By: Zachary Lopez (ZachNews)
Sources: State of California and California Franchise Tax Board (Information)
California: The State of California will be sending out inflation relief checks in October 2022.
According to the State of California, the program known as the “Middle Class Tax Refund” will see direct payments being sent out to more than 20 million Californians.
The size of the payments will range from between $200 to $1,050, based on factors that include your income and number of dependents.
To help you calculate how much you’ll receive, the State of California has created a Middle Class Tax Refund Estimator tool that allows you to plug in your information to find out how much you will get.
To find out how much you will receive in your payment, please go to the California Franchise Tax Board at: https://www.ftb.ca.gov/about-ftb/newsroom/middle-class-tax-refund/middle-class-tax-refund-estimator.html
The payments will be issued one of two ways, either through direct deposit or through debit cards.
If you filed your taxes electronically, you can expect a direct deposit.
Individuals who make more than $250,000 a year and joint filers or head of households who make more than $500,000 won’t quality to receive the Middle Class Tax Refund.
Calculations will be based on information provided in your 2020 tax return.
The program was initially proposed several months ago as a response to high gas prices.
This isn’t the first time that the State of California issued direct payments to residents; you may remember the Golden State Stimulus program of 2021 when the State of California sent checks to millions of lower and middle-income Californians.
But there’s a differences between the Golden State Stimulus checks and the inflation relief checks, many more people are qualify because with the Golden State Stimulus, people whose sole source of income was public assistance such as social security, disability or other sources of public assistance were not eligible for a payment because their tax forms showed $0 of California Adjusted Gross Income, and Californians needed between $1 and $75,000 of income to qualify for the Golden State Stimulus.
But the Middle Class Tax Refund, Californians who rely exclusively on social security, disability or other sources of public assistance as their source of income and who reported $0 of AGI on their 2020 taxes will be qualify for a payment.
An individual who relies exclusively on social security or disability as their income, and therefore had a CA AGI or $0 in 2020, will receive $350 if they do not claim a dependent, or $700 if they have at least one dependent,
A couple filing jointly who relies solely on social security or disability will receive $750 without dependents or $1,050 with at least one dependent.
Payments are due to start going out in October 2022 and most people should receive their money by January 2023.