Inflating is rising at an alarming rate, affecting everything from the cost of groceries to your car insurance rates. However, there are states in the U.S. that are taking matters into their own hands and helping qualifying residents get a little relief. Here’s how these programs work.
How inflation works
Inflation is the rate at which prices rise and touches everything, from the cost of goods to the interest rates on secured vs unsecured personal loan offers.
Inflation occurs naturally as supply and demand fluctuate. However, inflation has become a much bigger issue in recent years as the US economy has slowed down. This is because inflation eats away at your purchasing power, making everyday expenses more expensive.
The states offering inflation relief for residents
Californians will receive a tax rebate in the form of a direct deposit or debit card. The total amount payable is $1,050 based on income levels and whether the resident has filed jointly or as a single-payer.
Beginning September 2022, single filers will receive a $750 tax rebate check, while joint filers should expect $1,500.
Delaware’s “Relief Rebate Program” is issuing a one-time relief rebate check of $300 to residents who were at least 18 (as of 12/31/21) and filed a 2021 or 2021 tax return. Joint filers will receive a check for $600.
Florida residents will receive a one-time stimulus check of $450 for those already participating in its Temporary Assistance for Needy Families program.
Single filers filing a tax return in 2020 and 2021 are eligible for a one-time refund of $250. Joint filers will receive up to $500, and head-of-household filers can expect up to $375.
Single filers who filed a 2021 tax return and earned less than $100,000 can receive a one-time tax refund of $300 multiplied per dependant (i.e., a family of four could expect a tax rebate of $1,200). Joint filers who earned a combined total of less than $200,000 will receive $300 each. Taxpayers who earned over $100,000 (or $200,000 respectively) can expect $100 per person.
Idaho Governor Brad Little signed a law that automatically redirects state tax surpluses into bonus rebates for residents who filed both 2020 and 2021 returns. The bonus rebate is $300 for single filers and $600 for joint filers or 10% of income taxes paid in 2020, whichever amount is greater.
Residents who earned less than $200,000 in 2021 (or $400,000 if filing jointly) received one-time tax rebates of $50 for single filers and $200 for joint. There’s also an additional rebate for homeowners in the state that’s worth up to $300 if they earned less than $250,000 (if filing as a single-payer) or $500,000 (if filing jointly).
Single filers who have filed their 2020 taxes will receive a one-time rebate of $125, while joint filers can expect $250. This rebate is not based on any income level. However, in August 2022, another round of rebates was approved that will run either $200 or $400 depending on filing status.
Full-year residents who have filed their 2021 tax return are eligible for $850 in relief. To qualify, the tax return must be submitted by October 31, 2022, and show an earned income of less than $100,000 for single payers, $150,000 for heads of households, and $200,000 for couples who file jointly.
Full-year residents who filed their 2021 tax returns before October 17, 2022, are eligible for a rebate that may be up to 13% of their total tax liability. The full amount will be decided in October 2022.
Homeowners earning less than $150,000 can expect a property tax rebate of $1,500. Homeowners earning between $150,000 – $250,000 can expect a rebate of $1,000. Renters earning less than $150,000 will receive $450 in tax relief starting in the spring of 2023.
Homeowners who qualified for the 2022 School Tax Relief (STAR) program and met other eligibility requirements received a rebate of around$1,050, depending on income levels and tax obligations.
Low-income homeowners over the age of 65, widowed and aged 50+, or disabled and aged 18+ qualify for a one-time tax rebate. The amount is dependent on tax status and income levels.
Residents with a tax liability on their 2021 return can expect a rebate of up to $700.
Residents who filed a 2021 tax return and had a tax liability can expect a one-time rebate of $250 for single filers and $500 for joint.
Name: Michael Bertini
Job Title: Consultant