One State Just Sent Out 2.5 Million Stimulus Payments

One State Just Sent Out 2.5 Million Stimulus Payments

Not all California residents will see the direct relief immediately, as the timing of the payments’ arrival depends on when the resident filed a tax return.  

 

More than 2.5 million state stimulus payments, worth $1.6 billion, have been sent to California residents, the state’s Franchise Tax Board (FTB) announced on Thursday.

The payments are part of a $9.6 billion coronavirus relief bill that California Gov. Gavin Newsom (D) and state legislators approved earlier this year that included one-time direct payments ranging from $600 to $1,200 for eligible residents.

 

“We passed the recovery package to get money into the pockets of Californians who were hit hardest by this pandemic, and that’s exactly what the Golden State Stimulus is doing—already getting $1.6 billion to 2.5 million Californians,” Newsom said in a statement. “Californians who have not filed their 2020 taxes should know they may qualify for these funds, and we look forward to building on programs like this that invest in and support Californians in the months ahead.”

The $600 payments are on the way for recipients who file with Social Security Numbers and qualify to receive the state’s Earned Income Tax Credit.

Other residents who qualify are those with individual tax identification numbers and an income below $75,000, households in the CalWORKs program—a program that provides cash aid and services to eligible families with children—recipients of Supplemental Security Income/State Supplementary Payment (SSI/SSP) and recipients of aid through the Cash Assistance Program for Immigrants.

Residents with individual taxpayer identification numbers are people who don’t have Social Security numbers, including immigrants who didn’t qualify for the federal aid from the previous rescue packages. These types of filers can expect to see $1,200 payments.

But not all California residents will see the direct relief immediately, as the timing of the payments’ arrival depends on when the resident filed a tax return.

If a resident filed taxes online between January 1, 2021, and March 1, 2021, he or she will receive a stimulus payment after April 15, 2021, according to the FTB. And if a resident is getting a paper check in the mail, allow up to four to six weeks for mailing and processing.

For residents who filed tax returns on or after March 2, 2021, a direct deposit will hit their bank accounts within forty-five days, while paper checks could take up to sixty days, the FTB said.

And SSI/SSP beneficiaries and recipients of the Cash Assistance Program for Immigrants are expected to receive the $600 payments over the next two months.

Newsom signed off on the package as Congress was still negotiating President Joe Biden’s relief bill, which was approved last month and as the first-term governor found himself under seething pressure from lawmakers who are pushing a recall effort, largely due to his handling of the virus and the impact the pandemic had on small businesses.

 

“The backbone of our economy is small business. We recognize the stress, the strain that so many small businesses have been under,” Newsom said in February. “And we recognize as well our responsibility to do more and to do better to help support these small businesses through this very difficult and trying time.”

Rachel Bucchino is a reporter at the National Interest. Her work has appeared in The Washington Post, U.S. News & World Report, and The Hill.

Image: Reuters.