The California "Middle Class Tax Refund" Will Be Paid Out in October 2022 through January 2023

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The State of California will be issuing tax refunds totaling about $9.5 billion to approximately 23 million Californians starting mid-October through mid-January 2023. This refund is called the Middle Class Tax Refund and was included in the $308 billion California state budget for the fiscal year July 1, 2022 through June 30, 2023.

The Middle Class Tax Refund payout will be as much as $1,050 per household, based on 2020 California “adjusted gross income” (CA AGI) on your tax return.

Qualifications:

  • Must have filed your 2020 tax return by October 15, 2021

  • Must have CA AGI that falls below certain parameters (shown below)

  • Have been a CA resident for at least 6 months in 2020

  • Was not eligible to be claimed as a dependent in 2020

  • Must be a CA resident on the date the payment is issued

Payment Amounts on Married Filing Joint Tax Returns:

  • CA AGI $150,000 or less: $1050 with dependent; $700 without dependent

  • CA AGI $150,001 to $250,000: $750 with dependent; $500 without dependent

  • CA AGI $250,001 to $500,000: $600 with dependent; $400 without dependent

(So let me get this straight. Our government is going to cut a check for $400 to a couple without kids who earned $500,000 in 2020. Mastro’s is going to be busy!)

Payment Amounts on Head of Household Tax Returns:

  • CA AGI $150,000 or less: $700 with dependent; $350 without dependent

  • CA AGI $150,001 to $250,000: $500 with dependent; $250 without dependent

  • CA AGI $250,001 to $500,000: $400 with dependent; $200 without dependent

Payment Amounts on Single and Married Filing Separate Tax Returns:

  • CA AGI $75,000 or less: $700 with dependent; $350 without dependent

  • CA AGI $75,001 to $125,000: $500 with dependent; $250 without dependent

  • CA AGI $125,001 to $250,000: $400 with dependent; $200 without dependent

How Payments Will Be Received

  • If you filed electrically and used the direct deposit option on your return (assuming you had a refund), your payment will be received by direct deposit.

  • Otherwise you’ll be paid via debit card.

For more information, visit the Franchise Tax Board “Middle Class Tax Refund” page at taxrefund.ca.gov.

Questions That Come to Mind (that are not addressed by the Franchise Tax Board):

  • What happens if your banking information changed since then? Don’t know for sure but I suspect the payment would bounce and they would send you a debit card.

  • What happens if your filing status changed from 2020 to today? For example, I was married in 2020 and filed jointly but am single and available (hint hint) today in 2022? Who gets our $1,050 (married, one dependent)? Me or my ex-spouse? Good question. No idea. The FTB did not provide alternative scenarios, so I’d imagine the primary spouse on the return will receive the payment.. You might have to track down the ex for your half.

  • I was single in 2020 but am married today with a toddler. How much do I get? The FTB bases the payment on your filing status in 2020, so both you and your spouse will receive payments, if any, based on that.

  • What happens if I lose the gift card? Well, you’ll have to bring that up with the FTB. Good luck! Best advice - don’t lose it.

  • I didn’t file a tax return in 2020 because my gross income and CA AGI were less than the filing requirements published by the Franchise Tax Board. Otherwise, I met all the other requirements for the refund. How can I get it? Unless the FTB amends its initial rules to address your situation, it appears you are out of luck. But visit the taxrefund.ca.gov website for possible updates.

  • I made $17.50 an hour at The Taco Shack in 2020 and will receive a $350 refund. My brother George pulled down $250,000 in 2020 as VP of Stuff at Bookoo Bucko, Inc. and will receive $200. How is that fair? Does that make any sense? Pretty much no, but let’s look at it in a different way. You’re getting 20 hours’ pay. George is only getting a couple hours’ pay. Feel better now?

  • I think this whole thing is stupid. The entire $9.5 billion should be used to fund nine desalinization plants along the California coast. How do I tell them to keep the money as I think this is a waste? I don’t think there’s a mechanism in place to not take the refund. But if it’s burning a hole in your pocket, hit the CVG Tip Jar at bit.ly/SupportCVG!

Eligibility for California Golden State Stimulus I and II Payments

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A friend of mine who is in his 80s called me the other day asking if I knew why he received a check in the mail from the State of California. It was a check for $600 as part of the Golden State Stimulus II program. Here are the details.

Golden State Stimulus I Payments

First off, earlier in the year, many Californians received the Golden State Stimulus 1 payment, which was either $600 or $1200. Qualifications for GSS I were as follows:

  • Must have filed your 2020 taxes,

  • Must be either a CalEITC recipient or an ITIN filer who made $75,000 or less in California Adjusted Gross Income (AGI) in 2020.

    • A CalEITC (or California Earned Income Tax Credit) recipient is someone who in 2020 had California AGI of $30,000 or less and does not use the married filing separately filing status.

    • An ITIN (or Individual Taxpayer Identification Number) filer is a taxpayer who is not eligible to obtain a Social Security Number.

  • Must have lived in California at least half of 2020 and are a California resident the date the payment is issued.

  • Cannot be claimed as a dependent by another taxpayer.

GSS I recipients received $600 if they were either 1) an CalEITC recipient or 2) were an ITIN filer and made $75,000 or less in 2020 CA AGI (if filing jointly at least one taxpayer must use an ITIN).

GSS I recipients received $1,200 if they 1) were both a CalEITC recipient and an ITIN filer and made $75,000 CA AGI or less in 2020 or 2) filed a joint return, were CalEITC recipients, at least one was an ITIN filer and made $75,000 or less in 2020 CA AGI.

More information about GSS I on the Franchise Tax Board website at www.ftb.ca.gov/about-ftb/newsroom/golden-state-stimulus/gss-i.html.

Golden State Stimulus II

The state expanded the program and started paying out additional stimulus payments in October, continuing through mid-January. The amount of these payments is either $500, $600, $1,000 or $1,100. Qualifications for GSS II are as follows:

  • Must have filed your 2020 tax return by October 15, 2021.

  • Have CA AGI of $1 to $75,000 and wages of $0 to $75,000 in 2020.

  • Must have lived in California at least half of 2020 and are a California resident the date the payment is issued.

  • Cannot be claimed as a dependent by another taxpayer.

Here’s what you get if you qualify and have a SSN:

  • $500 if you also qualified for GSS I and claimed a credit for 1 or more dependents.

  • $600 if you did not qualify for GSS I and did not claim any dependents.

  • $1,100 if you did not qualify for GSS I and claimed 1 or more dependents.

  • $0 if you qualified for GSS I and did not claim any dependents.

Here’s what you get if you qualify and have an ITIN:

  • $1,000 if you did qualify for GSS I and claimed 1 or more dependents.

  • $0 if you did qualify for GSS I but did not claim and dependents.

More information about GSS II on the FTB website at www.ftb.ca.gov/about-ftb/newsroom/golden-state-stimulus/gss-ii.html.

California Has Billions of Dollars of Unclaimed Property - Claim Yours Now!

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The State of California maintains billions of dollars in unclaimed property belonging to individuals and organizations.

California's Unclaimed Property Law requires "holders" such as corporations, business associations, financial institutions, and insurance companies to report and deliver property to the Controller's Office after there has been no customer contact for three (3) years. Often the owner forgets that the account exists, or moves and does not leave a forwarding address or the forwarding order expires. In some cases, the owner dies and the heirs have no knowledge of the property.

The most common types of unclaimed property are bank accounts and safe deposit box contents, stocks, mutual funds, bonds, and dividends, uncashed cashier's checks or money orders, certificates of deposit, matured or terminated insurance policies, estates, and mineral interests and royalty payments, trust funds and escrow accounts.

Find out more at www.ClaimIt.ca.gov.

Search the California Unclaimed Property database at ucpi.sco.ca.gov/en/Property/SearchIndex.

Search by name, address, city, property number or any combination.

California State Water Board Emergency Conservation Regulations Effective 7/28/14

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In response to the ongoing severe drought, last month the State Water Resources Control Board approved an emergency regulation to ensure water agencies, their customers and state residents increase water conservation in urban settings or face possible fines or other enforcement.

The new conservation regulation is intended to reduce outdoor urban water use. The regulation mandates minimum actions to conserve water supplies for 2014-2015. Most Californians use more water outdoors than indoors. In some areas, 505 or more of daily water use is for lawns and outdoor landscaping.

Many communities and water suppliers have taken bold steps over the years and in this year to reduce water use; however, many have not and much more can and should be done statewide to extend diminishing water supplies.

With this regulation, all Californians will be expected to stop: washing down driveways and sidewalks; watering of outdoor landscapes that cause excess runoff; using a hose to wash a motor vehicle, unless the hose is fitted with a shut-off nozzle, and using potable water in a fountain or decorative water feature, unless the water is recirculated. The regulation makes an exception for health and safety circumstances.

Larger water suppliers will be required to activate their Water Shortage Contingency Plan to a level where outdoor irrigation restrictions are mandatory. In communities where no water shortage contingency plan exists, the regulation requires that water suppliers either limit outdoor irrigation to twice a week or implement other comparable conservatio

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POWERBALL® Lottery Coming to California Beginning April 8, 2013

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The California Lottery Commission voted on November 29, 2012 to adopt the multi-state mega-jackpot lottery game, POWERBALL. POWERBALL sales will begin in California on April 8, 2013 and the first draw will take place on April 10th.

This vote came the day after POWERBALL's largest jackpot ever, $587.5 million, won by two players (one from Missouri and the other in Arizona).

POWERBALL is expected to add anywhere between $50 to $100 million in additional dollars to supplement public education funding in California.

The $2 POWERBALL game is played much like the $1 MEGA Millions®. Players choose five numbers from 1 to 59 and one red POWERBALL number from 1 to 35. Players can choose their own numbers or opt for a Quick Pick. Draws are held every Wednesday and Saturday at 7:59 p.m. PST.

Unlike MEGA Millions and SuperLotto Plus®, POWERBALL’s pool closure occurs promptly at 7 p.m. PST each draw day. Besides the jackpot, there are eight additional ways to win prizes. The amounts vary due to the State’s pari-mutuel rules. The POWERBALL draws take place in Tallahassee, Florida.

The POWERBALL jackpot begins at $40 million and increases by at least $10 million every roll. In comparision, the MEGA Millions jackpot starts at $12 million.

The odds of winning the POWERBALL jackpot are 1 in 176 million and about 1 in 32 of winning any prize. In comparison, the odds of winning the MEGA Millions jackpot is also 1 in 176 million and about 1 in 40 of winning any prize in the semi-weekly drawing.  So basically the odds are very similar. The main difference is the price of the tickets; $1 for MEGA Millions vs $2 for POWERBALL.

CLICK HERE for information about other CA Lottery games.

The mission of the California Lottery is to provide supplemental funding to California schools while simultaneously supporting local communities. More than 94 cents of every dollar spent by our players goes back to local communities in the form of contributions to public schools and colleges, prizes and retail compensation. Since 2000, Lottery players have contributed $1 billion to public schools each year, and, since we began in 1985, Lottery players have contributed a total of more than $24 billion to education. The California Lottery urges its customers to play responsibly and within their budgets. If you feel you have a gambling problem, or know someone who does, you can get help at 1-800-GAMBLER.

Visit www.calottery.com for more information.