Do You Qualify for California's $1,050 'Inflation Relief' Check?

Are you eligible?

It has been a rough year for California's 39 million residents. The state is one of the most expensive places to live. California has the highest gas prices in the country, with Mendocino coming in at a whopping $9.60 per gallon this past summer. Transportation costs are the country's second-highest and housing costs are twice the national average, with the average single-family home priced at $683,996.

To help with rising costs, Governor Gavin Newsom signed a $308 billion state budget that provides $9.5 billion in direct tax refunds for 23 million Californians. Some people will receive checks as high as $1,050. Here is how it works and who qualifies for the inflation relief check.

Inflation relief checks as high as $1,050

What: Called the Middle Class Tax Refund, the inflation relief check is a one-time payment to provide relief to Californians.

When: Californians are expected to receive payments between October 2022 and January 2023. If you are eligible, you will automatically receive a payment.

Who: 23 million California residents. You are eligible if you:

• Filed your 2020 tax return by Oct. 15, 2021
• Meet the California adjusted gross income limits:
  • Single taxpayers who make less than $75,000 a year will receive $350 and an additional $350 for any dependents.
  • Heads of household or surviving spouses who make less than $150,000 per year will receive $350 and an additional $350 for any dependents.
  • Couples who file jointly and make less than $150,000 a year will receive $700 and an additional $350 for any dependents, for a total of $1,050.
  • Residents who make more will receive a reduced amount. The California Tax Board has a calculator you can use to estimate how much you would get.
• Must not be 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

How: You will receive your check the same way your received your 2020 tax refund. If you filed and requested direct deposit, then you will get your payment the same way. If you did not, then you will receive a debit card.

In addition to helping millions of Californians with rising costs, the budget also included a suspension of the state sales tax on diesel fuel, and additional funds to help people pay their rent and utility bills. California isn't the only state offering inflation relief. 18 other states are sending out inflation-relief payments to their residents. And several more states have inflation proposals pending.