States Are Sending Inflation Relief Checks — When Will You Get Yours?

If you live in a state that has proposed to send inflation relief checks to residents, you’re probably wondering when yours is going to go out. Rental prices are rising and food costs are increasing, so naturally, people are eager to receive any financial assistance that is offered. So far, states like California, New Jersey, and Delaware have either begun issuing relief checks or announced plans to do so.

So, how soon could you get yours? Here's everything we know so far about inflation relief checks.

Several states have already started issuing rebate payments to residents to help them cope with the financial struggles they're facing due to the COVID-19 pandemic. But now with inflation affecting the budgets of individuals and families and a possible recession on the horizon, some states are sending more money while others are proposing to send out relief checks for the first time.

Here’s a look at which states are sending relief checks, many of which aim to help reduce the burden inflation is causing, and when you can expect to receive them.

At the end of June 2022, California Governor Gavin Newsom signed Assembly Bill 192, which permits qualifying residents to receive an inflation relief check of up to $1,050 starting at the end of October 2022 through January 2023.

Those who filed a 2020 tax return and earned an amount that doesn't exceed the income threshold of $500,000 (for joint filers) and $250,000 (for single filers) should be entitled to a direct payment.

If you indicated direct deposit on your tax return, you should receive your check via the same method. In the event you didn't, a debit card preloaded with a specific amount will be sent to you. Payments will be determined using your filing status, income, and whether or not you have at least one dependent.

In Illinois, lawmakers have decided to approve a $1.8 billion relief plan that will send money to residents and help lower costs in an effort to combat inflation. Beginning sometime in September 2022, qualifying residents could receive a property tax rebate check of up to $300, depending on the amount they qualified for when they filed their 2021 Illinois tax return.

If your adjusted gross income exceeded $500,000 (married filing jointly) or $250,000 for all other types of returns, you won’t qualify for Illinois’ property tax rebate. Illinois has also proposed to send out up to $400 in income tax rebates to residents aimed to help combat inflation.

Individuals who reported income that was less than $200,000 in 2021 should receive a $50 check via direct deposit or mail, along with $100 per dependent, up to three dependents. Couples who filed their returns jointly will receive $100 in credits so long as their income was under $400,000. They too will receive $100 per dependent claimed on their 2021 tax return, up to three dependents.

In addition to sending out tax rebates to residents to help combat the rising gas, grocery, and property tax prices, Illinois is also:

• Suspending the state’s 1 percent tax on groceries from July 1, 2022, through June 30, 2023. This tax holiday is expected to help save consumers $400 million in total.

• Delaying an increase in the state’s motor fuel tax from July 1, 2022, to January 2023.
• Reducing the school supply sales tax from 6.25 percent to 1.25 percent from August 5–14, 2022.

If you filed your Colorado state income tax return, you should receive your Colorado Cash Back check by September 30, 2022. If you were approved for a tax deadline extension of October 17, 2022, you should receive your refund by January 31, 2023. Colorado Governor Jared Polis signed into law Senate Bill 22-233 which approved $750 tax rebate checks for individual filers and $1,500 for joint filers.

To qualify for the rebate, you must have been a full-year resident of the state of Colorado in 2021 and filed your 2021 state income tax return.

Many of the state officials who are proposing to send relief checks are using money from their state’s budget surplus. Rather than hold onto the overpayment in taxes some states received from residents, many have decided to give back some money in the form of a tax rebate to qualifying individuals.

Although these states initially began sending out checks to qualifying residents in the form of tax rebates due to budget surpluses, those who now receive it can use it to fight off inflation. Georgia started sending out checks in May 2022 while Idaho residents started receiving their checks in March.

If you live in Hawaii, tax rebate checks, which are now being used to help fight rising costs of essential items and household goods, will go out in late August. The refund amount will be $100 or $300 per person depending on the taxpayer's adjusted gross income and filing status.

You should be aware that states like Georgia are using relief payments to offset tax liabilities, which means if you owe your state taxes, the relief money could be applied to the balance. To find out if this applies where you live, contact your state’s Department of Revenue.