Minnesota Stimulus Check: New Proposal To Send $500 To Taxpa...| MENAFN.COM

Thursday, 18 August 2022 04:28 GMT

Minnesota Stimulus Check: New Proposal To Send $500 To Taxpayers

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Federal stimulus checks may have run dry, but stimulus payments from states continue to flow in. Moreover, several states are still working on proposals to offer stimulus money to residents, and the latest state to do is Minnesota. The Minnesota stimulus check proposal, if approved, would offer $500 to residents meeting the eligibility criteria. State Representative Dan Wolgamott, working in conjunction with Governor Walz, introduced this proposal on Tuesday.

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Minnesota Stimulus Check: Who Will Get It?

As per the proposal, called HF 4625, single filers would get a Minnesota stimulus check of $500, while couples filing jointly would get a one-time payment of $1,000. The state would use the budget surplus to send out the Minnesota stimulus check.

“With a $9.25 billion surplus, we can afford to make direct payments to taxpayers while also investing in the critical needs of our state,” Wolgamott said in a press release .“I'm proud to work with Governor Walz to put money in the pockets of Minnesotans as families cope with unprecedented rising prices and economic challenges .”

If the proposal is approved, eligible residents will start getting the checks in their mailboxes by late summer. To qualify for the payment, people need to be a resident of the state in 2020, filed their 2020 tax returns by Oct. 15, 2021, as well as claimed refunds in 2021 for property taxes paid toward rent taxes in 2020.

Moreover, single filers who earn more than $164,400 (over $273,470 as married couples filing jointly) won't qualify for the Minnesota stimulus check. Similarly, the head of households with taxable income of more than $218,540 and married individuals filing returns separately with income of more than $136,735, won't qualify for the stimulus payment as well.

Gov. Walz Favors Direct Payment Over Gas Tax Holiday

At a time when many states are pushing for a gas tax holiday , Gov. Tim Walz favors sending rebate checks to help people combat inflation. Walz believes that sending direct payments is more effective than suspending the state's 28-cent per gallon gas tax.

“I think this money in the hands of folks before summer would make a good difference. And it's fiscally responsible,' Walz told reporters recently.

The governor believes the relief under a gas tax holiday would be much slower than sending a direct stimulus payment. On the other hand, Republicans, who control the Minnesota Senate, prefer permanent income tax cuts.

Separately, many states have suspended their gas tax temporarily to offset the impact of rising gas prices. For instance, Connecticut Governor Ned Lamont, last week, signed emergency legislation that calls for suspending the state's $0.25-per-gallon tax from April 1 to June 30. Similarly, Maryland and Georgia have also temporarily suspended their states' gas taxes.

Other states that are considering gas tax holidays are Ohio, West Virginia, New York, and New Jersey. The ongoing war between Russia and Ukraine has pushed gas prices to near record highs. According to AAA, the national average price of gas currently is around $4.24, compared to $2.86-per-gallon 12 months ago.

Updated on Mar 31, 2022, 2:08 pm


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