As we approach the final month of 2024, many states are preparing to distribute the last round of stimulus checks aimed at offering financial relief to residents. These payments come in response to the economic pressures caused by inflation and rising living costs, and they are designed to help Americans begin the new year on more solid financial footing.
With various states rolling out their own programs, it’s important to understand how you may be affected, including eligibility criteria, payment amounts, and delivery schedules. Fortunately, the IRS has clarified that most special state payments will not be subject to federal income tax. Below, we highlight key state programs that will offer assistance in December 2024.
Arizona: Family Tax Rebate for Full-Year Residents
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In Arizona, residents who were full-year residents and claimed the state tax credit for dependents on their 2021 tax return were likely eligible for the Arizona Family Tax Rebate. The Arizona Department of Revenue has been distributing payments to qualifying individuals. If you meet the criteria, this rebate could provide much-needed financial support before the end of the year.
California: Wrapping Up the Middle-Class Tax Refund
California’s Middle-Class Tax Refund (MCTR) program, which aimed to provide payments between $200 and $1,050 to eligible taxpayers, has officially ended. Nearly 32 million Californians benefitted from this initiative, with more than 9.5 million debit cards distributed to recipients. However, the California Franchise Tax Board (FTB) reports that millions of dollars in benefits remain unspent. If you received an MCTR debit card, it’s important to activate it soon to access your funds before they expire.
Colorado: TABOR Refunds for Eligible Taxpayers
Colorado’s TABOR (Taxpayer’s Bill of Rights) refunds, also known as “cash-back” payments, are issued to eligible state residents who filed a tax return. These refunds vary based on the filer’s status and income level. While most payments were issued in late September 2023, Colorado residents who have yet to receive their refund should check their tax status and ensure they qualify. The refund program typically ends before the new year, so now is the time to review any outstanding payments.
New Mexico: Generous Rebate Checks Based on Tax Filing Status
New Mexico residents began receiving rebate checks of up to $1,000 as part of a program triggered by the state’s fiscal surplus from high oil prices. This initiative has been especially helpful for those filing tax returns for the 2021 year, with payments reflecting the amount owed or refunded. The program was designed to return more than $673 million to taxpayers, but it closed earlier this year, with most payments already disbursed. If you haven’t received your rebate yet, it’s worth checking your status before the end of the year.
New York: STAR Program Offers Property Tax Relief
In New York, eligible homeowners can benefit from the School Tax Relief (STAR) Program, which provides significant property tax reductions. This program offers two levels of assistance: Basic STAR and Enhanced STAR (E-STAR). Basic STAR recipients can expect approximately $290 in savings, while E-STAR recipients will receive closer to $650. Unlike other rebate programs, STAR relief is provided in the form of tax exemptions or credits, which help reduce the overall property tax burden for qualifying households.
Key Considerations
While these state-based programs offer financial relief, it’s essential to remember that eligibility requirements, payment amounts, and timelines vary widely across states. Ensure that you check the specific guidelines for your state to see if you qualify and to learn when you can expect your payment.
Furthermore, it’s important to note that these state payments will generally not be subject to federal taxes, as confirmed by the IRS. This means that recipients can retain the full benefit of these funds without worrying about additional tax burdens.
Conclusion
The December 2024 stimulus checks across various states provide valuable relief for many Americans. With the added pressure of rising costs, these state programs help to ease the financial strain as we close out the year. Be sure to review the eligibility criteria for your state’s program and ensure that you take any necessary actions, such as activating debit cards or filing for rebates, before the year ends.
If you have questions about your state’s specific relief program, contacting your state’s tax department or using their online resources can help ensure you don’t miss out on these essential financial aids.
