Inflation Decreases, But Relief Checks Continue: Tax Refunds And Relief Checks In 2023

The Bureau of Labor Statistics reported that the year-over-year inflation rate as measured by the Consumer Price Index (CPI) was 6.5% at the end of December, which is a decrease from the 7.1% rate in November.

States will continue to send inflation relief checks even though inflation has decreased. These checks, approved last year to address high prices, will be sent in January 2023 and later.

In January 2023, California will mail Middle-Class Tax Refund checks of up to $1,050. Payments started in October and will continue until January.

In Colorado, taxpayers who requested an extension for their 2021 tax return, which was due on October 17, will receive up to $750 by January 31, 2023.

Hawaii residents earning less than $100,000, or $200,000 for joint filers, will receive a one-time refund of $300. Those earning more will receive $100. Direct deposit refunds began in August, and returns filed between July 31 and December 31, 2022 will be deposited within 10 weeks or checks will be mailed within 12 weeks of acceptance.

In Idaho, Governor Brad Little authorized $600 tax refunds. Payments began in September and will continue through January 2023.

In Massachusetts, refunds of 14% of state tax liability began in November. Taxpayers who filed before October 17, 2022 received their refund in December. Payments will be sent one month after filing for returns filed after October 17, 2022 and until September 15, 2023.

In New Mexico, residents can still receive a refund of $500 for single filers and $1,000 for joint filers. The deadline to file 2021 income tax returns and qualify for a refund is May 2023.