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California's ‘Inflation Relief' Payments Start Going Out This Week. Here's What to Know

Eligible Californians will receive payments of $200 to $1,050.

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We knew it was coming but we now know when and how we were getting the California gas rebate everyone’s been talking about. They are inflation relief checks of up to $1,050. Stephanie Magallon reports.

Inflation is taking a toll on Americans' wallets, especially in the Bay Area, where gas is over $6 per gallon and every day grocery items cost more than ever before.

Millions of Californians can look forward to some relief this month thanks to the Middle Class Tax Refund, approved by lawmakers in June.

Eligible Californians will receive $200 to $1,050, depending on tax filing status and income, beginning in early October.

When Will the First Payments be Disbursed?

Californians who received a Golden State Stimulus check in 2021 via direct deposit will be the first to receive the tax refund. 

The first round of payments are expected between Oct. 7 and Oct. 25, according to the Franchise Tax Board.

The second round of direct deposits are slated between Oct. 28 and Nov. 14, with 90% of deposits occurring in October. 

Californians who filed their taxes online and received a refund via direct deposit can expect this latest payment the same way. 

Those who filed a paper tax return or received a refund by check will receive the payment via a debit card in the mail.

Debit cards will be mailed between Oct. 25 and Dec. 10 for those who received a previous Golden State Stimulus check.

The remainder of eligible Californians who did not receive a previous stimulus payment will receive a debit card by Jan. 15. 

New data from the Pew Research Center shows Blacks, Latinos and Native Americans are being hit hardest by rising inflation. An expert from the Robert Wood Johnson Foundation offers insight.

How Will I Receive the Money?

Eligible Californians will receive a direct deposit or debit card via the mail.

Who is Eligible for the Tax Refund Payments?

Payment amounts vary on income and 2020 taxes. Below is a breakdown of the expected payments, according to the Franchise Tax Board.

Joint Filers

Adjusted Gross IncomePayment With DependentPayment Without Dependent
$150,000 or less$1,050$700
$150,000 to $250,000$750$500
$250,000 to $500,000$600$500

Head of Household Filers

Adjusted Gross IncomePayment With DependentPayment Without Dependent
$150,000 or less$700$350
$150,000 to $250,000$500$250
$250,000 to $500,000$400$200

Other Individuals

Adjusted Gross IncomePayment With DependentPayment Without Dependent
$75,000 or less$700$350
$75,000 to $125,000$500$250
$125,000 to $250,000$400$200

Why Are Californians Receiving This Money?

California's inflation relief payments are part of the $308 billion state budget approved earlier this year by California lawmakers. 

“We did tax refunds because we value dollars in your bank account versus pennies at the pump,” said Assemblymember Phil Ting, chair of the Assembly Budget Committee, told the Associated Press in June.

The inflation relief package amounts to $17 billion of California’s budget, providing relief to millions of taxpayers.

“California’s budget addresses the state’s most pressing needs, and prioritizes getting dollars back into the pockets of millions of Californians who are grappling with global inflation and rising prices of everything from gas to groceries," Gov. Gavin Newsom, Senate President pro Tempore Toni G. Atkins (D-San Diego) and Assembly Speaker Anthony Rendon (D-Lakewood) said in a joint statement earlier this year.

For more information on the tax relief payments, click here

To estimate your payment, use the Tax Franchise Board's calculator here.

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