California tax refund: Find out if you qualify for an inflation relief payment

Starting in October, eligible California residents will receive one-time inflation relief payments of up to $1,050. Your eligibility for the middle-class tax refund — and how much you might get — depends on your income, filing status and household size.

The refunds, which are expected to total about $9.5 billion, are part of a larger $12 billion relief package approved by lawmakers in Sacramento in June.

“California’s budget addresses the state’s most urgent needs and prioritizes putting dollars back in the pockets of millions of Californians struggling with global inflation and rising prices for everything from gasoline at the grocery store,” Governor Gavin Newsom said. said in a June 26 statement.

Here’s what you need to know about California inflation relief checks, including who’s eligible for the money, how much they’ll get, and when they can expect to get it.

California is just one of many states offering residents stimulus payments and tax refunds. Find out what are issue tax refunds and who are suspend their gas tax and sales tax.

Who is eligible for the California tax refund check?

According to officials, about 23 million California residents are eligible for the reimbursement plan, which was set up in three tiers based on adjusted gross income on your 2020 California state tax return.

• Single taxpayers who earned less than $75,000 and couples who filed jointly and earned less than $150,000 will receive $350 per taxpayer and another apartment $350 if they have dependents. A married couple with children could therefore receive up to $1,050. This is the largest tranche, KCRA reported, accounting for about 82% of recipients.
• Single filers who won between $75,000 and $125,000 – and couples who won between $150,000 and $250,000 – will receive $250 per taxpayer, plus an additional $250 if they have dependents. A family with children could receive $750.
• Single filers who earned between $125,000 and $250,000 and couples who earned between $250,000 and $500,000 would receive $200 each. A family with children in this bracket could receive a maximum of $600.

Single taxpayers who earned more than $250,000 and couples who earned more than $500,000 combined in 2020 are not eligible.

You can estimate your refund using the calculator on the Franchise Tax Board website.

What are the conditions for benefiting from the tax refund?

In addition to meeting the income requirements, residents must have filed their 2020 tax refund by October 15, 2021, have lived in the state of California for at least half of the 2020 tax year, and still be California residents on the date the payment is issued. .

Also, you cannot have been claimed as a dependent in the 2020 tax year.

When will California tax refunds be paid?

According to the Franchise Tax Board, payments will begin to be made in October. The last should be received mid-January 2023.

How will I receive my refund?

If you filed your 2020 California state income tax return electronically and requested direct deposit for your refund, you will also receive the tax rebate as direct deposit.

Otherwise, you should receive your payment on a debit card.

What if I didn’t file a 2020 California tax return?

Most Californians who did not file a complete 2020 tax return by October 15, 2021 are not eligible for the refund. (The exception is for those who applied for an Individual Tax Identification Number, or ITIN, and did not receive it by October 15, 2021.)

In addition to the tax cut, the state is increasing funding for several social programs, including the State Security Income Supplement/Additional Payment, which helps more than one million seniors and people with disabilities. SSI/SSP benefits will increase by approximately $39 per month for individuals and $100 per month for couples.

There are also increases in California Work Opportunities and Child Responsibility, aka CalWORKS Grants, which provide money and services to eligible families with children.