California has paid more than half its inflation relief money

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California has paid more than $5 billion to 19 million eligible residents and their families as part of an inflation relief program designed to soften the blow of rising costs.

The most recent figures represent more than half of the total disbursements expected under the program, with the balance of the payments expected to reach eligible residents early next year.

The Middle Class Tax Refund or inflation relief program aims to pay $9.5 billion to eligible Californians. Refund payments range from $200 to $1,050, depending on your 2020 income tax filing status and whether you have claimed dependents.

The state has made 10.5 million payments, according to the latest information from the California Franchise Tax Board. Since the beginning of October, almost 7 million people have received direct deposits and 3.5 million people have received a debit card in the following months.

All direct deposits have been sent as of Nov. 14, according to the state, but millions of debit cards have yet to be sent.

These one-time payments range from $400 to $1,050 for couples who filed their 2020 tax returns jointly and $200 to $700 for those who filed independently. Eligible residents must file their 2020 tax returns by October 15, 2021 and meet the state’s adjusted gross income limits.

Inflation has been steadily rising over the past year, with an increase of 7.7% in October over the same month in 2021 and an increase of 0.4% in the month of September, according to the latest available data from the Bureau of Labor Statistics . While the data illustrates the smallest monthly increase since January, it follows several months of strong inflation despite aggressive moves by the Federal Reserve and state-level inflation relief programs.

Payments from the California inflation relief program will be sent through January. You can check your eligibility and calculate your total payment amount with the Franchise Tax Board’s refund estimator.

1. Am I eligible to get money through the California Middle Class Tax Refund?

There are several important qualifications to consider in order to receive payment. You may already qualify and not know it. According to the state’s Franchise Tax Board, requirements for eligible Californians include:

  • Submit your 2020 tax return before October 15, 2021.
  • Meet California’s adjusted gross income limits of $500,000 or less. There are levels for how much you receive depending on your AGI.
  • Not claimed as a dependent in the 2020 tax year.
  • Have been a resident of California for at least six months in the 2020 tax year and be a resident on the date the payment is issued.

2. How do I receive my payment?

This all depends on how you filed your 2020 income tax return and whether you still have the same bank account. That can make the difference between a direct deposit or a physical debit card arriving in the mail. There are other qualifications that can affect how you receive your payment, but here are a few:

  • Direct deposits go out to you if you have filed your 2020 income tax return electronically. Payments will be made to the same bank account into which your 2020 income tax refund has been deposited.
  • The physical debit card will be sent to you if you have submitted your 2020 income tax return using a paper form.
  • Did you file your 2020 income tax return electronically, but have you changed your bank account number or bank in the meantime? Then you will receive a debit card.

3. When should the money arrive?

  • Automatic deposits started between October 7 and October 25. All additional direct deposits were sent on November 14.
  • If you have changed your bank or bank account number from the moment you filed your 2020 income tax return electronically, you will have to wait a little longer. Your payments should arrive on a debit card from December 17 through January 14.
  • If you received a Golden State Stimulus check — a program designed to help families weather the economic fallout of the COVID-19 pandemic — in the mail in 2021, you can also expect to receive a physical debit card. They are expected to arrive between October 24 and December 10. The remaining cards will be shipped through January 14.

The Valley Voice
The Valley Voicehttp://thevalleyvoice.org
Christopher Brito is a social media producer and trending writer for The Valley Voice, with a focus on sports and stories related to race and culture.

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