Inflation relief checks: Who qualifies and how to get it

Up to 23 million California taxpayers have started to receive a one-time inflation relief payment to help pay rent, cover utilities and such essentials as groceries and gas.

This relief, known as the Middle Class Tax Refund payments, will distribute $9.5 billion with refunds of up to $1,050 to eligible California taxpayers, state officials say.

“We know it’s expensive right now, and California is putting money back into your pockets to help,” Gov. Gavin Newsom said in a news release. “We’re sending out refunds worth over $1,000 to help families pay for everything from groceries to gas.”

Keith West is a Petaluma certified public accountant and senior manager at accounting firm Sensiba San Filippo. He said Californians are really starting to feel the high inflation, whether they’re at the gas pump or in line for check out at the grocery store.

“This is really to help out the middle class and put a little bit of money back into peoples’ pockets and give them a little bit of relief,” he said.

Here are some key details:

Who qualifies for an inflation relief payment?

• Single taxpayers making less than $250,000 a year.
• Heads of household making less than $500,000 a year.
• Couples who file jointly making $500,000 or less.

Payments range from $400 to $1,050 for couples filing jointly and $200 to $700 for individual taxpayers based on their income and whether there are dependents.

The California Franchise Tax Board created an estimator for how much of a payment people will receive.

West said taxpayers who filed a 2020 tax return by Oct. 15, 2021, are eligible to receive relief payment. Those who did not do not qualify for relief payment.

I’m on Supplemental Security Income. Will I receive a check?

West said people whose main income is through Social Security or disability income are eligible for the relief if they filed a 2020 tax return by the Oct. 15, 2021, deadline.

However, because the IRS doesn’t require those taxpayers to file, many people on Social Security or Social Security disability income will be ineligible to receive this payment.

How and when will I get my refund?

West said payment will be received in the same way 2020 California tax returns were received: either through direct deposit or an issued debit card. If a taxpayer opted to receive their return through direct deposit, the relief payment will be issued through direct deposit.

According to the refund estimator website, eligible taxpayers will receive their refund payment between Oct. 7-25. The remaining direct deposits will come between Oct. 28 and Nov. 14.

State officials say 95% of the payments will be issued by year’s end.

Will I have to claim the relief payment on my taxes?

West said the relief payment will not be taxable at the state level, and those who receive the payment will not have to claim it as income on state taxes. It’s not yet determined if taxpayers will have to claim the relief payments on federal taxes.

Correction: This article has been corrected to show the accurate adjusted gross income limits for California taxpayers to receive inflation relief.

Sara Edwards is the business reporter for The Press Democrat. You can reach her at 707-521-5487 or sara.edwards@pressdemocrat.com. Follow her on Twitter @sedwards380.