What to Expect and When in the New Year

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As 2022 draws to a close, many Americans will be wondering if they can expect some financial relief in the new year as they continue to struggle with high prices.

The IRS has already warned that the absence of federal stimulus payments in 2022 is likely to affect repayments in 2023. “Repayments may be smaller in 2023,” the agency said last month. “Taxpayers will not receive an additional stimulus payment on a 2023 tax refund because there were no economic impact payments for 2022.”

While there is no news of another round of federal stimulus payments, many states have this year provided residents with financial assistance in the form of tax credits.

Payments will be made here in 2023.

California

According to the state’s Franchise Tax Board, more than 25 million Californians have benefited from a program called the Middle Class Tax Refund. Earlier this year, the program approved direct payments of up to $1,050 to help residents cope with inflation.

More than $7.5 million has already been distributed through the program, but some recipients won’t see their payments until January.

Californians who have changed their bank information since filing their 2020 tax returns will receive a debit card that will be mailed between December 17 and January 14. Debit cards for those who received previous stimulus payments that way will be mailed no later than Dec. 10. All other debit cards will be shipped on January 14.

Colorado

Governor Jared Polis signed into law earlier this year giving Coloradans a tax credit of $750 for individual filers and $1,500 for joint filers.

While most Colorado residents have already received the tax credits under the Colorado Cash Back program, those who have applied for an extension and filed their tax returns before the October 17 deadline will receive their refund on January 31.

A stock photo shows economic stimulus checks being printed at the Philadelphia Financial Center on May 8, 2008. This year, many states have been sending their residents tax credits.
Jeff Fusco/Getty Images

Idaho

In September, Governor Brad Little signed into law a $500 million income tax reduction.

Full-time Idaho residents who filed taxes in 2020 and 2021 are eligible and will be refunded 10 percent of the tax amount on their 2020 income or $300, whichever is greater. Joint applicants receive a minimum of $600.

The Idaho Tax Commission said it began processing the rebates in September and will continue to process them through 2022 and early 2023 as taxpayers file their returns and qualify for the rebate.

Idaho taxpayers can track the status of their rebate using the Where’s My Rebate tool at Tax.Idaho.gov/rebate.

Illinois

Eligible Illinois residents could receive two payments in 2023: an income tax credit and a property tax credit.

The income tax rate is $50-$100 for joint filers, but is only paid to residents with a 2021 adjusted gross income of less than $200,000 (less than $400,000 for joint filers).

To qualify for the property tax credit, which is worth up to $300, you must be an Illinois resident who paid 2021 property taxes on your primary residence in 2020. Also, the adjusted gross income must appear on your Illinois tax return. for 2021 be $250,000 or less ($500,000 or less for joint petitioners).

The rebates began the week of Sept. 12, according to the Illinois Department of Revenue, but will take several months to wear out.

New Mexico

State residents have received financial relief in the form of two tax credits divided into three payments.

The first sent $250 to individual petitioners with an adjusted gross income of less than $75,000 and $500 to joint petitioners with an adjusted gross income of less than $150,000.

The second rebate, which had no income limits, was split into two payments and sent a total of $500 to single petitioners and $1,000 to joint petitioners.

As of mid-August, over 2 million rebates have been issued, but some people may not have received theirs yet.

New Mexico residents have until May 2023 to file their 2021 income tax returns and qualify for a rebate, according to the state’s tax and revenue department.

Pennsylvania

Pennsylvania has made one-time payments to eligible, older Pennsylvania residents who have been approved for a property tax credit or rent paid in 2021.

The maximum standard discount is $650, but those who qualify for additional discounts can go up to $975.

The income limit is $35,000 a year for homeowners and $15,000 a year for renters, not including half of Social Security income. The deadline for applications is December 31.

south carolina

Lawmakers in South Carolina approved a $1 billion tax cut this year.

The first round of rebates, capped at $800, was issued Oct. 17, according to the state’s Department of Revenue. A second round will be issued in March 2023 for taxpayers who file their 2021 income tax returns before February 15.

The Valley Voice
The Valley Voicehttp://thevalleyvoice.org
Christopher Brito is a social media producer and trending writer for The Valley Voice, with a focus on sports and stories related to race and culture.

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