Coming this fall, most California taxpayers will be eligible to receive a one-time tax refund that state lawmakers approved earlier in 2022 to help households defray the impact of higher gas prices and other inflation.
The payments from what’s called the Middle Class Tax Refund will range from $200 to $1,050 a household depending on income and family size.
Will you get a refund?
To be eligible for the refund, you will have to meet the following criteria:
- Filed your 2020 tax return by October 15, 2021
- Meet income requirements (have an adjusted gross income on your 2020 tax return of $500,000 or less for families, or $250,000 or less for an individual.
- Were not eligible to be claimed as a dependent in the 2020 tax year
- Were a California resident for at least six months in 2020
- And are a California resident on the date payment is issued.
How much will you get?
To figure out how much you will get, refer to the adjusted gross income on your 2020 tax return.
Married or Registered Domestic Partner (RDP) filing jointly filing
- $150,000 or less with dependent: $1,050
- $150,000 or less with no dependent: $700
- $150,001-$250,000 with dependent: $750
- $150,001-$250,000 with no dependent: $500
- $250,001-$500,000 with dependent: $600
- $250,001-$500,000 with no dependent: $400
- Over $501,000: Not qualified with or without dependents
Head of Household or qualifying widow(er)
- $150,000 or less with dependent: $700
- $150,000 or less with no dependent: $350
- $150,001-$250,000 with dependent: $500
- $150,001-$250,000 with no dependent: $250
- $250,001-$500,000 with dependent: $400
- $250,001-$500,000 with no dependent: $200
- Over $501,000: Not qualified with or without dependents
Single or Married/RDP Filed Separately
- $75,000 or less with dependent: $700
- $75,000 or less with no dependent: $350
- $75,001-125,000 with dependent: $500
- $75,001-125,000 with no dependent: $250
- $125,001-$250,000 with dependent: $400
- $125,001-$250,000 with no dependent: $200
- Over $250,000: Not qualified with or without dependents
How will you get the refund?
Direct deposit: If you filed your 2020 tax return electronically and received a tax refund by direct deposit, then the California Franchise Tax Board will automatically deposit your funds into that account.
And good news for SAFE members! Even if your account number changed after our system upgrade in April, you have nothing to worry about. We will continue to honor your former account numbers for direct deposits until June 30, 2023, plenty of time for this refund to be deposited directly into your SAFE account.
Debit card: If you did not file your 2020 California tax return electronically or did not provide an account number to the FTB to directly deposit a tax refund that year, then the state will mail you the payment on a debit card.
Ideas to put your refund to use
While you may already have some ideas of how you plan to you use your refund, here are some ideas to consider.
Pay off a credit card bill or loan
Use the funds to pay off or pay down a credit card balance or loan to reduce your debt.
Save it for holiday shopping
Stash it away until later this year and get a head-start on your shopping holiday budget. You can even open a separate savings account at SAFE with as little as $5 and call it “Holiday Gifts” and add to it all year long.
Create an emergency fund savings account
Every family can use some money saved for those unexpected expenses like car and home repairs, medical bills, and when appliances go out. Add the funds to an existing emergency funds savings account or open a new one with the money.
Open a certificate
Open a certificate and let the money grow over time. SAFE has a range of certificates with various terms, rates, and opening balance requirements. You can find out more about SAFE Credit Union’s certificates here.
Build your credit with a secured credit card
If you’re just starting your credit journey, consider opening a secured credit card account.* You deposit funds up front as security and then use the credit card as you usually would and make timely payments. And with SAFE, you can build your credit and earn cash rewards and points good toward travel and purchases with our SAFE Cash Rewards Visa® Secured Credit Card and our SAFE Platinum Rewards Visa Secured Credit Card.
Donate it
If your financial situation allows it, consider donating all or a portion of your refund to your favorite nonprofit. They will be sure to appreciate your generosity and your money will directly benefit your community.
*All loans subject to approval and membership eligibility.
