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A few states are sending out new stimulus checks or other forms of financial relief to help combat the recent surge in inflation. But are you eligible for a check in Arizona?
The federal government ended its stimulus checks a few years ago, but many states have continued to offer their own form of financial relief. Learn more about how these special state payments work and what you should do if you qualify for one.
What is a stimulus check?
A stimulus check is a form of direct payment that the government sends out to its citizens to relieve their financial burden during an economic slump. Unlike tax credits, which come as deductions during tax filing, stimulus checks are direct payments that give citizens immediate relief and encourage spending during times of economic instability.
There are a variety of criteria that people must meet in order to qualify for a stimulus check. The specifics depend on the legislation Congress passes for each round of payments, and they can vary from person to person. They may be based on income, age requirements, or other factors. In many cases, these payments are not taxable, but they do have other restrictions, such as whether they can be used to pay child support or student loan debt.
The first round of stimulus checks was sent out to citizens based on their 2017 income, and the second was based on 2018 income. The third was based on 2021 income, and the fourth is based on a state’s allocation of funds. States that offer these payments allocate funds to help the most vulnerable, including unemployed workers, front-line workers, families with young children, and other subsets of the state population.
For instance, in Arizona, the first round of stimulus checks was worth up to $1,200 for individuals earning up to $75,000 and married couples earning up to $150,000. The second round, which is being distributed now, will provide up to $600 for eligible individuals. The state is also distributing money to farmers, frontline workers, and philanthropic organizations.
In the future, there could be more rounds of stimulus checks for people who need it. While these payments are not guaranteed, they do increase the likelihood that people will spend and hire during these hard times. However, these payments will not replace a family’s regular source of income, and it is important to plan accordingly.
Fortunately, there are many ways to save and budget for these one-time payments. In the meantime, it is important to keep your eyes open for these payments and apply as soon as possible.
Who is eligible for a stimulus check?
There was a time when millions of Americans were receiving direct-payment stimulus checks. They were sent out in March 2020, December 2021, and March 2021 and were part of the CARES Act and American Rescue Plan payments. If you haven’t received one yet, there are a few things you need to know.
First, you should check with your local government to see if they offer any type of financial assistance. Pima County and Tucson offer rental relief to help people behind on their rent. These funds can be used to pay for past-due rent or housing expenses, including utilities such as electric, gas, and water. To qualify, you must be a current Pima County or Tucson resident and have a household income that doesn’t exceed 80% of the area median income.
You can find more information about this program by visiting the city’s or county’s websites. Those websites also have a link where you can apply for assistance. If you’re unsure if you qualify, you can call the city or county’s hotlines and ask for help.
The good news is that the tax rebate check will likely not be taxable on your federal return. However, that may not always be the case. If you received a state rebate payment last year, make sure to double-check with your tax professional before filing your 2023 federal income taxes.
It’s also important to note that the IRS will send a letter to taxpayers in early 2022 to confirm the amount of their third or any plus-up payment they received under the CARES Act and American Rescue Plan. This is important because if you plan on filing your tax return before the deadline, this letter will confirm your payment and let you know whether or not it needs to be included as taxable income.
As for a fourth stimulus check, there are still no signs that Congress is planning to provide any. While there have been calls from some lawmakers and the public for recurring payments, they have yet to take action.
How do I get a stimulus check?
If you qualify to receive a stimulus check, the government will automatically send it to your bank account via direct deposit. To be eligible, you must meet general eligibility requirements, such as being a U.S. citizen or resident and not being claimed as a dependent on anyone else’s tax return. You also must have a valid Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN). If you’re married and filing jointly, both spouses must have an SSN or ITIN; children with SSNs or ITINs also qualify. If you have back child support payments or owe student loan debt, the Bureau of the Fiscal Service will reduce your stimulus check amount accordingly.
The IRS will not tax your stimulus check, but you may be required to report it on your taxes if your income is too high. If you’re unsure whether or not you have to report the check on your taxes, consult your local tax professional.
It’s been more than two years since the last round of federal stimulus checks, and many Americans wonder if they’ll get one this time. The good news is that state governments are rolling out similar payments of their own to help citizens deal with high inflation.
Some states distribute checks for renters and property owners, while others focus on energy savers or teachers. The final number of recipients will depend on how much each state has in its surplus budget funds, as well as how high the rate of inflation is.
Arizona residents will receive a rebate check worth $250 for each dependent under 17, up to a maximum of $700 per household. The state is working to identify eligible taxpayers and will distribute the money automatically based on their most recent tax information.
If you’re interested in investing your stimulus check, you should speak with a financial advisor to create an investment plan. SmartAsset’s free tool can match you with qualified financial advisors in your area. Start by answering a few questions about your financial situation, and we’ll provide you with a list of qualified professionals.
What if I don’t qualify for a stimulus check?
Some Americans might not be eligible for a stimulus check, payment, or credit. This is a result of changes in tax filing status, income, or life events. The IRS understands this and has provided tools to help.
If you haven’t yet received your payment, start by checking your IRS online tool to see if they have your correct information on file. This tool should also give you a timeline of when your payment was supposed to arrive (March/April for round one and December/January for round two). You can also look through your deposit statements from around the time you were expecting your payments, which may help you find your checks.
Generally, only people with a Social Security number are eligible for these payments. This includes children who are 17 or older if they’re claimed as dependents on someone else’s tax return. The first and second stimulus payments were based on the taxable income on the returns of those who filed them. The third round, which is the Recovery Rebate Credit, is based on adjusted gross income and can be increased by $1,400 for each adult dependent with a Social Security or Adoption Tax Identification Number (ATIN).
It is important to note that your Recovery Rebate Credit could be offset if you have outstanding debts handled through private debt collectors or are past due on a federal or state tax obligation. This is because the government needs to ensure that the money being paid out is going to those who need it most.
If you have a bank account, your Recovery Rebate Credit will be automatically deposited into it. For those who don’t, the IRS has a tool that allows people to provide their account details so they can receive a paper check instead. The agency is also encouraging Americans without a bank account to take advantage of the many banks and credit unions that offer free or low-cost accounts for people with limited incomes. You can find a list of local banks and credit unions that offer no- or low-cost accounts on the FDIC website.
