Residents of this state could soon see $1,050 stimulus checks hit their bank accounts
Talk about a financial lifeline.
- Although federal stimulus checks are not on the table at this point, some states are providing assistance individually.
- California is truly up to the plate in light of runaway inflation.
To say that Americans need relief from inflation would be an understatement. These days, consumers across the country are relenting under the weight of rising gas prices, food prices and rents. And since many people exhausted their savings at the start of the COVID-19 pandemic, they don’t have cash reserves to tap into to cover higher bills.
Last year, as Americans struggled with high unemployment, lawmakers stepped in with a series of federal stimulus checks. This year, that doesn’t appear to be in the plans – largely because unemployment levels are low and job growth has remained flat.
But some states are taking stimulus issues into their own hands, and California is one of them. In fact, based on a recently agreed budget deal, California households will soon be in line for up to $1,050 in stimulus funds. And that money could provide a world of relief in these tough economic times.
A generous payday is on the way
California drivers face the highest gas prices in the country, and many areas of the state are particularly expensive due to exorbitant housing costs. Now, residents of the state can anticipate relief through a $17 billion relief package.
California residents who are single and earn less than $75,000 a year will be eligible for a $350 stimulus check. Those who are married and file a joint tax return and earn less than $150,000 a year will receive an additional $350. And taxpayers with dependents will receive an additional $350. In total, eligible California households could receive a stimulus worth $1,050.
But while the program targets low-income people, those with moderate and high incomes will also get a slice of the pie. Single taxpayers earning between $75,000 and $125,000 a year will be eligible for a $250 stimulus package. Married couples who earn between $150,000 and $250,000 will be eligible for an additional $250, plus an additional $250 for a dependent. So, all told, that’s $750 per moderate-income household.
Finally, singles earning between $125,000 and $250,000 per year will be eligible for a $200 stimulus package. Married couples earning between $250,000 and $500,000 will be eligible for an additional $200, plus a $200 payment for dependents. So high earners can still qualify for a $600 stimulus package.
If these income thresholds seem high for stimulus eligibility, well, they are. But let’s also remember that California is one of the most expensive states in the country. And given that a first home can cost upwards of a million dollars in some parts of California, it’s easy to see why the highest earners receive relief funds. – even though they clearly do not need the money in the same way as low-income households.
When to expect stimulus funds
California residents eligible for stimulus funds should expect that money by direct deposit or debit card by the end of October. Given that so many households are struggling right now, this lag isn’t the best news. But given California’s generosity with stimulus payments, it’s also a situation residents may not want to complain about.
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