Inflation Relief on the Way: Check Which US States are Paying Out in February 2023

As inflation continues to affect the cost of living in the United States, several states have approved stimulus checks or tax refunds as inflation relief for their citizens.

Last year, inflation in the United States reached historic levels which made some states release inflation reliefs. (Photo: KYMA)

What States are distributing inflation relief checks or refunds in the month of February?

California

In February 2023, Californians who are eligible will receive their Middle-Class Tax Rebate which can be considered as inflation relief.

According to a published article, the Middle-Class Tax Refunds, which are also referred to as California stimulus payments, began distribution in October. However, the state has completed the majority of the payments to its residents by now. Initially, direct deposit payments were issued earlier than debit card payments. Though the Californians who were due to receive payments via debit cards had to wait a bit longer, the state reports that it has now released most of these debit cards, with the final batch expected to arrive in mailboxes by mid-February.

Hawaii

Hawaii residents will also receive inflation relief. Those who made less than $100,000 in 2021 or $200,000 if filing jointly are eligible for a one-time tax refund of $300, while those who earned more are eligible for $100. Direct deposits started in August, but those who filed state tax returns between July 31 and December 31, 2022, will receive their refunds via direct deposit up to 10 weeks after their return is accepted, or 12 weeks if they opted for a physical check.

Idaho

Those who live in Idaho can receive an inflation relief worth a $600 tax refund, which will continue to be issued as taxpayers file their returns in early 2023. The distribution of rebates in Idaho began in March 2022, and the second-round payments commenced in late September. The state is delivering payments to eligible residents in the order of when their 2021 tax return was received. Direct deposit payments are being issued initially, and paper checks will follow.

Massachusetts

In Massachusetts, taxpayers are eligible for a refund of approximately 14% of their state tax liability, with payments being made to those who filed their 2021 return before October 17 of last year. Those who filed their returns after October 17 and up to September 15, 2023, will receive their payment one month after the return is filed. Taxpayers can use this online tool to check their payments.

New Mexico

New Mexico residents can still receive a refund of $500 for single filers and $1,000 for joint filers. They can use it as an inflation relief.  To qualify for a rebate, residents have until May 2023 to file their 2021 income taxes.

READ ALSO: February 2023 Inflation Relief Updates per State Program

South Carolina

Other states have also announced inflation relief payments in 2023. In South Carolina, taxpayers are eligible for a refund of up to $800, with payments beginning at the end of last year and those who file after February 15, 2023, receiving their refund in March of 2023.

Michigan

Gretchen Whitmer, the Democratic governor of Michigan, has announced that the state intends to provide a $180 inflation relief check to all citizens who filed taxes in the previous year. Michigan has a surplus of $9 billion and aims to distribute the state’s wealth to all Michigan taxpayers in 2023.  This plan is still pending and has to be approved by the state legislature.

New Jersey

In New Jersey, about 2 million households are eligible for property tax refunds through the Affordable New Jersey Communities for Homeowners and Renters program, with homeowners and tenants receiving varying amounts based on income.

Although inflation relief checks or tax refunds may provide some relief to citizens affected by inflation, some critics argue that they may only provide temporary solutions and may not address the root causes of inflation. Nevertheless, they may offer a temporary respite to some households struggling to keep up with the rising cost of living.

READ ALSO: How To Apply For The $7,500 IRS Credit Under The Inflation Reduction Act