Stimulus payments offer a rapid and effective method for both state and federal governments to support individuals during times of economic stress caused by inflation and rising living costs. These payments not only help people manage urgent financial needs, but also boost consumer spending, which plays a key role in stabilizing the economy and avoiding a recession. Although the federal government has not issued stimulus checks since the COVID-19 era, one state is now introducing its own round of payments to combat inflation.
Stimulus checks help citizens cover rising costs
Stimulus checks are often used by governments to assist citizens with rising financial costs as well as during periods of economic uncertainty. They are often specifically targeted towards low-income and other vulnerable individuals who are more likely to be at risk during economic downturn. During the COVID-19 pandemic, the federal government released three rounds of Economic Impact Payments (EIP) specifically for these individuals amidst the widespread job loss and retrenchment that occurred.
This tax season was the last time you could claim the third stimulus payment of these EIP payments. Eligible individuals would have received $1,400. While there have been growing rumors of additional federal stimulus payments set to be released before the end of this year, no official confirmation from White House sources has been communicated to the media.
Local governments help cover costs associated with inflation
While there may not be any federal payments coming anytime soon, this does not mean that state and local governments don’t have their own initiatives in place to help combat inflation and rising costs of living. Recently, New York State announced that it will be releasing its first-ever round of stimulus payments to help combat inflation. New York boasts some of the highest costs of living in the country.
Governor Kathy Hochul’s official statement describes how the checks are intended to reach approximately 8 million New York taxpayers who meet the qualifying criteria. How much you receive from the New York government from this payment depends on your income status, as well as whether you are filing jointly or are filing as a single filer:
- Joint tax filers with income less than $150,000 will receive a $400 check
- Joint filers with income between $150,000 and $300,000 will receive a $300 check
- Single tax filers with income below $75,000 will receive a $200 check
- Single filers with incomes between $75,000 and $150,000 will receive a $150 check.
While there is no age restriction on receiving the payments, you must have filed state income tax for at least the 2023 year. The payments will be sent between October and November of this year if you qualify for the stimulus payment. The payment will be automatically distributed to you if you meet the eligibility criteria.
Other states send stimulus payments to citizens
New York is not the only state sending out stimulus payments to citizens. Alaska has long had a stimulus program whereby citizens can share in the profits of the state’s oil and mineral resources. The program is through the Permanent Fund Dividend (PFD), and this year will see qualifying citizens receive $ 1700, a 30% increase from last year’s payment.
These local initiatives are sure to offer some financial relief to eligible recipients. While there has been talk of a $5,000 stimulus payment to be released by the federal government to taxpayers, this has not only been debunked but also was never confirmed by federal authorities. When it comes to receiving accurate news about stimulus payments, it is important that you receive your news through official channels, especially during periods of increasing cost, whereby more fake news on economic relief begins to circulate online across the nation.
Disclaimer: Our coverage of stimulus checks, tax reliefs, tax rebates, tax credits, and other payments is based on the official sources listed in the article. All payment amounts and dates, as well as eligibility requirements, are subject to change by the governing institutions. Always consult the official source we provide to stay up to date and obtain information for your decision-making.