Pixabay|While federal stimulus checks ended several years ago, some states have continued to provide assistance to residents in the form of tax rebates or so-called “inflation relief” payments.
In context of such payments, the Internal Revenue Service (IRS) issued clarification earlier this year that most relief checks issued by states last year aren’t subject to federal taxes and so for the most part don’t need to be reported on 2022 tax returns.
Here’s a look at what states are offering in terms of such payments in 2023, including eligibility criteria, delivery timelines, and amounts of money either already paid out—or still coming.
Alabama
Starting in the fall of 2023, Alabama residents will begin receiving one-time tax rebate checks. The payment amounts will be determined by the filing status reported on 2021 tax year returns.
If individuals filed as single, head of family, or married filing separately, they will receive a $150 tax rebate payment. For those who filed as married filing jointly, a $300 tax rebate payment will be issued.
Not all individuals, however, are eligible for the Alabama tax rebate. If you did not file a personal Alabama income tax return for the 2021 tax year, you will not qualify for the 2023 Alabama tax rebate check.
Furthermore, estates and trusts are ineligible to receive these payments. In addition, individuals who were claimed as dependents on a 2021 federal or Alabama state income tax return will not receive a rebate payment.
California
California’s middle-class tax refunds (MCTRs) were available to California residents who filed a 2020 tax return by Oct. 15, 2021, and met specific criteria.
These criteria included not exceeding income limits, not being claimed as a dependent on another person’s 2020 tax return, and being a California resident for at least six months in 2020.
The MCTR amount ranged from $200 to $1,050, depending on factors such as income, filing status, and dependents.
Payments were generally sent out between October 2022 and mid-January 2023, with most eligible Californians set to have received them by mid-February at the latest.
The California FTB reported that nearly 32,000,000 taxpayers and their dependents benefited from the tax refund.
Colorado
Coloradans were poised to receive “cash back” payments if they met the eligibility criteria.
In order to qualify, they must have been aged 18 or older as of Dec. 31, 2021, and they must have been residents of the state for the entirety of 2021 and filed a 2021 Colorado income tax return or applied for a Colorado property tax/rent/heat credit (PTC) rebate.
The payment amount varied based on the filing status indicated on the 2021 Colorado state tax return, with eligible single filers generally receiving $750 and eligible joint filers receiving $1,500.
The majority of Colorado cash-back payments were issued by the end of September 2022, with most payments distributed by January 31, 2023.
Georgia
Qualifying Georgia residents were eligible to receive tax rebates of up to $500.
The relief payments have been set up as a one-time tax credit, also known as a surplus tax refund, for individual taxpayers who filed state income tax returns for the tax years 2021 and 2022.
To qualify for the refund, Georgia residents needed to file their tax return by the April 18, 2023, deadline. However, if they received an IRS tax deadline extension, they have until Oct. 16, 2023, to file.
Another condition of receiving a tax rebate is that the individual must have had a tax liability for the 2021 tax year. Both Georgia residents, including part-year residents, and nonresidents of Georgia are potentially eligible to receive the refund.
The specific amount of the Georgia surplus tax refund for 2023 is determined by a person’s tax liability from the 2021 tax year.
Maine
Maine residents who met certain criteria had the opportunity to receive winter energy relief payments.
These payments were designed to assist individuals and couples with their energy costs during the winter season.
Eligibility requirements included filing a 2021 Maine personal income tax return as a full-time resident by Oct. 31, 2022, and not being claimed as a dependent on another person’s tax return.
Income limits were also considered, and payment amounts varied based on filing status.
The state began distributing payments in mid-January, and residents who did not receive a payment have been given the opportunity to contact the state tax assessor by June 30, 2023, to provide necessary documentation to prove their eligibility.
The state tax assessor has until Sept. 30, 2023, to issue relief payments to eligible individuals who contacted them before the deadline.
Montana
Montana residents can expect to receive one-time income tax rebate checks in 2023.
While the specific rebate amount is determined based on the information provided in each individual’s 2021 tax return, the potential maximum amount is $2,500.
To be eligible for a payment, only Montana taxpayers who filed a 2021 Montana full-year resident tax return will be considered.
In addition, Montana residents must have filed either a part-year or full-year 2020 state tax return. The tax rebate bill sets forth several qualifying criteria, which include the following:
Filing 2020 and 2021 Montana tax returns by the 2021 tax year deadline, unless an extension was granted.
Individuals claimed as dependents on a 2021 Montana or federal income tax return are ineligible for the payment.
To receive an income tax rebate payment, Line 20 of the Montana Form 2 must indicate an amount greater than zero.
In addition, eligible residents will also receive a property tax rebate from Montana. This rebate applies to the years 2022 and 2023, with a maximum amount of $675.
In order to qualify for the property tax rebate, individuals must have owned and utilized the property as their primary residence for at least seven months in each of those years.
Furthermore, they must have made property tax payments for both 2022 and 2023.
New Mexico
Eligible residents of New Mexico can expect to receive rebate checks of up to $1,000.
In the coming weeks, New Mexico will begin the distribution of one-time rebate checks for 2023 to eligible residents, who can anticipate receiving the rebates as early as mid-June.
The payment amount will be determined based on the filing status reported on 2021 tax returns.
No application is required for the rebates, which will be sent out automatically.
Eligible individuals have until May 31, 2024, to file their 2021 tax returns and qualify for the rebate.
If the filing status for the 2021 tax year was head of household, married filing jointly, or qualifying widow(er), a payment of $1,000 can be expected.
Single filers or those who filed as married filing separately will receive a payment of $500.
For those who filed as married filing jointly, the rebate payment will be sent to the primary taxpayer listed on the 2021 New Mexico state tax return.
Pennsylvania
Pennsylvania’s Property Tax/Rent Rebate program provides payments to eligible individuals who meet certain criteria.
They must be at least 65 years old, a widow(er) at least 50 years old, or a person with disabilities who is at least 18 years old.
In addition, there is an annual income limit, with homeowners capped at $35,000 and renters at $15,000 (with 50 percent of Social Security benefits excluded).
The specific rebate amount is determined based on income and whether the individual owns or rents their home. Eligible homeowners, including some exceptions for older adults above the age of 65 who may receive a higher amount, can generally expect rebates of up to $650.
Rebate checks were initiated in August 2022, and eligible residents had until the end of 2022 to apply for a rebate. Consequently, payments will continue into 2023.
South Carolina
To qualify for a tax rebate in South Carolina, residents must have filed a 2021 South Carolina state income tax return by Feb. 15, 2023, and have a state tax liability for the 2021 tax year.
The rebate amount can reach up to $800 and will be determined based on an eligible individual’s 2021 South Carolina income tax liability after subtracting any applicable credits.
For tax liabilities below $800, the rebate amount will match the individual filer’s tax liability. However, if the tax liability exceeds the $800 cap, the filer will receive a rebate of $800.
Eligible filers should have received a rebate check by March 31, 2023.
Virginia
To be eligible for Virginia’s one-time stimulus tax rebate, taxpayers needed to file a 2021 Virginia income tax return by Nov. 1, 2022, and have a 2021 Virginia net tax liability.
It’s worth noting that even if a taxpayer received a refund after filing their 2021 state return, they could still qualify for a rebate. The rebate amount, with a maximum of $500, was based on a filer’s 2021 Virginia tax liability.
Those who filed their state tax return by Sept. 5, 2022, and met the eligibility requirements, should have received their payment by October 31 of 2022.
However, if taxpayers filed their return between Sept. 6 and Nov. 1, 2022, their payment would arrive within four months from the date they filed, which could have been as late as February 2023.
Navigating Rising Auto Insurance Rates: Strategies for Drivers to Lower Premiums
Edited by: TJVNews.com
Despite a recent easing in inflation, auto insurance rates have surged by double digits, leaving drivers searching for ways to manage escalating premiums. According to a recently published report in The New York Times, data from the Bureau of Labor Statistics reveals that auto insurance costs in June were 19.5 percent higher than the previous year. This increase is attributed to several factors, including the rising cost of automobiles, parts, and repairs, along with an uptick in accidents due to lingering bad driving habits from the pandemic era. Additionally, insurers have reported increased losses from severe weather events, such as hail storms.
While most drivers are aware of common strategies like bundling auto and homeowner insurance policies or insuring multiple cars with the same carrier, there are other effective methods to consider.
Improving your driving habits can significantly impact your insurance premiums. According to Bankrate’s analysis of insurance data from Quadrant Information Services, even a single accident can result in a substantial increase in premiums, as per the information in the NYT report, drivers with clean records pay an average annual premium of just over $2,300 for full coverage, while those with one at-fault accident face an average premium of about $3,300 — a 43 percent increase.
Ryan Pietzsch, a driver safety expert with the National Safety Council, emphasizes the importance of safe driving practices to avoid accidents and maintain lower insurance rates the NYT report said. He recommends simple habits such as setting your phone to “do not disturb” while driving to minimize distractions and maintaining a safe distance from the car ahead.
Pietzsch suggests using the “three-second rule” to ensure a safe following distance. As the car in front passes a fixed object, such as a sign, start counting slowly from one to three (“one, one thousand; two, one thousand; three, one thousand”). If you pass the same object before finishing the count, you are too close and should increase the distance.
Taking a safe driver course can also lead to discounts on your auto insurance premium. Benjamin Preston, an auto writer at Consumer Reports, notes that completing such a course can save you up to 10 percent on your premium, the report in the NYT indicated. These courses, which may involve a fee, offer valuable training in defensive driving techniques and can help demonstrate your commitment to safe driving to your insurer. It’s advisable to check with your insurance agent to see if this option is available in your state and if the potential savings justify the course cost.
In addition to improving driving habits and taking safety courses, drivers can explore other strategies to lower their insurance premiums:
Opting for a higher deductible can lower your monthly premium. However, ensure you have enough savings to cover the deductible in case of an accident.
Insurance rates can vary significantly between providers. Regularly comparing quotes from different insurers can help you find a more affordable policy.
Insurers often use credit scores as a factor in determining premiums. A higher credit score can lead to lower rates.
Adding safety features to your vehicle, such as anti-theft devices or advanced driver-assistance systems (ADAS), can qualify you for discounts.
Some insurance companies offer telematics programs that monitor your driving habits through a mobile app or a device installed in your car. Safe driving behavior can earn you discounts.
Many insurers now offer monitoring policies, which use apps or devices installed in vehicles to track driving habits such as speeding, hard braking, and phone use. According to the NYT report, drivers who demonstrate safe driving behaviors can benefit from lower insurance rates. However, the idea of being constantly monitored by an insurer raises privacy concerns for some.
Ryan Pietzsch, a driver safety expert with the National Safety Council, participates in such a program and advocates for its benefits. “Being aware of what you’re doing is the first step,” he told the NYT, as he highlighted that self-awareness can lead to safer driving habits and consequently lower premiums. Despite the concerns, the trade-off may be worth it for those who prioritize cost savings and improved driving safety.
Seeking quotes from multiple insurers at least once a year is another effective strategy for reducing auto insurance costs. The NYT report said that Doug Heller, an insurance expert with the Consumer Federation of America, emphasized the potential savings. “Give yourself a couple of hours,” he advises, “and you could save a couple hundred dollars.”
Methods for Comparing Quotes
Online Searches: You can directly seek quotes from individual insurer websites. This method allows you to tailor your search to specific needs and coverage levels.
Independent Insurance Agents: These agents represent multiple insurers and can provide a range of quotes, simplifying the comparison process. They can also offer insights into lesser-known regional insurers, which might offer competitive rates and excellent service.
Considering Regional Insurers
While well-known national companies often dominate the market, regional insurers can provide competitive pricing and personalized service. These smaller companies may not be household names, but they often have lower overhead costs, which can translate into savings for customers.
Utilizing Consumer Complaint Data
Before selecting an insurance carrier, it’s crucial to review consumer complaint data reported to the National Association of Insurance Commissioners (NAIC). This data provides insight into the reliability and customer service quality of different insurers. “It is good to save money on auto insurance,” says Heller, “but it’s not good to have an unreliable company.”
Steps to Effective Comparison Shopping
Gather Your Current Policy: Having your existing policy on hand ensures that you can compare similar coverage levels across different insurers.
Check Consumer Complaints: Review the NAIC database to evaluate potential insurers based on their complaint records.
Consider Coverage Levels: Make sure the quotes you obtain provide the same level of coverage as your current policy to make an accurate comparison.
Evaluate Customer Service: Beyond price, consider the quality of customer service and claims handling, as these factors significantly impact your overall experience.
With auto insurance rates on the rise, many drivers are looking for effective ways to manage and reduce their premiums. The NYT report indicated that one of the most impactful strategies is adjusting your deductible, but there are also other coverage considerations that can help lower costs. Here’s a detailed look at how these adjustments work and what to keep in mind.
A deductible is the amount you pay out of pocket before your insurance coverage kicks in when you file a claim. Opting for a higher deductible can significantly lower your insurance premium. The report also said that according to the Insurance Information Institute, increasing your deductible from $200 to $500 can reduce the cost of collision and comprehensive coverage by 15 to 30 percent on average. Raising it to $1,000 could save you 40 percent or more.
Collision Coverage: Pays for damage to your car resulting from an accident.
Comprehensive Coverage: Covers non-collision-related damage such as theft, natural disasters, and collisions with animals.
Trade-offs: While a higher deductible lowers your premium, it also means you’ll pay more out of pocket if you need to file a claim. It’s important to assess your financial situation to ensure you can cover the higher deductible in the event of an accident or damage.
As your car ages, it may make sense to adjust your coverage, especially collision and comprehensive coverage, which are typically optional unless your car is financed or leased. The report in the NYT said that if the annual premium for collision coverage exceeds 10 percent of your car’s value, it might be more economical to drop this coverage. You can use online resources like Kelley Blue Book to determine your car’s current value.
However, it’s worth noting that the value of used cars has increased, which might affect the feasibility of dropping collision coverage.
Liability coverage is crucial as it protects you financially if you cause an accident that injures someone or damages their property. While states mandate minimum liability insurance, opting for just the minimum may not provide adequate protection. Beth Swanson, a licensed insurance agent and writer at The Zebra, emphasized to the NYT the importance of not skimping on liability coverage. Insufficient liability coverage can leave you vulnerable to significant out-of-pocket expenses in the event of a serious accident.
