Help Understanding The Economic Impact Payments From The Cares Act
Many people anticipate receiving the CARES Acts Economic Impact Payments as additional financial support. Charlotte Center for Legal Advocacy wants to make sure they have the necessary information to know what to expect and how to get a payment.
Anyone with questions about how to get their payment or any other tax issues can contact our N.C. Low-Income Taxpayer Clinic by calling 980-202-7329 or filling out an online assistance request.
Watch our latest on what people can expect as the government issues payments.
Missing The Mark For North Carolina: 2022
Inflation isnt just a pocketbook problem, its a budget problem as well. Governments feel the pinch of gas prices climbing higher, food becoming more expensive, and increased competition from private sector employers as well as most of the impacts of inflation that affect consumers and businesses. Unfortunately, the 2022-23 budget allows inflation to undermine the real level of investment that North Carolina is making in everything from K-12 education to public safety.
Budget writers didnt need to let the real level of investment slide this year. A bump in revenues driven by federal stimulus, a faster than expected recovery, and record corporate profits meant that our state could easily have made up for the lost buying power of government funds. Instead, legislative leaders stashed billions in a variety of reserves and left vital government services unfunded.
The hammer of inflation also fell on public servants, pushing many out of their jobs and into the private sector. The modest pay raises for state employees and teachers failed to keep up with inflation and resulted in a real pay cut. Many public servants left for better paying opportunities, unsurprising in a tight labor market, which contributed to severe staffing shortages in schools, correctional facilities, and many other parts of state government.
The upshot is a budget that allows public services to erode and doesnt meet the cardinal economic challenge of the current moment.
Stimulus Check Update 202: Here’s When To Expect Your Rebate
Having hit a peak of 9.1 percent in June, has dropped to 8.5 percent last month, an encouraging sign that the Federal Reserve’s efforts to cool down surging prices might be working. But millions in the U.S. are still struggling, with the cost of living continuing to increase.
To help residents whose household budgets have been severely dented by rising food, gas and housing prices, several states including Delaware, Florida, Georgia, Hawaii, Indiana, Minnesota and New Mexico have already started rolling out direct payments. Others are preparing to do so.
Check out which states and residents are eligible for a stimulus check in the coming months below:
Read Also: Where Is My First And Second Stimulus Check
What’s Causing The High Gas Prices
The country is still feeling the knock-on effect of the COVID-19 pandemic which forced several producers to dial back their operations due to the lock down measures in place. The return to normal has meant the demand for gas is beyond the current supply.
Additionally, some production has been intentionally left idle as investors pressure companies to increase their revenues in order to make up for lost profits during the pandemic.
Russia’s invasion of Ukraine has not helped matters, with the sanctions imposed on Russia’s oil exports further worsening the situation.
While Joe Biden ordered the largest release in history from the US’ strategic reserve, the one million barrels a day have not been able to stall the ever increasing gas hikes.
North Carolina’s $200 Gas Rebate Act
The Democrats introduced the Senate Bill 897 on May 26, dedicating 1.3 billion dollars of the estimated 4 billion dollar budget surplus the state collected in revenues over the past year.
The proposal would provide North Carolina residents who are over the age of 18 as of March 31, 2022, with driving licenses a 200 dollar tax rebate.
The state would consider extending the rebate to younger drivers, but is concerned about hurting its bottom line. If approved, the rebate would be issued as either a check or a debit card and sent no later than October 1, 2022.
The average price of gasoline in North Carolina is currently at 4.63 dollars on June 8, 32 cents below the national average.
Recommended Reading: How To Get California Stimulus
Cut In Real Pay Pushes People Out Of Public Service
We dont need to wait to see some of the consequences of saddling public workers with a cut in real pay. At a time when communities are still trying to cope and rebuild from COVID-19, key areas of state governments are trying to deliver services with fewer bodies. From July 2021 to when the budget passed this year took effect, the total number of state employees dropped by about 5,400 . Most of those losses happened outside the university system where total employment dropped by over 8 percent.Analysis of NC Government Employee Statistics, 2022, https://oshr.nc.gov/work-nc/employee-statistics.
Looking deeper, its clear that many public services that are valued across the political spectrum are also where some of the deepest job losses are happening. Public Safety lost over 2,400 jobs, more than 1 in 10 positions. Health and Human Services lost more than 1,600 jobs, commerce lost nearly 240 posts, and Information Technology is down over 100. All three functions have lost more than 10 percent of the workforce compared to July of last year. Although the state workforce overseeing elections is a relatively small number of total positions, that area dropped by more than 25 percent, the largest proportional decline in any one area. Job losses extended to other areas, but these workforce reductions reflect how much harder it is to deliver quality public services needed by North Carolinians in times both good and bad.
How Will The Irs Calculate My Payment
The American Rescue Plan provides that if your 2020 tax return is not filed and processed by the time the IRS starts processing your third stimulus payment, the tax agency will use information from your 2019 tax return. If your 2020 return is already filed and processed when the IRS is ready to send your payment, then your stimulus check eligibility and amount will be based on information from your 2020 return.
If your 2020 return is filed and/or processed after the IRS sends you a stimulus check, but before July 15, 2021 , the IRS will send you a second payment for the difference between what your payment should have been if based on your 2020 return and the payment sent based on your 2019 return. Most people do not need to take any action. The IRS will calculate and automatically send the payment to those eligible.
Recommended Reading: When Did We Receive Stimulus Checks
Coopers Proposal: What Does It Include
Last week, Gov. Cooper revealed his plans on how his government would use the $6.2 billion surplus. Cooper detailed his recommended adjustments to the second year of a two-year budget that the lawmakers approved last fall. In addition to what the budget already includes, the latest adjustments call for higher pay for state employees and teachers.
The budget that Im presenting today will build on our success and strengthen those areas that need reinforcement, Gov. Cooper reports.
Prior to the budget proposal, the General Assembly and Cooper administration revealed that the state would exceed the revenue projections for the current fiscal year by about $4.2 billion. Also, the authorities raised the projections by about $2 billion for the year starting July 1.
Cooper has raised the second-year spending by $2.3 billion to $29.3 billion to use some of the surplus. Also, $2.4 billion of the surplus would go toward many itemized investments, including infrastructure, economic development and workforce training.
Coopers proposal doesnt call for additional tax cuts, nor does it set aside more money for the states rainy-day fund. The governor notes that the fund is on track to hit $4.25 billion.
Cooper refers to the budget proposal as a smart, fiscally sound budget, adding, I think that its clear that we want to invest more than do.
Th Stimulus Checks Given Out To Targeted Groups
Some states are digging into that wad of cash the government gave them and giving out the fourth stimulus checks to specific groups of people. The requirements look different for each state, but all seem to have a few things in commonlike falling into certain income levels or going through some kind of hardship.
The Grand Canyon State has a different take when it comes to stimulus checkstheyre giving them out to people who are going back to work. Arizonas Back to Work Program is offering $2,000 to those who got a job after being on unemployment.3 But you have to hold down your new job for at least eight weeks before getting the benefit.
The Golden State is the only one on the list to give out big ol broad-sweeping stimulus checks that look like the ones the federal government gave out. Heres how their numbers break down: Californians making $75,000 or less were sent a one-time check of $600 or $1,200 as part of the Golden State Stimulus I.4 And with the Golden State Stimulus II, they could be eligible for a second stimulus payment anywhere from $500 to $1,100.5 Thats on top of extra money the state paid out through the Young Child Tax Credit to those who have children age 6 or younger.6
These guys decided to shift their focus to giving their stimulus checks to the unemployed. They sent $375 to folks who had gotten at least one unemployment check payment between March 15, 2020, and October 24, 2020.7
Read Also: Irs Stimulus Check Tax Return
Colorado: $750 Rebate Payments
Colorado is sending tax rebates of $750 to individual tax filers and $1,500 for joint filers. Colorado residents for the entire 2021 tax year who are 18 or older and filed their 2021 state income tax return are eligible for the payment.
Only physical checks will be sent out in an effort to prevent fraud. Most payments have already been mailed as of mid-August. Taxpayers who filed an extension can expect their check by January 31, 2023.
Read more: Everything You Need To Know About The Colorado Stimulus Check
Who Is Eligible To Receive An Alaska Oil
Dividends are sent to people who were Alaska residents for the entire calendar year preceding when they apply for a PFD. That includes children. Residents must also have plans to remain in Alaska indefinitely. There are some exceptions, though, such as those sentenced or incarcerated for a felony.
Only those who apply for a PFD will receive one, and the normal application period is January 1 through March 31 of each year. Late applications are only accepted in certain circumstances, such as if the applicant is disabled or a military member who was deployed overseas to a hostile environment during the application period.
Read Also: How Much Was 2021 Stimulus Check
Will North Carolina Governor Go For A Fourth Stimulus Check Old North State Residents Might Get Up To $500
While the clamor grows in both Houses of the Congress for a fourth stimulus check, residents of North Carolina might get one if Roy Cooper, their Governor pushes through a proposal.
The Democrat leader proposed that the North Carolina government sends out direct stimulus checks of $500 max to most residents of the state.
Termed the Extra Credit Grants 2.0, this could be the continuation of a program started by the Republicans and approved in September 2020. The program provides $335 to over a million homes in the state.
The fresh plan is to invest $250 million as grants to middle and low-income families having children. This would to a large extent lessen the pervasive financial suffering that families are going through due to the economic downturn caused by the pandemic.
My Spouse Is Active Duty Military Are There Special Rules For Determining If I Am A Resident Of North Carolina
Yes. The Servicemembers Civil Relief Act provides that a spouse shall neither lose nor acquire domicile or residence in a state when the spouse is present in the state solely to be with the servicemember in compliance with the servicemembers military orders if the residence or domicile is the same for both the servicemember and the spouse. For additional information see the Departments website.
Recommended Reading: What Was The Third Stimulus Check Amount
I Filed A 2019 State Tax Return On Or Before October 15 2020 I And My Spouse Were Residents Of Nc For The Entire 2019 Calendar Year I Had A Qualifying Child That I Reported On Line 10a I Didnt Receive A Grant Payment Why Didnt I Receive A Payment When It Looks Like I Qualified For One
Check the State tax return you filed for calendar year 2019 to see if you indicated on the return that you, and your spouse, were residents of North Carolina for the entire year. In addition, check to see if the number of qualifying children you reported on line 10a was greater than zero.
If you did not indicate that you, or your spouse if filing a joint return, were full-time NC residents, you must file an amended 2019 Form D-400 to correct the information. If you reported zero on line 10a but had at least one qualifying child for whom you were allowed a federal tax credit in 2019, then you may either amend your 2019 D-400 to correct the information, or you may apply for the grant using Form NC-1105.
Idaho: $75 Rebate Payments
In February, Idaho Gov. Brad Little signed a bill that allocated $350 million for tax rebates to Idahoans. There were two criteria for eligibility:
- Full-time Idaho residency and filed 2020 and 2021 tax year returns, OR
- Full-time Idaho residency and filed grocery-credit refund returns.
The payments began in March. Each taxpayer received either $75 or 12% of your 2020 Idaho state taxes, whichever is greater . The rebate was applicable to each individual taxpayer and each dependent.
The tax commission first issued rebates to taxpayers who received refunds via direct deposit, then sent paper rebate checks.
In a special session on Sept. 1, Idaho lawmakers voted to authorize another tax rebate for all residents who filed state tax returns in 2020. Individual filers will receive $300, and couples filing jointly will get $600.
The funds come from the states $2 billion budget surplus. The payments are slated to roll out within weeks, according to a report by the Idaho Press.
State residents can also check the status of their rebate online.
Read Also: I Still Haven’t Gotten My Stimulus
Will There Be A Fourth Federal Stimulus Check
As of July 2022, the federal government doesn’t appear to have any plans to send a fourth stimulus check to all U.S. residents. The Biden administration has not made an appeal to Congress about a fourth stimulus payment, but legislative gridlock as the 2022 midterms approach all but assures any such proposal would be dead on arrival.
Colorado Stimulus Check 2022 Eligibility And Program Details
The cash back payments were made possible through an amendment to the stateâs Taxpayerâs Bill of Rights which requires the Colorado government to return excess state revenues.
Originally, refunds were expected to be $400 per taxpayer, but thanks to Coloradoâs strong economy, the TABOR payments were boosted to $750 per taxpayer. Married couples filing jointly will receive $1,500.
While many states have put income limits or other restrictions on who can receive stimulus checks, TABOR payments donât come with any such strings. They also donât require taxpayers to have dependents in order to qualify. Instead, anyone meeting the following criteria will receive a Colorado Cash Back check:
- Be at least 18 years old as of December 31, 2021
- Were a Colorado resident for all of 2021
- File a 2021 Colorado state income tax return or apply for a Property Tax/Rent/Heat Credit Rebate
If you filed your 2021 Colorado tax return but moved out of the state in 2022, youâre still eligible to get a check.
Even those who donât owe taxes or who can be claimed as a dependent by someone else will receive a check so long as they file a 2021 Colorado income tax return. Thatâs because the TABOR payments are actually sales tax refunds, not income tax refunds, according to a Department of Revenue spokesperson.
If you owe back taxes, child support or another government debt, your payment could be intercepted to pay that obligation.
Read Also: How Do I Get The 3rd Stimulus Check
How Will I Receive The Grant
- All grant payments will be issued by check to the address listed on your application or State individual income tax return for 2019 or 2020. If your address has changed, please submit a change of address request.
- The Department has issued all checks to eligible individuals. Anyone who does not qualify will receive a letter from the Department. If you have not yet received a check or denial letter, please contact the Department at 1-877-252-4983.
You Can Still Claim $1400 Stimulus Checks And Child Tax Credits For Free
You can still claim $1,400 stimulus checks and child tax credits for free. This is to all United States residents, that means you North Carolina. So, keep reading if you want to find out how you can score this deal before its too late.
How To Get Your Claim
The stimulus payments we received were much needed and appreciated. I know for me, it helped a lot with bills that were piling up. But many people are unaware that money is still out there for them to claim. Nearly 10 million eligible individuals havent yet received Stimulus payments or 2021 child tax credits. This funds are still available and just waiting to be claimed. To determine if you qualify for stimulus payments, child tax credits, or earned income tax credits, you can still file a 2021 tax return.
So how do you know if you can still get a stimulus check?
At ChildTaxCredit.gov, you can file a simple tax return if you think youre eligible for a COVID stimulus payment or the 2021 child tax credit. Time is of the essence if you think this applies to you. The simplified return deadline for this year is November 15. In the event you missed the April 18 filing deadline, youll need to file a tax return on ChildTaxCredit.gov by October 17, in order to find out if you qualify for a stimulus payment or child tax credit. However, according to the IRS you can still file your 2021 tax return, and claim the Child Tax Credit for the 2021 tax year, at any point until April 15, 2025. So there is a bit of time there.
Also Check: Where My Second Stimulus Check
