(NewsNation) — Amid painfully high inflation and rising interest rates, at least 20 states are offering one-time tax rebates and tax credits to help residents cope with the rising cost of living. Inflation expectations have risen sharply in November, according to Moody’s Analytics, and consumers’ wallets continue to be stretched thin.
Americans are experiencing the worst bout of inflation in four decades. In October, rates came down to 7.6% from a June high of 9.1%. The annual core inflation rate currently sits at 6.3%, the U.S. Labor Department recently reported. In an effort to help, states are offering tax cuts and rebates.
Eligible taxpayers in Massachusetts will receive a credit in the form of a refund that is approximately 14% of their 2021 personal income tax liability. As an example, a person who made $50,000 last year and paid the state back $2,500, could get about $350 back.
In June, about 3 million New York state homeowners started receiving property-tax rebates of up to $1,050. New York City households got an average of $425 back. Also, residents who are earning below $75,000, are expected to receive an average of $1,050 dollars.
Some states are offering rebates to families with children. Florida, Illinois, Connecticut, Rhode Island, Minnesota and Pennsylvania are among 12 states distributing child tax credits. The tax credits vary in amount per state and are intended to provide financial relief for low-income parents and their children.