HOURS remain for Americans to claim a one-time special payment worth $500 – but you have to meet the criteria.
There isn’t long left for Americans to claim on a handy cash boost that will no doubt help as prices rise and budgets stretch.
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The relief comes in the form of a tax rebate that is designed to put the cash back in the hands of the people.
In the state of Georgia, Republican Governor Brian Kemp announced the significant changes not only effecting taxpayers right now, but for years to come.
Kemp said: “We know that this is your money, not the governments, and we know that you know best how to spend it.
“I’m proud to put this money back where it belongs and entrust hard-working Georgians with their own funds, especially as families deal with the high-cost environment that we have been in over the last several years.”
On top of this, the state income tax rate is also dropping to 5.19%, and will continue to decrease next year, per WTOC.
This will mean Georgians will pay less income tax in the coming years, which will see more money in their pockets.
RESIDENTS REACT
People in the state have reacted to the positive news.
Steven Williams, a resident of Hinesville, said: “Amazing, amazing.
“Coming from a small town in Hinesville, Georgia, good to know someone is looking out for us as Americans, we’re good.”
But experts aren’t all that surprised that those in Georgia are being rewarded.
Georgia Southern university’s Economic Professor Michael Toma says that it’s because Georguia’s econonmy is outpacing the national one.
Toma added: “The state has basically said: Oh, we’ve had some really good couple years, we believe that the taxpayers in Georgia deserve to share in some of this surplus.”
HOW TO BE ELIGIBLE
There are a few key things to know before the rebate is given out.
Georgians will have to meet three basic eligibility requirements before they can get their hands on the $500.
Namely, any Georgian who was a full year resident in 2023 and 2024 and who also filed a timely Georgia individual income tax return for 2023 and 2024 is eligible.
The Georgia government website also states that part-year and non-resident filers who file Georgia individual tax returns for both 2023 and 2024 will be eligible for a proportional refund.
This refers to an amount equal to the maximum amount you are eligible for based on your filing status, multiplied by the share of that brackets taxable income.
Majority of Americans plan out tax refund spending half a YEAR in advance
A new study conducted by Talker Research has found a third of Americans plan out what to spend their tax refund on half of a year in advance.
The new poll of 2,000 U.S. taxpayers found 79% believe they’ll get some sort of refund this year, and many of them have already planned out what to spend it on.
A majority (52%) said their tax refund is an important part of their budgeting plans, and 77% plan to spend their refund on necessities.
Chief among necessities were bills like rent (52%), groceries and essential items (44%) and credit card debt (37%).
Over half (56%) of those spending their refund money on credit card debt are specifically targeting their holiday season purchases.
Meanwhile, 8% are planning to spend their refund on luxuries.
They’re spending their refund on new clothes (37%), entertainment (28%) and new phones (26%).
Commissioned by TaxSlayer and conducted by Talker Research, the study found the average person hopes to receive roughly $1,700 in tax refund money this year.
A fifth (22%) believe they’ll end up with more money this year than last, while 26% believe the opposite. Half (51%) expect to receive about the same amount.
Last year, 12% said they got a larger-than-expected tax refund, while 20% recalled getting less than what they expected.
Many respondents expecting to receive more this year said it was due to withholding more money on their W-2, making more money in the past year and having a newborn.
And those expecting to receive less shared potential causes why: losing their job, owing back taxes, children aging into adulthood and increased tax rates.
Survery by Talker Research.
For example, if you are filing with your spouse, you may be entitled to more or less of the cash.
Single filers and married individuals who file separately receive a maximum refund of $250.
Head of Household filers receive a maximum refund of $375, and married individuals who file joint returns receive a maximum refund of $500.
The third and final criteria is submitting your tax return by the deadline, which is approaching very quickly.
Families in Georgia have until May 1 to file their tax returns, but if you have already filed you will be eligible for the $500 rebate.
For more information you can access the FAQ section of the government website here.
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