money Stimulus checks: California and other states send payments to their residents
States are using leftover stimulus funds to send their residents stimulus payments as more federal direct aid appears unlikely. California is among those states and began distributing those payments on Friday.
“The Golden State Stimulus is key to lifting up those hit hardest by the pandemic and supporting California’s economic recovery, putting money directly in the hands of folks who will spend it on basic needs and within their local communities,” Gov. Gavin Newsom said in a press release on Thursday.
The Golden State passed a $100 billion Comeback Plan in mid-July that included a second round of payments. The first round was issued in the spring and targeted those making below $30,000.
For the second round, taxpayers with children who received the first stimulus payment qualify for $500. Taxpayers without children who didn’t receive the first payment are eligible for $600 this time around. Taxpayers with children who did not get the first payment qualify for $1,100.
Nearly two-thirds of Californians are eligible for the stimulus payment, according to the release.
To qualify, residents must have an adjusted gross income of less than $75,000 for the 2020 tax year and not be claimed as a dependent by another taxpayer. Additionally, they must have resided in the state for more than half of the 2020 tax year and be a state resident on the date the payment is issued.
Taxpayers with an Individual Taxpayer Identification Number (ITIN) who have one or more dependents and make below $75,000 will also get a $1,000 payment if they haven’t received the first round of payments.
Direct deposits are expected to be completed by October 15 while paper checks will be distributed based on the residents’ zip code beginning early October.
California is expected to send $12 billion worth of stimulus payments as part of the overall $100 billion state stimulus package. The relief is funded by “a resurgent economy, a surge in state revenues and additional federal recovery funds,” according to the press release from Newsom’s office.
‘We are proud of this effort and will continue’
New Mexico also began sending stimulus payments to its residents earlier this month. More than 4,000 low-income households are expected to get a one-time payment of $750. These are families who didn’t receive the federal stimulus payments.
The state said more than 6,000 applications for the program met the requirements for financial assistance.
“These support payments are critical to many New Mexico families,” said Human Services Secretary David Scrase, M.D. said in a statement earlier this month. “We are proud of this effort and will continue providing support to New Mexicans in need.”
Other states including Florida, Georgia, and Tennessee, among others, are sending teachers and first responders direct payments between $500 and $1,000.
The majority of the third round of $1,400 stimulus checks from the federal government have been issued with the Internal Revenue Service sending more than 171 million payments, totaling approximately $400 billion in relief.
Additional rounds of payments are not included in the recently passed $1 trillion bipartisan infrastructure package nor the $3.5 trillion legislation Democrats are hoping to advance through reconciliation.
Denitsa is a writer for Yahoo Finance and Cashay, a new personal finance website. Follow her on Twitter @denitsa_tsekova
