Stimulus check 2023 explained

What is a stimulus check?

Although the federal government stepped in to provide financial support during the pandemic, there has been little in the way of extra support to help people stay on top of record inflation rises.

Using their money from the American Rescue Plan, some individual states took matters into their own hands and issued stimulus checks to their residents to ease the growing financial burden. 

This state-only stimulus check is less standardized than federal government support and varies a lot in both the eligibility criteria and exact funds issued.

Your eligibility for this fourth stimulus check largely depended on where you lived.

How many stimulus checks have there been?

From April 2020 to December 2021, the federal government made three rounds of direct COVID-19 stimulus payments. These amounted to $931 billion and benefited an estimated 165 million Americans. Generally, U.S. citizens with income below $75,000 or married couples with an income below $150,000 were eligible for all three payments and the full amount of each payment.  

Depending on eligibility – US citizens with income below $75,000 or married couples with an income below $150,000 – 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.

The reason for this? The American Rescue Plan, which gave $195 billion – a minimum of $500 million per state – to help fund economic recovery across all 50 states, has some stipulations. Each state has until the end of 2024 to decide on a spending plan and up to the end of 2026 to use the money. Every state has access to this money, but they need to create a plan for making it work for their citizens. For some states, they decided to issue another stimulus check.

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.