When California’s Governor Gavin Newsom signed the state’s budget in June it included a 17 billion dollar provision for inflation relief in the form of tax rebates for citizens in the United States‘ Golden State.
The idea is to aid residents in the state in the face of frightening levels of inflation.
“In the face of new challenges and uncertainties, we’re providing over 17 billion dollars in relief to help families make ends meet, and doubling down on our investments to keep building the California Dream on a strong fiscal foundation,” Governor Newsom in a press release.
“This budget invests in our core values at a pivotal moment, safeguarding women’s right to choose, expanding health care access to all and supporting the most vulnerable among us while shoring up our future with funds to combat the climate crisis, bolster our energy grid, transform our schools and protect communities.
“Building a better future for all, we’ll continue to model what progressive and responsible governance can look like, the California way.”
Who is eligible?
The following is a list of eligibility criteria that one must meet in order to take advantage of the program:
- Residents must have filed their 2020 tax return by October 15, 2021;
- They must also meet the California adjusted gross income (CA AGI) limits described on the Middle Class Tax Refund page;
- They were not eliglible to be claimed as a dependent in the 2020 tax year;
- They were a California resident for six months or more of the 2020 tax year;
- They are residents in California on the date the payment is issued.
How much will you receive?
The state is also using an estimator that will help determine their eligibility for the program and how much they could receive.
However a rough estimate would indicate the following:
- Household taxpayers that make less than 75,000 dollars a year, will get 700 dollars if they have a dependent and 350 dollars if they don’t.
- Households that make between 75,000 and 125,000 dollars, will get 500 dollars, with a dependent, and 250 dollars without one.
- Households making over 125,000 dollars will earn 400 dollars with dependents and 200 dollars if they have none.
- Couples that make less than 150,000 dollars a year, who file their taxes together will get 1,050 dollars if they have dependents and 700 dollars if they do not.
- Couples that make make 150,001 dollars to 250,000 dollars, will receive 750 dollars if they have children, and 500 dollars if they don’t.
- Couples with an income between 250,001 dollars to 500,000 dollars will get 600 dollars if they have dependents and 400 dollars if they don’t.