Nearly 23 million California residents can expect to receive a payment as part of Governor Newsom’s new inflation relief package.
Similar to the Golden State Stimulus checks received in 2021, Californians should see the money hitting their mailboxes in the form of debit cards as early as October. However, Californians who received a tax refund via direct deposit for the 2020 tax year will receive the inflation relief as direct deposit.
How much will people receive in inflation relief?
The inflation relief amount sent depends on household size, income, and the number of dependents a tax filer has. Here’s how the California government breaks down who will receive how much:
Single filers earning:
- Less than $75,000: $350
- Between $75,000 and $125,000: $250
- Between $125,001 and $250,000: $200
- More than $250,000: no payment
Joint filers earning:
- Up to $150,000: $700
- Between $150,001 and $250,000: $500
- Between $250,001 and $500,000: $200
- More than $500,000 and filing taxes jointly: no payment
Whether they file taxes individually or jointly, taxpayers with dependents are eligible for an additional inflation relief payment. To determine the total amount, add the number that applies to you from the list above to the number that applies to you from the list below if you have at least one dependent.
Single filers with dependents earning:
- Less than $75,000: additional $350
- Between $75,000 and $125,000: additional $250
- Between $125,001 and $250,000: additional $200
Joint filers with dependents earning:
- Up to $150,000: additional $350
- Between $150,001 and $250,000: additional $250
- Between $250,001 and $500,000: additional $200
Given these parameters set by the state, the maximum amount a California taxpayer could receive in inflation relief payments is $1,050.
Californians that fall under these guidelines should keep an eye out for a payment headed their way this fall. It remains to be seen whether other states will follow California’s lead in efforts to provide relief from inflation.
This post is to be used for informational purposes only and does not constitute legal, business, or tax advice. Each person should consult his or her own attorney, business advisor, or tax advisor with respect to matters referenced in this post. 1-800Accountant assumes no liability for actions taken in reliance upon the information contained herein.