Millions of Californians are set to receive what’s being called an “inflation relief” tax rebate payment after state lawmakers reached a deal with Gov. Gavin Newsom for the 2022-23 budget. (Video above: California lawmakers OK budget; most taxpayers to get refund) But how much you receive from the Middle Class Tax Refund depends on several factors, including income level and dependents.
| MORE | 23 million Californians to get ‘inflation relief’ payments after budget deal struck, state leaders say Here’s everything you need to know about the state’s tax refund. To begin with, you must have filed your 2020 tax refund by Oct. 15, 2021.
Some newer California residents will not qualify for the refund, as they must live in the state for six months or more of the 2020 tax year, and still be a California resident on the date the payment is issued. You also can’t have been eligible to be claimed as a dependent in the 2020 tax year. How much you receive will depend on your California adjusted gross income, as well as how many dependents you have.
Taxpayers would receive either $350, $250 or $200 based on their income level with an additional payment of the same amount if they have at least one dependent. Tier 1 : Single filers who make less than $75,000 would get $350. Joint filers with an income under $150,000 would receive $700.
If they have at least one dependent, they will receive an additional $350. So for example, that means a married couple earning $100,000 per year with one child would get $1,050. About 82% of the state’s beneficiaries are in this income level.
Tier 2 : Single filers who make $75,001 to $125,000 would get $250. Joint filers with an income between $150,001 and $250,000 would receive $500. If they have at least one dependent, they will receive an additional $250.
About 12% of beneficiaries are in this tier. Tier 3 : Single filers who make $125,001 to $250,000 would get $200. Joint filers who make between $250,001 and $500,000 would receive $400.
If they have at least one dependent, they will receive an additional $200. About 6% of beneficiaries are in this tier. The Franchise Tax Board has created a tool where you can estimate how much you’ll get .
| MORE | Do you qualify? Find out who much you’ll get through the Franchise Tax Board’s refund estimator Payments are expected to begin going out by the end of October 2022, and are expected to finish by the middle of January 2023. Those who qualify will get either a direct deposit payment or a debit card with the payment. How you receive it depends on how you filed your 2020 tax return.
Those who filed their return electronically and requested direct deposit will receive their return through direct deposit. Otherwise, they will receive a debit card payment. The Middle Class Tax Refund is a one-time payment to California residents who filed a tax return in 2020.
Most who did not file a tax return in 2020 are not eligible for the payment. But the state is also increasing assistance to these programs: Seniors who do not file taxes because they only receive Social Security payments do not qualify for the refund. However, they may still be eligible for other types of increased assistance like rent relief, utility assistance and health care subsidies if those end up not being renewed by the federal government, according to H.
D. Palmer, a spokesperson for California’s Department of Finance. | READ MORE | Here’s why some seniors won’t get payments from California’s ‘inflation relief’ programs.
From: kcra
URL: https://www.kcra.com/article/qualify-california-middle-class-tax-refund-inflation-relief-budget-money/40485110
