Editor’s note: This story has been updated to correct a figure provided by the Franchise Tax Board of California.
(NEXSTAR) – More than 20 million Californians can expect a new round of direct payments to hit their bank accounts this year, Gov. Gavin Newsom announced Sunday. The state is issuing payments up to $1,050 in what the governor called a new “middle class tax rebate.”
The direct payments are part of an “inflation relief package” in California’s budget agreement, the governor and California’s legislative leaders said in a joint statement.
The amount you’ll get depends on your household income and how many dependents you have. Here’s how it breaks down:
Making less than $75,000: $350 payment
Making between $75,000 and $125,000: $250 payment
Making between $125,001 and $250,000: $200 payment
Those making more than $250,000 do not receive a payment.
Making up to $150,000: $700 payment
Making between $150,001 and $250,000: $500 payment
Making between $250,001 and $500,000: $400 payment
Those making more than $500,000 and filing taxes jointly do not receive a payment.
Those with dependents, whether they file taxes individually or jointly are eligible for an additional amount. To determine the total amount of money you’ll receive, add the number that applies to you from the list above to the number that applies to you from the list below, if you have at least one dependent.
Single filers with dependents:
Making less than $75,000: additional $350
Making between $75,000 and $125,000: additional $250
Making between $125,001 and $250,000: additional $200
Joint filers with dependents:
Making up to $150,000: additional $350
Making between $150,001 and $250,000: additional $250
Making between $250,001 and $500,000: additional $200
Therefore, the highest possible payment goes to couples filing jointly with at least one dependent. They would receive $700, plus an additional $350, for a total “inflation relief” payment of $1,050.
The payments will be sent out to an estimated 23 million Californians, according to legislators.
Nexstar’s California Capitol Bureau reported the payments are set to start in late October. The payments should all be issued by early next year.
The payments will be issued by direct deposit – much like the Golden State stimulus checks sent out last year – as well as debit cards.