SACRAMENTO, Calif. — Twenty-three million Californians will begin receiving inflation relief payments Friday. Eligible to individuals who paid 2020 taxes in the state, the payments will range from $200 to $1,050 as part of a Middle Class Tax Refund program the legislature approved in June, when gas prices reached record-breaking highs nearing $7 per gallon.
“It’s the largest state tax refund in American history,” Gov. Gavin Newsom said Thursday of the $9.5 billion the state will issue through the California Franchise Tax Board. “We recognize it’s not the solution, but it comes with the recognition of the stresses and the anxiety many Californians are facing.”
To qualify for the tax refund, Californians must have filed their 2020 return by Oct. 15, 2021, and earn less than $150,000 annually. They cannot have been claimed as a dependent and must be a California resident on the date the payment is issued. They do not need to take any additional action to receive the money.
It will be automatically sent without the need to fill out an application.
The payments will be sent via direct deposit to individuals’ bank accounts or with a debit card that is mailed to the taxpayer’s address. Direct deposit payments will go to individuals who filed their 2020 California tax returns electronically and received their refunds with direct deposit.
Direct deposits are expected to arrive in individuals’ accounts from Oct. 7—25 and again from Oct. 28—Nov. 14. About 90% of the direct deposits will be completed in October, according to the Franchise Tax Board.
The state will mail debit cards from Oct. 25—Dec. 10. All debit cards will be received by Jan. 15, 2023.
According to the Franchise Tax Board, individuals will receive debit cards in the mail if they filed their 2020 tax return by mail, had a balance due, received a tax refund by check or have changed their banking account since receiving a refund for their 2020 taxes.
To find out your eligibility for the Middle Class Tax Refund and how much you are expected to receive, visit the Franchise Tax Board Middle Class Tax Refund Estimator.