Residents of California will be receiving up to $1,050 relief payments in January 2023. These payments are due to the state’s Middle Class Tax Refund program, says Notheis.
According to the California Franchise Tax Board, the residents of California can look forward to receiving relief payments of $200 to $1,050 on or before January 14, 2023. The amount of relief payments to be received will depend on how much income was filed by the taxpayer. These relief payments are due to the state’s Middle Class Tax Refund program. To date, California has issued over 7 million direct deposits and over 8.3 million debit cards. This totals to over $8.3 billion which benefited over 29 million California residents and their dependents. The program was approved by California’s lawmakers last summer and was provided with a budget of $9.5 billion.
In early October, the program started issuing payments to the residents through direct deposit. Debit cards, on the other hand, were issued a month later. For filers who have switched their banking information from direct deposits to debit cards, the final round of payments was issued starting on December 17 last year and will carry on until January 14 this year.
Who is eligible for these payments?
According to Notheis, to be eligible, the applicant must be a resident of California for at least six months in 2020 and still a resident when the payments were issued. The applicant must have met the adjusted gross income limits and filed their 2020 tax returns on October 15, 2021. Lastly, they must not be claimed as dependent in 2020. Individual filers must make an income of less than $75,000 to receive full payment. If they make up to $250,000, they will receive only parts of the payment. On the other hand, joint filers and heads of households must make an income of less than $500,000 to receive parts of the payment too.