California Stimulus Tax Relief Package Passed: Find Out if You May Receive Up to $1,050 in Relief Payments

Governor Newsom signed a new $307.9 billion state budget this week which includes a 17 billion stimulus relief package to help Californian families. As part of the package, families will receive, the Middle Class Tax Refund, a one-time payment up to $1,050 to help ease the burden of high gas prices and inflation. 

If you’re wondering exactly what the California Stimulus Relief Package includes and what it means to you, don’t worry we have you covered. Here are some frequent questions along with some answers to help you understand what’s included.

How Much California Stimulus Tax Relief Payment Will I Receive?

Stimulus relief payments will be based on three income brackets. The income brackets and rebates are as follows:

• Single filers earning $75,000 or less and joint filers earning $150,000 or less may be eligible for $350 per tax filer and another $350 if you claim at least one dependent. Note the $350 is not per dependent, but it is a one time amount, so a married couple claiming dependents making $150,000 or less will receive $1,050($350 per tax filer plus $350 for claiming a dependents).
• Single filers earning between $75,001 to  $125,000 and joint filers earning between $150,001 to $250,000 will receive $250 per tax filer and another $250 if they have dependents.
• Single filers earning between $125,001  to $250,000 and joint filers earning between $250,001  to $500,000 will receive $200 per tax filer plus another $200 if they have dependents.
• Head of Household filers earning $150,000 or less may be eligible for $350 or $700 if you claim at least one dependent. Note the $350 is not per dependent but is a one time amount. Head of Household filers earning between $150,001 ro $250,000 will receive $250 or $500 with dependent(s). Head of Household filers earning between $250,001 to $500,000 will receive $200 or $400 with dependent(s). 
• Note that single filers earning $250,001 or more are not qualified to receive a payment. Joint filers or Head of Household filers earning $500,001 or more are not qualified to receive a payment.  

When Will I Get My Stimulus Tax Relief Payment? 

Californians are expected to receive payments between October 2022 and January 2023. 

How Will I Get My Stimulus Tax Relief Payment?

The Franchise Tax Board will begin sending payments out in October. Taxpayers must have filed their complete tax year 2020 tax return by 10/15/21. Those who applied for an Individual Taxpayer Identification Number by 10/15/21, and filed their complete 2020 tax return on or before 2/15/22 meet the eligibility criteria.

Generally, if taxpayers filed electronically and received their 2020 tax refund by direct deposit, then they should receive their payment the same way. Otherwise, taxpayers will receive their payment on a debit card.

Garnishments of the checks may also be possible if you owe child support, spousal support, family support or for restitution of victims following a crime.

How Do I Know If I am Eligible? 

You are eligible if you: 

• Filed your 2020 tax return by October 15, 2021 
• Meet the California adjusted income (CA AGI) limits discussed above 
  • For your CA AGI, go to Line 17 on your 2020 Form 540 or Line 16 on your 2020 Form 540 2EZ
• Were not eligible to be claimed as a dependent in the 2020 tax year 
• Were a California resident for 6 months or more during the 2020 tax year
• Are a California resident on the date the payment is issued 

What If I Don’t File Taxes?

Starting on January 1, 2023, those who are not required to file taxes may see more money if they receive Supplemental Security Income. The budget that was passed boosts Supplemental Security Income by $39 per month for individuals and $100 for couples.

What Other Benefits Will Be Available?

Some of the other benefits passed in the budget include:

• Utility payment assistance
• Expanded tax credits for paid sick leave grants
• Suspension of sales tax on diesel fuel

Check back with the TurboTax blog for more updates on the California Stimulus Relief  Package and any other relief packages being passed.