individual taxpayers who make $75,000 or less. Couples filing jointly will receive $700 if they make no more than $150,000 annually. Eligible households will also receive an additional $350 if they have qualifying dependents.
Taxpayers with incomes between $75,000 and $250,000 will receive a phased benefit with a maximum payment of $250. Those households can get up to an additional $250 if they have eligible dependents.
Eligible recipients who received Golden State Stimulus payments by direct deposit should have seen their Middle Class Tax Refund deposited between October 7 and October 25. All remaining direct deposits were slated to occur between October 28 and November 14.
If you received your California stimulus payments by debit card, youll also receive the Middle Class Tax Refund by debit card between October 24 and December 10. Remaining debit card payments will be sent by January 14, 2023.
Read Also: Can Medicaid Take My Stimulus Check
Getting Another $1000 Check Isn’t A Done Deal Just Yet In Minnesota Though
It does look more likely than it did last fall. Before the state came out with its latest budget surplus estimate, other DLF leaders said there might not be complete agreement even within their own party to pass a provision approving those checks.
However, after word that the surplus had ballooned to over $17 billion, Gov. Walz told the Minnesota Post in December that he’s still in favor of sending out those rebate checks:
“If you want to reduce costs for the short-term and make an impact on families who really need it, itâs one of the most effective ways,”Walz noted in the story. “Weâll propose it again,” he said.
So, WILL we get an extra $1,000 check this year? Well, chances are better than they were last year. But I guess only time will tell. One person who perhaps doesn’t *need* that extra money is Gophers head football coach PJ Fleck. He sold his vacation home on Lake Minnetonka last year for just under $2.5 million. Keep scrolling to see the pics!
Should I Hold Off On Filing My Tax Return
It likely wont make a difference in the longer term other than to update dependent or payment data, but the IRS will only use your 2020 tax return data to determine eligibility for this round of stimulus checks if they have processed your return . If your 2020 return has not been filed and processing, they will use 2019 tax data for payment.
If your 2020 return is filed and/or processed after the IRS sends you a third stimulus check, but before July 15, 2021 the IRS would send you a second payment or require a repayment for the difference between what your payment should have been if based on your 2020 return and the payment actually sent based on your 2019 return.
Read Also: Find My Stimulus Check 2021
New Stimulus Check 2022
Now? Some 22 percent of the US is poised to get a new stimulus check, depending on where they live.
Fresh off of two rounds of Golden State Stimulus checks, for example, California Gov. Gavin Newsom has proposed an all-new series of payments. Every owner of a vehicle registered in the state would be eligible for a $400 payment. With the money coming in the form of a debit card, as soon as July if the proposal ends up passing muster with the state legislature, that is.
Moreover, the payments would be capped at a maximum of two vehicles per person. That means people could get up to two payments.
Meantime, heres a look at what else is coming, and where.
- Georgia Gov. Brian Kemp signed into law in recent days a bill providing a tax refund to all eligible Georgia taxpayers. After filing an income tax return for 2021, the one-time refund amounts would be: $250 for single, married filing separate taxpayers $375 for head-of-household taxpayers and $500 for married filing joint taxpayers.
- Also in recent days, Maine Gov. Janet Mills has proposed sending out stimulus checks of $850 to state residents.
- And New Jersey Gov. Phil Murphy has proposed a one-time $500 check for people who pay their taxes using tax ID numbers instead of Social Security numbers, which would include undocumented immigrants.
When Will The Third Stimulus Check Be Issued
The government started sending the third stimulus checks on March 12, 2021. The IRS continues to send third stimulus checks as people submit their information to the IRS either by filing a 2020 tax return or using GetCTC.org. The deadline to use GetCTC.org is November 15, 2022.
If you have your banking information on file, the IRS sent your payment via direct deposit. Otherwise, you will receive your payment as a check or debit card via mail. Mailed checks and debit cards may take longer to deliver.
If you dont fall into any of these categories, youll have to wait to receive your third stimulus check. You will need to file a 2020 federal tax return to get the third stimulus check or use GetCTC.org if you dont have a filing requirement.
You can also get the first and second stimulus check as the Recovery Rebate Credit on your tax return or GetCTC.org if you are eligible.
Recommended Reading: How To Apply For Homeowner Stimulus Check
When Could Stimulus Payments Start
Following approval of the bill on March 11th, millions of Americans will start seeing the third stimulus payments by mid-to-late March 2021 per the estimated IRS payment schedule and official Biden administration guidance. Comments below confirm these are going out now. You can also check the IRS Get May Payment tool for the latest status of your payment. See payment FAQs from the second round of payments, which will also apply for the most part this time around.
Due to the fact that payments are going out in the middle of tax season it may be very hard to get a hold of someone in the IRS to help with payment issues and you will likely have to wait until after April 15th to follow up on issues.
Virginia: Bonus Tax Refunds
Virginia sent eligible taxpayers $250 in the form of one-time bonus tax refunds. While most checks were mailed out in September, for those who filed at the later end of the application window, it is possible that some checks may still be making their way out in early 2023.
Remember: even if your state doesnt appear to be passing on any further stimulus payments at the moment, if the economy slides into recession, theres always a chance that could change.
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Do I Have To Pay Taxes On My Stimulus Payment
No. Since the stimulus check is considered a refundable tax credit, it is not classified as earned income. Hence not considered taxable income you will have to report in your 2020 tax return . It also wont affect your income for purposes of determining eligibility for federal government assistance or benefit programs.
This payment also does not have to be paid back if any over payment happens or your gross income in 2020 changes. This includes your income rising to above the qualifying thresholds. If you unexpectedly got the payment, congratulations! You get to keep it now.
Returning Incorrect Stimulus Check Payments
A few people have commented that a spouse, relative or child who died since they filed a 2018 or 2019 tax return received a stimulus check payment. The IRS has provided official guidance on this issue which states that any payments made to someone who died before receipt of the payment should be returned to the IRS in full.
The exception to this is for payments made to joint filers and one spouse who had not died before receipt of the Payment, in which case, you only need to return the portion of the Payment made on account of the decedent
New Mexico Offering Up To $500 In New Relief Checks
New Mexico has been a great place to be for people in need of financial support in these difficult times. The state has issued several rounds of inflation relief checks, and the payments continue. In the latest round, New Mexico is sending $250 to residents making less than $75,000. A family with two adults and less than $150,000 in earnings gets $500.