Stimulus updates to know for spring 2022
Stimulus updates to know for spring 2022

Stimulus updates to know for spring 2022

JJ Gouin / Getty Images / iStockphoto

The corona pandemic brought an unprecedented stimulus to US companies and workers in the order of trillions of dollars. Stimulus payments came in waves, and as the pandemic extended, it almost seemed as if the government would continue to print money forever to save economy. But while widespread mask mandates and travel restrictions remained in place, the U.S. economy enjoyed a sharp and rapid recovery. Combined with the trillions of dollars of stimulus money in the system, inflation exploded in early 2022 to levels not seen in decades. What does this mean for further stimulus payments in the spring of 2022?

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Federal stimulus is probably over

From March 2020 to February 2022, the U.S. government injected about $ 5 trillion in stimulus money into the economy. Of that, about $ 1.8 trillion went directly to individuals and families, while a further $ 1.7 trillion went to businesses. But the federal government’s appetite for more direct stimulus is waning. The Biden administration appears to be focusing primarily on infrastructure spending, while many economists warn that further stimulus will only accelerate the rise in inflation, which hit a staggering 8.5% in March 2022. Until this trend reverses, the federal stimulus is likely to pause. , if not completed completely.

But there is always a glimmer of hope

Although the pockets of the economy are booming, unemployment remains above where it was before the pandemic, and other improvements, such as the expanded child tax deduction, have expired. The bottom line is that many Americans are still struggling. Against this background, several suggestions for additional stimulus have been pushed, from a fourth stimulus check to recurring $ 2,000 monthly payments. If the economy were to collapse again, or if another variant of coronavirus began to increase the number of hospitalizations and deaths again, the drum beat for additional stimulus could be higher.

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Government stimulus packages are alive and well

Although the federal government appears to be out of the stimulus industry at the moment, many states have picked up the ball and are running with their own stimulus proposals. While not all will be approved, here is what some of the states are working on to get their citizens more help.

California

The state of California has had profits for the past two years, and its residents have benefited. In 2021 and early 2022, the state issued two rounds of direct stimulus checks to residents, and by 2022, Govin Newsom has proposed issuing $ 400 debit cards to help offset the rising cost of gas. Residents would receive one card per owned car, up to a limit of two – or $ 800 – per household, with payments already in July.

Illinois

Democrats in Illinois are proposing stimulus checks that will arrive in residents’ mailboxes by September, equivalent to $ 100 per person. person and $ 50 per. children in every household. The proposal will also provide up to $ 300 in control of property tax cuts, suspension of grocery taxes and gas tax increases for six months and a freezing of taxes on school supplies for 10 days in August.

Idaho

Residents of Idaho will receive rebate checks or direct deposits equivalent to the largest of 12% of their 2020 taxes or $ 75.

Maine

The governor of Maine, Janet Mills, has proposed sending citizens $ 850 stimulus checks. The money will come from the state’s $ 682 million profit.

New mexico

New Mexico residents who file joint returns and have incomes below $ 150,000 will receive a one-time tax deduction of $ 500. Single filers with incomes below $ 75,000 are eligible for a $ 250 discount. Other credits include $ 1,000 for full-time hospital nurses, a refundable child tax deduction of up to $ 175 per year. child, a three-year partial income tax exemption for military pensioners and an extension of the solar energy market tax deduction corresponding to 10% of qualifying purchase and installation costs.

Indiana

Indiana lawmakers approved an extension of the state’s $ 125 stimulus payments to residents to make about 450,000 low-income residents eligible as well.

Georgia

Governor Brian Kemp recently signed stimulus payments to Georgia residents into law. These one-time refunds would be $ 250 for single taxpayers (or marriages filing separately), $ 375 for household heads and $ 500 for co-filers.

New Jersey

New Jersey Gov. Phil Murphy has proposed issuing $ 500 stimulus checks to low-income taxpayers who have filed a tax ID instead of a Social Security number, in an attempt to include undocumented immigrants.

Virginia

Virginia lawmakers hash out the details of a potential $ 300 stimulus check to all Virginia taxpayers. Two other proposed bills seek to reduce or eliminate the state’s grocery tax and suspend the state’s gas tax of 26.2 cents for a year.

New York

New York Governor Kathy Hochul has proposed a property tax rebate ranging from about $ 425 to $ 970 for low- and middle-income households in the state. In addition to other measures, including tax breaks for businesses, the state is also implementing a suspension of the state tax on motor fuels until December.

Hawaii

In January, Gov. David Ige proposed a $ 100 refund to all taxpayers and relatives. In April, the Hawaii House Committee on Finance increased the ante and approved $ 300 checks for taxpayers earning less than $ 100,000, or $ 100 for those earning more than that.

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This article was originally published on GOBankingRates.com: Stimulus updates to know for spring 2022

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