Between 2020 and 2021, the Internal Revenue Service (IRS) managed—and repeatedly bungled—the distribution of three distinct Economic Impact Payments. (Photo : by Samuel Corum/Getty Images)
Between 2020 and 2021, the Internal Revenue Service (IRS) managed-and repeatedly bungled-the distribution of three distinct Economic Impact Payments. As a result, millions of American taxpayers were frequently forced to look for the most recent information regarding when they could expect to receive their much-needed checks.
However, online rumors have been circulating every few months since the IRS released the previous round of stimulus cheques, claiming that a fourth payment, or some variant on it, is about to be sent.
With the third check in 2021, the federal Economic Impact Payments came to an end. Only for the tax year in which they were issued, taxpayers who never got them may still claim them as a recovery rebate credit. As stated on its website, "The IRS is no longer issuing third Economic Impact Payments."
Regarding California, two Golden State Stimulus payments were made by the state a few years ago, and a representative confirmed to Fast Company that there are currently no plans to provide any more. In 2022 and the beginning of 2023, it also provided a Middle Class Tax Refund, but that was a one-time payment in the form of a debit card.
A kernel of truth may be found in some of these stories, just like in many others. For example, qualified individuals may be able to claim a refund from the IRS through the Earned Income Tax Credit or the Child Tax Credit. Similarly, California provides its own state-level tax credits.
However, taxation credits and economic stimulus checks are two different things entirely. The former are direct payments from the government to boost the economy, while the latter are not. For Americans affected by COVID, the payments were a welcome financial windfall, but they are now terminated.
The fact that tax season is also done is noteworthy. You are quite late unless you applied for an extension, as the deadline for filing this year was April 15.
The States with Stimulus Checks
Nineteen states have approved legislation to issue tax rebates to their residents. In Alaska, most residents received a $3,200 payment from the Permanent Fund Dividend program, including an extra $650 energy relief payment. California provided up to $1,050 in rebates through the Middle-Class Tax Refund, with payments ranging from $350 to $1,050 depending on income and dependents. Colorado offered $750 rebates to individual filers and $1,500 for joint filers, distributed as physical checks to prevent fraud.
Other states also issued significant rebates. Delaware sent $300 relief rebate payments to taxpayers from a budget surplus, and Florida provided $450 per child to certain households with children through the Hope Florida program. Georgia residents received up to $500 in rebates based on their filing status, and Hawaii issued $300 rebates for those earning less than $100,000 and $100 for those earning more. Idaho residents received either $75 or 12% of their 2020 state taxes, with an additional $300 and $600 rebates for individuals and joint filers, respectively, approved in a special session.
Additional states offering rebates include Illinois, Indiana, Maine, Massachusetts, Minnesota, New Jersey, New Mexico, Oregon, Rhode Island, South Carolina, and Virginia. These payments varied in amount and eligibility, targeting taxpayers, frontline workers, and low-income residents. Many states used budget surpluses or federal pandemic aid to fund these programs, aiming to provide financial relief to residents amid economic challenges.
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