How much will I get from California’s Middle Class Tax Refund inflation payment?
Gov. Gavin Newsom approved a sweeping round of direct payments to help residents deal with the soaring cost of living.
Last Friday millions of Californians began receiving tax refunds worth up to $1,050 as part of the state’s effort to curb the damage done by the sky-high rate of inflation recorded throughout 2022.
The program, known as the Middle Class Tax Refund, is offering a one-off payment for approximately 23 million taxpaying California residents. A statement from the office of California Governor Gavin Newsom confirmed that the direct payments are designed “to help address rising costs.”
Recipients will receive between $200 and $1,050 from the relief payments, which, for most recipients, will land directly into their bank accounts as a tax refund. Alternatively, if the California Franchise Tax Board (CTFB) does not have your bank details on record, you may receive a preloaded debit card in the mail.
Higher earners will receive a lower payment, but you must have earnt enough to have paid taxes in 2020 to be eligible for the support.
To work out exactly how much you stand to gain from the Middle Class Refund Inflation payment, use the state’s Middle Class Tax Refund Estimator.
“Inflated costs for everyday necessities have forced many to cut corners or make impossible choices, and pain at the pump has been compounded by the return of the commute for many Californians” said Betty Yee, Chair of the CTFB.
“As the holidays approach, my team members are thrilled to be able to get these payments into the hands of those who have been struggling, so they can enjoy a measure of relief.”
When will California inflation payment arrive by direct debit?
The distribution of the Middle Class Tax Refunds will mirror that of the Golden State Stimulus Checks sent out last year, with direct debit payments sent out in waves.
Recipients in the first payment window will receive their money from Friday 7 October to Tuesday 25 October. A second round of payments will be made later in October, with beneficiaries expected to see the funds in their bank accounts between Friday 28 October and Monday 14 November.
The majority of recipients will get the payment via direct debit, but those waiting for a debit card in the mail will have a longer wait.
Mailing the physical cards will take longer and the process is expected to take from Tuesday 25 October to Saturday 10 December. The final cards are expected to arrive with beneficiaries by Sunday 15 January 2023 at the latest.
However very few will have to wait that long for the support to arrive, with the CTFB stating that they expect 95% of the Middle Class Tax Refund payments to have arrived before the end of the year.