How much is the middle class tax refund in California?
While residents in California are confused about the middle class tax refund program, it is here to help ease the rising costs of inflation
Over the last year, prices have consistently risen, and the Federal Reserve has aggressively attempted to ease consumer inflation.
The state of California alone has paid more than $5 billion to 19 million eligible residents and their families as part of an inflation relief program that helps soothe the blow of rising costs.
These figures represent over half of the total payouts expected under the program, with eligible residents expected to receive the balance of the payments throughout the start of the new year.
How much is the middle-class tax refund in CA?
The Middle-Class Tax Refund, or inflation relief program, is designed to pay $9.5 billion to eligible Californians. The payments range from $200 to $1,050 depending on residents’ filing status from their 2020 income tax returns and whether they claimed dependents.
As per the California Franchise Tax Board, the state has sent out 10.5 million payments. About 7 million people have received direct deposits since early October, and 3.5 million have been issued debit cards.
While all direct deposits have been issued on Nov. 14, millions of debit cards are yet to be mailed.
Couples who filed jointly on their 2020 state income tax return expect one-time payments that range from $400 to $1,050, while those who filed independently expect $200 to $700. Eligible residents will need to have met the state’s adjusted gross income limits and filed their 2020 tax return by Oct. 15, 2021.
California’s inflation relief program payments will continue to be sent out through January.
Residents can check their eligibility and calculate their total payment sum with the Franchise Tax Board’s refund estimator.
While many Californians are skeptical of receiving those payments in the mail loaded into debit cards, they are here to help ease the pinch of inflation.