Tax filers will get either $350, $250 or $200 based on their income level. A family can receive up to $1,050.
SACRAMENTO, Calif. — 23 million Californians are set to get "inflation relief" payments after an agreement was reached Sunday on the 2022-23 state budget.
"The centerpiece of the agreement, a $17 billion inflation relief package, will offer tax refunds to millions of working Californians. 23 million Californians will benefit from direct payments of up to $1,050," according to a joint statement from Gov. Gavin Newsom, Senate President pro Tempore Toni G. Atkins and Assembly Speaker Anthony Rendon.
It's meant to come to the aid of people like Dashawn Williams, who has has a four-year-old and another child on the way.
“It's been hard to afford a lot of things," Williams said. "I mean, honestly, what usually used to be like $30 goes up to $80.”
While he’d like the relief now, he knows exactly what he will spend the money on come October at the earliest.
“Diapers and food at this point," he said. "Honestly, just the essentials to keep the bills low and just survive.”
The direct deposits are for people who filed tax returns in 2020 and are on a sliding scale of income. The breakdown is as follows:
- Those who make less than $75,000 a year will get $350.
- Those who make less than $125,000 a year will get $250
- Those who make less than $250,000 a year will get $200.
- Taxpayers with dependents will get an additional $350.
- The most a family can get is $1,050.
“I think that would be very helpful," said Ray Vargas. "And sounds kind of amazing, honestly.”
Vargas and many others already know exactly what they'll spend it on: essentials.
“Probably a bill," Barbara McCullough said. "Pay a bill.”
However, those like retirees, who no longer pay income tax, will not get the direct deposit.
“They have to go through the same thing we do that file our taxes," McCullough said. "I think they should be a part of it also.”
The budget does however include additional grant funding for those on the state's Supplemental Security Income Program meant for those 65 and older, disabled or blind.
What else is in the budget?
Gas Tax
The package will also include a suspension of the state sales tax on diesel, and additional funds to help people pay their rent and utility bills
Climate Change
Funds will go toward securing additional power-generating capacity for the summer, accelerating clean energy in the future, and expanding the ability to prepare for and respond to severe wildfires.
Health Care & Education
California would be the first state to offer healthcare to every resident, regardless of immigration status, as part of a $47 billion multi-year infrastructure and transportation package for education and health care.
More than $200 million will go towards reproductive care services.
Billions of dollars will go toward additional funding for universal preschool, children’s mental health and free school meals.
“In the face of growing economic uncertainty, this budget invests in California’s values while further filling the state’s budget reserves and building in triggers for future state spending to ensure budget stability for years to come," according to a joint statement from Gov. Gavin Newsom, Senate President pro Tempore Toni G. Atkins and Assembly Speaker Anthony Rendon.
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What's happening
California residents start receiving one-time "middle-class tax refund" payments on Oct. 7.
Why it matters
Eligible residents will receive between $200 and $1,050 as part of a compromise between Gov. Gavin Newsom and state lawmakers.
Inflation-relief payments started going out to California taxpayers on Oct. 7. Eligibility for the Middle-Class Tax Refund, which can be for as much as $1,050, is dependent on income, residency, filing status and household size.
The payments are part of a $12 billion relief effort that "prioritizes getting dollars back into the pockets of millions of Californians grappling with global inflation and rising prices," Gov. Gavin Newsom said in a statement in June, when he and state lawmakers reached a deal over the refunds.
Here's what you need to know about California's inflation relief checks, including who is eligible for the money, how much they'll get and how payments will be distributed.
For more on tax relief, find out which other states are issuing tax refunds and pausing their gas tax.
Who qualifies for an inflation relief payment?
Roughly 23 million California residents are eligible for the rebate plan, which has been set up in three tiers based on the adjusted gross income on your 2020 California state tax return.
In addition to meeting income requirements, residents must have filed their 2020 tax refund by Oct. 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.
Individual filers who earned more than $250,000 and couples who made more than $500,000 combined in 2020 aren't eligible for the payments. You also cannot have been claimed as a dependent by someone else in the 2020 tax year.
How much will my check be for?
- Single taxpayers who earned less than $75,000 and couples who filed jointly and made less than $150,000 will receive $350 per taxpayer and another flat $350 if they have any dependents. A married couple with children, therefore, could receive as much as $1,050. This is the largest bracket, KCRA reported, representing more than 80% of beneficiaries.
- Individual filers who made between $75,000 and $125,000 -- and couples who earned between $150,000 and $250,000 -- will receive $250 per taxpayer, plus another $250 if they have any dependents. A family with
any children could receive $750.
- Individual 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.
How much of a tax rebate can I expect?
| Payment with dependent | Payment without dependent |
| $1,050 | $700 |
| $750 | $500 |
| $600 | $400 |
| Not eligible | Not eligible |
| Payment with dependent | Payment without dependent |
| $700 | $350 |
| $500 | $250 |
| $400 | $200 |
| Not eligible | Not eligible |
| Payment with dependent | Payment without dependent |
| $700 | $350 |
| $500 | $250 |
| $400 | $200 |
| Not eligible | Not eligible |
You can estimate your refund using the Franchise Tax Board website calculator.
When will I receive my tax rebate?
Payments started going out Oct. 7 and the final ones should be sent by Jan. 15, 2023, according to the Franchise Tax Board.
Californians who received money from either round of Golden State Stimulus payments will be the first to receive direct deposits, between Oct. 7 and Oct. 25. The remainder of direct deposits will be issued between Oct. 28 and Nov. 14.
If you didn't set up direct deposit, your payment will be mailed out in a Money Network debit card, starting Oct. 25.
What if I didn't file a 2020 California tax return?
Most Californians who didn't file a complete 2020 tax return by Oct. 15, 2021, aren't eligible for the rebate. (The exception is for those who applied for an Individual Taxpayer Identification Number, or ITIN, and had not received it by Oct 15, 2021.)