Middle Class Tax Refunds for Millions of Californians

By Assemblymember Phil Ting–

October means the Franchise Tax Board (FTB) has begun the process of sending $9.5 billion tax relief payments to most Californians. As Assembly Budget Chair, I was part of the legislative leadership team that negotiated these refunds that are meant to help residents fight global inflation. We’ve seen how rising prices were affecting household budgets, and we wanted to use some of the state’s surplus to assist approximately 23 million residents with the cost of gas, rent, utilities, and other essential expenses.

These one-time payments range from $200 to $1,050. You may be eligible if you:

• Filed your 2020 tax return by October 15, 2021;
• Meet the California adjusted gross income (CA AGI) limits ($250,000 for single filers and $500,000 for married couples);
• Were not eligible to be claimed as a dependent in the 2020 tax year;
• Were a California resident for six months or more of the 2020 tax year;
• Are a California resident on the date the payment is issued.

Your CA AGI can be found on line 17 on Form 540 or line 16 on Form 540 2EZ. As an example, an eligible married couple who earned $150,000 or less and has at least one dependent would get the maximum refund of $1,050. If that same couple claimed no dependents, they would receive $700.

Meanwhile, a single filer who made between $125,000 and $250,000 and has no dependents, would get $200. For a complete list of scenarios, please visit the Franchise Tax Board website and click on the Middle Class Tax Refund box to help you determine your eligibility and estimate your payment: https://www.ftb.ca.gov/

The first wave of checks has already begun landing in people’s bank accounts with most eligible residents receiving their funds electronically by mid-November. FTB is using the banking information it has on file when it sent out the two previous Golden State Stimulus payments last year.

If FTB does not have your banking information, Middle Class Tax Refunds will be physically mailed in the form of a debit card to home addresses, starting on October 28 and ending by mid-January. You’ll likely fall in this category if you:

• Filed a paper tax return;
• Received your Golden State Stimulus payment by check;
• Received your tax refund by check regardless of filing method;
• Received your 2020 tax refund by direct deposit, but have since changed your banking institution or bank account number.

State officials said they expect about 95% of all payments—direct deposit and debit cards combined—to be issued by the end of this year.

For those who did not file a 2020 tax return but are on Supplemental Security Income/State Supplementary Payment (SSI/SSP) for seniors, the blind or disabled, grants will increase next year, instead of 2024. Amounts will go up by $39/month for individuals or $100/month for couples.

And with 2023 approaching, residents eligible for the California Earned Income Tax Credit (CalEITC) should start making a plan to file their taxes early, so they can receive that refund too. The state’s Franchise Tax Board website also has information on that program.

As your state representative in Sacramento, I hope these actions help ease some of the rising costs affecting your household budgets. I’m proud that California is among 17 states providing inflation relief payments.

Phil Ting represents the 19th Assembly District, which includes the Westside of San Francisco and portions of South San Francisco along with the communities of Broadmoor, Colma, and Daly City.

Published on October 20, 2022