State Stimulus Check Continue To Be The Lifeline For Million In Absence Of Federal Support: IRS Filing Extension Deadline Looms On November 17

Stimulus Check
Stimulus Check

California has begun issuing inflation relief Stimulus Checks to around 23 million residents, almost 60% of the population of the state. The payments of up to $1,050 will be either through direct deposit or debit cards. The payments are expected to be complete by January 14, 2023.

Residents of the Golden States have already begun receiving up to $1,050 that are being deposited into their accounts in the first phase of the payments. The Middle-Class Tax Refund payments were approved by the state legislature in June 2022. 

Gov. Gavin Newsom’s initial plan was to send a $400 debit card to each resident in California for every car owned by a household subject to a maximum of two cards per family.

There are two categories under which the direct deposit recipients will get their payments. Some received earlier payments of the Golden State Stimulus I and II and those who did not. Some filers who e-filed and normally receive their refunds through direct deposits might also get their payment through debit cards.

Beneficiaries who received their Golden State stimulus check payments I and II will have their Middle-Class Tax Rebate issued between 7 and 25 October 2022.

The California Franchise Tax Board has tweeted that the Middle-Class Tax Refund will provide qualified personal income tax filers with one-off payments as a way to provide relief to Californians.

People who did not receive their Golden State Stimulus Check payments, or the non-GSS payments will receive their payment between 28 October and 14 November 2022.

The tax authority of California, the Franchise Tax Board, has advised that the direct transfer of funds will normally occur within three to five business days from the date of issue but could vary among financial institutions.

Stimulus Checks Through Debit Cards

Residents of California who filed paper returns for the 2020 financial year will get their stimulus checks through debit cards, posted at the address they have entered in their returns. While in the normal course of events, Californians who e filed their income tax returns for 2020 normally get their tax refund via direct deposits, it was not the case in this instance.

Residents will be given debit cards in many cases, including if they have a balance due, have received the Golden State Stimulus Check through paper stimulus checks, and have got a refund through paper checks. Their filing method will not make a message, and they will not benefit from the direct deposit into accounts.

Also, those who receive an advance payment from the tax preparer or pay fees for their tax service will receive paper checks.

The debit cards will reach Californians and will be based on the first letter of the last name, whether they receive a Golden State stimulus check I or II, and those who change the information provided in their account.

The California tax authorities have advised allowing a maximum of 2 weeks from the issue date of the debit cards to reach the beneficiaries by snail mail.

Close to 95% of the approximately 23 million payments to eligible residents of California will be issued by the end of 2022.

Date Line For The California Stimulus Check Payments

The Golden State Stimulus Check I and II recipients will have their debit cards dispatched between October 24 through December 4. They will receive their payments alphabetically with filers with last names beginning A to E getting their cards mailed between October 24 and 5 November.

Those with last names beginning between F to M will have it mailed between November 6 and November 19.

Recipients with last names beginning with N to V will have their cards mailed between November 20 and December 3.

Recipients with last names beginning with W to Z will have their cards mailed between December 4 and December 10.

For non-GSS recipients with last names beginning with A to L, the debit card mailing timeframe will be announced after November 7 while for non-GSS recipients with the last name between M and Z, the date for the mailing of debit cards will be announced after November 21.

Direct deposit recipients who have made changes to their banking information since filing their 2020 income tax return will have their debit cards mailed between December 17 and January 14.

The Middle-Class Tax Refund Income Limit

The California tax rebate officially called the Middle-Class Tax Refund, will benefit close to 23 M taxpayers of California, around 60% of the state population. The amount that will reach taxpayers will be determined by several factors including their income and whether they have any dependents.

The state expects 95% of all payments to go out by the end of this year through either direct bank transfers or debit cards. The remaining will be sent by January 15, 2023.

The tax rebate plan has been divided into a three-tier program with the lowest tier for individuals earning up to $75,000 and joint filers up to $150,000. Each filer will get $350 each plus another $350 if they declare any dependent. The highest amount of $1,050 is possible for a joint filer in this tier if they include any dependent.

The next tier is for an individual with an AGI between $75,001 and $125,000 and for joint filers earning between $150,001 and $250,000. They each stand to gain $250 plus another $250 in they include any dependents.

The higher tier is between $125,001 and $250,000 for individuals and $250,001 and $500,000 where the rebate amount is $200 for each filer plus the same amount for including any dependent.

Filers earning above $250,000 and joint filers earning above $500,000 will not receive any money under the Middle-Class Tax Rebate.

Other Requirement For The Middle-Class Stimulus Check

Besides meeting the AGI limits stipulated by the Franchise Tax Board, there are some other requirements to receive the Middle-Class Tax Refund. Included are the requirement to have filed the 2020 state income tax return by October 15, 2021, and the requirement at the claimant should not have been claimed as a dependent by any other tax filer.

They must also have been a California resident for at least 6 months in 2020 and also must be a resident of California on the date the payment is issued.