California has been among the leading providers of monetary relief to residents since the COVID -19 pandemic. Now, it is preparing to send another relief payment to help households fight the rising costs due to inflation.
This new stimulus check from California will give eligible taxpayers up to $1,050. The payment will start to go out to eligible taxpayers next month.
New Stimulus Check From California: Who Will Get It?
This new stimulus check from California, called the Middle Class Tax Refund, is part of a larger $12 billion relief plan that lawmakers approved this summer. Whether or not taxpayers will qualify for this refund (and the amount of the refund) depends on their income, filing status and household size.
California’s Franchise Tax Board will start sending the payment out next month and expects to send out all the payments by mid-January 2023. It is expected that about 23 million residents will be eligible for this rebate.
Those who filed their 2020 California state tax return electronically and requested a direct deposit for the refund will get the payment as a direct deposit. Others will get the payment on a debit card.
To qualify for the Middle Class Tax Refund, residents must have filed their 2020 tax refund by Oct. 15, 2021. There is, however, one exception to this, and it is for those who applied for an ITIN (Individual Taxpayer Identification Number) but hadn’t received it by Oct. 15, 2021.
Another requirement is that taxpayers must have been in California for at least half of the 2020 tax year, as well as be a California resident on the date when the payment is issued. Moreover, they must not have been claimed as a dependent by someone else in the 2020 tax year.
Apart from these, there are income requirements as well (discussed below).
Middle Class Tax Refund: How Much To Expect?
Single taxpayers with income less than $75,000 (less than $150,000 for couples filing jointly) will get $350 per taxpayer and $350 for any dependents. So, a married couple with children could get up to $1,050. This income bracket reportedly covers over 80% of beneficiaries.
Individuals with income between $75,000 and $125,000 (couples earning between $150,000 and $250,000) will get $250 per taxpayer and $250 if they have any dependents. So, a couple (filing jointly) with children could get up to $750.
Further, single taxpayers with income between $125,000 and $250,000 (and couples earning between $250,000 and $500,000) would get $200 per taxpayer and $200 if they have any dependents. In this case, a family with children could get as much as $600.
Individuals with income over $250,000 (couples with income over $500,000) won’t be eligible for the new stimulus check from California.
Taxpayers’ can also use the Franchise Tax Board website calculator to estimate the amount they could get.
This article originally appeared on ValueWalk
Sponsored: Tips for Investing
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.