How Long Will The Stimulus Checks Last? Rising Gasoline Prices In California Increases Living Cost Of Residents

Stimulus Check

Rising gas prices forced Governor Gavin Newsom to declare a direct Stimulus Check ranging from $200 to $350 per person conforming depending on income, filing status, and residential status. His initial plans to give a gas card Stimulus Check fell through after Democratic Party legislators persuaded him to reconsider his earlier 400-dollar gas card.

The gas card would have limited the Stimulus Check payment available to residents to $400 per car and limited to two cards per household. With a huge budget surplus in hand worth $97 billion, Newsom has the luxury that no other state in the US can consider.

Tax refunds as part of the agreement’s $17 billion inflation relief package would provide $350 to individuals making below $75,000 per year. Couples earning $150,000 and who file their taxes together would receive $700 stimulus checks.

If families or individuals who fall under this income tier include any dependent, they stand to gain another $350. Thus joint filers in this income tier with dependents can earn the maximum possible of $1,050 under the Middle-Class Tax Rebate.

The agreement will also provide stimulus checks to people in the individual income tier between $75,001 and $125,000. They stand to gain a $250 stimulus check while joint filers earning between $150,001 and $250,000 will get twice that amount at $500. Again the inclusion of a dependent will bring them another $250. Thus the maximum total under this scheme comes to $750 for a couple filing jointly and who include a dependent.

The smallest payments are designated for individual filers earning between $125,001 and $250,000. They will get a $200 stimulus check while joint filers in this income slab will get double that if their income is between $250,000 and $500,000. They will also get an additional $200 if they include any dependents.

Relief for dependents is limited to only one amount, which is equivalent to the amount received by their parents.

As promised the state has begun sending the payments initially through direct transfers to accounts and will send a section of the payments through debit cards. No paper checks will be issued.

The payment timeline has been released by the administration and the Franchise Tax Board has revealed that it expects all the money would be sent out by the second week of January 2023.

An Updated Timeline Of The California Stimulus Checks 

Around 3.5 million people have already received the promised payments as part of measures to offset the increased cost of living and gasoline prices, according to the Franchise Tax Board.

Residents who received the Golden State Stimulus and who filed their income tax returns electronically and also received refunds through direct bank transfers got payments first between October 7 and October 25. The remaining beneficiaries will receive payments in their banks between October 28 and November 14, revealed state officials.

The Franchise Tax Board has revealed that it expects 90% of the direct deposits issued by end-October.

The Franchise Tax Board has also released the payment schedule for the debit cards which will start on October 24 and continue till November 21 people receive their payments in alphabetical order of their last name.  The board has said that it will take at least two weeks from the above dates for the debit cards to reach their destination through the US Postal Service.

People who earlier received their payment through direct deposit but have since changed their bank or their account number will receive their payment through debit cards this time around. The payments through debit cards will be sent to the address mentioned in their tax returns.

Most people who did not file an income tax return for 2020 are not eligible for the third round of stimulus checks being given by the California government. But the state has also increased the support through parallel programs. 

The support for SSI and SSP programs for seniors aged 65 or older, or the blind and disabled, has been increased by around $39 per month which works out to $470 per year, for individuals. For couples, the monthly increase works out to $100 per month or $1,200 for a year. In all, the increase is expected to benefit around 1.1 million individuals or families.

The CalWORKS program, which provides services and cash to eligible families with a child or children at home has been increased. In combination with past increases, a family of three will receive around $194 every month and will benefit around 369,000 households.

Seniors, the disabled, and the blind, who receive only Social Security benefits and are not mandated to file income tax returns will not receive the Middle-Class Tax Refund stimulus check.

But Social Security beneficiaries may still be in line for other types of enhanced assistance measures like assistance for payment of utilities, rent relief, and health care subsidies if the federal government does not renew assistance and discontinues it.

Federal Government Reaches Out To Over 9 Million Citizens Who Have Not Collected Economic Impact Payments

A letter from the Internal Revenue Service (IRS) may bring some good news for recipients. The tax authorities have discovered that over 9 million citizens have not collected part or the total amount of the third stimulus check, or the Economic Impact Payment, under the American Rescue Plan Act.

The recipients of the letter also include families that have not collected the full or partial amount of the expanded Child Tax Credit stimulus check that was paid in part between July and December 2021  through monthly checks.

The balance of the CTC stimulus check is to be collected against the 2021 income tax return to be filed in 2022. The IRS has extended the last date for filing to November 17, 2022. Many are also eligible for the Earned Income Tax Credit and other credits depending on their eligibility.

The IRS even wants to help people out by providing Free File, a simple online tax tool where people earning below $73,000 are eligible.

Individuals with income below $12,500 and couples with income less than $25,000 can also visit and file a simple tax return to claim the 2021 Recovery Rebate Credit. The amount covers any stimulus payment that filers may have missed.