California Gears Up For Big Day As 23 Million Residents To Get Stimulus Check: A Few More States To Send Inflation Relief In October

Stimulus Check
Stimulus Check

The Californian government is set to give the biggest payout since the third stimulus check payments were made a year and a half ago. Over 23 million residents will receive stimulus checks as part of the $17 billion worth of inflation relief package that will bring up to $1,050 for residents of the Golden State. The relief payments are to be paid out of a record $97 billion California budget surplus, riding on the back of an economic boom in the last two quarters of 2021.

This will effectively be the third round of stimulus checks given by the Democrat government under Governor Gavin Newsom. The Golden State Stimulus Check I went out to around 2.5 million residents for a total of $1.6 billion. Qualifying residents received between $600 and $1,200 in the first round. A million more people benefitted from the second round, which gave up to $1,100.

The third stimulus check being given by the Democratic Government in California has been named the Middle-Class Cash Back program is way bigger and will send out $9.5 billion to 23 million residents comprising close to 60% of the population.

The growing cost of inflation is caused by record prices of gasoline, groceries, utility bills, and home rents. As part of the $17 billion inflation package, the residents will receive payments. The maximum will go out to joint filers with dependents.

Governor Gavin Newsom said that the money will help people put food on the table and fill their gas tanks. He has described the package as a middle-class rebate. Fuel rates in California are the highest in America and crossing the $6 per gallon mark and continue to hover around the $5.8 mark.

Eligibility For The California Middle-Class Rebate

The eligibility for the California Middle-Class Cash Back will depend on the earnings of residents and also on the presence of a dependent. The government will give an additional payment for only one dependent, irrespective of the number in the family.

Stimulus Check
Stimulus Check

The amount will be based on the earnings of families and individuals and has been divided into three tiers of earnings. Individual tax filers earning up to $75,000 will receive a stimulus check of $350. Those earning between $75,000 and $125,000 will get a $250 stimulus check. and those with a gross income of between $125,000 and $250,000 will get a stimulus check of $200. A dependent will fetch them an additional amount which will be similar to the amount they get.

For joint filers, the first tier is $150,000. Couples earning below this figure stand to get $700, which comes to $350 each, plus another $350 for a maximum of one dependent. Filers in this slab will get the highest amount of $1,050.

For joint filers earning between $150,000 and $250,000, the total check including one dependent comes to $750. In the topmost tier, the stimulus check comes to $600 with one dependent for filers earning between $250,000 and $500,000.

The payment will go out as a direct bank deposit into the account mentioned in the income tax filing details. For a small percentage of the beneficiaries, the amount will be sent through debit cards.

The California stimulus check will start being a credit to the account of the beneficiary in little more than a week. The first round of the payments will go to residents who received a direct deposit under the previous two rounds. The payments will start being issued from October 7 and will continue till the 25th, the state tax board has revealed. The remaining deposits will go out between October 28 and November 14.

People who have not linked their account to access direct deposits will get a debit card mailed to their address through the US Postal Service. The cards will be mailed starting October 25 and continue through December 10. This is for residents who received payments last year through debit cards. For first-timers, the debit cards will be despatched by January 15 next year.

The Colorado Cash Back Proves Relief To Coloradans

Coloradans got a tax rebate of $750 for individuals and double that for joint filers this summer after governor Jared Polis signed a new law providing a stimulus check much earlier. The payment was normally scheduled for the summer of 2023, but the tax refund has gone out much earlier for these lucky people.

Residents who have already filed their state returns are all set to receive the Colorado Cash Back stimulus check by September or at the most by October.

Residents who have filed their state returns, or have applied for a property tax, heat, or rent credit rebate (PTC Rebate) before June 30, 2022, are eligible for the Colorado Cash Back stimulus check. Filers who have applied for an extension to file their income tax returns till October 17, 2022, will have their payment delayed till the end of January next year.

Stimulus check
Stimulus check

The stimulus check will be mailed to the address in the records of the state authorities. If you need to change your address, you can do so by creating an account or logging into the account. You can also submit a completed Address Change Form (DR-1102).

The Taxpayer Bill of Rights regulates the amount that Colorado can retain and spend in each fiscal year. Any collection above the limit must be refunded to the taxpayer unless residents authorize the state to retain it through a voting process. The amount that the residents of Colorado will receive is a refund of excess state revenues for the fiscal year 2021-2022.

The strong economic performance this year has enabled Governor Polis and the state legislature to give back a generous amount to residents of the state well ahead of schedule. While individual filers will get a $750 stimulus check, joint filers can expect double that amount.

The only way to get the cashback payment is to file the state income return for 2021 to be filed in 2022. You can also apply for the PTC rebate before the statutory deadline to get the stimulus check. One important aspect to note is that the cashback is not taxable.

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