About 23 million Californians may receive an “inflation relief” check within days, part of Gov. Gavin Newsom’s plan to provide financial assistance to many working families beset by high gas prices.
The checks are part of a $17 billion relief package that also suspended the state’s sales tax on diesel fuel and provided additional assistance to help people with rent and utility bills, the governor said earlier this year.
California isn’t alone in rolling out stimulus checks and rebates for residents to help them deal with inflation, with at least 20 other states also offering financial assistance to their citizens. But while gas prices have declined from their record highs in June, California drivers still pay the most for a gallon of gas, on average, according to AAA data. The average price of natural gas is $6.42 per gallon in California, compared to $3.87 nationally.
“We’re told that 90 percent of state residents are currently eligible for these discounts,” CBS News correspondent Jonathan Vigliotti said.
Here’s what you need to know about the inspection schedule and how much California residents can expect.
Checks will start arriving on October 7th
Checks will start arriving Friday, Vigliotti noted.
About 90% of direct deposit recipients will receive their payments by the end of October, according to the California Franchise Tax Council.
Will I get direct deposit?
People who included their bank account information on their 2020 tax returns will receive direct deposits.
Who will get a debit card in the mail?
Taxpayers who have included their addresses but do not have bank account information will receive a debit card. Others who will receive a debit card include:
- People who filed paper return
- Those who owed taxes from their 2020 returns
- Taxpayers received direct deposit for their 2020 refunds but have since changed bank accounts or switched banks
- People who received an advance payment from their tax service provider or paid their tax professional fees using their tax refund.
How much will I get?
Payments are based on income and family size.
Single taxpayers earning less than $75,000 per year and couples filing jointly making less than $150,000 per year will receive $350 per taxpayer.
Taxpayers with dependents will receive an additional $350, regardless of the total number of dependents.
In other words, a couple earning a total of $125,000 and having two children would qualify for $350 per adult plus $350 for their children, for a total of $1,050.
What about higher-income Californians?
Higher income residents will receive smaller payments.
Single taxpayers making between $75,000 and $125,000 a year will get $250, plus the same amount for their dependents, for a maximum of $500.
Couples earning between $150,000 and $250,000 will receive $500, plus $250 for dependents, up to a maximum of $750.
Deduction amounts are reduced according to income until they are eliminated entirely for people earning more than $500,000. You can see the rebate amounts for higher income groups here.