A NEW proposal would give 2.5million households checks while many seniors enjoy lower taxes on Social Security benefits.

Minnesota Governor Tim Walz proposed the payments as part of his two-year plan for state spending and taxes.

Millions of households could get financial assistance under a new proposal
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Officials are estimating a record-breaking surplus of $17.5billion which would be distributed to schools, paid worker leave and tax breaks.

These measures are expected to cost about $16billion of the total surplus.

“As the economy brings pressures onto families, we have the capacity to relieve some of those,” Walz said.

“Whether it’s reducing the cost of child care, or whether it’s putting checks and money back in people’s pockets.”

HOW MUCH CAN I GET

Hundreds of thousands of families could miss out on this direct payment due to lowered income limits, making them a bit more lucrative.

In 2022, the income limits were $164,400 for individuals and $273,470 for married couples.

For this round of payments, individuals making less than $75,000 a year would receive $1,000.

Meanwhile, married couples making less than $150,000 would get $2,000.

Parents would receive an additional $200 per dependent child, up to $600.

The budget estimates a total of $8billion in tax cuts, including tax credits for families with children.

As many as 473,000 Social Security recipients would save an average of $278 per year under the proposed tax changes.

In Minnesota, 55 percent of Social Security recipients already don’t pay taxes.

MORE DIRECT PAYMENTS

Historically high surpluses have led many states and cities to offer their own direct payments to help cash-strapped residents.

Since October, millions of California residents have been getting rebates ranging from $200 to $1,050.

Known as the Middle Class Tax Refund, residents can expect the payment to come either by direct deposit or debit card.

The state has said all eligible residents should have their payments by the end of this month.

In Chelsea, Massachusetts a universal basic income (UBI) program has moved into its second phase – providing 700 residents with payments of up to $400.

The first phase offered 2,000 households monthly payments from November 2020 to August 2021.

Idaho residents can claim as much as $600 as part of a rebate program.

The Idaho State Tax Commission expects to send roughly 800,000 rebates by the end of March 2023.

If you’re a parent see how you can claim almost $15,000 in yearly tax credits.

Plus, take 30 seconds to make a simple change that will speed up your tax return.

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