Updates to Know About Stimulus for Spring 2022

0

To the tune of trillions of dollars, the coronavirus pandemic provided unprecedented stimulus to American businesses and workers. Stimulus payments came in waves, and as the pandemic dragged on, it seemed as if the government would keep printing money indefinitely to prop up the economy. Despite widespread mask mandates and travel restrictions, the American economy experienced a sharp and rapid recovery. When combined with the trillions of dollars in stimulus money in the system, inflation exploded to levels not seen in decades in early 2022. What does this mean for further stimulus payments in the spring of 2022?

 

Stimulus Check

 

The Federal Stimulus Is Almost Certainly Over

From March 2020 to February 2022, the US government spent roughly $5 trillion on economic stimulus. Approximately $1.8 trillion of that went directly to individuals and families, with the remaining $1.7 trillion going to businesses. However, the federal government’s desire for more direct stimulus is dwindling. The Biden administration appears to be primarily concerned with infrastructure spending, while many economists warn that additional stimulus would only exacerbate inflation, which is expected to reach an all-time high of 8.5 percent in March 2022. Unless and until this trend changes, federal stimulus will most likely be on hold, if not completely discontinued.

However, there is always a ray of hope.

Although some sectors of the economy are thriving, the unemployment rate remains higher than it was prior to the pandemic, and other benefits, such as the expanded child tax credit, have expired. The bottom line is that many Americans continue to struggle. Against this backdrop, numerous stimulus proposals have been floated, ranging from a fourth stimulus check to recurring $2,000 monthly payments. If the economy collapses again, or if another coronavirus variant begins to increase hospitalizations and deaths, the call for additional stimulus may become louder.

State Stimulus Packages Are Still Active

Although the federal government appears to be out of the stimulus business for the time being, many states have taken up the baton and are proposing their own stimulus packages. Although not all will be approved, here is what some states are doing to help their residents.

California

California has run a budget surplus for the past two years, and residents have benefited. The state distributed two rounds of direct stimulus checks to residents in 2021 and early 2022, and Gov. Gavin Newsom has proposed issuing $400 debit cards in 2022 to help offset the rising cost of gas. Residents would receive one card for each car owned, up to a maximum of two (or $800) per household, with payments beginning as early as July.

Illinois Democrats are proposing stimulus checks worth $100 per person and $50 per child in each household, which would arrive in residents’ mailboxes by September. The proposal also includes up to $300 in property tax relief checks, a six-month suspension of grocery and gas tax increases, and a 10-day freeze on school supply taxes in August.

Idaho

Idaho residents will receive rebate checks or direct deposits equal to the greater of 12% of their 2020 taxes or $75.

Maine

Maine Governor Janet Mills has proposed sending $850 stimulus checks to residents of the state. The funds will be provided by the state’s $682 million surplus.

State of New Mexico

Residents of New Mexico who file joint returns and earn less than $150,000 will receive a $500 tax rebate. Single filers earning less than $75,000 are eligible for a $250 rebate. Other credits include $1,000 for full-time hospital nurses, a $175 refundable child tax credit, a three-year partial income tax exemption for military retirees, and an extension of the solar market tax credit, which is equal to 10% of qualifying purchase and installation costs.

Indiana

Indiana lawmakers approved an expansion of the state’s $125 stimulus payments to residents to include approximately 450,000 low-income residents.

Georgia

Georgia Gov. Brian Kemp recently signed stimulus payments into law for Georgia residents. These one-time refunds would be $250 for single filers (or $375 for married filers filing separately), $375 for heads of household, and $500 for joint filers.

State of New Jersey

In an effort to include undocumented immigrants, New Jersey Gov. Phil Murphy has proposed sending $500 stimulus checks to low-income taxpayers who filed using a tax identification number rather than a Social Security number.

Virginia

Virginia legislators are negotiating the specifics of a potential $300 stimulus check for all Virginia taxpayers. Two other proposed bills would reduce or eliminate the state’s grocery tax and suspend the 26.2-cent gas tax for one year.

New York

New York Gov. Kathy Hochul has proposed a $425 to $970 property tax rebate for low- and middle-income households in the state. In addition to other actions, such as tax relief for businesses, the state is suspending the state tax on motor fuels until December.

ALSO READ:

Stimulus Update 2022: Are You One of These 8 States Receiving Payments?

Several States Continue to Distribute Stimulus Checks and Tax Refunds.

Senate Candidate Owes the IRS and a Credit Union Thousands of Dollars.

Hawaii

Gov. David Ige proposed a $100 refund for all taxpayers and dependents in January. The Hawaii House Committee on Finance upped the ante in April, approving $300 checks for taxpayers earning less than $100,000 and $100 checks for those earning more.

Leave A Reply

Your email address will not be published.