Economy

Tax Rebate Stimulus Checks From Hawaii To Come Starting Next Week

Some extra monetary help is coming for most Hawaiian taxpayers next week. Eligible taxpayers will start getting tax rebate stimulus checks from Hawaii of up to $300 over the next several weeks.

This latest stimulus check is actually a constitutionally mandated tax rebate fueled by an increase in state tax revenue.

Tax Rebate Stimulus Checks From Hawaii: When To Expect Them

On Tuesday, Gov. David Ige announced that eligible taxpayers would start receiving the state tax refunds next week. The governor noted that the refund would either arrive by direct deposit or a paper check in the mail.

“It is my hope that the $300 million in tax refunds being distributed so far, bring some relief to the hardworking people of the State of Hawaii who were hit hard by the pandemic,” Gov. Ige said.

The first round of direct deposits will start hitting bank accounts on or around Monday and will continue over the next two weeks. Deposits through paper checks could take longer due to the supply shortage of paper checks.

According to the taxation department, the state currently has 50,000 checks in stock, and it will be issuing the paper checks in batches of 2,000 until a new shipment arrives. The department expects all paper checks to be issued by the end of October.

The law requires Hawaii to send money back to taxpayers or put the money into a rainy-day fund if the carry-over balance of the past two years is more than 5%.

Lawmakers did both during this year’s legislative session. They approved a tax rebate, as well as added $500 million to the state’s rainy-day fund.

Who Will Get It And How Much?

Individuals earning less than $100,000 (couples earning less than $200,000) in 2021 will get $300 per person, as well as $300 for each dependent.

So, a family of four could get up to $1,200 in a tax refund. Those earning more than the above income threshold would get $100 per person (including dependents).

Further, taxpayers need to be a resident of Hawaii for at least nine months and have filed individual income tax returns for 2021 by July 31 to qualify for the rebate.

Those who filed their return after July 31 will get the money up to 10 weeks after acceptance of their return by the DOTAX (Department of Taxation).

It is estimated that about 600,000 taxpayers will receive tax rebate stimulus checks from Hawaii totaling about $294 million. About 89% of taxpayers are expected to get $300, while 11% could qualify for $100.

Taxpayers don’t need to take any further action to get the rebate money. The rebate will be sent automatically to eligible taxpayers.

“As long as you’ve been here in the state for nine months, and you have filed your 2021 (Hawaii) income tax return, you do not need to do anything more,” Gov. Ige said.

This article originally appeared on ValueWalk

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