Finally, after a long wait, stimulus checks are arriving in September.
Let’s take a look at the update on stimulus checks. Minnesota and other states are sending out payments, while at the federal level, there is still $300 billion left unused. This is enough to send out another round of stimulus checks to many people who feel that the Biden Administration has not fulfilled its promises.
Before we dive into the details, please show your support by hitting the like button and subscribing to stay updated. It’s free and I’ll keep you informed on everything. Now, let’s talk about a new piece of legislation proposing that Social Security be made 100% tax-free for recipients. Currently, recipients pay income tax when contributing to Social Security and are also taxed when withdrawing. This is seen as double taxation, and the legislation aims to put an end to it.
Stimulus Checks Arriving in September
First, let’s take a look at the long-awaited arrival of stimulus checks in September. In Minnesota, the tax rebates have begun to arrive. The state government will be distributing over $1.1 billion to qualifying Minnesotans. This money will be deposited directly into bank accounts or sent via mail. The first wave of payments will be direct deposits of $260 per person, with a maximum of $1,300 for a household. Those who haven’t provided their bank information to the state will receive a paper check.
The Minnesota Revenue Department expects to distribute nearly 2.1 million rebate payments by the end of September. These rebates were carved out of the state’s estimated $17.6 billion budget surplus. It’s important to note that not all taxpayers will receive money from this program. The rebates are reserved for married filers with an adjusted gross income below $150,000 in 2021 or single filers with earnings below $75,000 a year.
In addition, those who died after January 1, 2023, still qualify, and people who reside in Minnesota part of the year will receive a proportional payment.
Stimulus Checks in Other States
Now let’s take a look at other states that are still sending out stimulus payments. Alaska has the Alaska Permanent Fund dividend (APF), which pays a dividend to residents from foreign investment earnings on mineral royalties. The payment is approximately $3,000.
California has the middle-class tax refund, which is still being distributed. Montana has signed three state house bills into law to provide tax rebates for eligible taxpayers. New Mexico offers refundable income tax rebates of $1,000 for married couples and heads of households, and $500 for single filers and married individuals, as well as economic relief payments.
Washington state has a tax credit for workers, where eligible individuals and families can receive up to $1,200 back. There are also several other state programs, such as the Idaho tax rebate, Illinois income tax rebate and property tax rebate, Maine winter energy relief payment, and Massachusetts tax refund.
Federal-Level Stimulus Checks
In terms of federal-level stimulus checks, it’s unlikely we will see a fourth pandemic stimulus check now that the state of emergency for the pandemic is officially over. However, there is still $300 billion of unallocated funds from pandemic stimulus money. The committee for responsible federal budget states that $5.7 trillion has been distributed out of the allowed $6 trillion, leaving $300 billion unused.
With the leftover funds, there is a possibility of sending out another round of stimulus checks. The third stimulus check had a price tag of $418 billion, which means there is still enough money to send out a $1,200 stimulus check, along with $600 for dependents, just like the first round. However, it ultimately depends on what Congress decides to do with the remaining funds.
Social Security Reform
2023 is being called the year of Social Security reform, and a significant piece of legislation has been proposed to address double taxation. This legislation aims to make Social Security income 100% tax-free for recipients, as it is considered unfair to tax them on their contributions and withdrawals. To learn more about this, be sure to check out the linked video.
Thank you for joining me, and stay tuned for more updates on available benefits for you and your family.