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Inflation relief: At least 20 states offer one-time rebates, tax credits

 

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(NewsNation) — Amid painfully high inflation and rising interest rates, at least 20 states are offering one-time tax rebates and tax credits to help residents cope with the rising cost of living.

Americans are experiencing the worst bout of inflation in four decades. In October, rates came down to 7.6% from a June high of 9.1%. The annual core inflation rate currently sits at 6.3%, the U.S. Labor Department recently reported.

Inflation expectations have risen sharply in November, according to Moody’s Analytics, and consumers’ wallets continue to be stretched thin.

In an effort to help, states are offering tax cuts, and rebates.

Here is a breakdown of what is being offered by state:

In California, about half of those who qualify for California’s Middle Class Tax Refund have received their money, according to NewsNation affiliate KTLA, citing the state. Inflation relief payments from the state vary in size from $200 to $1,050, depending on a person’s income, filing status and dependents. The average payment so far is about $544, KTLA reported.

In Colorado, taxpayers can get a rebate between $750 for single and $1,500 for joint filers, according to Colorado Cash Back.

The 2022 Delaware Relief Rebate Program allowed for a one-time payment of $300 per adult resident, with couples getting $600. According to the state, relief is intended to promote the general welfare of Delawareans emerging from the COVID-19 pandemic and facing higher prices at the grocery store and gas pump.

In Georgia, the Department of Revenue announced a refund of income taxes from 2020, due to the state experiencing a revenue surplus. Single filers and married individuals who file separately could receive a maximum refund of $250.  Head of household filers could receive a maximum refund of $375.  Married individuals who file joint returns could receive a maximum refund of $500.

The state of Hawaii passed legislation that provides a refund for resident taxpayers who file their 2021 individual tax returns on or before Dec. 31, 2022. The amount of the refund is $100 or $300 per exemption depending on the taxpayer’s federal adjusted gross income and filing status.

Idaho is offering $75 to every taxpayer and dependent, or 12% of the taxpayer’s state income tax liability, according to the state.

Illinois passed a $1.83 billion relief package that includes various tax rebates. Tax rebates include $50 per individual and $100 per child up to three children, for a maximum rebate of $400. Credits may be claimed for up to three years after the original tax filing deadline, according to the state.

Eligible taxpayers in Indiana should receive an Automatic Taxpayer Refund if they filed a tax return for the 2020 tax year with a postmark date of Jan. 3, 2022 or earlier. The refund includes a $125 payment to every taxpayer regardless of income in May and another $200 later in the year. 

Maine’s rebate is for anyone making less than $100,000, or less than $200,000 for a joint-filing married couple, awarding a one-time payment of $850, or $1,700 for couples.

Eligible taxpayers in Massachusetts will receive a credit in the form of a refund that is approximately 14% of their 2021 personal income tax liability. As an example, a person who made $50,000 last year and paid the state back $2,500, could get about $350 back.

New Jersey’s rebates are based on home ownership or renting. Homeowners making up to $150,000 will receive $1,500 rebates on their property taxes, while those earning between $150,000 and $250,000 will receive $1,000. Renters who earn up to $150,000 will receive $450 checks. 

New Mexico issued a rebate to all taxpayers: $500 for individual filers and $1,000 for joint filers, heads of households and surviving spouses.

In June, about 3 million New York state homeowners started receiving property-tax rebates of up to $1,050. New York City households got an average of $425 back. Also, residents who are earning below $75,000, are expected to receive an average of $1,050 dollars.

Oregon households received a one-time assistance payment of $600. Residents will automatically receive payment by direct deposit or check with no additional action required.

Pennsylvania issued a one-time bonus rebate of up to $975 for people with disabilities, older homeowners and renters.

The South Carolina Department of Revenue issued a one-time rebate of up to $800 to eligible taxpayers who filed by Oct. 17.

Virginia also approved a one-time rebate of $250 for single filers and $500 for couples for those who filed by Nov 1.

Some states are offering rebates to families with children. Florida, Illinois, Connecticut, Rhode Island, Minnesota and Pennsylvania are among 12 states distributing child tax credits.

The tax credits vary in amount per state and are intended to provide financial relief for low-income parents and their children.

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