California will start handing out $1,050 stimulus payments to residents this week to combat inflation
Qualifying Californians will begin receiving relief payments of up to $1,050 this week to soften the blow of inflation.
“California’s budget addresses the state’s most pressing needs and prioritizes getting dollars back into the pockets of millions of Californians who are grappling with global inflation and rising prices of everything from gas to groceries,” said Gov. Newsom, Senate President Pro Tempore Toni G. Atkins, and Assembly Speaker Anthony Rendon in a joint statement.
The one-time payment, known as the Middle Class Tax Refund (MCTR), will be automatically delivered to residents starting Oct. 7, 2022, through Jan. 15, 2023, according to the Newsom administration. It anticipates that 95% of all payments will be issued before the end of the year.
But not everyone will get the same payment, as the amount varies based on tax filing status and income.
Married or joint filers get:
- $700 if they make up to $150,000
- $500 if they make between $150,001 and $250,000
- $400 if they make between $250,001 and $500,000
Head of household or qualifying widow(er) filers get:
- $350 if they make up to $150,000
- $250 if they make between $150,001 and $250,000
- $200 if they make between $250,001 and $500,000
Single or separate filers get:
- $350 if they make up to $75,000
- $250 if they make between $75,001 and $125,000
- $200 if they make between $125,001 and $250,000
Those who earn above these income limits will not receive a payment. Filers receive one additional payment if they have at least one dependent: an additional $350 for the bottom income bracket; $250 for the middle income bracket; and $200 for the top income bracket. They do not receive more money for each additional dependent. For instance, a married couple earning less than $100,000 would get $1,050 regardless of whether they have one or two children.
The goal of the stimulus is to offer a tax refund to the millions of working Californians. The package also includes a suspension of the state sales tax on diesel and additional funds to help residents afford their rent and utility bills.
“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,” the joint statement reads.
For detailed information on eligibility, payment schedules, and payment information visit the California Franchise Tax Board website or call (800) 542-9332.