With Americans having a hard time with ongoing inflation and increasing cost of living, those times of across-the-board federal stimulus payments such as the $1,600 payments which were witnessed in recent times are behind us. But people in some states and cities continue to dream about further tax relief and direct payments in 2025. Here is everything that you need to know about the new round of state-specific stimulus payments, from eligibility, and how you can receive your benefit.
No new federal nationwide stimulus but states fill the gap
The federal government has not sent out any new, nationwide $1,600 stimulus payments that are due in 2025. The last big federal payments went to individuals who had not yet received earlier rounds, mostly through the Recovery Rebate Credit on 2021 or 2022 tax returns. That door has closed.
Rather, a patchwork of state and local relief is filling the gap to offer targeted support. The rebates, tax credits, and payments are intended to help residents cover inflation, property taxes, and other increasing costs.
Which states are sending stimulus checks or tax relief in 2025?
A number of states have introduced new or continuing relief programs in 2025. Below is a summary of the most notable:
Colorado: TABOR Refunds up to $1,600
- Eligibility: File a 2024 Colorado state income tax return.
- Amount: Single filers up to $800, joint filers up to $1,600.
- Timeline: Mid-2025 payments due, deposited by direct payment or check.
Alaska: Permanent Fund Dividend
- Eligibility: Alaskans who have resided there for a year and filed by March 31.
- Amount: Estimated at $1,702 per individual in 2025.
- Timeline: Payments usually disbursed July through October.
New York: STAR Credits and Inflation Rebates
- Eligibility: Homeowners in the School Tax Relief (STAR) program or residents qualifying for the inflation rebate.
- Amount: STAR credits of $350 to $1,500; suggested inflation rebates of $300 to $500, subject to final approval.
- Timeline: STAR credits issued by summer 2025; inflation rebates starting as early as fall.
California: Golden State Stimulus and Local Rebates
- Eligibility: Income and residency requirements; check the state portal for specifics.
- Amount: Up to $725 per qualifying household.
- Timeline: Payments are released from summer through fall.
Other states and local programs
- Georgia, Florida, Massachusetts: With regard to considering or issuing bonus payments or tax refunds, with state-specific deadlines.
- Virginia: Rebate payment of $200 (single filers) or $400 (joint filers) to those who file a 2024 return by Nov. 3, 2025.
How to check your eligibility and claim your payment
Each state has a different application process and eligibility. Below are general steps:
- File your state tax return: Most payments depend on recent tax returns. Have your 2024 return filed.
- Check official portals: Go to your state’s Department of Revenue or Taxation website for payment tracking and eligibility screens.
- Direct deposit preferred: Payments will usually come faster if your bank information is on file.
- Paper checks or debit cards: Or receive a prepaid debit card or mailed check within six to eight weeks after eligibility has been determined.
Stay informed by following your state tax agency and be in line first in filing your returns to qualify for any relief you may be eligible for.
