Residents in California will soon see stimulus payments worth as much as $1,050 thanks to a tax break to help with inflation.
Californians have suffered greatly when it comes to inflation rising, especially for the costs of gas. Many residents will benefit from payments worth between $200 and $1,050.
Payments are set to start going out on October 7, 2022 and are known as the Middle Class Tax Refund, according to Fox LA. These payments are based on various factors including income, residency, filing status, and the size of your household.
The payments are coming out of a $12 billion dollar relief fund approved by lawmakers. This was created to help offset the costs of food, gas, and other goods and services.
About $9.5 billion is expected to go out in stimulus payments. Many of the payments work as refunds from a $97 billion dollar surplus the state of California has on hand.
Who will see these stimulus payments worth up to $1,050?
About 23 million California state residents can expect the payment. There are three levels of payments that look at your California state tax return from 2020. All payments are based on income.
Your 2020 tax return needs to have been filed by Oct. 15, 2021. You need to have been a California resident for at least half of 2020 and still be a resident when the payments are sent. Dependents can not get a payment.
How much people will see
- Couples with $150,000 or less with a dependent will see $1,050; without a dependent will see $700
- Couples with $150,001 to $250,000 with a dependent will see $750; without will see $500
- Couples with $250,001 to $500,000 with a dependent will see $600; without will see $400
Head of household filers
- $150,000 or less will see $700 with a dependent; $350 without a dependent
- $150,001 to $250,000 will see $500 with a dependent; $250 without a dependent
- $250,001 to $500,000 will see $400 with a dependent; $200 without a dependent
- $75,000 or less will see $700 with a dependent; $350 without a dependent
- $75,001 to $125,000 will see $500 with a dependent; $250 without a dependent
- $125,001 to $250,000 will see $400 with a dependent; $200 without a dependent
If a single person exceeds $250,000 income or joint filer exceeds more that $500,000, there will be no stimulus payment.
When will people get their stimulus payments and what will the form of payment be?
The Middle Cass Tax Refund is going out to residents in the same order the Golden State Stimulus checks went out. This means that those who first saw Golden State Stimulus checks will see these stimulus payments first as well.
The first round will go out between October 7 and 25. All other payments are set to go out between October 28 and November 14. 90% of payments are going to be sent in October. The final batch will be sent by debit card by January 25, 2023.
Anyone thoat chose direct deposit for last year’s stimulus payment will see direct deposit again, and their payment first. Those that chose a different method will be mailed a debit card and can expect a later payment. Anyone that hasn’t completed their taxes and wants to see a payment has until Oct. 15, 2021 to file their taxes.