Inflation Relief 2023
Inflation Relief 2023 is a hot topic in everyone’s mind, as the rising cost of goods and services continues to impact our daily lives. With tax season upon us, you may be wondering how to handle the state stimulus payments you received in 2022, or if you are still waiting for relief funds to arrive.
The good news is that if you live in certain states, you may not have to report your COVID relief funds on your federal income tax returns filed in 2023. According to a published article in Go Banking Rates, residents in California, Colorado, Connecticut, Delaware, Florida, Hawaii, Idaho, Illinois, Indiana, Maine, New Jersey, New Mexico, New York, Oregon, Pennsylvania, Rhode Island, and Alaska (for Permanent Fund Dividend only) do not have to claim their state relief checks as income. If you’re unsure about your state’s policy, you must check with your tax professional.
If you’re still waiting for a state relief check, don’t worry – you may still receive one in March or later. Some states, like Idaho and South Carolina, are still sending out relief checks to residents, with funds arriving as late as the end of March. If you haven’t received your expected direct deposit or check, you must reach out to your state’s tax or revenue department.
Maine residents are receiving additional relief funds to help cover heating costs, with $450 payments being sent out by the end of March on top of the $850 inflation relief checks sent out in January 2023. Meanwhile, New Jersey homeowners are receiving property tax rebates based on income, with payments of $1,500 for those earning up to $150,000 and $1,000 for those earning more than $150,000 but less than $250,000. Renters earning up to $150,000 are also receiving checks for $450, with payments expected to arrive by May 2023.
Overall, Inflation Relief 2023 is an ongoing issue that affects us all. If you received a state stimulus payment in 2022, be sure to check if you need to report it on your federal income tax return. And if you’re still waiting for relief funds to arrive, don’t worry – they may still be on their way. As always, it’s best to consult with a tax professional or your state’s tax or revenue department if you have any questions or concerns.