The multiple stimulus checks that were sent out during the long period of the pandemic and later greatly help Americans. For the first time, the quality of life for low and moderate-income groups was up. People living paycheck-to-paycheck were for the first time free of debt in the short term for the first time in their lives.
Americans received support during the most devastating period since the Second World War. They were backed by the series of federal economic stimulus checks that enabled them to put food on the table, pay their rent and mortgages, stock up on gasoline and groceries, and for the first time even save a part of the relief amount.
They were free of the danger of reneging on their credit card and other loan payments. But while the federal support saw Americans through the pandemic, they were in for another round of financial woes as rising prices hit the poor and middle class hard in 2022.
Multiple factors combined to push the inflation rate and it crossed record figures in 2022, staying constant above 8.5% and leading to negative earnings for most Americans despite a generous increase in average wages. In real terms, Americans were earning less than they did before the pandemic with their earnings devalued due to high prices.
State Stimulus Checks Continue To Make A Difference In 2022
With states stepping into the void created by a lack of federal support, residents received some respite as prices of everything from gasoline to groceries reached record levels. Fuel prices hit the hardest and affect the prices of all other goods.
Over 20 states have already sent stimulus checks or are in the process of sending more. The last quarter of 2022 is seeing several major states finally sending out stimulus checks, with California sending out the biggest chunk.
The California Middle-Class Tax Rebate was signed into law back in June 2022 by Gavin Newsom after he initially mooted a $400 gas and transit card for residents. But the plan was later changed to the tax rebate that will give between $200 and $1,050 to state tax filers depending on their Adjusted Gross Income for 2020, their filing status, and the inclusion of dependents.
The first round of direct deposit of the tax rebate started on October 7 and will continue through October 25. The second round of the Middle-Class Tax Rebate is expected to begin on Friday and continue into November.
Residents who received stimulus checks from either round of the Golden State Stimulus Check through direct transfers will be the first to get the present round of stimulus checks.
They will be followed by residents who filed their income tax returns online and also those who received tax refunds through direct bank transfers. Residents who opted for offline tax returns and do not have their bank details with the income tax authorities will receive their stimulus checks through debit cards. The Franchise Tax Board of California is not sending any relief amount through paper checks.
Debit card payments will go out starting October 24, 2022, and continue through December 10, 2022, and will come in through the US Postal Service. There will be a difference of approximately 2 weeks from the date of dispatch and the date when beneficiaries will receive the rebate payments.
For those who did not receive the Golden State Stimulus check. for those who did not receive the earlier rounds of payments, the Golden State stimulus checks, or have changed their bank or their bank account number after filing their income tax returns for 2020, the debit cards will be sent between November 7, 2022, and January 14, 2023.
Getting A Direct Bank Deposit From The Franchise Tax Board
You can still receive a direct deposit if you have not already received it. But it depends on a few factors. Californians who received the earlier rounds of stimulus checks will have their stimulus check sent out by October 25.
And if you were not among the recipients of the Golden State stimulus, but are eligible for the inflation relief payments, you should see a direct deposit between October 28 and November 14, as revealed by the state administration.
Stimulus Check Amount Depends On 2020 Adjusted Gross Income
The Middle-Class Tax Rebate amount depends on the state’s Adjusted Gross Income (AGI) for 2020 and the time by which the returns were filed.
For individual income below $75,000 and joint income up to $150,000, the individual stimulus check amount is $350. So an individual tax filer in this category gets $350 and $350 more if they include any dependent. For joint filers, the amount comes to $350 for each filer plus another $350 if they include any dependent.
For individual income between $75,001 and $125,000, the amount is $250 for individual filers and $500 for joint filers. Dependents will bring in another $250, whatever their numbers.
For individual income between $125,001 and $250,000 and joint income between $250,000 and $500,000, the individual component of the tax rebate is $200. So it comes to either $200 or $400 plus another $200 if you include dependents in the tax return.
As pointed out earlier, individuals earning above $250,000 and married couples filing jointly and with an AGI above $500,000 will not get any tax rebate under the current scheme.
The California Franchise Tax Board expects to have issued around 8 million direct deposits and 10 million debit cards by January 15, 2023.
South Carolina is another state that is sending out inflation relief payments in November. Income tax refunds stimulus checks will go out to taxpayers that will start in late November and continue through December 2022.
Residents who have paid taxes will get a rebate and the amount will increase based on the tax liability which could go up to $800 for each filing. It is expected to be a complete refund for those who have paid below $800, with a third of taxpayers falling into this category.
The tax rebates follow a nearly $1 B budget surplus. And to be eligible, taxpayers must file their state income taxes for 2021 by October 17, 2022. The Dept. of Revenue of the state will determine the tax rebate that the filer is eligible to receive and dole out payments through paper checks or direct deposit.
