Inflation Relief Checks Coming to These Western States
Record-high inflation after a global pandemic has wreaked havoc on most Americans’ bank accounts. Recognizing this, some states are continuing to provide financial assistance to their residents, sending a round of inflation relief checks this year.
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If you are living in the West, you may be in luck for getting a final round of payment from your government. A third of Western states will be sending inflation relief checks in 2023.
California
Californians can expect to see a sizable chunk of change from the government this month. According to the state’s Franchise Tax Board, payments are being issued between October 2022 and January 2023. The one-time payment, dubbed the “Middle-Class Tax Refund” or MCTR, will be sent automatically either via direct deposit or a debit card. The maximum amount individuals can expect to receive is $1,050.
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In order to be eligible for the MCTR you must:
Be a California resident when the payment is issued
Have been a California resident for at least six months of the 2020 tax year
Have filed your 2020 tax return on or before Oct. 15, 2021
Not have been eligible to be claimed as a dependent in 2020
Make $500,000 or less if filing jointly or $250,000 if filing singly.
While the majority of MCTR payments already have been issued, two groups are expected to receive payments before Feb. 14, 2023. If you are eligible to receive direct deposit but have changed your banking information since filing your 2020 tax return, you can expect to receive a payment on or before Jan. 14, 2023.
Additionally, if you are a debit card recipient who has changed your address since filing your 2020 tax return, you can expect to receive your payment in the mail between Jan. 30 and Feb. 14, 2023. You can use the Middle Class Tax Refund Calculator to estimate the amount you will receive.
Colorado
Another Western state issuing tax payments to residents is Colorado. In May 2022, Gov. Jared Polis signed into law Senate Bill 22-223, which bumped up tax refunds that were scheduled for spring 2023 to summer 2022. While most people received their payments from the Colorado Cash Back program already, individuals who sought extensions on their 2021 taxes can expect to receive their money on or before Jan. 31, 2023.
To be eligible for the Colorado Cash Back payment, you must:
Have turned 18 on or before Dec. 31, 2021;
Have filed your 2021 tax return (even if you make $0 income) on or before Oct. 17, 2022
Have been a resident of Colorado for the entire 2021 tax year.
Single filers can expect to receive payments of up to $750 and joint filers will see payments of $1,500.
Idaho
In 2022, Idaho Gov. Brad Little signed two bills into law giving tax rebates to residents. Individuals who did not receive payments before the end of the year can expect to receive payments in early 2023.
To be eligible, you must have filed your 2020 and 2021 tax returns by Dec. 31, 2022. You also must have been a full-year Idaho resident during 2020 and 2021. Residents can expect to receive payments in the amount of up to 10% of their 2020 income taxes or $300 if filing individually and $600 if filing jointly.
New Mexico
New Mexico residents still might be eligible for tax rebates or economic relief payments. According to the Department of Taxation and Revenue, the state will allow non-filers to file 2021 New Mexico tax returns until May 31, 2023, in order to receive rebates. Eligible residents cannot have been claimed as dependents on other tax returns.
Payments will be up to $1,000 for joint filers and $500 for individual filers. Multiple reports also indicate that New Mexico families may receive another round of tax rebates in the coming year.
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This article originally appeared on GOBankingRates.com: Inflation Relief Checks Coming to These Western States
