2023 stimulus check predictions
Individual states have been offering stimulus checks to local residents to help them keep on top of rising costs. But will you receive a fourth stimulus check, and how much will it be? Here are our predictions for 2023.
What is a stimulus check?
How many stimulus checks have there been?
Before August 2022, the federal government issued three stimulus checks to individuals and households to provide extra income support.
Depending on eligibility, these checks were sent directly to bank accounts and provided an extra:
$1200 in April 2020
$600 in December 2020/ January 2021
$1400 in March 2021
But with three main checks issued, states are having to decide for themselves whether or not they would like to provide further stimulus to the residents living in their regions.
For this reason, further stimulus checks are being referred to as a fourth stimulus check, despite these payments being much less standardized and variable than the government versions.
When is the fourth stimulus check due?
You could receive your fourth stimulus check at any point in the next few months, if you haven’t already received it.
Unlike the federal government, states can’t issue money directly and in the majority of cases are providing a fourth check by returning some of the taxes paid by their residents as a larger than normal tax rebate.
So, you may not receive your fourth check until you receive your normal tax rebate.
While certain states, such as Idaho, Florida, and Delaware have been issuing their stimulus payments throughout the spring and summer of 2022, others are distributing their payments during the fall.
Some people, such as those in California, could receive their checks as late as January 2023.
Who gets stimulus checks?
Whether or not you are eligible for stimulus checks will depend on which state you live in, whether or not you have already filed your tax returns for 2020 and 2021 and how long you have lived in your current state.
Eligibility criteria vary from one state to the next, so you’ll need to check with your state if there is a stimulus program and if you are eligible.
Which states are offering stimulus checks?
As of August 2022, the states currently offering a form of stimulus payment are:
Alaska: Extra funds available to the existing Permanent Fund Dividend program
California: $350 for individuals earning less than $75,000, $700 for couples filing jointly who earn less than $150,000
Colorado: $750 for individuals, $1,500 for joint filers
Delaware: $300 to individuals, $300 each to individuals filing jointly
Florida: A one-time $450 payment to households in exceptional circumstances
Georgia: $250 for individuals, $375 for heads of households, $500 for couples filing jointly
Hawaii: $300 for individuals earning less than $100,000, $100 for those earning more
Idaho: $300 for individuals, $600 for couples filing jointly
Illinois: $50 for individuals, additional $100 for eligible dependents
Indiana: Up to $375 per taxpayer
Maine: Up to $850 for Maine taxpayers, $1700 for couples filing jointly
Massachusetts: Residents are expected to receive 7 per cent of their state taxes, although this will be confirmed later in September
Minnesota: Some eligible frontline workers will receive a one-time payment of $750
New Jersey: $500 for households
New Mexico: $500 for single filers, $1000 for couples filing jointly
Oregon: $600 to some residents
Rhode Island: $250 per child in each household earning less than $100,000
South Carolina: Up to $700 for eligible taxpayers
Virginia: $250 for individuals, $500 for those filing jointly
In the majority of cases, you will need to have been a resident in the state for a full calendar year and have filed at least your 2021 tax return, as you will normally receive your additional funds through this refund.
However, in some states, such as Alaska, your uplift will be made to some existing energy payments delivered to you, so be sure to check with your state how to claim any rebates you are eligible for.
Are more stimulus checks coming in 2023?
Assessing whether or not more stimulus checks could be distributed in 2023 is difficult to tell, as there’s a lot of uncertainty about what will happen to the global and US economies.
Normally, stimulus checks are only distributed during times of economic difficulty, such as the pandemic or the current inflation surge.
Even before this, the federal government deployed stimulus checks during the 2001 and 2008 recessions, so if the economy begins to shrink or a recession starts to impact households, it’s entirely possible the government will distribute more stimulus checks.
However, forecasting whether or not a recession is due is difficult.
With inflation continuing to surge ahead, the Federal Reserve is raising interest rates to try and restrict rising prices.
But by raising interest rates, there is a chance that the economy could slow too much, triggering a recession.
So, whether or not stimulus checks are on the way could depend on whether or not the US economy moves into a recession.
A further area of uncertainty, however, is whether these stimulus checks will be distributed by the government, or as is currently the case with the fourth stimulus checks, it will be left up to individual states.
From inflation to concerns over the future of the economy, there is a lot of uncertainty for those looking to plan for the future.
No matter how challenging current circumstances are to your financial future, being informed can help you reach your goals.
Kate has written for leading publications and blue chip companies over the last 20 years.