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Saturday, December 3, 2022

Three State Inflation Relief Stimulus Check Going Out This Quarter: Check Your Eligibility

The unrelenting rise in prices of goods and services across the spectrum has been a severe jolt for low and moderate-income families. A majority of the families are yet to recover financially from the ravages wrought by the pandemic. The end of federal stimulus checks made complicated matters as people were yet to recover and the end of federal support coincided with the spike in inflation that reached record heights within a year.

California was the first among states to send out stimulus checks to compensate for the economic downturn caused by the pandemic. The Golden State I and II have now been followed by the Middle-Class Cash Back which is an inflation relief by the government even as Californians battle the highest gas prices in the country. The prices stand at around $7.40 in the state even though the national average is almost half that at $3.91.

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The increase in gasoline in California is a result of acute shortage following slowdown and maintenance-linked stoppages at 5 oil refineries that produce a fuel blend to bring down pollution levels in the state as required under state law. This limits any chance of California sourcing oil from neighboring states.

California Cash Back Stimulus Check To Bring In Up To $1,050 For Californians

Governor Gavin Newsom moved out of his earlier plan to send a gas card worth $400 to car owners in California with each family eligible for two cards. Under advice from Democratic legislators, Newsom moved towards a more comprehensive plan that will give away as much as $1,050 to around 23 M residents, close to 60% of the state population.

The eligibility and the amount of the Middle-Class Tax Refund depend on multiple factors that include, including filing status, income level, and the presence of dependents, though the number of dependents is not a factor.

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The rudimentary requirement is that all eligible residents must have filed their 2020 income tax returns by October 15, 2021. The only exception is for residents who applied for an ITIN (Individual Taxpayer Identification Number and did not receive it by October 15, 2021.

Around 60% of the population of the state is eligible for the stimulus checks, which comes to around 23 million. The rebate plan has been set up in three layers based on the adjusted gross income (AGI) on the California state tax return.

In addition to meeting the income tax filing requirements, residents must also have lived in the Golden State for at least half of the 2020 tax year and continue to be residents of California on the date the payment is finally made.

The Three Layers Of The California Stimulus Check

Individual income tax filers with an AGI above $250,000 and married couples filing jointly who together made more than $500,000 in 2020 are not eligible for the payments. Claimants must also not be claimed as a dependent by another state tax filer for 2020.

 Individual income tax filers who earned $75,000 or less and couples who filed jointly and earned $150,000 or less will be eligible to receive a $350 stimulus check each. They will also be eligible for another $350 if they declare any dependent. The amount for dependents is not linked to their number. So a married couple filing jointly under this slab is eligible for the highest amount of $1,050.

Individual income tax filers earning between $75,001 and $125,000 and a couple earning between $150,001 and $250,000 will get $250 each plus another $250 if they declare any dependent. The maximum total under this slab thus comes to $750 for a family of trees or more.

Individual income tax filers earning between $125,001 and $250,000 and married couples filing jointly and earning between $250,001 and $500,000 are each eligible for a $200 stimulus check plus another payment of an equivalent amount for any declared dependents. The maximum amount under this tier comes to $600 for a married couple.

California Stimulus Check Have Started Going Out

The payments of the California Middle-Class Cash Back stimulus checks started on October 7 and will continue through January 15, 2023. This was revealed by the Franchise Tax Board. The first to receive the payments will be those residents who receive payments under either of the two rounds of the Golden State Stimulus Checks.

They will receive the payments between October 7 and October 25. The remaining direct deposits to bank accounts will start on October 28 and continue through November 14.

Other than the tax rebates, California has also increased funding for multiple state social security programs. They include the State Supplementary Payment and the Supplemental Security Income. This will provide additional assistance to over a million seniors and disabled residents. Individual benefits under SSP and SSI have been increased by $39 a month. For couples, the increase will come to $100 every month.

Other increases are in the CalWORKS grants that will provide additional grants and services to eligible parents. The Illinois Tax Rebates for 2022 are one-off payments that will go out to qualified residents. The payments have been approved under the Family relief plan of the state. The stimulus checks comprise two separate rebates, one for property tax and the second for individual income tax.

Residents who have filed their state income tax returns, mainly through an IL-1040 2021 form need not take any further action and the total rebate will automatically be sent to them.

Residents who did not file their 2021 IL-1040 including those who were not required to do so. Applicants have until October 17 to ensure that it reaches the Dept. of Revenue of the state.

Residents who have been a resident of Illinois in 2021. They must also have an AGI of less than $200,000 in 2021 as an individual or $400,000 if filed jointly.

To receive the property tax rebate the resident should have an AGI of less than $250,000 for individuals and double that for joint filers.

Individual filers will get $50 and joint filers will get double that. For dependents, an additional amount of $100per dependent will be given to up to a maximum of three dependents. Thus a family comprising two adults and three dependents can receive an amount of $400.

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