California coronavirus stimulus check: when is the payment coming, who will get it?
With no signs yet of another round of federal stimulus checks, many states have taken the matter into their own hands. California is among the top when it comes to giving stimulus money to their residents. The state has already sent one stimulus check in April, and is now preparing to send another. Detailed below is all you need to know about the second coronavirus stimulus check from California, including when you would get it.
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Who all are eligible for payment?
In July, Gov. Gavin Newsom signed into law SB 129, approving most of the state’s budgetary agreement. This legislation included a $100 billion California Comeback Plan, which is the biggest economic recovery bill ever for the state. The $100 billion plan includes stimulus checks, which is estimated to be sent to two-thirds of Californians.
The majority of eligible recipients will be eligible for a one-time stimulus payment of $600. Additionally, those with an eligible dependent will get $500 extra.
California sent a similar stimulus check in April also. At the time, the stimulus payment targeted low-income households, usually those who qualified for the state’s CalEITC benefits program. However, the latest stimulus check covers more individuals and will go to those with an annual income of $75,000 per year or less ($150,000 for families).
To be eligible for the stimulus check, people need to file their 2020 tax return. Those who haven’t yet filed the 2020 tax return, still have time to file the return. The last date to file the tax return is Oct. 15. Those with ITINs (Individual Taxpayer Identification Numbers) will also be able to claim the $600 payment.
One more eligibility requirement is that the recipient should have lived in the state for over half the 2020 tax year. Also, he or she must be in California when the checks go out.
California coronavirus stimulus check: when is it coming?
Talking about when Californians will get the stimulus check, the State of California Franchise Tax Board says the payments will start to go out in September 2021. The California Franchise Tax Board is responsible for the distribution of stimulus checks.
Though these payments aren’t coming right away, knowing that they will be receiving it in the next couple of months will allow people to plan their expenses better.
California’s $100 billion Comeback Plan is the result of the state’s massive (unexpected) budgetary surplus. A year earlier, the state was expecting a shortfall of more than $50 billion. However, a jump in the tax revenue, as well as additional federal recovery funds lead to a $75.7 billion surplus.
Along with sending out stimulus checks, the plan also sets aside $5.2 billion to help low-income renters and landlords. Also, the plan allocates $2 billion for past-due water and utility bills, as well as more money for tenant legal assistance. Moreover, it also offers $1.5 billion in direct grants to small businesses in the state.
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