Americans look forward to bagging as much rebate payment as possible in April. It has been announced that Alaska’s Permanent Dividend Fund (PDF) and the Colorado Property Tax Rebate will be sending out cash in April 2023.
While the Colorado rebate is aimed to assist low-income seniors to build a house for themselves, the latter represents a definite portion of the state’s energy profits. However, the latter isn’t limited to the seniors alone, but that is sent to most residents each year.
Additionally, Millions of Americans are ecstatic to receive their next boosted Social Security Check which would be the fourth Social Security Check in total.
Here are the details about each payment:
1 Alaska Payment
Alaska distributes a Permanent Fund Dividend to anyone who is an American resident. It is usually paid once every year. Since it is paid to any resident, there are no further criteria that will favour someone over another. Everybody is paid equally.
The basis for how much a person will receive depends on when they filed for their tax return. The American resident, who was confirmed to be a resident and yet classified as not-paid on April 12 is asked to pay on or before April 20. He/she would receive the fund in April.
Meanwhile, those who had already filed a tax return on March 8, after being considered as Eligible-Not Paid as of that particular date received their payment on March 16, Thursday. As of 2022, the PDF was a total of $3,284, which is also a taxable income.
2 PTC payment
PTC payments are generally focused on financially boosting the elderly and disabled residents. It is a criteria-based payment where the person to receive the benefit should be at least 65 years old, or be disabled at any age, and should have a surviving spouse who is aged 58 or more.
In addition to that, their annual income should not exceed $16,925 in case they are single. But if they are married and filing jointly then their annual income should be less than $22,858.
Furthermore, the person should be a Colorado resident from last year. When someone fulfills all the aforementioned conditions, then they will receive a sum of $1,044. Those who have filed for their rebate on or before March 10 will either receive the cash on April 5 or a check on April 15.
3 Social Security
Following the 2023 Cost of Living Increase (COLA), almost all the Social Security payments are raised by more than 8% and the increased fourth Social Security check will start issuing on April 12. As the name indicates, the program is meant to provide financial aid to the residents so that they can cope with inflation.
Earlier this month, Finance Minister Nirmala Sitharaman suggested raising the income tax rebate from 5 lakhs per annum to 7 lakhs per annum. Until the declaration was made, individuals with income up to 5 lakhs were not supposed to pay any kind of tax.
But in the budget proposal she made in the parliament, it was announced that nobody will be subjected to paying any tax regime if their income came within the limit of 7 lakhs per annum. The members welcomed FM’s proposal with applause as the majority of them supported her opinion.
In addition to making a significant move in the major budget announcement, Sitharaman further announced new tax rates which literally canceled any kind of burden on people who were receiving zero to three lakhs per annum.
Those who receive at least three to six lakhs per annum are required to pay 5% of their income as tax. Anyone with 6-9 lakhs, 9-12 lakhs, 12-15 lakhs, and above 15 lakhs is required to pay tax as 10%, 15%, 20%, and 30% respectively.
According to Sitharaman, the tax rates were updated in order to bring major relief to anyone in the new regime. An individual who was initially supposed to pay 60,000 rupees for an annual income of 9 lakhs is only asked to pay 45,000 as tax, which is only 5% of their income.
It also implies a 25% reduction as well. Similarly, anyone who earlier had a tax liability of 1,87,500, since their annual income lies somewhere around 15 lakhs, now only be required to pay 1.5 lakhs, which is only 10% of their income.
After the Minister declared her part, many opined that the new income tax system has the potential to be considered the standard system. But they further added that if anyone is willing to stick to the previous version, which hands over an individual with extra financial liabilities, then they can continue to do so as they would be still open to benefits in that case as well.