California inflation relief payments: Here's when the first batch of checks will go out
LOS ANGELES - Mark your calendars - some money could be headed your way very soon.
The first round of inflation relief payments will be distributed on Oct. 7, according to the Franchise Tax Board.
The first group to get their hands (or bank accounts) on the Middle Class Tax Refund will be Californians who received the Golden State Stimulus payments (either the first or second round) via direct deposit. If that's you, you can expect a payment to your bank account between Oct. 7 and Oct. 25.
All other direct deposit payments will be distributed between Oct. 28 and Nov. 14.
The FTB expects about 90% of direct deposits will be issued in October.
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If you don't have direct deposit set up, you will instead get a debit card. The FTB said debit cards will be mailed out between Oct. 25 and Dec. 10 for those who received Golden State Stimulus payments via debit card last time around.
The last batch of payments in the form of debit cards will be sent out by Jan. 15, 2023 for those who qualify for direct payments, but do not fall into a category above.
The FTB said it expects about 95% of all payments – direct deposit and debit cards combined – to be issued by the end of this year.
To clarify who will be getting a direct deposit or a debit card, the FTB said it depends on last year's taxes. Those who e-filed taxes in 2020 and received a state tax refund by direct deposit will get this year's inflation relief payment by direct deposit as well. Most other taxpayers will likely get a debit card, the FTB said.
The exact figure Californians will pocket depends on several factors including adjusted gross income (AGI), filing status, and dependents.
Single people who make less than $75,000 per year will receive $350 and joint filers who make less than $150,000 per year would get $700 plus an extra $350 for a dependent. Here's a breakdown:
Joint returns
- AGI of $150,000 or less: $1,050 with dependent or $700 without
- AGI $150,001 to $250,000: $750 with dependent or $500 without.
- AGI of $250,001 to $500,000: $600 with dependent or $400 without.
Head of Household
- AGI of $150,000 or less: $700 with dependent or $350 without.
- AGI of $150,001 to $250,000: $500 with dependent or $250 without.
- AGI of $250,001 to $500,000: $400 with dependent or $200 without.
Those who file single
- AGI of $75,000 or less: $700 with dependent or $350 without.
- AGI of $75,001 to $125,000: $500 with dependent or $250 without.
- AGI of $125,001 to $250,000: $400 with dependent or $200 without
Single filers making more than $250,000 and joint filers making more than $500,000 are not eligible for payments.
To check exactly how much money you will receive you can check the state's estimator.
The state will send out an estimated $9.5 billion in refunds. The checks function as tax refunds and come from the state's record-setting $97 billion budget surplus.