While the federal stimulus checks remain an elusive dream for millions of Americans, state support for residents continues into the festive season. American states have fallen back on their sources to send out inflation relief payments in the form of tax rebates, stimulus checks, debit cards and paper checks, direct stimulus transfer of funds, and sales tax waivers in multiple products and services.
California is among the last to send out inflation-linked support to residents though the Golden State had taken measures on two earlier occasions to help out residents post the pandemic. the Golden State I and II have been followed by the Middle-Class Tax Rebate that brings in between $20000 and $1,050 for low and middle-class residents.
The California tax rebate is dependent on the Adjusted Gross Income of residents as revealed in their 2020 California state income tax returns. Residents who have filed their state returns for 2020 before October 15, 2021, are eligible for the tax rebate payments.
The amount of the California Middle-Class Tax Rebate is linked to the filing status of the beneficiaries (single or married couples filing jointly), the presence of dependents in the 2020 state income tax returns, and also their residential status.
The California state stimulus checks were mooted first in the second quarter of 2020 by Governor Gavin Newsom though he initially wanted to go for a prepaid gas debit card worth $400 that would be given to individuals and families to cope with the high prices of gasoline.
The gas debit cards were planned at a maximum of two for each family. Families that did not own vehicles were to be given transit cards of an equivalent amount.
California has the highest price of gasoline in the US due to higher taxes and also as it uses a higher quality of processed fuel processed at special refineries in the state. this has resulted in the price of gas in the Golden State spiking to almost double the national average.
Gov. Gavin Newsom changed his decision to go for the Middle-Class Tax Rebate after Democratic Parrty state lawmakers prevailed upon him to go for the third round of stimulus checks. the third round of stimulus checks will give up to $1,050 to families in the state.
The payments were divided into three tiers with individual filers with a California state Adjusted Gross Income of less than $75,000 receiving a stimulus check worth $350. Joint filers with a 2020 AGI of less than $150,000 will get the same amount each. Both individual and joint filers will get another $350 if they include any dependents in their income tax returns.
The second tier is for tax filers with a 2020 state AGI between $75,001 and $125,000 and a joint income tax AGI of between $150,001 and $250,000 receiving a stimulus check of $250 each with an equal amount if they include any dependent.
The third tier is for individual filers with an AGI between $125,001 and $250,000 and a joint AGI for 2020 between $250,001 and $500,000. They will get a stimulus check of $200 each with the same amount if they declare any dependents.
Joint Filers with a California state joint AGI of $150,000 or less, and with dependents, will get the highest amount of $350 each plus another $350 for a dependent. The total can reach $1,050. Filers will be paid a fixed amount for dependents depending on their tiers even though they might have more than one dependent.
California Tax Rebate Stimulus Checks Started In October And Are Expected To Continue In January Next Year
The Middle-Class Tax Refund started going out on October 7. The initial round of payment went out to residents who received any one round of the Golden State stimulus check through direct bank transfer to their accounts.
The next round of payments went to residents who have filed their 2020 state income tax returns online. Residents who have filed their returns on paper will not get the benefit of direct transfers and will be given debit cards of an equivalent amount.
People who received their Golden State stimulus checks through paper checks received debit cards. People with second names starting with A through K were given their debit cards that continued through December 17.
Residents will get their cards later as the cards have been dispatched through the US postal service. The delay could be as much as 15 days in some regions.
Starting Monday, December 19, the next group of non-GSS beneficiaries with last names starting with L through Z has been issued their debit cards that will continue through the last day of this month.
Additionally, the state has started sending out payments today to those who have changed their bank detail after they filed their 2020 state income tax returns. Those who have qualified can also calculate the exact amount they can expect if they so desire. Direct deposits are normally expected within 3 to 5 business days from the date of issue. Those receiving debit cards should expect a wait of up to 15 days depending on their home address.
By December 9 the Franchise Tax Board of California has issued over 6.9 million direct deposits stimulus checks and around 6.9 million debit cards with a combined value of around $7.51 billion.
Other States Send Out Stimulus Checks In Festive Season
A few other states continue to send out stimulus checks during the festive season. Idaho has a rebate stimulus check that will send residents between $300 and $600 or 10% of their 2020 state income tax amount, whichever is greater.
The rebates are being sent by the state tax commission in the order that it received the 2021 income tax returns. The agency has informed us that around 75,000 is being sent out every week until March 2023. Residents who file their income tax returns by December 31 will be eligible for the Idaho state relief payments.
Hawaii has also been sending out rebates that are worth $300. The payments started this fall and residents who file their 2021 income tax return by December 31 will receive the payments.