To help middle-income residents combat the high cost of living, the Franchise Tax Board disbursed inflation relief checks in California. About 23 million eligible Californians will receive Middle Class Tax Refunds, a one-time payment of up to $1,050. The $9.5 billion relief program is the largest in state history. Here’s everything you need to know about inflation relief checks in California.
Inflation relief checks began disbursement in California on October 7.
Residents of the Golden State eligible for the stimulus through direct deposit should receive the payment by November 14. Those without direct deposit will receive a pre-paid debit card by mid-January 2023. Residents who reported a 2020 household income of $150,000 or less with a dependant receive the full $1,050.
“Inflated costs for everyday necessities have forced many to cut corners or make impossible choices,” said State Controller Betty Yee. “[A]nd pain at the pump has been compounded by the return of the commute for many Californians.”
The average price for a gallon of gas in California is about $6.39, a 59-cent increase in one week. Governor Gavin Newsom called for a special legislative session in December to push oil industry profit taxes. Additionally, the Governor said price gouging by oil companies is causing consumer pain at the pump. Though the Los Angeles Times reports high taxes on motor fuels and environmental protection laws worsen the issue. The Middle Class Tax Refund plan also includes a suspension of state sales tax for diesel fuel.
This round of relief corrects a previous oversight.
Unfortunately, California’s stimulus payments from last year left out those living on public assistance. The first two Golden State Stimulus payment rounds required residents to show income to qualify for the relief checks. But those living solely on social security, disability, or other forms of public assistance showed $0 on their income reports. However, this most recent round of stimulus provides some relief to those who showed no adjusted gross income in 2020.
