Eligible Californians will begin receiving relief payments of up to $1,050 this week to soften the blow from inflation.
Governor Gavin Newsom signed a State budget of $308 billion in June to provide direct tax refunds to 23 million Californians as they battle soaring inflation 8.3% Year after year.
“California’s budget addresses the state’s most urgent needs and prioritizes getting dollars back into the pockets of millions of Californians who are grappling with global inflation and rising prices for everything from ‘gas at the grocery store,’ said Governor Newsom, Senate Pro Tempore Speaker Toni G. Atkins and Assembly Speaker Anthony Rendon in a joint statement.
The one-time payment, known as the middle-class tax refund (MCTR), will be automatically delivered to residents from October 7, 2022 to January 15, 2023, depending on the Administration of Newsom. It anticipates that 95% of all payments will be issued before the end of the year.
But not everyone will receive the same payment, as the amount varies depending on tax status and income.
Married or joint filers get:
- $700 if they win up to $150,000
- $500 if they earn between $150,001 and $250,000
- $400 if they earn between $250,001 and $500,000
Eligible heads of household or widow(ers) filers get:
- $350 if they win up to $150,000
- $250 if they earn between $150,001 and $250,000
- $200 if they earn between $250,001 and $500,000
Single or separate registrants get:
- $350 if they win up to $75,000
- $250 if they earn between $75,001 and $125,000
- $200 if they earn between $125,001 and $250,000
Those who earn above these income limits will not receive a payout. Filers receive an additional payment if they have at least one dependant: an additional $350 for the lower income bracket; $250 for the middle income bracket; and $200 for the top income bracket. They do not receive more money for each additional dependent. For example, a married couple earning less than $100,000 would receive $1,050 whether they have one or two children.
The goal of the stimulus is to provide a tax refund to millions of California workers. The the package also includes a suspension of the state diesel sales tax and additional funds to help residents pay their rent and utility bills.
“In the face of growing economic uncertainty, this budget invests in California stocks while further filling state fiscal reserves and incorporating triggers for future state spending to provide fiscal stability for coming years”, the joint statement bed.
For detailed eligibility, payment schedules and payment information, visit the California Franchise Tax Board website or call (800) 542-9332.
Sign up for the Fortune Includes a mailing list so you don’t miss our biggest features, exclusive interviews and surveys.