As states across the U.S. continue to grapple with the lasting effects of the COVID-19 pandemic, many have introduced financial relief programs to help ease the burden on residents. Although federal stimulus checks have come to an end, several states are stepping in with their own forms of assistance, including one-time stimulus checks and tax rebates. One such state is offering an $850 check to eligible residents. Here’s a closer look at the relief options available, and how to make the most of the upcoming stimulus check.
State Programs Offering Stimulus Checks
Maine: A one-time stimulus check of $850
Maine is providing a one-time $850 stimulus check to eligible residents. To qualify for this payment, individuals must have filed a 2021 income tax return and met certain income limits. This generous payment is among the largest state-issued stimulus checks, providing much-needed financial relief to residents who may still be struggling. The checks are expected to be distributed in the near future, and it is essential for those who qualify to ensure their tax returns are in order.
California: Tax rebate up to $1,050
California’s Governor Gavin Newsom has rolled out a tax rebate program that offers up to $1,050 to qualifying individuals. Payments are determined based on income and tax filing status, with payments expected to be sent between late 2022 and early 2023. To be eligible, residents must have filed a 2020 tax return and met the state’s income thresholds.
Colorado: Cash back bill payments
In Colorado, residents who filed their 2021 state tax returns are eligible for the Colorado Cash Back Bill. Individual filers can expect $750, while joint filers are eligible for $1,500. These payments were expected to be distributed by September 2022.
Florida: $450 for families
Florida offered a one-time payment of $450 for families, including foster parents and caregivers. The initiative aims to support approximately 59,000 families and is based on participation in state assistance programs.
Georgia: Rebates for tax filers
Georgia residents were eligible for rebates based on their tax filing status, with amounts ranging from $250 for single filers to $500 for joint filers. The rebates were issued in early August 2022.
How to apply for tax relief
To apply for these stimulus programs, residents generally need to file their most recent state income tax return. For example, Maine’s $850 check requires a filed 2021 income tax return, while California’s rebate program looks at 2020 tax filings. If you haven’t filed your taxes yet, be sure to do so promptly to ensure eligibility.
In some states, such as Florida and Colorado, specific programs may have additional requirements or deadlines, so it’s important to check the eligibility criteria for your state’s initiative.
Making the most of your stimulus check
Once you receive your stimulus check, it’s crucial to use it wisely. While the funds can provide immediate relief, they also offer an opportunity to improve your financial situation. Here are some ways to use your check:
- Pay down debt: If you have high-interest debt, such as credit card balances, using the stimulus check to reduce or eliminate that debt can save you money in the long term.
- Build an emergency fund: A stimulus check can serve as a stepping stone for creating an emergency fund, which can help you navigate unexpected expenses in the future.
- Save for the future: Consider using your check to invest in a retirement account, such as an IRA, to help secure your financial future.
- High-yield savings accounts: For those who want to maximize the value of their funds, placing the check in a high-yield savings account could provide a more significant return.
States offering stimulus checks are aiming to provide relief to residents who may have faced financial hardship during the pandemic. By reviewing your eligibility for these programs and using the funds strategically, you can improve your financial situation in the long term.
