A tentative deal between California legislators has been reached to provide some measure of relief from skyrocketing gas prices and inflation, with some families set to have $1,050 deposited into their bank accounts this fall.
“California’s budget addresses the state’s most pressing needs, and prioritizes getting dollars back into the pockets of millions of Californians who are grappling with global inflation and rising prices of everything from gas to groceries.
“The centerpiece of the agreement, a $17 billion inflation relief package, will offer tax refunds to millions of working Californians. Twenty-three million Californians will benefit from direct payments of up to $1,050. The package will also include a suspension of the state sales tax on diesel, and additional funds to help people pay their rent and utility bills.
Those California households earning less stand to receive the most as funds would be provided on a sliding scale with those earning up to $75,000 a year receiving $350, which for joint filers would double to $700 and if dependents were claimed, they would receive the maximum refund of $1,050.
The next tier includes those earning up to $125,000 and would receive a $250 refund. Filed jointly would double that amount to $500 with an extra $250 for children or dependents for a total of $750.
The final tier is comprised of individuals making up to $250,000. They would receive $200,—$400 if filing jointly; and with dependents an additional $200 for a grand total of $600.
Those making above $250,000 would not qualify for the refund.
Of course, the big question for those eligible to receive the refunds is exactly when those monies—to be issued by direct deposit— would hit their bank accounts and there is no definitive answer to that question at the moment. The best guess for now is late October with all payments to be issued by early next year at the latest.
California is one of a growing number of states approving legislation to get tax rebates to their residents, with Maine offering the biggest direct relief payment of $850 to individuals with a federal adjusted gross income of less than $100,000.