Stimulus checks are unlikely in 2023; states currently sending payments
September 19, 2022
Stimulus checks and payments were a huge way for Americans to get by financially in 2021, but there have been no updates in 2022. The government checks probably won’t continue in 2023, but some states send their own payments.
Before 2022, many people didn’t get incentive checks unless it was a missed one and part of their tax refund. The same is likely to happen next year, despite inflation taking its toll on people’s finances. The cost of food for basic items has increased by more than 10%, with specific items being even higher.
Americans are getting creative when it comes to saving their money or working to bolster their savings. Fixed income seniors have reported cutting back on meals and cutting their medication doses in half.
Why a stimulus check will not go ahead in 2023
In the year 2021, an incentive check worth $1,400 went out to people early in the year. The purpose of these payments was to help the average low- to middle-income family recover from the pandemic. At that point in 2021, the cost of food and gas was nowhere near the record highs of 2022. So for the year 2022, when the costs are prohibitive, no incentive payments have been given.
The economy seems to be recovering and the labor market is so much stronger, two factors that are considered when choosing stimulus measures, according to The Motley Fool. With the strong recovery of all but the American people’s bank accounts, the government can find no reason to send another round of stimulus checks. In addition, some politicians believe that the stimulus being pumped into the economy is one of the reasons for inflation.
Those lucky enough to see stimulus in 2022 usually saw that at their state level, not the government. Many states have taken it upon themselves to step up and provide financial aid in the form of incentives or tax cuts. This comes from a large number of surplus state budgets. When 2023 arrives, the extra money will likely end up coming from both government and states. This means Americans should prepare for no more stimulus checks.
Stimulus checks are usually sent when the economy is suffering a recession and unemployment remains high. At the moment, the labor market is booming with very low unemployment. This ensures that stimulus payments are not needed, and there is still room for the rates to change and still not need stimulus control.
Whether a recession hits in 2023 depends on several factors, and economists fear it could happen. Right now, the Federal Reserve is raising interest rates and slowing spending. This means that if a recession were to hit, it wouldn’t be so bad. The less severe it is, the less likely that stimulus controls are needed. The overall aim is to slow the rate of inflation, and stimulus pumped into the economy would do the opposite. When consumers spent their stimulus money last year, it caused a decoupling between supply and demand, damaging the supply chain and becoming at least one factor in inflation.
There are things people can do to save themselves without the extra stimulant help. One thing is to spend money on a budget. By keeping track of what you spend on supplies, you may be able to see where you can easily cut costs. In addition, you can see where you can put money for more necessary purchases. Another option is to get a side job. This can be anything from babysitting to bartending. The extra money from these jobs can easily help people create a beautiful pillow during difficult times.
Some states are still sending payments, and many could see them in September
Many people can expect stimulus payments from their state this fall. These can take the form of actual stimulus payments or even payments from a state’s budget surplus.
California sends checks for inflation relief, according to CNet. Those who are married can see as much as $1,050. These payments go through the state budget surplus of $97 billion. The first payments should be made in October and will be sent as direct deposits or debit cards. The amount you receive is based on your income, the status of your file and the size of your household. Payments range from as little as $350 to $1,050.
Colorado taxpayers can expect payment worth $750 via paper check by the end of this month. Most checks from the Taxpayer’s Bill of Rights or the TABOR amendment have already been issued and cashed. If residents have submitted an extension and file before October 17, they will see their payments by January 31, 2023.
Delaware residents will see a $300 payment through the Delaware Relief Rebate Program if they file taxes in 2020. Those who submit jointly will each see a payment. These payments went out in May of this year.
Florida residents received $450 payments for each child, as long as they qualified. About 60,000 families became eligible after receiving temporary assistance for needy families. They were also eligible if they were a foster parent, or relative or non-parent, caring for a child in the child support program. Applications were not necessary and the payments were automatically emailed to the residents.
In Georgia, residents received payments based on their tax return information. Returns must be filed for 2020 and 2021. Single filers saw $250, the head of household saw $375, and married couples filing jointly saw $500. If you were a part-time resident or owed taxes or child support, you were your discount is probably smaller. Payments started going out in May, but they may still be going to late submitters.
Finally, Hawaii residents who made less than $100,000 in 2021 will see payments worth $300 in the form of a tax credit. Married applicants earning less than $200,000 receive the same discount for each person. Eligible dependents will see an additional $300. This means that a family of four could earn $1,200. Anyone who earns more than $100,000 as a single submitter or $200,000 as married submitters will see one-time payments of $100. These payments began on September 9 and will continue through October.
Kroger: Grocery chain is making changes to make budget-friendly shopping easier
Samantha edits our personal finance and consumer news section. Do you have a question or tip? Send it to [email protected]