Stimulus checks are one way that federal and state governments can reach citizens in order to ease the burden of financial expenses, particularly for low-income individuals. The last major federal stimulus payment was during the COVID-19 pandemic, when the Biden Administration released three rounds of payments to help citizens cover unexpected costs associated with the pandemic, including mass job loss and inflation. However, states have continued to release their own stimulus payments, provided that you meet certain criteria.
Last COVID-19 stimulus payment to be collected this year
This most recent tax season was the last time citizens could claim the third stimulus payment released in March of 2021 during the COVID-19 pandemic. This was the third payment, which was part of the Economic Impact Plan (EIP). Known as the Recovery Rebate Credit, eligible individuals had until this tax season to claim the payment if they had not already done so. The payment amounted to $1,400.
The federal government budgeted approximately $4.6 trillion in COVID-19 relief. $931 billion of this was distributed through the EIP payments, bringing much-needed financial relief to citizens. The pandemic triggered an unprecedented employment crisis, where over 22 million jobs were lost, making it the biggest employment crisis since the Great Depression. The unemployment rate reached a record high of 14.7%, the highest it has ever been since the Bureau of Labor Statistics began tracking the unemployment rate in 1948.
These states have announced stimulus checks this June
While the federal government has not announced any new recent stimulus checks, states have announced this June that they will still release their own payments over the next few months. Eligible citizens can expect the following payments:
- New York Inflation Refunds by the New York Department of Taxation and Finance
- Pennsylvania Property Tax/Rent Rebate Program
- Arizona Families Tax Rebate by the Arizona Department of Revenue
The one-time New York Inflation Refund will be distributed in October of this year in an effort to help citizens overcome the financial hike caused by inflation. Over 8 million homes have qualified to receive the payment, with payment amounts ranging between $150-$400, depending on your filing status and income level. The maximum earning amount is $150,000 for a single filer, or $300,000 for married couples filing jointly.
The Pennsylvania Property Tax/Rent Rebate Program will see eligible homeowners and renters receive up to $1,000, depending on income level, to help cover the costs associated with owning a home or paying rent. Applications to receive the stimulus payment are now open and will close on June 30. Finally, the Arizona Families Tax Rebate will be funding $250 per dependent under age 17 and $100 per dependent over age 17 as claimed on your 2021 returns. This payment will be automatically distributed to you if you filed your 2021 and 2022 state income tax.
False claims for $5,000 and $2,000 stimulus payments
There have recently been false claims circulating that the federal government plans to release $5,000 and $2,000 stimulus payments. The $5,000 stimulus payment stemmed from rumors that the federal government would distribute stimulus payments to taxpayers should the Department of Government Efficiency (DOGE) achieve its $2 trillion federal spending savings goal. However, this has not only not been confirmed by the federal government, but DOGE has recently revised their savings goal to $150 billion.
In addition, false claims of a $2,000 stimulus payment being released have also been circulating. This payment has also not been confirmed by the federal government or the Internal Revenue Service (IRS). While the origin of the rumor is unconfirmed, it might have been spread due to the $1,400 COVID-19 Recovery Rebate credit being issued to those who did not claim it in 2021, or it may have been a result of the continued rumors of the $5,000 stimulus payment by DOGE as an act of “broken telephone” and misinformation.
