20 states in the US are offering tax credits and one-time rebates for 2022. Most of these tax credits aren’t as grandiose as the multiple COVID stimulus checks from previous years however, these credits can go a long way, especially if you’ve been hurt by the pandemic.
Interest rates have cooled somewhat, but still startling high compared to a year ago. In June of this year, inflation rates soared to 9% whereas now it vacillates between 6 and 7% in Washington State, with a national average of 6.3%. This is almost twice as high as it was a year ago when interest rates ranged between 3.25-4%.
While Washington State doesn’t offer any rebates (yet), below are some of the states that offer some tax credits.
Middle Class Tax Rebates
Many states are making sure their middle-class is taken care of especially with Maine, Colorado, and California.
In Maine, individuals will be getting a rebate of $850 ($1700 for couples) while Colorado is offering a tax rebate from $750-$1500 depending on your filing status. New Mexico is also providing a rebate for all their taxpayers ($500/$1000).
Meanwhile California created California’s Middle Class Tax Refund. This refund’s average payout has been $544, but some are receiving over $1000. Most of the those who qualify should have already received their checks, so if you have not received one, double-check to make sure you qualify.
Several states are offering rebates based on individuals’ housing status. For instance, homeowners in New Jersey (making below $150K) will receive a $1500 rebate on their property taxes; renters will receive $450. While homeowners making above $150K will receive $1000.
Similarly, New York homeowners are receiving property tax rebates up to $1050.
State-Specific Taxpayer Refunds
These refunds tend to be for smaller amounts, but no less helpful. For instance, Georgia and Hawaii both announced refunds to residents’ former tax filings. Due to delays with the 2020 tax returns, Georgia wound up with a surplus and is submitting refunds of $250-500 depending on residents’ filing status. Hawaii is doing something similar with those who filed their 2021 returns before the end of 2022.
South Carolina and Virigina are also offering a one-time rebate for taxpayers. South Carolina offering up to $800 for anyone who filed their 2021 taxes before October 17 and Virgina offering $250-500 for people who filed before November 1 of this year.
Oregon, Delaware and Indiana are all issuing a one-time Automatic Taxpayer refund for $600, $300-600, and 2 payments totaling $325 respectively. Both Oregon and Indiana will be depositing these in taxpayers’ bank accounts.
Percentage of Income Rebate
These are especially interesting, but both Idaho and Massachusetts are providing credits based on a percentage of the taxpayer’s income. For Massachusetts, residents will receive a refund equal to 14% of their personal income tax liability; Idaho is offering 12% or $75 for every taxpayer and dependent — which sounds like income tax square in Hasbro’s Monopoly.
To be clear, what this means is, let’s say (in Idaho) your have the sole income $50,000/year with no spouse and 2 kids. In Idaho, the average tax rate is 13.23%, but for the sake of making the analogy cleaner, let’s say you paid $2500 to the state. 12% of the amount you paid would net you a rebate of $300. Meanwhile, the flat rate for each family member would net you a rebate of $225. Idaho wants you to choose the greater amount, so be sure to do so!