Millions of Californians will receive a so-called “inflation-reducing” tax refund after state lawmakers reach an agreement with Governor Gavin Newsom on the 2022-23 budget. (Video above: California legislators have the right budget; most taxpayers get a refund) But how much you get from a Middle Class Tax Refund depends on several factors, including how much income and dependents. | MORE | State leaders say 23 million Californians to get ‘inflation-reducing’ payment after budget deal is signed, state leaders say Here’s everything you need to know about reimbursement state taxes. To get started, you must file your 2020 tax refund by October 15, 2021. be a California resident on the date the payment is issued. You also cannot qualify to be declared a dependent in tax year 2020. yes. Taxpayers will receive $350, $250 or $200 based on their income with an additional payment of the same amount if they have at least one dependent. Joint miners with earnings below $150,000 will receive $700. If they have at least one dependent, they get an extra $350. : Single miners who earn between $75,001 and $125,000 will receive $250. Joint miners with earnings between $150,001 and $250,000 will receive $500. If they have at least one dependent, they get an extra $250. About 12% of beneficiaries fall under this category. Tier 3: Applicants earning between $125,001 and $250,000 will receive $200. Joint miners who earn between $250,001 and $500,000 will receive $400. If they have at least one dependent, they will receive an additional $200. About 6% of beneficiaries fall under this level. | MORE | Are you qualified? Find out how much you’ll get through the Franchise Tax Department’s refund estimator. When will I receive my refund? Payments are expected to begin in late October 2022 and end in mid-January 2023. How do I get a refund? Eligible people will receive a direct deposit payment or a debit card with the payment. How you get it depends on how you filed your 2020 tax return. Otherwise, they will receive a debit card payment. How many installments are there? The Middle Class Tax Refund is a one-time payment for California residents who filed a tax return in 2020. What if I don’t file a 2020 tax return? Most people who do not file a tax return in 2020 are not eligible for the payment. But the state is also ramping up support for these programs: State Supplemental Security Income / Supplemental Payments (SSI / SSP) Recipients: SSI / SSP Program for seniors 65 and older up, or be blind or disabled. The budget agreement increases benefits to about $39 per month ($470 for the year) for individuals and $100 per month ($1,200 for the year) for couples. Collectively, the increase will affect 1.1 million cases. CalWORKS Recipients: CalWORKS is a program that provides cash and services to eligible families with children or children in the home. Combined with the previously announced increase, a family of three can get an extra $194 a month. The increase affects about 369,000 households. My only source of income is federal Social Security payments so I don’t file a tax return. Am I still eligible? Seniors who don’t pay taxes because they only receive Social Security benefits will not be eligible for a refund. However, they may still be eligible for other types of incremental assistance such as reduced rent, utility benefits, and health care benefits if those benefits are not renewed by the federal government, according to the report. HD Palmer, spokesman for the California Department of Treasury. | READ MORE | Here’s Why Some Seniors Won’t Get Payments From California’s ‘Inflation Reduction’ Programs
Millions of Californians will receive a so-called “inflation-reducing” tax refund after state lawmakers reach an agreement with Governor Gavin Newsom on the 2022-23 budget.
(Video above: California lawmakers OK budget; most taxpayers to get refund)
But how many words do you get? Middle class tax refund depends on several factors, including income level and dependents.
| MORE | 23 million Californians for ‘inflation relief’ payment after budget deal hits, state leaders say
Here’s everything you need to know about state tax refunds.
How do I know if I am eligible for this refund?
To get started, you must file your 2020 tax return by October 15, 2021.
Some newer California residents will not be eligible for the refund, as they must have lived in the state for six months or more of the 2020 tax year and still be California residents on the date the payment is issued.
You also may not be eligible to be declared a dependent in the 2020 tax year.
How much money will I get from this refund?
The amount you receive will depend on your adjusted gross California income, as well as the number of dependents you have.
Taxpayers will receive $350, $250 or $200 based on their income with an additional payment of the same amount if they have at least one dependent.
Tier 1: Single miners who earn less than $75,000 will receive $350. Joint miners with earnings below $150,000 will receive $700. If they have at least one dependent, they get an extra $350.
So, for example, that means a couple earning $100,000 per year with one child will receive $1,050.
About 82% of the state’s beneficiaries are in this income bracket.
Part 2: Single miners who earn between $75,001 and $125,000 will receive $250. Joint miners with earnings between $150,001 and $250,000 will receive $500. If they have at least one dependent, they get an extra $250.
About 12% of beneficiaries fall under this category.
Level 3: Single miners who earn between $125,001 and $250,000 will receive $200. Joint miners who earn between $250,001 and $500,000 will receive $400. If they have at least one dependent, they get an extra $200.
About 6% of beneficiaries fall under this category.
The Franchise Tax Commission has created a tool where you can estimate how much you will get.
When will I receive my refund?
Payments are expected to begin being made in late October 2022 and are expected to end in mid-January 2023.
How do I get a refund?
Eligible people will receive a direct deposit payment or a debit card with the payment.
How you get it depends on how you file your 2020 taxes.
Those who filed their taxes electronically and requested direct deposit will receive their refund via direct deposit. Otherwise, they will receive a debit card payment.
How many installments are there?
The Middle Class Tax Refund is a one-time payment to California residents who filed a tax return in 2020.
What happens if I don’t file my 2020 tax return?
Most people who do not file a tax return in 2020 are not eligible for the payment. But the state is also increasing support for these programs:
- Supplemental Security Income/State Supplemental Payment (SSI/SSP) receiver: The SSI/SSP program is for seniors 65 years of age or older, or blind or disabled. The budget agreement increases benefits to about $39 per month ($470 for the year) for individuals and $100 per month ($1,200 for the year) for couples. Collectively, the increase will affect 1.1 million cases.
- CalWORKS Grants receiver: CalWORKS is a program that provides cash and services to eligible families with children or children in the home. Combined with the previously announced increase, a family of three can get an extra $194 a month. The increase affects about 369,000 households.
My only source of income is federal Social Security payments so I don’t file a tax return. Am I still eligible?
Seniors who don’t pay taxes because they only receive Social Security benefits will not be eligible for a refund.
However, they may still be eligible for other types of increased assistance such as rent assistance, utility benefits, and health care benefits if those benefits are not renewed by the federal government, according to HD Palmer, a spokesman for the California Department of Treasury.
| READ MORE | Here’s Why Some Seniors Won’t Get Payments From California’s ‘Inflation Reduction’ Programs