How to get the california stimulus check

(KRON) — Inflation relief payments are coming to some Californians, but they will not hit bank accounts until October 2022 at the earliest. The payments are officially called the Middle Class Tax Refund.

For Californians that qualify, payments will be received automatically between October 2022 and January 2023. The state has five qualifications that residents must meet to be eligible.

California stimulus check calculator: See the size of your refund

Qualifying for the California middle class tax refund

Residents must have filed their 2020 tax return by October 15, 2021, to be eligible. However, people who applied for an Individual Taxpayer Identification Number but did not receive it by October 15, 2021 have an extended deadline to file their return by February 15, 2022.

To receive a payment, your salary must have been less than $500,000 in 2020. The exact size of the tax return varies based on salary and whether you claimed a dependant, ranging from $200 to $1,050. For more on calculating the size of your tax return, click HERE.

There are three other qualifications that need to be met to receive the payment

• You must not have been eligible to be claimed as a dependent in the 2020 tax year
• You must have been a California resident for at least six months during the 2020 tax year
• You must be a California resident on the day the payment is issued.

The payments will come either through direct deposit or on a debit card. People who filed electronically and received their 2020 tax refund by direct deposit should get their inflation relief payment the same way. Otherwise, the payment will come on a debit card.

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Anyone with additional payments can call the State of California’s Franchise Tax Board at (800) 542-9332 on weekdays from 8:00 a.m. to 5:00 p.m.

For information on the third coronavirus relief package, please visit our “American Rescue Plan: What Does it Mean for You and a Third Stimulus Check” blog post.

Eligibility is based on your 2020 tax return (the one you file in 2021). You will need to file your 2020 California state tax return by October 15, 2021 in order to receive your California stimulus check.

Use the below guide to learn more:

Am I eligible for the California Stimulus?

You should be eligible for the Golden State Stimulus, if you are a California resident and:

• You received the California Earned Income Tax Credit (CalEITC) on your your 2020 tax return
• You have an Individual Taxpayer Identification Numbers (ITINs) and have an adjusted gross income less than $75,000
• Your household is enrolled in the CalWORKS program, or are a recipient of SSI/SSP, or are enrolled in the Cash Assistance Program for Immigrants

Those who both received the CalEITC and have an ITIN with an adjusted gross income of less than $75,000 will receive a $1,200 payment.

The CalEITC is a credit for low to moderate income individuals and families. Californians that earn $30,000 or less annually may be eligible for the CalEITC.

What do I need to do to get my stimulus?

Eligibility is based on your 2020 tax return (the one you file in 2021), so you will need to file your taxes to get your stimulus payment.

You will need to file your 2020 tax return by October 15, 2021 to get your California stimulus check.

The stimulus payment will expire on November 15, 2021.

When will I get my California stimulus check?

Stimulus payments will be issued on a monthly basis after your 2020 tax return is processed. According to the California Franchise Tax Board, payments are expected to begin in March 2021 and could take:

• Direct deposits: up to 45 days
• Paper checks: up to 60 days

How will I receive a California stimulus check?

Payments will be issued separately from your individual state tax refund or CalEITC either via direct deposit or check.

Up to 23 million California residents are about to receive tax refunds of as much as $1,050, thanks to one-time stimulus payments the Golden State began deploying Friday.

The payments, which will total $9.5 billion, mark the largest program of its kind in the state's history.

The initiative, dubbed the Middle Class Tax Refund, comes as inflation nationally has reached historic highs. California had a record $97.5 billion surplus as it finalized its budget including the payments earlier this year.

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"We know it's expensive right now, and California is putting money back into your pockets to help," California Gov. Gavin Newsom, a Democrat, said in a statement.

"We're sending out refunds worth over a thousand dollars to help families pay for everything from groceries to gas," he said.

Who qualifies for a refund?

To qualify to receive a payment, you must meet certain requirements.

You must have been a resident of California for six months or more in the 2020 tax year and be a current state resident.

California Gov. Gavin Newsom and Mayor Libby Schaff of Oakland, California, at a May 10, 2021 press conference in Oakland.

Justin Sullivan | Getty Images News | Getty Images

You must have filed a 2020 tax return by Oct. 15, 2021, and have adjusted gross income within the required thresholds.

Additionally, you must not have been claimed as a dependent by someone else.

How much money will I receive?

Payments for eligible couples who file jointly may range from $400 to $1,050.

Qualifying individuals may receive $200 to $700.

The amount of the checks depends on two factors: income and number of dependents.

The most generous amount — $1,050 — goes to married couples who file jointly with $150,000 or less in income and a dependent.  A couple in that income category will receive $700 if they have no dependents.

Individual taxpayers with $75,000 or less in income may receive $700 if they have a dependent and $350 if they do not.

The payments are gradually phased out for those with up to $500,000 in income, for married couples, and $250,000, for individuals. California residents with incomes above those thresholds will not receive a stimulus payment.

The income is based on your California adjusted gross income, which can be found on line 17 of the 2020 Form 540 or line 16 of the 2020 Form 540 2EZ.

An online tool can help estimate your payment amount.

When will the checks go out?

Payments will be issued between this month and January.

Direct deposits will be sent to residents who e-filed their 2020 state returns and received a refund from the state by direct deposit. About 90% of the direct deposits are expected to be issued in October, starting Friday.

Other payments will be issued on debit cards sent in the mail starting later this month.

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A total of 18 million payments will be sent. The checks are expected to benefit up to 23 million Californians.

To find out when you may receive your money, check the online payment schedule.

Will the payments cause inflation?

California is not the only state to deploy one-time rebates amid budget surpluses. Florida, for example, is sending $450 to certain families with kids.

A big question prompted by the checks sent by California and other states is whether they will exacerbate inflation.

While California "on net will come out ahead," it may be impacted as other states export inflation with their refunds, Harvard University economics professor Jason Furman recently tweeted.

"Californians are going to come out behind from any 'inflation relief payments' made by Florida and other states," he wrote.

States are sitting on record surpluses and many individuals are struggling under the weight of extremely high inflation.

Jared Walczak

vice president of state projects at the Tax Foundation

While states have been deploying one-time payments all year, there has been an uptick as Election Day approaches, noted Jared Walczak, vice president of state projects at the Tax Foundation.

"States are sitting on record surpluses and many individuals are struggling under the weight of extremely high inflation," Walczak said.

That's prompting policymakers to put the two together and want to write checks.

"Unfortunately, that's only fueling further inflation by injecting more money in an overheated economy," Walczak said.

Tax cuts would be a better alternative for long-term additional revenues, he said. If instead states are looking at one-time money, it would be better spent on one-time needs, such as pension or rainy day funds, he said.

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