700,000 people in California are getting inflation relief payments Friday. Here's who.
Approximately 700,000 people in California will receive cash deposits from the state on Friday as part of an effort to help residents deal with the rising costs of goods due to inflation. Friday's deposits are just the first round of what will eventually be millions of payments between now and November.
The state estimates that 23 million Californians — more than half of the state — will be eligible for payments. To qualify, residents must have completed a 2020 California tax return and make no more than $250,000 individually or $500,000 if filing jointly. (All numbers listed must reflect filer income in the 2020-2021 tax year).
The California Franchise Tax Board told SFGATE the first wave of direct deposits will be sent to filers who completed their tax return electronically and qualified for last year's Golden State Stimulus. There are 4.6 million payments of this type, with the 700,000 Friday payments representing just a sliver of this phase. The state expects to have the 4.6 million payments completed by Oct. 25.
The state will then move on to electronic filers who did not qualify for last year's payments. There are approximately 3.4 million payments of this type, and the state expects to have them completed by Nov. 14.
Finally, those who filed their tax returns by mail will be sent a debit card in lieu of a direct deposit. Roughly 10 million debit cards will be mailed beginning Oct. 25.
Single filers who make less than $75,000 a year will receive $350, and joint filers with a combined yearly income of less than $150,000 will receive $700. If filers have one dependent or more, they get an additional $350.
Single filers who make more than $75,000 and less than $125,000 a year will receive $250, and joint filers with an income between $150,000 and $250,000 will receive $500. If these filers have one dependent or more, they get an additional $250.
Finally, single filers filers who make more than $125,000 and less than $250,000 a year will receive $200, and joint filers who make between $250,000 and $550,000 will receive $400. The additional amount of money received if these filers have a dependent is $200.
The payments are the result of an agreement reached by earlier this year between Gov. Gavin Newsom and leaders in the Legislature, who grappled for months over questions related to how the payments would be distributed and who would qualify.