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How to Get Your Financial Footing Before Investing Your Stimulus Check

During the epidemic, the federal government released three rounds of stimulus checks and enhanced unemployment payments to provide Americans who were having trouble making ends meet with a lifeline.

Now, as inflation continues to hit people where it hurts most—their wallets—reaching 8.5% on an annual basis in July, several states are issuing their very own stimulus cheques.

Even though it arrives at an inconvenient time, the relief is very much appreciated by Americans who have been watching their paychecks be eaten up by rising rent and gas prices.

Even though GDP has fallen for the past two quarters in a row, which is “officially” the criteria for a recession, unemployment rates continue to drop and pay growth continues.

Let’s get the financial issue sorted out.

Who will receive checks from the stimulus package?

First things first: who will be receiving cheques from the stimulus package, and how do you qualify for them?

At this time, there have only been a few states that have indicated that they will be providing formal stimulus checks. Some individuals have already distributed the monies, and others are in the process of doing so right now. Later on in the fall, others will begin the process of issuing money.

Here is the information that you require.


Late in June, Governor Gavin Newsom made the initial announcement on the brand-new “Middle-Class Tax Refund.”

This programme allots $9.5 billion of the state’s budget to be used for stimulus checks, to reduce the financial strain that has been brought on by inflation.

To qualify, you must:

Have submitted your tax returns for the year 2020 no later than October 15, 2021.

At least fifty per cent of the year 2020 must have been spent in California.

Not having been identified as someone else’s dependent.

Maintain your status as a legal resident while payments are being processed.

Individuals must also satisfy the program’s requirements for their adjusted gross income to be eligible.

If you meet all of these requirements, you have a chance to win up to $1,050 between the end of October and the middle of January.


A one-time tax rebate is going to be distributed as a result of the Colorado Cash Back Bill later this year. The only requirements that are specified are that you must have been a full-year resident of Colorado in 2021, that you must have been at least 18 years old on December 31 of the previous year, and that you must have filed for your refund no later than June 30, 2022.

Depending on when you submitted your most recent tax return, individual taxpayers can expect to get their payments anywhere from 30 September 2022 to 31 January 2023.

Individuals who file their taxes on their own are eligible for a maximum of $750, while married couples filing jointly are eligible for up to $1,500.

(It is important to keep in mind that this is not a cheque for the stimulus package; rather, it is a tax refund.) On the other hand, our viewpoint is that cash is cash.)


Every adult resident of Delaware will be eligible to receive a one-time payment of $300 as part of the Delaware Relief Rebate Program.

Residents are required to have submitted their 2021 state tax return by the specified deadline to be eligible. According to information provided by Delaware’s Department of Finance, the mailing of checks started throughout the summer.


Around 59,000 residents were eligible to receive a one-time payment of $450 as part of a policy known as “Pandemic TANF Funding,” which Governor Ron DeSantis approved last month.

You must be a caregiver, a foster parent, or enrolled in specific state aid programmes to be eligible for this programme. Here you can find out additional information about the programmes and recipients who qualify.


This past spring, the governor of Georgia gave his approval to a tiered, one-time tax rebate that is intended to assist Georgia taxpayers in coping with increasing levels of inflation. According to the statute:

Those who file as individuals will earn $250.

There will be a payment of $375 made to household heads.

Individuals filing jointly will each earn $250.

The majority of payments were reportedly sent out by the beginning of August, as stated by the Georgia Department of Revenue. (This is assuming that you filed your state taxes by the applicable deadline.)


Late in June, Hawaii Governor David Ige signed a measure that will return between $100 and $300 to each and every inhabitant of the state.

Your tax filing status, your income, and the exemptions you qualify for all play a role in determining whether or not you are eligible, as well as the amount of money you receive.

Late in August, according to the Department of Taxation of the state, cheques for the stimulus programme will start to arrive in mailboxes.


Some residents of Idaho started receiving a one-time tax rebate for $75 or 12% of their state tax bill for 2020, whichever was greater, beginning in March.

To qualify, recipients must have had an Idaho residence in both 2020 and 2021 and have filed either an income tax return or a food credit refund for both of those years. More information is available from the State Tax Commission of Idaho.

This year in Illinois, various efforts to alleviate the effects of inflation were put into action, including the following:

A temporary exemption from the one per cent sales tax that the state applies to food and grocery items

A reduction in the sales tax on other goods, from 6.25 per cent to 1 per cent

Putting off the increase in the price of gas until January 2023

Residents will also receive cheques for an income tax refund stimulus totalling either $50 or $100, depending on their filing status and level of income.

Taxpayers who have dependent children will also be eligible for a credit of one hundred dollars per child (limit of three per household).

Checks are expected to be issued during the week of September 12, according to a news statement issued by the state.

This year, residents of Indiana received a one-time $125 stimulus check thanks to actions taken by Governor Eric Holcomb, who took advantage of state legislation that governs the state’s extra financial reserves.

Checks were mailed out to all full-year residents (regardless of income level) in either May or July, provided that they had submitted their tax returns for 2020 by the due date of 3 January 2022.

Additionally, the state of Indiana is considering the possibility of distributing one-time $225 stimulus cheques, which would be funded by the state’s existing tax surplus. The vote on this measure has not yet been scheduled.

Stimulus check


Because of a piece of legislation that was passed and signed into law in April, taxpayers in the state of Maine are receiving one of the biggest tax refunds of any state: $850 for individual returns and $1,700 for combined returns.

According to Maine Revenue Services, check issuance started in June but not all of the checks have been sent to their recipients as of yet.

To be eligible, residents must maintain a year-round residence in Maine and submit their income tax return for 2021 no later than October 31, 2022.

There are also caps placed on one’s taxable income (up to $100,000 for single filers and up to $150,000 for married couples filing jointly).


To mitigate the effects of inflation, Governor Charlie Baker of Massachusetts has announced that residents will receive a 7 per cent refund on the state income tax payment they make in 2021.

Late in September, a decision on the official sums, which will thereafter be issued, will be made by the State Auditor.

In more recent news, the state did not authorise one-time $250 stimulus checks. However, because of legislation that was passed in 1986 about surplus tax money, many residents may still receive their portion of the state’s $2.5 billion surplus.

The state of New Jersey

The state of New Jersey is currently debating whether or not to offer a rebate of $1,500 to eligible families that pay property taxes.

This includes renters. (The vote on the measure has not yet taken place, but you can find more information here.)

In addition, as a result of legislation that was signed into law the previous year, qualifying residents will be awarded a child tax credit of $500 for both this year and every year following forward.

To qualify, applicants must submit their tax returns by the standard or extended deadline, list at least one kid as a dependant, adhere to certain income requirements, and pay a tax bill of at least one dollar.

NM (New Mexico)

This year, the state of New Mexico issued two distinct checks for the stimulus package.

First, residents were eligible for a rebate ranging from $250 to $500, depending on their income and how they filed their taxes.

This month, those individuals who filed their income tax returns for the state of 2021 received their refund payment automatically.

Depending on your filing status, the second rebate is expected to come to a total of either $500 or $1,000. This refund is paid out in two instalments: the first instalment was sent in June, and the second instalment was delivered by the end of August.

On the website of the New Mexico Department of Taxation and Revenue, it is stated that this reimbursement is available to anyone who has already filed their tax return for the year 2021.


Take notice, residents of Oregon: if you haven’t received a state stimulus payment by now, there’s a good chance you won’t get one.

Between June and July of this year, the state of Oregon provided one-time aid in the form of cheques and direct deposits totalling $600 to residents who met the requirements.

Citizens with low incomes who filed tax returns in Oregon for at least half of the year 2020 and claimed Oregon Earned Income Tax Credit were considered eligible residents (EITC).

South Carolina (US state)

Income tax reimbursements of up to $800 will be distributed to each and every resident of South Carolina. Anyone can qualify as long as they have already submitted their income taxes for the previous year.

According to the Department of Revenue of this state, the beginning of the distribution of these checks will take place in November and December of this year.


Under the one-time tax rebate programme offered by the state of Virginia, qualifying taxpayers can receive a cash award of up to $500. (The amounts vary depending on the taxpayer’s filing status.)

You have until November 1 to file your tax return to be eligible for a payout. The Department of Taxation of the state reports that these payments for the stimulus programme won’t start arriving in mailboxes until later on in the fall.

In the meantime, a declining rate of unemployment.

Now, let’s shift our focus to another piece of positive news: the declining unemployment rate across the country.

The non-farm payrolls increased by 528,000 last month, as stated in the jobs report released by the Labor Department in July, which was far higher than the 250,000 that most experts anticipated.

This resulted in a decrease in the unemployment rate, which went from the start of the epidemic to its current level of 3.5% (which is somewhat lower than the 3.6% that was anticipated).

However, it wasn’t the end of it. Wages increased by 5.2% on an annual basis in the same month that hourly earnings increased by 0.5% from June levels.

The most recent data from the Labor Department shows that the overall number of people working in non-farm jobs has increased by 22 million since its lowest point in April of 2020. In point of fact, as of July, the labour markets have achieved a level of employment that is almost 30,000 jobs more than it was before the epidemic.

The service industries added the most jobs in July, and they are still increasing their workforce relative to where it was before the recession.

In the meantime, the management, office administration, and scientific research and development roles were some of the professions that benefited the most from the expansion of employment opportunities in the business and professional services sectors.

What does it signify that the unemployment rate has dropped?

In general, the news is better than expected and counters indicators that the economic recovery may be losing momentum or perhaps turning around.

Inflation is still a problem, as evidenced by both rising wages and an increase in the number of people being hired. (This is why there is a need for stimulus checks at the state level.)

Even if the news is positive for worker salaries and economic growth, it signals that additional rate hikes may be on the horizon shortly.

After the release of the jobs data, several experts stated that low unemployment rates indicate a robust economy and that talk of a recession is exaggerated.

On the other hand, falling unemployment rates alongside rising prices are consistent with a booming inflationary environment.

And the extraordinary tightness of the labour market has continued to be a priority for policymakers at the Fed, particularly because of the differences between job opportunities and the availability of workers, which continue to impose upward pressure on wages.

Ironically, although these positive elements continue to contribute to inflation, which may require the Federal Reserve to remain on its current rate hike plan, this reality feeds the debate regarding the possibility of a recession.

GDP, which is a measure of the price tag of an economy’s output, has decreased for two quarters in a row, even though the unemployment rate is low and continuing its downward trend.

Although this fulfils the requirements for a recession according to the textbook, the White House and the Federal Reserve have both acknowledged that additional indicators do not yet add up to a recession.

It is tempting to spend all of the money right away after receiving a check from your state government, especially if the check was unexpected. If you are in need, paying your bills should be your top priority.

You may, for example, make larger payments toward high-interest obligations such as loans or credit cards, catch up on payments for your home, or even buy supplies for your child’s school. In addition, if you have a limited amount of money set aside for unexpected expenses (often known as an emergency fund), you might consider putting some of your money in savings.

But there is another option for you to consider if you do not require the funds for immediate monetary obligations. That’s right: making financial investments.

Invest your government stimulus money to have a brighter future.

The unemployment rate continues to fall as pay growth is on the rise, even though inflation is growing. An investment in a lump sum could be exactly what your finances need if you are not in danger of getting priced out of your apartment or commuting due to inflation.

The use of dollar-cost averaging is, on the one hand, one of the most effective techniques to reduce the impact of market volatility on your investment portfolio. However, studies of the past suggest that making a lump-sum investment at the right time can provide larger profits over the long run.

And even if the market is going up, the major indices are still going down for the year, so there is still room to make profits even though the market is going up.

You might also decide that you want to invest half of the money and save the other half; after all, it doesn’t hurt to have a backup plan.

In either case, has exactly what it is that you require. (Even if you do not receive a payment from the stimulus package.)

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Through the use of our carefully selected Investment Kits, your money will be put to work for you in the financial markets. In the meantime, the balance of your Cash Reserve will earn a small amount of interest on the funds that have been saved without being exposed to the whims of the market.

Regardless of the state of the economy, this is the method of investment that is both straightforward and astute.

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