This fall, California will send “inflation relief” checks of up to $1,050 to 23 million residents to help ease the financial burden of the highest inflation in 40 years on Americans.
“California’s budget addresses the state’s most pressing needs,” Governor Gavin Newsom said in a joint statement with state lawmakers on Sunday. to regain dollars in their pockets.”
The deal comes as California drivers face some of the highest gasoline prices in the nation. According to the American Automobile Association, the average gasoline price in the United States is currently $4.88 a gallon, and the average price per gallon in California is $6.32, which is about 29% higher than the national average.
The checks are part of a $17 billion inflation relief package that would also suspend California’s diesel sales tax and provide additional assistance for people to pay rent and utility bills.
How much is the inflation benefit?
Relief payments will be between $200 and $1,050; amounts will vary based on an individual’s income, tax filing status and how many dependents they claim, similar to how stimulus checks were ordered during the early economic impact of the pandemic.
Who Qualifies for Inflation Relief Checks?
Tier 1 covers 14.2 million taxpayers who earn up to $75,000 individually, or $150,000 collectively, and each get $350. If the person has at least one dependent, an additional $350 is available. Couples in this income bracket will receive up to $1,050 if they have one dependent.
Tier 2 covers 2.1 million taxpayers with incomes between $75,000 and $125,000 or between $150,000 and $250,000 jointly and pays out $250 to each person if the person has at least one recipient Dependents will receive an additional $250. Couples and dependents in this income bracket will receive up to $750.
Tier 3 covers 1.1 million taxpayers with income between $125,000 and $250,000 or joint income between $250,000 and $500,000 and pays $200 to each person if the person has at least one recipient Dependents will receive an additional $200. Couples and dependents in this income bracket will receive up to $600.
California singles earning more than $250,000, or married couples filing together more than $500,000, will not receive inflation relief checks.
Where does the money to ease inflation come from?
The payments are part of California’s 2022-2023 budget and come in the form of tax rebates. Last year, California had a budget surplus of more than $75 billion.