illinois Digital News

What To Know if You Live in These Midwest States

0


baranq  / Shutterstock.com

baranq / Shutterstock.com

In 2020, the U.S. Congress approved the first of three direct stimulus checks to Americans, the last of which was paid out in March 2021. Since then, many have clamored for additional stimulus, but it seems as if the U.S. government has shelved any idea for a fourth payout.

Cut Costs: Unplug These Appliances That Hike Up Your Electricity Bill
Find Out: How To Invest In Precious Metals To Protect Your Retirement
The Future of Finances: Gen Z & How They Relate to Money

In 2021 and 2022, however, as inflation went wild, many states took up the mantle and began issuing credits and payments to their own residents. Called everything from tax rebates to middle class refunds, each state devised its own payment amount and qualification standards. Unfortunately for those living in the Midwest — defined as Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota and Wisconsin — most payouts came from states along the two coasts.

For the most part, the Midwestern states that did make payouts concluded them in 2022. However, there are two states in the Midwest where residents may still be able to claim a last-minute inflation relief check.

Illinois

Illinois residents could earn as many as two separate payments from the state in 2023.

The first payout is an income tax rebate worth $50 per single filer, or $100 for joint filers. To qualify, you must be an Illinois resident with an adjusted gross income in 2021 of less than $200,000, or $400,000 for joint filers.

The second payout is a property tax rebate of up to $300. This one obviously only applies to registered property owners. Specifically, to qualify you must be an Illinois resident who paid property taxes in 2021 on a primary residence you owned in 2020. For this rebate, your adjusted gross income must be below $250,000, or $500,000 for joint filers.

The rebates actually began going out in Sep. 2022, so many Illinois residents have already received them. However, payments are continuing into 2023 for those who haven’t.

Indiana

In May 2022, Indiana began sending out tax refunds of $125 for qualifying singles ($250 for joint filers). There was no income requirement, but residents were required to have filed both their 2020 and 2021 Indiana state tax returns.

A second round of rebates, in the amount of $200 per qualifying taxpayer, began being sent out by direct deposit in late Aug. 2022. Taxpayers that qualified for the $125 credit were automatically eligible for the $200 payment.

Take Our Poll: How Do You Think the Economy Will Perform in 2023?

However, for state residents that only qualified for the $200 payout — rather than both — payments are still being withheld. That money will only be released to taxpayers who file a 2022 tax return before Jan. 1, 2024 and claim it on their taxes.

Part of the reason for this extra step is that residents who did not qualify for the $125 credit must demonstrate that they are both receiving Social Security benefits and are not claimed as a dependent on someone else’s return.

Midwestern States With No Inflation Relief Checks

Although some Midwestern states like Iowa never got into the inflation relief check game at all, others, like Kansas, tried and failed, often due to legislative resistance.

Minnesota was one of the few other Midwestern states that did manage to make distributions, in this case $488 payments for frontline workers in 2022. However, the time frame to claim those benefits has long since passed.

More From GOBankingRates

This article originally appeared on GOBankingRates.com: Inflation Relief Checks 2023: What To Know if You Live in These Midwest States



Source link

Leave A Reply

Your email address will not be published.