(KRON) — Inflation relief payments are coming to some Californians, but they will not hit bank accounts until October 2022 at the earliest. The payments are officially called the Middle Class Tax Refund.
For Californians that qualify, payments will be received automatically between October 2022 and January 2023. The state has five qualifications that residents must meet to be eligible.
California stimulus check calculator: See the size of your refund
Qualifying for the California middle class tax refund
Residents must have filed their 2020 tax return by October 15, 2021, to be eligible. However, people who applied for an Individual Taxpayer Identification Number but did not receive it by October 15, 2021 have an extended deadline to file their return by February 15, 2022.
To receive a payment, your salary must have been less than $500,000 in 2020. The exact size of the tax return varies based on salary and whether you claimed a dependant, ranging from $200 to $1,050. For more on calculating the size of your tax return, click HERE.
There are three other qualifications that need to be met to receive the payment
- You must not have been eligible to be claimed as a dependent in the 2020 tax year
- You must have been a California resident for at least six months during the 2020 tax year
- You must be a California resident on the day the payment is issued.
The payments will come either through direct deposit or on a debit card. People who filed electronically and received their 2020 tax refund by direct deposit should get their inflation relief payment the same way. Otherwise, the payment will come on a debit card.
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Anyone with additional payments can call the State of California’s Franchise Tax Board at (800) 542-9332 on weekdays from 8:00 a.m. to 5:00 p.m.
Tax filers will get either $350, $250 or $200 based on their income level. A family can receive up to $1,050.
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SACRAMENTO, Calif. — 23 million Californians are set to get "inflation relief" payments after an agreement was reached Sunday on the 2022-23 state budget.
"The centerpiece of the agreement, a $17 billion inflation relief package, will offer tax refunds to millions of working Californians. 23 million Californians will benefit from direct payments of up to $1,050," according to a joint statement from Gov. Gavin Newsom, Senate President pro Tempore Toni G. Atkins and Assembly Speaker Anthony Rendon.
It's meant to come to the aid of people like Dashawn Williams, who has has a four-year-old and another child on the way.
“It's been hard to afford a lot of things," Williams said. "I mean, honestly, what usually used to be like $30 goes up to $80.”
While he’d like the relief now, he knows exactly what he will spend the money on come October at the earliest.
“Diapers and food at this point," he said. "Honestly, just the essentials to keep the bills low and just survive.”
The direct deposits are for people who filed tax returns in 2020 and are on a sliding scale of income. The breakdown is as follows:
- Those who make less than $75,000 a year will get $350.
- Those who make less than $125,000 a year will get $250
- Those who make less than $250,000 a year will get $200.
- Taxpayers with dependents will get an additional $350.
- The most a family can get is $1,050.
“I think that would be very helpful," said Ray Vargas. "And sounds kind of amazing, honestly.”
Vargas and many others already know exactly what they'll spend it on: essentials.
“Probably a bill," Barbara McCullough said. "Pay a bill.”
However, those like retirees, who no longer pay income tax, will not get the direct deposit.
“They have to go through the same thing we do that file our taxes," McCullough said. "I think they should be a part of it also.”
The budget does however include additional grant funding for those on the state's Supplemental Security Income Program meant for those 65 and older, disabled or blind.
What else is in the budget?
Gas Tax
The package will also include a suspension of the state sales tax on diesel, and additional funds to help people pay their rent and utility bills
Climate Change
Funds will go toward securing additional power-generating capacity for the summer, accelerating clean energy in the future, and expanding the ability to prepare for and respond to severe wildfires.
Health Care & Education
California would be the first state to offer healthcare to every resident, regardless of immigration status, as part of a $47 billion multi-year infrastructure and transportation package for education and health care.
More than $200 million will go towards reproductive care services.
Billions of dollars will go toward additional funding for universal preschool, children’s mental health and free school meals.
“In the face of growing economic uncertainty, this budget invests in California’s values while further filling the state’s budget reserves and building in triggers for future state spending to ensure budget stability for years to come," according to a joint statement from Gov. Gavin Newsom, Senate President pro Tempore Toni G. Atkins and Assembly Speaker Anthony Rendon.
Related Articles
- 23M Californians to receive 'inflation relief' payments as part of state budget agreement
- Cash payments for most taxpayers included in California budget
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Survey: 1 in 3 Californians suffering because of inflation, economy
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Is California getting another stimulus check in 2022?
If you didn't previously receive a GSS debit card but are slated to receive a debit card for your California stimulus payment, expect your payment to be in the mail between December 5 and 31, 2022.When to expect California stimulus check 2022?
Direct deposits typically occur within 3-5 business days from the issue date, but may vary by financial institution. Allow up to 2 weeks from the issued date to receive your debit card by mail. We expect about 90% of direct deposits to be issued in October 2022.Who gets California stimulus Check 2022?
You must have been a resident of California for six months or more in the 2020 tax year and be a current state resident.Will there be a 4th California stimulus check?
SmartAsset: What States Are Paying a Fourth Stimulus Check? California: California will be giving payments of up $700 for joint filing couples earning less than $150,000 annually, with individuals qualifying for up to $350.