If you feel the grocery store or gas station prices are more expensive, it might take some of the burden off your wallet. Legislation has been introduced (and in some cases passed) at both the federal and state levels to send rebates or stimulus checks directly to Americans.
Unlike previous pandemic relief efforts, however, these payments are more targeted and much smaller. This is not because the government has developed a habit of being mean. Instead, it’s more about helping Americans fend off rising prices without fueling inflation.
“Programs that focus on specific sectors or groups, such as something like a gas card or income threshold-based spending could theoretically help alleviate some of the pain associated with the price of certain goods or services … overall there will be no impact on price creates too much pressure,” said Andrew Patterson, senior international economist at Vanguard.
Various governments, from the federal to the state level, are working to ease the burden on taxpayers in a world of rising prices.
$100 monthly federal energy return payment
On March 17, Rep. Mike Thompson (D-CA), John Larson (D-CT), and Lauren Underwood (D-IL) introduced the Gas Kickback Act of 2022. In its early stages, the law would pay eligible taxpayers a $100 monthly energy rebate, with an additional $100 for each dependent.
Currently, the structure of payment eligibility is similar to previous stimulus payments. Married applicants filing jointly with an income of up to $150,000 and single applicants up to $75,000 are eligible for full payment and higher income exit tiers.
The bill must be passed by Congress before payments can begin.
Approved State Stimulus and Rebate Check Programs
Six states have passed legislation to provide tax breaks for their residents. Here’s how these payments work:
Georgia
Due to the historic state budget surplus, Georgia residents who filed 2020 and 2021 tax returns are eligible for a tax refund based on their tax return status:
- Individual applicants: up to $250
- Head of Household: Up to $375
- Married Joint Filing: Up to $500
Discounts are also available if you owe state income tax or other payments, such as underage residents.
Residents who filed taxes before Governor Brian Kemp signed the law into law will receive their tax refund in a separate payment.
Georgia taxpayers can learn more about the Georgia Department of Revenue.
Idaho
In February, Idaho Gov. Brad Little signed legislation to provide Idahos with $350 million in tax rebates. There are two eligibility criteria:
- Full-time residents of Idaho and filing 2020 and 2021 tax returns, or
- Live full-time in Idaho and apply for food loan refunds.
Payments begin in March. Each taxpayer will receive either $75 or 12% of their 2020 Idaho tax, whichever is greater (see Line 20 of Form 40 for the amount of tax you file). Rebates apply to every taxpayer and dependent.
The Tax Commission will first issue the refund to taxpayers who received a direct deposit refund, and then send a paper refund check.
State residents can also check the status of their discount online.
Indiana
Like Georgia, Indiana will end 2021 with a healthy budget surplus. In December 2021, Gov. Eric Holcomb announced that Indiana taxpayers will receive a one-time $125 rebate after filing their 2021 taxes.
There is no income requirement. Residents must file a 2020 state tax return by January 3, 2022, and a 2021 Indiana state tax return by April 18, 2022 to be eligible. Payments begin in May and are expected to continue through midsummer, according to a national information site.
Taxpayers filing together will receive a one-time deposit of $250.
Most taxpayers get additional refunds through direct deposit. If you change banks or do not provide direct deposit information, you will receive a paper check in late summer.
Visit the State Department of Revenue website for more information. We will add more information for taxpayers who did not receive payment by September 1.
Maine
Gov. Janet Mills signed a supplemental budget on April 20 authorizing $850 in direct aid to Maine taxpayers. Eligible are full-time residents with a federally adjusted gross income of less than $100,000 ($150,000 if filing as a head of household, or $200,000 if filing together as a married couple). Couples filing together will receive relief checks totaling $1,700 per taxpayer.
Whether or not taxpayers owe state income tax, they are entitled to payment.
Residents who have not yet filed their 2021 state tax return must submit payment by October 31.
The one-time payment is funded by the state’s surplus and is scheduled to be mailed to the address on your Maine 2021 tax return beginning June 1.
The supplemental budget also includes increased benefits for Maine Income Tax Credit (EITC) beneficiaries.
New Jersey
In the fall of 2021, Gov. Phil Murphy and the New Jersey Legislature approved budget measures that will send one-time rebate checks of up to $500 to nearly 1 million households.
Now, Murphy is proposing to set aside an additional $53 million to pay $500 to people who file their taxes using a tax ID instead of a Social Security number. These newly eligible individuals will include non-resident and resident aliens, their spouses and dependents.
New mexico
In early March, Gov. Michelle Lujan Grisham signed legislation giving state taxpayers several rebates.
Taxpayers earning less than $75,000 a year (less than $150,000 for joint taxpayers) receive a $250 rebate ($500 for taxpayers). Refunds will be issued in July and automatically sent to taxpayers who have filed their 2021 state tax returns.
Taxpayers earning less than $75,000 a year may receive a combined tax refund of up to $750.
Residents who haven’t filed their income tax returns will also get their tax refunds in July. Singles with no dependents can get $500; married couples or families of single adults with dependents can get $1,000.
If you filed your 2021 state income tax return by May 31, 2023, you will receive your refund by direct deposit or check. If you owe tax on your 2021 tax return, it will be deducted from your refund amount.
Residents who do not file taxes and are not dependent on other taxpayers can apply for relief at www.yes.state.nm.us.
Pending government petrol rebate and stimulus package
Nine states, while not yet approved and signed into law by state legislatures, have enacted legislation targeting gas rebates, direct stimulus check payments, food tax relief and income tax relief for residents.
California
As West Coast natural gas prices soar, Gov. Gavin Newsom has called for gas rebates for Californians. While his detailed plan has been put on hold, Democrats in the state are proposing other ways to put money in Californians’ pockets, including $200 for every taxpayer with an adjusted annual income of less than $250,000. Families with children will also receive $200 per child.
Hawaii
In January, Gov. David Iger proposed sending tax refunds to every taxpayer in Hawaii. Senate Bill 514 would provide a $300 rebate to taxpayers earning less than $100,000 a year and a $100 rebate to taxpayers earning more than $100,000 a year. There will also be a discount for each dependent. A 2021 tax return is required to qualify for the discount.
Hawaii lawmakers are expected to approve the measure in May.
Kansas
Governor Laura Kelly announced a one-time $250 tax rebate for Kansas residents filing 2020 state income tax returns ($500 for married couples filing jointly). Rebates to be paid from the state budget surplus are underway.
Kentucky
The Kentucky Senate has approved a $1 billion tax rebate to state taxpayers because of the state’s budget surplus. While legislation is still passing through the state legislature as well as a broader income tax package, eligible Kentuckians will receive a one-time payment of up to $500, or up to $1,000 per household if approved.
Minnesota
Governor Tim Walz proposed increasing the state’s $9.25 billion budget surplus, but his proposal did not factor into the tax cuts both parties proposed in April.
Pennsylvania
The state’s tight gubernatorial race means Pennsylvania has several proposals to ease inflation by lowering the state’s gas tax from 57.6 cents a gallon. As the political race unfolds, incumbent Gov. Tom Wolf and several other Democratic governors have asked Congress to repeal the 18.4-cent-a-gallon state gas tax by the end of 2022.
Pennsylvania also has pending legislation that would provide up to $500 million in direct aid to help families fund expenses such as child care and household expenses.
Virginia
With a $2.6 billion budget surplus, Gov. Glenn Youngkin has pledged to put some of that money back into the pockets of Virginians. The state legislature has two bills aimed at reducing or eliminating the state’s 2.5 percent food tax. Additional legislation would suspend the state gas tax of 26.2 cents a gallon for a year.
What’s the next step in gas stimulation testing?
Despite all of these policies and various legislation passed, Americans are still torn between what they need and what they can afford.
While rebates and gasoline stimulus checks can help cushion the blow from higher prices, some are still wary of paying extra, especially given that previous pandemic relief programs are considered one of our current inflation-driven programs .
For some lawmakers, “inflation-related stimulus payments are just feeding the beast” and putting more money into places where the supply of commodities can’t keep up with demand, explained Dr. Jaime Peters, assistant dean and assistant professor of finance at Maryville University. market.
This poses a problem for families who don’t have the money to buy the commodities they need every day.
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