Inflation has caused some major issues for Americans, and with no federal stimulus checks in sight, some states are sending their own payments. Other people could also claim missing stimulus payments.
Americans are currently struggling to afford food, gas, and their utilities after 2022 saw record inflation rates. When the pandemic first began, the government sent various stimulus checks. These payments helped those who found themselves out of work and unemployed. Now Americans face an entirely different issue and there is no stimulus aid to help.
The stimulus money from before was sent because the economy was facing major uncertainty as the job market deflated. A weak job market is a precursor for a recession. Today, the job market is thriving and unemployment rates are low- a sign that the economy is healthy.
Despite Americans having jobs, sometimes multiple, they still cannot afford to live. Americans wages even with increases are not keeping up with the rate at which food and gas become unaffordable.
To help, some states are creating inflation relief payments, similar to how stimulus payments worked.
3 states sending inflation relief payments similar to stimulus checks and what to know about it
According to Marca, there are three stimulus payment updates. The payments are worth as much as $1,700. These stimulus updates are for three different states and depend on your income taxes. As the government fails to support Americans in the form of a fourth stimulus check, many states want to help their residents who are struggling.
For each state, you need to file your taxes by the extension deadline of Oct. 17, 2022. The inflation relief is available in different ways. These ways include direct payments, tax rebates, and expanded tax credits.
One state offering relief is Illinois. The state sent direct payments worth up to $300 starting Sept. 12. Those who filed their taxes and qualified were automatically sent the payment. People were able to get a tax rebate worth $50. Joint filers received $100. Those with dependents saw up to $300.
Rhode Island is sending residents a child tax rebate worth up to $750. This is modeled similarly to the child tax credit offered through the federal government.
Finally, Maine has been sending stimulus payments worth $850 for single filers and $1,700 for joint filers. There are income requirements for receiving this payment. First, those who make less than $100,000 as a single filer can get the $850 payment. Couples who do not have an income exceeding $200,000 will see the $1,700 payment.
How do I get my stimulus payment if I missed it from the federal government?
According to Nasdaq, there is a way to get your missing stimulus payment using the Recovery Rebate Credit.
The stimulus payments were also known as the recovery rebate tax credit. They were considered advanced payments on your 2020 and 2021 taxes, similar to the advanced child tax credit payments. You must first find out if you qualify for the payment before claiming the stimulus credit. Those who filed an extension and have until Oct. 17 to file their taxes may benefit from this.
You will only qualify if you didn’t get a stimulus payment you were entitled to or if you only received a partial payment. Some who saw a partial payment were actually entitled to a full payment. You may contact the IRS, look at your IRS online account, or check the Get My Payment tool to see if you missed the payment. There were three payments in all.
Income thresholds and payment amounts
The first and second round of payments were sent out using information from 2018 and 2019 tax returns. Those with an Adjusted Gross Income of under $75,000 for singles or $150,000 for joint filers qualified. For every $100 made past that income level, $5 was deducted from the stimulus payment.
The first payment was worth $1,200 per person and $500 per dependent. The second was worth $600 per person and $600 per dependent.
The full income someone could get before being phased out of getting a stimulus payment entirely was $99,000 for single filers and $198,000 for joint filers. This was for the first stimulus payment. The second stimulus payment had a cut off of $87,000 for single filers and $174,000 for joint filers.
The third check was worth $1,400 and based on 2019 or 2020 tax income information. The income levels for this check was $75,000 for singles and $150,000 for married couples. Each dependent was given a $1,400 stimulus payment as well.
Who can use the Recovery Rebate Credit?
Income requirements are the same for this tax credit as they were for the stimulus payments. This means you could get more money if you file taxes and show your income was incorrectly estimated by the IRS.
Do not use this credit if you were issued a stimulus payment that got lost. If this happened you need to ask the IRS to trace the payment entirely.
If you already received full stimulus payments or are claimed as a dependent, you cannot claim this credit. Nonresident aliens will not qualify either. If you do not have a SSN you cannot apply, but in some cases if you have a legal spouse with a SSN they could apply jointly.
To claim the credit file the recovery rebate worksheet with your federal tax return.
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Samantha edits our personal finance and consumer news section. Have a question or lead? Send it to [email protected].