$1,050 Stimulus Checks Are Coming: California Has a New Tax Rebate Plan

California Grants Tax Rebates (Yes, New Stimulus Checks) to Social Security and Disability Recipients – When California introduced the 2021 Golden State Stimulus program, millions of residents in the lower and middle-income brackets received tax rebate checks from the state as part of a scheme designed to redistribute the state’s massive $75.7 billion budget surplus. The scheme distributed one-time checks worth $600 or $1,200- depending on whether an individual filed taxes individually or jointly.

The stimulus checks program, however, left out individuals who received social security and disability benefits because their tax returns showed $0 in California Adjusted Gross Income. To qualify for the scheme last year, California residents were required to show between $1 and $75,000 of income.

In 2022, California is broadening its stimulus program, providing rebates to even more residents. This year’s Middle Class Tax Refund scheme will see checks distributed in October of this year, and recipients of social security, disability, or other public assistance will be eligible to receive the money this time around.

Under this year’s scheme, the state will issue checks worth up to $1,050 to millions of taxpayers and benefits recipients.

Single filers earning less than $75,000 will receive stimulus checks worth $350. The value of the rebate drops to $250 for those earning between $75,000 and $125,0000, and to $2000 for those earning between $125,001 and $250,000.

Any single filer making more than $250,000 will not receive a tax rebate.

For joint filers earning $150,000 or less, the state will issue a rebate worth $700. Joint filers earning between $250,001and $500,000 will receive rebates of $400, while joint filers earning more than $500,000 will receive no rebate.

California residents with benefits, whether they file their taxes individually or jointly, can apply to receive additional payments. The highest possible rebate payment for a California resident would be $1,050, which constitutes a $700 rebate plus an additional $350 in inflation relief. A couple filing jointly with at least one dependent would qualify for this top payment.

Stimulus Checks Come from California’s Massive 2022 Budget Surplus

California can afford to expand its tax rebates this year after it was revealed that the state budget surplus will reach $97.5 billion for 2022. For the second year in a run, California has witnessed historically high budget surpluses due to dramatic increases in tax revenue from the state’s highest earners.

The rebates are likely to be well-received, too, with California witnessing some of the highest price increases in the country over the last year. In June, the city of Mendocino in California saw some drivers paying as much as $9.60 per gallon of gas at the pump.

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