By Aman Jain. Originally published at ValueWalk.
The rising prices of goods are making it harder for Americans to balance their monthly budget. Despite this, there hasn’t been any federal stimulus so far. In the absence of federal stimulus checks, states are sending targeted relief to residents, and the latest to do so is Hawaii. Governor David Ige recently approved a stimulus check from Hawaii for thousands of residents. The stimulus check from Hawaii will be $100 or $300 (depending on income) and would arrive as soon as this summer.
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Stimulus Check From Hawaii: Who Will Get It?
Governor Ige first proposed the stimulus plan at the start of the 2022 legislative session, and last week, he signed the proposal into law. The stimulus check from Hawaii will be in the form of tax refunds.
“At the start of the 2022 legislative session, we made a commitment to support programs and policies that would help our residents get back on their feet,” Governor Ige said.
To qualify for the payment, residents must file their 2021 state tax return on or before Dec. 31, 2022. The program is expected to cost the state about $250 million.
The amount of money that a resident will get would depend on their annual income. For instance, individuals with an annual income of below $100,000 (or couples earning less than $200,000) will get a tax refund of $300. Taxpayers with an annual income of $100,000 or more (or couples earning $200,000 or more) will get $100. This means an eligible family of four can get up to $1,200 in the form of tax refunds.
How And When Will The Payment Arrive?
Talking about how the payment will come, those who received their 2021 tax refund by direct deposit, will get the stimulus payment in the same account as well. Others will get the payment through a paper check.
According to the state Department of Taxation, the payments will start rolling out in the last week of August.
Those who file their 2021 tax return by July 1, 2022 (and are set to get direct deposit) can expect the money by the end of September. And those who submit their return by July 1, 2022 (and are set to get a paper check) can expect the money by the end of October. Those who file their return after July 1, 2022 can expect a longer wait.
Along with sending the stimulus check from Hawaii, Governor Ige also raised the state’s minimum wage from $10.10 per hour to $12 per hour starting October 1. It is the first raise in the state’s minimum wage since 2018. The minimum wage will further rise to $14 per hour starting Jan. 1, 2024, $16 from Jan. 1, 2026, and $18 from Jan. 1, 2028.
Governor Ige noted that the raise in the minimum wage is “long overdue,” and it would help about 90,000 workers in Hawaii who earn minimum wage.
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