Federal stimulus payments that were sent to U.S. households in the wake of the COVID-19 pandemic have ended, but some states still offer financial relief in the form of tax rebates to help families and individuals battling inflation.
Here’s a look at 5 state tax rebate programs that can put more money in your pocket.
In May, Alabama lawmakers approved a one-time tax rebate that will give $150 to single people and $300 to married couples, WSFA reported. The state will begin distributing the rebates in November, according to Money. The tax rebates aim to compensate residents for the higher grocery taxes they paid while government budget surpluses increased. Nearly 2 million residents who filed a 2021 tax return qualify for the rebate.
One-time tax rebate payments of up to $1,300 per family started going out last week, according to the Minnesota Department of Revenue. The program provides payments to eligible Minnesotans for the following:
- $520 for married couples filing a joint 2021 income or property tax return with adjusted gross income of $150,000 or less.
- $260 for all other individuals with 2021 adjusted gross income of $75,000 or less.
- Another $260 for each dependent, up to three dependents.
Rebates were made possible because of the state’s projected budget surplus of $17.6 billion and will go to about 2.1 million residents, Money reported. For more information, visit the Department of Revenue site.
Montana Gov. Greg Gianforte signed three state House bills into law to provide tax rebates for eligible Montana taxpayers. House Bill 192 provides a rebate for individual income taxes paid in tax year 2021. House Bills 222 and 816 provide a rebate for property taxes paid in tax years 2022 and 2023. Visit the Business & Income Tax Division site for more information.
Earlier this year New Mexico Gov. Michelle Lujan Grisham and the state legislature approved rebates for New Mexico taxpayers, as well as economic relief payments to New Mexico residents who are not required to file taxes. Payments include a refundable income tax rebate of $1,000 for married couples filing joint returns, heads of household and surviving spouses; and $500 for single filers and married individuals filing separately.
The rebates will be sent automatically to New Mexico residents who have filed a 2021 personal income tax return and are not declared as a dependent on another taxpayer’s return. Eligible residents have until May 31, 2024 to file the 2021 return if they have not already done so. Visit this Department of Taxation & Revenue site for more information.
Eligible individuals and families can receive up to $1,200 in tax credits if they meet certain eligibility requirements. You can apply for the credit through Dec. 31, 2023. Among the items you’ll need are a copy of your federal tax return, your Social Security number or Individual taxpayer identification number, your address and personal information such as your date of birth, spouse’s name and children. For more info, go to the Washington Department of Revenue site.
Other State Programs
here’s a look at other state stimulus programs where most payments have already been made. However, you might have a chance to still receive a payment if you haven’t already:
- Idaho Tax Rebates: Idaho sent out tax rebates and “Special Session Rebates” in March and September 2022. Those payments have been completed for residents who filed their tax returns on time. However, for those who got extensions or filed later, rebates are continuing to be processed through the summer of 2023.
- Illinois Income Tax Rebate and/or Property Tax Rebate: Oct. 17, 2022 was the last date that you could file for these rebates, and most of the payments have been sent. However, the state Comptroller has indicated that payments will continue until all have been issued.
- Massachusetts Tax Refunds: Massachusetts began paying out state tax refunds in November 2022, and those payments are essentially over. However, late filers have until Sept. 15, 2023 to get their returns in and still qualify for the rebate.
State Income Tax Decreases
Taxpayers in 22 states will pay lower income taxes this year and next year than they did in previous years, according to the Tax Foundation. Here are the states that have temporarily or permanently lowered the top marginal tax rate: Arizona, Arkansas, Colorado, Georgia, Idaho, Indiana, Iowa, Kentucky, Louisiana, Michigan, Mississippi, Missouri, Montana, Nebraska, New Hampshire, North Carolina, North Dakota, Ohio, Oklahoma, South Carolina, Utah and West Virginia.
More From GOBankingRates