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CA Strikes "Inflation Relief" Deal, 23 Million Taxpayers to Receive Checks

by
Rebekah Barton
on
6/26/2022
CA Strikes "Inflation Relief" Deal, 23 Million Taxpayers to Receive Checks

The State of California has struck an "inflation relief" deal that will provide 23 million taxpayers with checks up to $1,050. 

KCRA Sacramento provided details regarding the deal, which is endorsed by California Governor Gavin Newsom:

Millions of California taxpayers will get “inflation relief” tax rebate payments after lawmakers have reached an agreement on the framework of the 2022-23 budget. The deal also suspends the state's sales tax on diesel.

“The centerpiece of the agreement, a $17 billion inflation relief package, will offer tax refunds to millions of working Californians," said a joint statement from Gov. Gavin Newsom, Senate President pro Tempore Toni Atkins and Assembly Speaker Anthony Rendon on Sunday night.

Californians who qualify for the relief funds can expect to see the money by late October 2022, either by direct deposit or by debit card. 

The Los Angeles Times provided a breakdown of how the legislative deal will benefit taxpayers:

  • An individual who earns up to $75,000 a year would receive a $350 refund, which would double to $700 for joint filers earning as much as $150,000. Households would receive an additional $350 payment if they claimed any dependents, for a maximum refund of $1,050.
  • At the next income level, single filers who earn up to $125,000 would get $250 refunds. Households that file jointly and earn up to $250,000 would receive $500. Children or any other dependents would qualify taxpayers for an additional $250 payment, making families in the income bracket eligible for as much as $750 total.
  • Individuals who earn up to $250,000 would receive $200, and joint filers with income of as much as $500,000 would receive $400. Households with dependents would receive an extra $200, making this income bracket eligible for a maximum of $600.

This deal comes after months of debate in the state legislature as residents throughout California have dealt with soaring prices at the pump -- many metropolitan areas, including Los Angeles and San Francisco, have seen gas prices top $7.00 a gallon at various points.

KCRA shared that, over the weekend, "the state's average gallon of regular gas cost $6.321. Although that isn't as high as the record of $6.438."

It is important to note that, although the aforementioned deal was announced on Sunday, June 26, 2022, the state Senate and Assembly must still vote. This is expected to occur later this week. 

Provided that the deal is passed -- which it is expected to be -- approximately 23 million Californians will benefit. 

At this time, it is unknown if other states will follow California's lead in providing relief checks to their residents, or if President Biden's proposed federal gas tax suspension will actually happen.

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Rebekah Barton

Rebekah Barton

Rebekah's search engine optimization career began completely by accident as a college student. Over the course of her career so far, she has "grown up" with the SEO industry, from writing content while juggling classes to managing her own teams of writers and overseeing SEO strategy in subsequent roles. She is excited to bring her passion for high-quality content to CountingWorks, Inc.

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