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Relief Checks 2023 Live Update

Relief Checks 2023 Live Update

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Relief checks 2023 live update tax deadline Social Security payments hou

In an unexpected development, the IRS recently confirmed that most relief checks issued by states last year are exempt from federal taxes - offering some much needed guidance as tax returns begin to arrive.

Some states are still sending out stimulus payments in 2023, so it's essential to know who can expect a check, how much it will be and when it should arrive. Get all the details on our stimulus live blog.

Maine

Maine taxpayers may have received a one-time payment from the state to help offset inflation. But if you filed your 2021 tax return, it's time to determine if that money is taxable at the federal level as well.

The Internal Revenue Service is encouraging people who received special tax refunds or other payments from states in 2022 to delay filing their returns until the agency clarifies how it plans to handle them. The IRS is uncertain whether or not the money is tax-exempt, so extra time is needed to decide how best to treat it.

Some of the money was sent in 2022 as part of a larger budget surplus, though not directly related to the pandemic which left many facing higher energy costs or skyrocketing prices for everything from food and clothing. Some was allocated for child care expenses, property tax relief and retiree benefits; however, many others were given as "inflation relief checks" which should have been exempt from federal income taxes.

It remains uncertain how the payments will be treated by the IRS, but Mills has stated her intention for them to remain tax-exempt. Furthermore, she reiterated that these aren't intended to replace Social Security or Supplemental Security Income benefits.

Eligible Mainers will receive an $850 check, funded with $730 million from the state's surplus. Payments will be mailed to full-time residents with adjusted gross income of less than $100,000 per individual ($150k for single files and $200,000 for couples filing jointly),

If you haven't received your check yet, it should be arriving in mailboxes this week. You can track its progress online.

In addition to the $450 heating relief checks, you may qualify for up to $250 credit annually under Maine's Property Tax Fairness Credit program. To claim assistance, you must own your home or pay rent and be a resident of Maine during the tax year in question.

To check the status of your check, Maine Revenue Services offers a new website where you can log in and enter the date you submitted your 2021 income tax return and your name. DAFS will then show the status of your relief check. If any questions arise, feel free to call or send them an email with your query.

California

States across the nation are offering one-time payments to help offset higher prices at grocery stores and gas pumps. Here is a live update on Relief Checks 2023:

Beginning Friday, millions of Californians who qualify will receive up to $1,050 as part of a "middle class tax refund" program designed to offset rising fuel costs. Governor Gavin Newsom declared this initiative necessary "in light of new challenges and uncertainties."

Last month, the state of California unveiled a $17 billion inflation relief package as an immediate response to record gas prices. It's also designed to inject additional funds into the economy at a time when consumer confidence is low and inflation is at its highest point in 40 years.

Many California taxpayers were uncertain whether the federal government would consider middle-class tax refunds income and require them to pay taxes on them. On Friday, however, the IRS confirmed it will not challenge the exclusion of those payments for tax purposes in 2022.

Although these payments are exempt from federal income taxation, they are included in state adjusted gross income calculations for purposes of filing a state tax return. Some taxpayers who received rebates last year had delayed filing their returns until the IRS clarified its position on this matter.

Taxpayers who received their stimulus rebates through direct deposit should have received their check by October 24. The remaining payments were mailed between October 28 and November 14.

In Maine, most Mainers will receive an initial payment of $850 that is based on their income and number of dependents they claim.

Individual taxpayers making less than $75,000 annually and couples filing jointly who make no more than $150,000 can both benefit. Furthermore, households with children can receive an additional $350 bonus.

These payments, similar to stimulus checks sent out by the federal government, will be distributed to eligible taxpayers through direct deposit and mail in early 2023.

Colorado

Early this year, Colorado sent $750 checks to a majority of its taxpayers as part of its state stimulus program. In this round of payments, many more will receive them; however, not all Coloradans will benefit.

State officials anticipate the first relief checks will reach mailboxes this week and most should be received within a few weeks. Unfortunately, some Coloradans who owe past debt to the government may have their checks intercepted for payment.

To be eligible for rebates, you must be 18 years or older and a resident of the state in 2021. Furthermore, you must have filed your state income tax return before the deadline to qualify.

The refund will be provided through a state budgeting rule known as the Colorado Taxpayer Bill of Rights (TABOR). TABOR limits how much money states can collect in taxes each year and requires any excess revenue to be refunded back to taxpayers.

When a state's revenues exceed certain limits, it must reimburse taxpayers in various forms. This may include direct payments, temporary reductions in income taxes and property tax discounts.

State after state have been providing stimulus checks and tax rebates to stimulate their economies, but none quite compare to Colorado. Through its "Colorado Cash Back" program, nearly all taxpayers in Colorado received checks worth $750 as part of a stimulus check initiative.

These rates are not tied to inflation, but rather the state's annual cap on how much tax revenue it can collect. They're expected to remain unchanged through the end of this year and then decrease in future years.

In addition to these rebates, the state expects to pay out a total of approximately $3.9 billion in TABOR refunds this year. While those amounts remain higher than average since the law was passed, state legislative forecasters anticipate that refund amounts may decrease over time.

TABOR rebates will be distributed to more than 2.4 million taxpayers this year - more than three times the number who received refunds last year. This change was made possible due to Gov. Jared Polis' May bill which altered the formula for TABOR refunds so each taxpayer receives an even amount instead of a proportionate one, enabling earlier delivery of their refund checks and providing respite from pandemic-induced inflation and high cost-of-living challenges in Colorado.

Oregon

The cost of many goods and services has been rising steadily for more than a year, creating a financial strain on households. To combat this crisis, more than a dozen states are using stimulus funds from COVID-19 aid packages to offer relief payments.

Oregon recently provided "one-time assistance payments" to low-income residents who claimed the earned income tax credit on their 2020 state income tax return and lived within the state from July 1 until December 31, 2022, according to data provided by the Oregon Department of Revenue.

236,000 Oregon households received one-time payments of $400 each through direct deposit or mail check in 2021, from federal pandemic aid approved by Congress in 2021.

Contrary to inflation relief checks issued by some states, these payments do not need to be reported on your federal income tax return. However, you still must file a state tax return in 2022 in order to receive the benefit, according to the IRS.

Another way to avoid paying federal taxes on these payments is to apply for state-sponsored tax credits and rebates. Qualifying individuals could receive up to $500 in rebates, while homeowners and renters who pay property taxes could qualify for up to $250.

Massachusetts has already begun providing $500 payments to low-income taxpayers. Furthermore, the state plans on using extra tax revenues to send out payments of up to $1,000 to frontline workers. Governor Charlie Baker recently signed a bill that will enable this to happen by September.

Other states, such as New Mexico and Rhode Island, have announced plans to provide economic relief to their residents. With inflation running high in these places, people's ability to afford health care, housing, food and transportation is being severely limited.

In Maine, lawmakers recently passed a budget that will provide $850 one-time direct "relief" payments to most eligible Mainers based on their previous year's income tax filing total.

Additionally, the state plans to distribute a $750 tax refund for residents who file their 2021 taxes by June 30. These payments come from a $7 billion budget surplus allocated specifically for this purpose; however, legislators must approve the measure in order for the money to be spent.

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