Residents of Low-Wage Red States Collect Biggest Stimulus Checks

May 13, 2020by Bloomberg News (TNS)
People have until noon Wednesday to submit bank account information if they want to receive stimulus payments by direct deposit. (Dreamstime/TNS)

WASHINGTON — Residents of lower-income states that voted for President Donald Trump got bigger stimulus checks in general than those in wealthier coastal enclaves that tend to back Democrats, according to data from the Internal Revenue Service.

The demographics of such red states as Utah, Idaho and South Dakota helped residents collect average stimulus payments topping $1,800. Relatively lower wages in these states mean more adults were likely to qualify for the full $1,200 payment, which starts to phase out at $75,000 in individual income. And the additional $500 per child bolstered the typical check size in Utah and Idaho, where the average family has more than two children.

The average payment going to taxpayers in states that voted for Trump in 2016 is $1,727 compared with $1,661 in states that backed Hillary Clinton.

Taxpayers in Mississippi and West Virginia are amassing the biggest influx of stimulus cash as percentage of their state’s economy.

As of May 8, the IRS issued about 128 million stimulus payments — worth about $217 billion — of the approximately 150 million it anticipates sending out. The agency is beginning to process a tranche of paper checks that are expected to reach mailboxes in late May or early June.

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©2020 Bloomberg News

Distributed by Tribune Content Agency, LLC.

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