Since the 2024 tax season is over, Americans are now looking at the changes that the Internal Revenue Service (IRS) will implement for the 2025 campaign, and while the Federal Government does not seem to be making many changes to rebates and credits, state-issued stimulus and tax refund programs are giving some much-needed breathing room and support to low and middle-class Americans, which is making their lives a bit easier.
Since there is such an uncertainty surrounding the Trump presidency and federal politics, states are taking matters into their own hands and offering relief to their residents through stimulus checks, refunds, or rebates, especially now that many Federal Programs have been discontinued or are about to be. The last of the federal stimulus credits was the 2021 Recovery Rebate Credit, which let eligible people claim up to $1,400, but the deadline to file and qualify was April 15, 2025, and there have not been any extensions announced or any new federal stimulus rounds announced by the IRS or the Trump administration.
While some may argue that the “$5,000 DOGE dividend” could still be coming, this rumor has been debunked already and, besides knowing it would not work as there would not have been enough money to do this in the first place, inflation concerns about adding to the national deficit have made big new federal spending ideas a tough sell for lawmakers of both parties.
The credits that the states are implementing to support residents in lieu of the IRS’s rebates
While there are many programs that states have implemented through the years that are still going strong, some of the active ones in 2025 are:
- California: The State is in round three of its own stimulus program and is sending out payments between $200 and $600 from June 7 through June 21. To qualify, you had to file your 2023 California state tax return and meet certain income requirements and how much you get also depends on your filing status and how many dependents you have. If you want to see your status you will need to check with the California Franchise Tax Board, but if you are eligible you do not need to take any additional steps.
- Texas: In this State, low-income seniors are getting a one-time $150 payment to help cover their utility bills. These checks are going out from June 7 to June 21 and to qualify you just need to be 65 or older, fall under the state’s income cap, and live in Texas. The only drawback is that it is not automatic and to get it applicants must contact their local utility provider through the Texas Department of Human Services. Requirements can vary depending on the utility company.
- Georgia: Taxpayers who filed on time are getting what the state calls surplus tax refunds which amount to $250 for single filers and $500 for joint filers. To get this you need to have filed your 2023 and 2024 tax returns by May 1, 2025, to be eligible and your 2023 federal adjusted gross income is the key figure used to determine the amount. There is no extra paperwork required and you can track your refund through the Georgia Department of Revenue website with your Social Security or Taxpayer ID number and your 2023 AGI.
- New Mexico: Residents who filed their 2024 state tax returns are getting automatic refunds between June and July that will cap at $500 for individuals and $1,000 for couples. There are no extra steps as long as you filed. As usual, eligibility also depends on residency and state criteria, and you can find more details on New Mexico’s Taxation and Revenue site.
- New York; This State is sending out inflation relief rebates up to $400 starting mid-October for those who file Form IT-201 for the 2023 tax year. If you qualify, the rebate is automatic.
- Virginia: This State will distribute tax refunds later this year but only to those who file their returns by November 3, 2025.
- Pennsylvania: This State has a property and rent rebate program that is open for applications until June 30. It is income- and residency-based, but you should check if you qualify.
- Arizona: This State is handing out rebates for dependents, which amount to $250 per child under 17 and $100 for those older.