With the annual inflation rate in the United States increasing from 3.2 percent in 2011 to 8.3 percent in 2022, receiving round 4 of the stimulus checks this October can come as a relief for Americans living with sky-high costs.
From clothing and food to utilities and more, prices have skyrocketed. The pandemic has depleted household savings and Americans are forced to make hard choices. However, the October stimulus checks can ease woes a bit.
Earlier in the pandemic, the stimulus checks provided a lifeline to those who were struggling. Lawmakers justified these payments at the time by citing national unemployment as a reason. Here is how Americans spent their stimulus checks.
There were fewer jobs available in the US in August than in July, a sign that businesses could reduce hiring further and potentially slow chronic inflation.
Recently, Apple, one of the world’s most valuable companies, laid off about 100 contract recruiters. In the second quarter of FY22, Twitter’s hiring process slowed significantly. The company laid off 200 employees from its Research & Development department. Approximately 200 Tesla employees were laid off.
However, unemployment levels are low, so low that they are basically the same as before the pandemic.
Shortfall in skilled employees
The US Federal Reserve is trying to tame inflation. Therefore, rate hikes and recession fears are quite evident. As a result, these companies are choosing to remain cautious.
But the shortage of skilled laborers in tech giants around the world has reached a 16-year high, according to a survey, which is a sign of many untapped opportunities. It is expected that stimulus payments will be made between October 7 and January 2023.
Stimulus Update 2022 on California
In California, the state is issuing a Middle-Class Tax Refund that could put up to $1,050 in residents’ bank accounts. The income threshold for single applicants and married couples is $250,000 and $50000, respectively.
Those payments are scheduled to begin in October, so many people could see that money in just over a week. By January 2023, everyone eligible for a relief payment should receive it.
Stimulus Update 2022 on Newyork
Residents of other states will also be able to take advantage of stimulus funds soon. The State of New York is sending out stimulus payments worth as much as $270. Residents who haven’t received their payments yet should get them by October 31, according to state estimates.
There is no better time to provide stimulus aid than now. Although gas prices have declined since peaking earlier this year, other key expenses, such as food, continue to rise. Those without aid could find themselves in costly debt just to survive.
Debt is not a good idea at the moment. If a recession hits, that debt might be difficult to repay, and the Fed’s interest rate hikes are increasing the cost of credit card balances. This is why it is very good that some states are offering near-term relief.
Meanwhile, it’s fair to assume that federal stimulus checks will be off the table for the remainder of the year. As such, some people may have no choice but to take on a second job to scrounge up the cash needed to cope with inflation until living costs start to come down. But thankfully, today’s strong economy makes that a viable option.
You can Also See: Hawaii Self Employment Tax Demystified
Stimulus Update 2022 on Hawaii
Residents earning under $100,000 in 2021 or $200,000 if filing jointly — are eligible for a $300 tax rebate this year. Dependents are also eligible for the rebate. There is a possibility of receiving $1,200 for a family of four that qualifies.
An individual earning more than $100,000 and a couple earning more than $200,000 will receive a one-time payout of $100.
Gov. David Ige announced on September 9 that direct deposits would begin. If you received your original tax refund by check or if you filed after July 31, you will receive your refund later.
According to Gov. David Ige, physical checks won’t be issued until late October, depending on the arrival of check stock, as reported by Cnet.
You can Also See: Virginia State Tax 2022-2023
Stimulus Update 2022 on Virginia
The Virginia Department of Taxation expects to send $250 tax rebates to millions of Virginians by mid-October, or $500 if you filed jointly. Direct deposit and printed checks will be used for payments.
Taxpayers who are eligible for rebate payments can find more information on the Virginia Department of Taxation’s website. However, this is not available to all taxpayers, according to the website.
The October stimulus checks come at a good time. Despite a decline in gas prices this year, other key expenses such as food costs remain high. And in the absence of aid, a lot of people could land in costly debt just to make ends meet.
