The residents of California have already received up to $1,050 worth of inflation relief payments last October. These payments were received either via direct deposit or debit cards sent in recipients’ mail, says KCRA.
California’s relief payment program, also known as the Middle Class Tax Refund, has started distributing to the state’s residents since October 7. Direct deposit payments have been sent out first, but the debit cards were sent in the mail a little later. Nonetheless, the inflation relief payments are expected to arrive until January 15 of next year. Residents can also anticipate 95% of all inflation relief payments to be distributed before the end of the year. In total, the inflation relief payments have amounted to $9.5 billion, the largest in the history of California.
This program became a part of the state’s $308 billion budget California Governor Gavin Newsom has signed last June. Approximately, 23 million residents of California have already been given inflation relief payments of this program. Inflation has been increasing by 8.3% every year. Hence, the aim of this program is to help bear the rising costs of living.
Who is eligible for these inflation relief payments?
According to KCRA, to be eligible for this inflation relief payment, taxpayers must have filed a 2020 tax return. Single filers must have an income of less than $250,000 and joint filers must not have more than $500,000. Single filers with incomes less than $75,000 a year will receive $350 relief payments. Joint filers with incomes less than $150,000 a year will receive $700 relief payments. Filers with dependents will receive an additional $350 relief payment. The maximum amount anyone can receive is up to $1,050 for married couples who have a dependent, have filed jointly, and have an income of under $150,000.