Stimulus checks from the state of Hawaii are expected to be rolled out next week totaling more than $400 million – but it’s not related to the federal coronavirus relief programs. The Hawaii Department of Taxation is sending more than $400 million in tax refunds and homestead exemptions to taxpayers over the coming months for tax years 2018 and 2019, due to a tax credit approved last year by state lawmakers.
The decision follows a lawsuit filed against the state by the American Civil Liberties Union of Hawaii, which alleged that the state was illegally holding onto hundreds of millions of dollars in taxpayer refunds and homestead tax credits by delaying their distribution during the pandemic, resulting in “prolonged financial stress” for taxpayers who were stuck waiting for their stimulus checks.
Tax rebate stimulus checks from the state of Hawaii will be starting next week, totaling more than $400 million – but it’s not related to the federal coronavirus relief programs. The Hawaii Department of Taxation is sending more than $400 million in tax refunds and homestead exemptions to taxpayers over the coming months for tax years 2018 and 2019, due to a tax credit approved last year by state lawmakers.
The decision follows a lawsuit filed against the state by the American Civil Liberties Union of Hawaii, which alleged that the state was illegally holding onto hundreds of millions of dollars in taxpayer refunds and homestead tax credits by delaying their distribution during the pandemic.
Stimulus Check Money Still Due
The refund checks are going out to people who had gotten a tax refund in 2019, including those who receive unemployment benefits, food stamps and Social Security. The amount of the stimulus check was based on how much you earned in your paycheck last year.
For example, if you got a paycheck for $3,000 and your partner brought home another $2,000 from their job, then both of you would be eligible for a stimulus payment of about $600 each. If you are one of the lucky ones who gets a surprise check, it’s a good time to pay down your debt or save money.
“If you’ve got an extra $500, use it to pay off credit cards,” said Michelle Lovitt, founder of MoneyNing.com and author of The Money Nanny: A Financial Survival Guide for Women Who Want to Stop Living Paycheck to Paycheck. “Or if there’s no debt, put half in your emergency fund and keep half in savings.”
To make sure this is only a once-in-a-lifetime windfall, Lovitt recommends setting up an automatic transfer into separate savings and checking accounts so that when your next paycheck comes in, all that extra cash has been spent on expenses or spent elsewhere by then — otherwise there’s nothing stopping you from figuring out ways to spend more than necessary!
