California Tax Refunds Are Coming. How Much Is Your Tax Relief Payment?
On Friday, millions of Californians will start receiving Middle-Class Tax Refund payments of up to $1,050.
Due to the state’s record $97 billion surplus, residents of California who make less than $250,000 annually or whose household income is less than $500,000 will receive rebates ranging from $200 to $1,050.
Middle-Class Tax Refunds Will Start Hitting Bank Accounts
According to the Governor’s Office, up to 23 million people will receive one of the estimated 18 million payments by the 15th of January. The refunds will be issued to taxpayers with a linked direct deposit starting this Friday and continuing through November 14th. In addition, on October 25th, roughly 10 million debit cards will be distributed.
“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 State Controller and Franchise Tax Board Chair Betty T. Yee. “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.”
Sixty-three percent of American states have passed tax cuts so far this year. After a brief dip during the coronavirus pandemic, state revenues have exploded, fueling the trend of tax reductions.
There has been a correlation between states with Republican governors and the approval of long-term tax cuts. On the other hand, many Democratic states, including California, have chosen to offer temporary tax relief. Several states on both sides of the political aisle have temporarily eliminated or significantly reduced gas and grocery sales taxes.
In June, Democratic Assembly member and Assembly Budget Committee Chair Phil Ting said, “We did tax refunds because we value dollars in your bank account versus pennies at the pump.”
— WA Senate Republicans (@WashingtonSRC) October 7, 2022
The exact amount of the Middle-Class Tax Refund that a California resident receives in 2020 will depend on their filing status, the number of dependents, and state income tax return. Taxpayers who want to get a rough idea of their refund can do so using a calculator available at taxrefund.ca.gov.
Proposition 30, which will be on the November ballot in California, would put an extra 1.75 percent tax on personal income over $2 million. The money from this tax would go toward electric vehicle projects and preventing wildfires.
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