During times of economic crisis or downturn, the direct intervention of state and federal governments in the form of stimulus payments is a direct approach for these governments to assist citizens in coping with immediate financial expenses of a financial nature. Not only do they assist individuals in coping with the cost of living, but they are also helpful as a preventative strategy against the occurrence of a recession by encouraging folks to spend money. It was just recently announced that New York has resumed their STAR stimulus payments for the summer, and it is possible that you are eligible to participate.
The use of stimulus payments helps to stimulate spending in the economy.
It is common practice to define a recession as the contraction of the economy that occurs over the course of two consecutive quarters of negative GDP growth. A situation like this arises when there is a rise in the rate of unemployment and a decrease in consumer spending, in addition to a decline in incomes and a reduction in company investment. The COVID-19 pandemic had a significant impact on the United States economy, particularly near the beginning of the year 2020, which was the time when the virus was first discovered.
In the midst of widespread job losses, skyrocketing inflation, and unemployment statistics that have not been seen since the Great Depression, the federal government released three rounds of stimulus payments, which are known as Economic Impact Payments (EIP). The purpose of these payments was to assist families in coping with significant household income loss and to encourage increased economic spending.
This most recent tax season was the final opportunity for citizens who were eligible to make a claim for the third EIP, which was initially made available in March of 2021. The amount of the payout was $1,400, and those who were entitled to receive it had three years to submit their claim. The EIPs continue to be the last federally financed stimulus payments that have been made available to the general public, despite the fact that there have been speculations that the federal government is planning to make additional stimulus payments in the near future. However, no official from the White House has confirmed this information.
Find out if you are eligible for New York State STAR payments.
State governments have continued to provide their own funds to assist in providing support for their citizens, despite the fact that the federal government has not made any definite intentions to release any stimulus payments. Individuals all around the country are still having a difficult time coping with the increased cost of living, despite the fact that inflation rates have reverted to their pre-COVID-19 levels and have stabilized.
In particular, New York is one of the states that has made a concerted effort to reduce the cost of living in day-to-day life. Significant efforts have been made in this year’s budget to provide financial relief to residents of the state, which is well recognized as being among the states with the highest cost of living. New York homeowners who are eligible for the School Tax Relief Program (STAR) for homeowners are eligible to receive annual property tax relief. This program is one of the programs that people can apply for.
According to the New York Department of Tax and Finance, in order to be qualified for the program, you are required to fulfill the qualifications that are listed below:
- If you are a homeowner, your income must be less than $500,000 per year.
- Your principal residence must be the property in question.
In the event that you have not yet registered for the program, you must first ensure that you have submitted your income statements for the year 2023 and that you have verified your address with the New York State Tax Department before you can join up for the program.
The state of New York is working to make its residents more affordable.
Residents of New York have expressed their appreciation for the recent budget proposal made by Governor Kathy Hochul, which prioritized making the state more affordable to live in:
“{We plan to] transform New York into the best, most affordable place to start and raise a family,“ says Gov. Hochul during a press conference in May
Families who are receiving public assistance and have recently welcomed a new baby are eligible to receive a one-time payment of $1,800 known as the Birth Allowance for Beginning Year (BABY) benefit stimulus payment. This payment can be used to offset the costs of a newborn, use it as a starting payment for a college fund for their children, or put it toward a savings account that their children will have access to once they become legal adults. This payment is one of the many that are available to families who meet the requirements.
