Stimulus payments are a direct way for state and federal governments to intervene and help citizens cope with immediate financial expenses during times of economic crisis or downturn.
Not only do they help individuals cope with the cost of living, but they are also useful as a preventative measure for a recession occurring by encouraging individuals to spend money. New York has recently begun their STAR stimulus payments again this summer, and you may be eligible to take part.
Stimulus payments help to stimulate economic spending
A recession is usually defined as the shrinking of the economy over two consecutive quarters of negative GDP growth. This occurs when there is increased unemployment and low consumer spending, as well as declining incomes and reduced business investment. The COVID-19 pandemic marked a period of recession in the US, specifically during the start of 2020 when the virus was first reported.
Amidst widespread job loss, skyrocketing inflation, and unemployment statistics not seen since the Great Depression, the federal government released three rounds of stimulus payments, known as Economic Impact Payments (EIP), as a way to help families cope with major household income loss as well as to encourage increased economic spending.
This most recent tax season was the last chance eligible citizens could claim the third EIP, first released in March 2021.
The payment amounted to $1,400, and eligible beneficiaries had three years to claim it. Despite rumors of further stimulus payments set to be released by the federal government, no such confirmation has been made by a White House official, and the EIPs remain the last federally funded stimulus payments released to the public.
Check if you qualify for New York STAR payments
While the federal government has not made any confirmed plans to release new stimulus payments, states have continued to release their own payment to help support citizens. While inflation rates have stabilized and have returned to pre-COVID-19 statistics, individuals across the nation are still struggling to cope with rising cost-of-living.
New York is one state in particular that has made a concentrated effort to make everyday living more affordable. Known for being one of the most expensive states to live in, this year’s budget includes significant attempts to provide financial relief to citizens. One program citizens can apply for is the School Tax Relief Program (STAR) for homeowners, where New York homeowners can receive annual property tax relief.
According to the New York Department of Tax and Finance, to be eligible for the program, you must meet the following requirements:
- You must be a homeowner with income less than $500,000
- The property must be your primary residence
If you have not yet registered for the program, make sure that you have filed your 2023 income statements and verified your address with the NYS Tax Department before signing up for the program.
New York sets out to be more affordable for citizens
Governor Kathy Hochul’s recent budget announcement has been praised by residents of New York for its priority of 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
One such payment on offer for qualifying families is the once-off Birth Allowance for Beginning Year (BABY) benefit stimulus payment, where families who are receiving public assistance and have recently welcomed a new baby are eligible to receive a $1,800 payment which they can use to offset the costs of a newborn, use as a starting payment for a college fund for their children, or put it towards a savings account for their children to have access to once they become legal adults.
Disclaimer: Our coverage of stimulus checks, tax reliefs, tax rebates, tax credits, and other payments is based on the official sources listed in the article.
All payment amounts and dates, as well as eligibility requirements, are subject to change by the governing institutions. Always consult the official source we provide to stay up to date and obtain information for your decision-making.
