Stimulus checks and payments were a huge way for Americans to get by financially in 2021, but there haven’t been any updates in 2022. The government checks are unlikely to continue in 2023, but some states are sending their own payments.
For 2022, a lot of people didn’t get stimulus checks unless it was a missed one and part of their tax refund. The same will probably happen next year, despite inflation taking a toll on people’s finances. The cost of food for basic items has jumped by over 10%, with specific items being even higher.
Americans are becoming creative when it comes to saving up their money or working to bolster their savings. Seniors on a fixed income have reported cutting back on meals and splitting their medication dosages in half.
Why a stimulus check in 2023 is not going to happen
In the year 2021, a stimulus check worth $1,400 went out to people early in the year. The goal of these payments was to help the average low to moderate income family bounce back from the pandemic. At that point in 2021, the cost of food and gas was nowhere near the record highs they’ve been in 2022. So for the year 2022, when costs are unaffordable, stimulus payments haven’t been given out.
The economy appears to be recovering and the labor market is so much stronger, which are two factors that are looked at when choosing to issue stimulus checks, according to The Motley Fool. Due to the strong recovery of everything but American people’s bank accounts, the government can’t find a reason to send another round of stimulus checks. On top of that, some politicians believe that the stimulus checks being pumped into the economy are one of the reasons for inflation.
Those who have been lucky enough to see stimulus checks in 2022 mostly saw that at their state level, not the government. Many states have taken it upon themselves to step up and provide financial relief in the form of stimulus checks or tax rebates. This comes out of a lot of excess state budgets. When 2023 arrives, the extra cash will likely end both from the government and states. This means Americans should prepare for no more stimulus checks.
Stimulus checks are typically sent when the economy is suffering from a recession and unemployment levels remain high. Right now, the job market is thriving with a very low unemployment rate. This makes it so stimulus payments aren’t necessary, and there’s still room for the rates to change and still not need a stimulus check.
Whether a recession hits in 2023 depends on various factors, and economists are worried it could happen. At the moment the Federal Reserve is working to raise interest rates and slow spending. This means if a recession did hit, it wouldn’t be that bad. The less severe it is, the less likely stimulus checks will be needed. The overall goal is to slow the rate of inflation, and stimulus checks being pumped into the economy would do the opposite. As consumers spent their stimulus cash last year, it caused a disconnect between supply and demand, damaging the supply chain and becoming at least one factor in the rate of inflation.
There are things people can do to help themselves get by without the additional stimulus help. One thing is to start spending money on a budget. By tracking what you spend on necessities, you may be able to see where you could easily cut costs. Additionally, you could see where you could put money toward more necessary purchases. Another option is to get a side hustle. This could be anything from babysitting, to bartending. The extra cash from these jobs could easily help people to create a nice cushion when times are hard.
Some states are still sending out payments, and many could see them this September
Plenty of people can expect stimulus payments from their state this fall. These could be in the form of actual stimulus payments or even payments from a state’s budget surplus.
California is sending inflation relief checks, according to CNet. Those who are married could see as much as $1,050. These payments are going out through the state’s budget surplus worth $97 billion dollars. First payments should be issued in October and will be sent as direct deposits or debit cards. The amount you get will be based on your income, filing status, and the size of your household. Payments range from as little as $350 to $1,050.
Colorado taxpayers can expect a payment worth $750 via paper check by the end of this month. Most checks from the Taxpayer’s Bill of Rights, or the TABOR Amendment have already been issued and cashed. If residents filed an extension and file by Oct. 17 then they will see their payments by Jan. 31, 2023.
Delaware residents will see a payment of $300 through the Delaware Relief Rebate Program if they filed taxes in 2020. Those filing jointly will each see a payment. These payments started going out in May of this year.
Florida residents received $450 payments for each child as long as they qualified. About 60,000 families qualified after receiving Temporary Assistance for Needy Families. They also qualified if they were a foster parent, or relative or non-parent, caring for a child in the Guardianship Assistance Program. Applications weren’t required and the payments were automatically mailed to residents.
In Georgia, residents received payments based on their tax return information. Returns must have been filed for 2020 and 2021. Single filers saw $250, head of household saw $375, and married couples filing jointly saw $500. If you were a part time resident or owed taxes or child support, your rebate was likely smaller. Payments started going out in May but they may still be going out to late filers.
Finally, Hawaii residents that made less than $100,000 in 2021 will see payments worth $300 in the form of a tax rebate. Married filers earning under $200,000 will see the same rebate for each person. Eligible dependents will see an additional $300. This means a family of four could see $1,200. Anyone making over $100,000 as a single filer or $200,000 as married filers will see one time $100 payments. These payments began going out on Sept. 9 and will continue through October.