Is Your State Sending a Rebate Check? A Guide to Fall Payments

With rising costs on everyone’s mind, many people are looking for financial relief. While the era of broad federal stimulus checks has passed, several states are stepping up. Using budget surpluses, these states are sending out their own payments, often called tax rebates or relief checks, to eligible residents this fall.

Understanding State-Level Relief Payments

Before we dive into the list, it’s important to clarify what these payments are. Unlike the federal stimulus checks issued during the pandemic, these are state-funded programs. They are typically the result of a state having a larger-than-expected budget surplus. To return some of this money to taxpayers, states create one-time payment programs.

These payments go by many names: tax rebates, relief checks, surplus refunds, or inflation relief. Regardless of the name, the goal is the same: to put money directly into the pockets of residents. Here are five states that have announced and are distributing these types of payments this fall.

1. Alabama

Alabama is sending one-time tax rebates to help residents cope with the rising cost of groceries and other essentials. This payment is a direct result of the state’s record-breaking budget surplus.

  • Program Name: 2023 Tax Rebate
  • Payment Amount: The amount depends on your tax filing status for the 2021 tax year.
    • $150 for single individuals, heads of family, and married couples filing separately.
    • $300 for married couples filing jointly.
  • Eligibility: To qualify, you must have filed a 2021 state income tax return on or before October 17, 2022. You cannot have been claimed as a dependent by another taxpayer during the 2021 tax year. The rebates are not available to estates or trusts.
  • Timeline: The Alabama Department of Revenue began issuing the rebates on November 30, 2023. If you are eligible and have not received your payment, it should arrive soon. Payments are being sent via direct deposit or paper check based on how you received your 2021 tax refund.

2. Arizona

Arizona is providing a significant tax rebate aimed specifically at families with dependents. This program, known as the Arizona Families Tax Rebate, is intended to provide relief to working families across the state.

  • Program Name: Arizona Families Tax Rebate
  • Payment Amount: Eligible taxpayers can receive $250 per dependent under the age of 17 and $100 per dependent over the age of 17. A household can claim a maximum of three dependents, for a total possible rebate of $750.
  • Eligibility: To be eligible, you must have been a resident of Arizona for the entire 2021 tax year. You also must have claimed the state’s dependent tax credit on your 2021 return. There is an income requirement as well; you must have had at least $1 in tax liability in 2021.
  • Timeline: The Arizona Department of Revenue began distributing these payments in the fall of 2023. The distribution is ongoing, so if you qualify, you should see the payment soon. Payments are sent via direct deposit or paper check.

3. Virginia

Thanks to a substantial state budget surplus, Virginia is sending out one-time tax rebates to millions of its residents. This is another example of a state returning surplus funds directly to taxpayers.

  • Program Name: 2023 Virginia Tax Rebate
  • Payment Amount: The amount depends on your 2022 tax liability.
    • Up to $200 for individual filers.
    • Up to $400 for joint filers.
  • Eligibility: To qualify for this rebate, you must have had a tax liability in Virginia for the 2022 tax year. Tax liability is the amount of tax you owe throughout the year, minus any credits. If your tax liability was zero, you are not eligible for this rebate. You must have filed your 2022 taxes by November 1, 2023, to receive the payment.
  • Timeline: Payments began going out in October 2023. If you received your 2022 tax refund by direct deposit, you likely received your rebate the same way. Otherwise, a paper check was mailed to your last known address.

4. Minnesota

Minnesota passed a large tax bill that included one-time rebate checks for millions of residents. The payments are meant to provide direct relief and are based on income from the 2021 tax year.

  • Program Name: 2021 One-Time Tax Rebate Payment
  • Payment Amount: The payment amounts vary based on income and family size.
    • $260 for single individuals with an adjusted gross income (AGI) of $75,000 or less.
    • $520 for married couples filing jointly with an AGI of $150,000 or less.
    • An additional $260 per dependent, for up to three dependents. This means a qualifying family of five could receive up to $1,300.
  • Eligibility: Eligibility is based on your 2021 Minnesota income tax return. You must have been a resident of Minnesota for part or all of 2021 and filed either a 2021 income tax return or a property tax refund return.
  • Timeline: The state began sending out payments in late summer and continued through the fall of 2023. Most payments have already been distributed via direct deposit or paper check.

5. Montana

Montana is issuing two separate tax rebates to its residents from its budget surplus: one for income taxes and another for property taxes. Many residents are eligible for both.

  • Program Name: Individual Income Tax Rebate and Property Tax Rebate
  • Payment Amount:
    • Income Tax Rebate: This rebate is the smaller of either your 2021 tax liability or \(1,250 for single filers (\)2,500 for joint filers).
    • Property Tax Rebate: This rebate provides up to $675 of property taxes paid on a principal residence in 2022.
  • Eligibility:
    • Income Tax Rebate: You must have been a Montana resident for all of 2021 and filed a 2021 state tax return. You cannot have been claimed as a dependent.
    • Property Tax Rebate: You must have owned and lived in a Montana residence for at least seven months in 2022 and paid property taxes on it.
  • Timeline: The income tax rebates were issued between July and December 2023. The property tax rebates were issued starting in August 2023, and the distribution continued through the fall.

Frequently Asked Questions

What if my state isn’t on this list? Many other states have issued rebates or tax credits over the past year. This list focuses specifically on programs with payment timelines in the fall. It’s always a good idea to check your state’s official Department of Revenue or taxation website for the most accurate and up-to-date information on any potential relief programs.

Are these payments taxable? It depends on the state and your individual tax situation. In many cases, these state-level tax rebates are not considered taxable income at the state level. However, the rules for federal taxes can be more complex. The IRS has provided guidance that for many taxpayers, these payments are not subject to federal income tax. It is best to consult with a tax professional for advice specific to your circumstances.

How do I make sure I get my payment? For most of these programs, the payments are automatic for eligible residents who have filed their taxes. The most important step is to ensure you have filed your state tax returns on time and that your address and direct deposit information on file with your state’s tax agency are current.