States Sending Tax Rebate, 'Stimulus' Checks

Stimulus checks from the federal government are a thing of the past (those ended a couple of years ago). However, several states have stepped in to provide financial relief to their residents through tax rebates and inflation relief payments. 

Last year, many states distributed one-time payments to qualifying residents, and some continue to offer rebates and "stimulus" payments. Here's more of what you need to know.

'Stimulus check' update: IRS guidance on state payments

Before we dive into state-by-state summaries, it's important to know that the IRS recently clarified that most special state payments won't be taxable on federal returns. 

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However, if you received one of those special state rebate payments (sometimes called "stimulus checks") last year, there are some exceptions.

• Minnesota residents should note that "Walz" rebate checks are taxable at the federal level.
• Arizona residents must report their 2023 Arizona Families Tax Rebate as federal taxable income.

If you are unsure about reporting your state payment as income, consult a trusted tax professional before you file your tax return.

For more information, see the following Kiplinger stories on the taxability of special state stimulus and rebate payments. 

• IRS Says Some Stimulus Check Recipients Should File Amended Tax Returns
• Is Your State Stimulus Payment Taxable?

Special state payments

Getting back to this year's special state payments, the eligibility criteria, payment amounts, and delivery timelines differ from state to state. 

Here's a breakdown of some states issuing rebate payments and “stimulus checks.” 

Alabama Rebate Checks

Alabama's one-time tax rebate program for 2023 offered $300 for joint filers and $150 for single filers, based on previous tax year filings. 

• If your filing status was married filing jointly, you should have received a $300 tax rebate payment.
• If you filed as single, head of family, or married filing separately, you should have received a $150 tax rebate payment.

Who didn't qualify for the Alabama tax rebate? If you didn’t file a personal Alabama income tax return for the 2021 tax year, you weren't eligible for the 2023 Alabama tax rebate check. 

Estates and trusts were also not eligible to receive the payments. Additionally, you didn't receive a rebate payment if you were claimed as a dependent on a 2021 federal or Alabama state income tax return.

Note: The rebate program has concluded. Alabama has not announced a new rebate initiative for 2024.

Related: Alabama Tax Rebate Checks

Arizona Family Rebates

If you are a year-round resident of Arizona and claimed the state's tax credit for dependents on your 2021 tax return, you were likely eligible for the Arizona Families Tax Rebate. To qualify, you had to owe a minimum of $1 in taxes during specified previous tax years.

• The program was notable for its per-dependent structure. Qualifying taxpayers could receive the rebate for up to three dependents. 
• So, in some cases, families with multiple dependents received up to $750. 
• (That amount was $250 per dependent under age 17 and $100 for 17 or older.)

The state used recent tax information to identify eligible Arizonans, so residents didn't have to apply. However, the program is completed. (The Arizona Department of Revenue was expected to distribute the rebates by Nov. 15 of last year.)

it's important to note, however, that your Arizona Families Tax Rebate is considered taxable income by the IRS.

Related: Arizona Family Tax Rebates

California MCTR

California's Middle Class Tax Refunds (MCTR), which offered payments ranging from $200 to 41050, has concluded. The California Franchise Tax Board (FTB) said the program benefited nearly 32 million California taxpayers and their dependents.

You generally should have received your California MCTR payment from October of last year to mid-January of 2023 (generally via direct deposit or MCTR debit card). The majority of the California payments should have been received by eligible residents by mid-February last year.

However, despite distributing more than 9.5 million debit cards to eligible Californians, millions of dollars in benefits remain unspent. As a result, the California FTB has urged residents to activate their MCTR debit cards. 

For more information see Many California Inflation Relief Debit Cards Haven't Been Activated.

Note: If you received a California MCTR payment and haven't filed your 2022 federal income tax return yet, read about what the IRS has said about whether California MCTR payments are taxable.

Also, for general information on California taxes, see Kiplinger's California State Tax Guide.

Colorado TABOR Refunds

Colorado TABOR refunds (also known as "Cash Back" payments) are being sent to eligible Coloradans (age and residency rules apply) who filed a Colorado income tax return for a specified year or applied for a Colorado property tax/rent/heat credit (PTC) rebate. The amount depends on the filing status on your applicable Colorado state tax return. 

Most Colorado cash-back payments based on the 2021 tax year were issued by the end of September last year, 2023. Most payments were issued by Jan. 31, of last year.

TABOR payments are based on whether the state exceeds a certain surplus revenue threshold. For 2024, the payments will be flat or equal across the board. Right now, estimates are that single filers will likely receive about $847 and joint filers, $1,694. Those payments may be distributed in the early fall of this year.

For Colorado taxes in general, see Kiplinger's Colorado State Tax Guide.

Georgia Tax Rebates

Georgia tax rebates of up to $500 were offered last year due to legislation known as House Bill 162. The bill provided a one-time tax credit (i.e., surplus tax refund) for individual Georgia taxpayers who filed state income tax returns for the 2021 and 2022 tax years. 

To be eligible for the refund, you should have filed by the April 18, 2023, tax deadline Or, if you were granted an IRS tax deadline extension, you had to file by Oct. 16, 2023. You also must have had a tax liability for the 2021 tax year. According to information on the state's surplus tax refund website, Georgia residents (including part-year) and Georgia nonresidents could have potentially received a refund.

The exact amount of your Georgia surplus tax refund for 2023 was based on your tax liability from the applicable tax year.

Note: The Georgia refund program has ended and the state hasn't announced a similar measure for 2024. However, as Kiplinger reported, Georgia does have a new (lower) income tax rate this year.

Related: Georgia Tax Rebates

Maine Energy Relief Payments

To be eligible for a Winter Energy Relief Payment from Maine, which has concluded, you must have filed a 2021 Maine personal income tax return as a full-time resident by Oct. 31, 2022, and not have been claimed as an independent on another person's tax return. 

There were also income limits. To receive a payment, the federal adjusted gross income (AGI) reported on your 2021 Maine state tax return must have been: 

• Under $100,000 for single filers and married taxpayers filing a separate return.
• $150,000 for head-of-household filers.
• $200,000 for married taxpayers filing a joint return. 

Each eligible Maine resident received a $450 payment ($900 for eligible married couples).

Maine began sending payments in mid-January of last year. If you didn't receive a payment, you needed to contact the State Tax Assessor by June 30, 2023, to provide documentation showing that you're eligible for one. The State Tax Assessor had until Sept. 30, 2023, to send a relief payment to each eligible resident who contacts it before the deadline.

Note: The IRS may consider Maine Winter Relief Payments taxable.

For Maine taxes in general, see Kiplinger's Maine State Tax Guide.

Massachusetts 62F Refunds

The Massachusetts 62F tax refund program from two years ago, which returned about 14% of 2021 state income tax liability to eligible taxpayers, has ended. So far, no new 62F refunds have been announced.

The 62F refund program differs from other states' “stimulus” programs because each eligible Massachusetts taxpayer received a different amount of money in their tax refund check. The refunds could be reduced if you have an unpaid tax liability, unpaid child support, or certain other debts.

Note: Most of the Massachusetts refunds have already been distributed. 

For more information on Massachusetts taxes in general, see the Massachusetts State Tax Guide.

Related: 62F Massachusetts Tax Refunds

Michigan Working Famlies Tax Credit

Michigan tax credit checks

Michigan tax credit checks have been sent to more than 700,000 families since the state’s expanded working families tax credit became effective in February 2024. The rebate checks are based on previous state tax returns and differ from any Michigan state tax refund eligible residents receive for the 2023 tax year.

As Kiplinger reported, state officials expected the process to take up to six weeks. That means some eligible taxpayers might not have received a check until the end of March 2024.

The payments are due to an expansion of Michigan's earned income tax credit (Earned Income Tax Credit for Working Families, also called the Working Families Tax Credit) and were expected to average $550 per family. However, some families received less or more, and some were not eligible for a payment.

For more information, see: Michigan Tax Credit Checks

Minnesota Rebate Checks

Minnesota rebate checks were sent beginning in mid-August of last year to about 2.5 million Minnesota households. The one-time payments of up to $1,300 (sometimes called “Walz checks” or Minnesota stimulus checks) came thanks to a $3 billion tax relief bill signed by Gov. Tim Walz last year.

Married couples filing jointly with an adjusted gross income (AGI) of $150,000 or less were eligible for up to $520. For each dependent in an eligible household, to a cap of three dependents, another $260 was added to the rebate amount. Eligible single filers with AGIs of $75,000 or less received $260 rebate payments.

Minnesotans didn't have to do anything to receive the payments. The state’s Department of Revenue automatically sent rebate money via direct deposit or mail based on information provided on taxpayers' previous state income tax returns.

Approximately 150,000 Minnesota tax rebate checks initially went uncashed and have expired since being sent. However, the state’s Department of Revenue reissued expired payments.

Meanwhile, Gov. Walz expressed disappointment that the IRS decided the 2023 Minnesota rebate checks are taxable. At this time, no new rebate programs are planned.

Related: Minnesota Rebate Checks and Child Tax Credit

Montana Tax Rebates

One-time Montana income tax rebate checks of up to $2,500 and property tax rebates of up to $675 began going out last year and are now completed. The actual amount Montana residents received for the income tax rebate depended on the details of their 2021 tax returns. 

To qualify, for the property tax rebate, you must have owned and used the property as your primary residence for at least seven months of each of certain years. You must also have paid property taxes for 2022 and 2023. 

For Montana taxes in general, see the Montana State Tax Guide. For detailed information on Montana Individual income tax rebates, sent last year between July and December, see Kiplinger's report on the Montana rebate payments.

Related: Montana Tax Rebate Checks Up to $2,500

New Mexico Rebate Checks

New Mexico rebate checks of up to $1,000 began hitting the bank accounts of eligible residents last summer. The state was expected to return more than $673 million to New Mexico taxpayers due to a fiscal year surplus from high oil prices.

The amount of the New Mexico rebate payment depended on your filing status for the 2021 tax year. Most New Mexico residents didn't have to apply to receive the payment and the rebate program has ended.

For general tax information, see Kiplinger's New Mexico state tax guide.

Related: New Mexico Rebate Checks Up to $1,000

New York

New York's School Tax Relief Program (STAR) is in progress. Under this property tax relief program, some eligible homeowners can expect to receive hundreds of dollars in relief. 

As Kiplinger reported, STAR is essentially two programs rolled into one: Basic STAR and Enhanced STAR (E-STAR). Both provide school district property tax relief but with different eligibility requirements.

New York state officials estimate the tax reduction per household will be about $290 for Basic STAR and $650 for E-STAR. It's important to note that STAR and E-STAR program relief comes in the form of a tax exemption or tax credit.

For more information, see New York Sending School Tax Relief Checks.

Pennsylvania Rebate

To be eligible for a payment under the recently expanded Pennsylvania's "Property Tax/Rent Rebate" program, you must be at least 65 years old, a widow(er) at least 50 years old, or a person with disabilities at least 18 years old. There's also an annual income limit: $45,000 for homeowners and $45,000 for renters (50% of your Social Security benefits are excluded).

The standard  Pennsylvania rebate amount depends on your income and whether you own or rent your home. For eligible homeowners and some exceptions for older adults over 65 who might receive a higher amount, the rebate amount can generally be up to $1,000.  

According to the program website: "Applications for 2023 Property Tax/Rent Rebates are due by December 31, 2024. Under Pennsylvania law, the Department of Revenue evaluates the program before the June 30 deadline every year. If extra funds are available, the deadline is extended to December 31. Applications postmarked by that date will be accepted for processing." 

To date, funding has been available to allow all who qualify to benefit from the program. ​

For additional information on Pennsylvania taxes, see the Pennsylvania State Tax Guide.

Related: Pennsylvania Rebate Checks: What You Need to Know

South Carolina Tax Rebate

South Carolina's 2023 tax rebate program, which offered up to $800 based on a previous year's tax liability has concluded. So far no similar rebate program has been announced.

You were eligible for the South Carolina tax rebate if you filed a 2021 South Carolina state income tax return by Feb. 15, 2023, and you owed state income tax for the 2021 tax year. 

South Carolina issued rebates in two phases, depending on the date your previous South Carolina tax return was filed. Rebates have been issued for people who filed a return by Oct. 17 of last year. For those who filed after Oct. 17 but before Feb. 15, last year, a rebate check should have been issued by March 31, 2023. 

Use the South Carolina Department of Revenue's online tool to check the status of your rebate. For information on South Carolina taxes, see Kiplinger's South Carolina State Tax Guide.

Virginia Tax Rebate 2023

Some Virginians received 2023 tax rebates due to a massive surplus in the Commonwealth. Those Virginia tax rebate payments were up to $400 for eligible joint filers and $200 for eligible single filers. The program has concluded and, so far, for 2024, Virginia has not announced a new rebate program.

Related: Virginia Tax Rebates 2023: What You Need to Know

Eligible Virginians who filed their state tax return by Sept. 5, 2022, should have received their payment by Oct. 31 of last year. If you filed your return between Sept. 6 and Nov. 1, 2022, your payment should have arrived within four months from the date you filed your return, which could have been as late as February 2023.

For more information on Virginia taxes, see Kiplinger's Virginia State Tax Guide.

Related: Virginia Tax Rebate Checks