By Aman Jain. Originally published at ValueWalk.
In the absence of federal stimulus checks, some states are continuing to send stimulus payments. New Mexico is the latest state to approve sending financial support to residents amid the rise in inflation and increasing gas prices. This New Mexico stimulus check would be in the form of a tax rebate. Eligible individuals will get $500, while households will get $1,000, and the payment will be split in two parts.
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New Mexico Stimulus Check: Who Will Get It?
Earlier this week, lawmakers in New Mexico approved the tax rebate proposal that would send about $700 million to residents. The bill was approved by 35-1 in Senate and 51-13 in the House.
Since this bill doesn’t include any income limits, it is expected to provide a tax rebate to most people regardless of the money they make. About 490,000 people could get this New Mexico stimulus check, according to the Legislative Finance Committee.
A point to note is that the final amount that one gets would depend on their filing status. Individuals who file their taxes will get up to $500 in two payments, while heads of household will get $1,000.
The first payment for single filers will be $250, while for joint filers, it will be of $500. The first payment is expected to come in June, while the second payment would come in August.
Non-Tax Filers Will Also Get Money
Along with the tax filers, the payment would also go to the elderly with little or no income, as well as to undocumented immigrants. This new bill carries a provision, called “relief payment” to offer relief to residents who don’t make enough money to file taxes. There is an application process to claim this money. Applicants will have to give their individual taxpayer identification or social security number.
This relief payment will be on a first-come, first-serve basis, and would last until the $20 million fund is exhausted. A point to note is that people who aren’t eligible for the usual two-part rebate would be eligible for this “relief payment” for non-tax filers.
Though the primary objective of the New Mexico stimulus check is to help residents amid rising inflation and gas prices, many believe it won’t be beneficial in the long run. Many are of the view that such stimulus payments would add to inflation.
“It’s going to be a good boost, but it’s going to add to inflation,” Republican state Rep. Randal Crowder of Clovis said. “It’s going to put more pressure and pain on people who are not going to be able to deal with it. … We’re pouring gas on a roaring fire.”
Democratic Rep. Christine Chandler of Los Alamos notes that the payments would be staggered across months so as to avoid any sudden rise in price levels. Chandler is also a cosponsor of the rebate plan.
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