Millions of qualifying Californians will receive up to $1,050 as part of the state’s Middle Class Tax Refund program starting this week. The first round of payments are set to go out Friday.
Approximately 23 million taxpaying California residents are eligible to receive the payments, with smaller payments going to higher earners.
The payments, which are technically tax refunds, are meant “to help address rising costs,” according to Gov. Gavin Newsom’s office.
Newsom and state lawmakers reached a deal for the refunds back in June, when gas prices were shattering records at or above $7 a gallon.
Are you eligible?
To be eligible, you must have filed your 2020 tax return by last October and make less than $150,000 per year. If you are eligible, there is no action to take. You will receive a payment automatically without an application process.
To calculate your payment, go to the state’s website and click on “Middle Class Tax Refund.”
When will you receive your payment?
According to the California Franchise Tax Board website, eligible Californians will receive their payment via direct deposit issued to their bank accounts or via a debit card sent in the mail.
Direct deposit payments are expected to be issued to bank accounts during these windows: Oct. 7, 2022 – Oct. 25, 2022 and Oct. 28, 2022 – Nov. 14, 2022.
State officials said they expect about 90% of direct deposits to be issued in the month of October 2022.
Debit cards are expected to be mailed between Oct. 25, 2022 – Dec. 10, 2022, with the rest receiving the card by Jan. 15, 2023.
State officials said they expect about 95% of all payments – direct deposit and debit cards combined – to be issued by the end of this year.
So who will get paid by direct deposit, and who will receive a debit card?
Generally, direct deposit payments will be made to eligible taxpayers who e-filed their 2020 CA tax return and received their CA tax refund by direct deposit. The remaining eligible taxpayers will receive their payments in the form of a debit card, according to the California Franchise Tax Board website.
You will receive your payment by mail in the form of a debit card if you:
- Filed a paper return
- Had a balance due
- Received your Golden State Stimulus payment by check
- Received your tax refund by check regardless of filing method
- Received your 2020 tax refund by direct deposit, but have since changed your banking institution or bank account number
- Received an advance payment from your tax service provider, or paid your tax preparer fees using your tax refund
The CNN Wire contributed to this report.
Copyright © 2022 KABC Television, LLC. All rights reserved.