To combat rising inflation, California Governor Newsom signed Assembly Bill 192 Better for Families Tax Refund. A total of $9.5 billion will benefit 23 million Californians, and it will not be taxable on your California income tax return.

How do I qualify?

To qualify for this one-time refund, you must meet the following: 

  • Filed a complete 2020 California income tax return by October 15, 2021
  • Meet the 2020 California adjusted gross income (Line 17 of 2020 Form 540 or Line 16 of 2020 Form 5402EZ) limitations based on your filing status
  • Were not eligible as a dependent in the 2020 tax year
  • Were a California resident at least 6 months in the 2020 tax year
  • Are a current California resident on the date the payment is issued

If I qualify, how much will I receive?

For married taxpayers filing joint returns, the refund amount is:

  • $700 (plus an additional $350 if the taxpayers claimed one or more dependents) if AGI is $150,000 or less;
  • $500 (plus an additional $250 if the taxpayers claimed one or more dependents) if AGI is $150,001 to $250,000; or
  • $400 (plus an additional $200 if the taxpayers claimed one or more dependents) if AGI is $250,001 to $500,000.

For heads of household and surviving spouses, the refund amount is:

  • $350 (plus an additional $350 if the taxpayer claimed one or more dependents) if AGI is $150,000 or less;
  • $250 (plus an additional $250 if the taxpayer claimed one or more dependents) if AGI is $150,001 to $250,000; or
  • $200 (plus an additional $200 if the taxpayer claimed one or more dependents) if AGI is $250,001 to $500,000.

For all other individual taxpayers, the refund amount is:

  • $350 (plus an additional $350 if the taxpayer claimed one or more dependents) if AGI is $75,000 or less;
  • $250 (plus an additional $250 if the taxpayer claimed one or more dependents) if AGI is $75,001 to $125,000; or
  • $200 (plus an additional $200 if the taxpayer claimed one or more dependents) if AGI is $125,001 to $250,000.

You may also estimate your refund amount using this FTB tool.

Eligible Californians will receive their refund between October 2022 and January 2023  via Direct Deposit from their 2020 tax return or by debit card

Should you have any questions, please contact one of our team members, and we will gladly assist you.

 

Aura Advisors is a boutique tax consulting and compliance firm working with start-ups, emerging growth companies, and affluent individuals. Making it safer for good people and good companies to continue to do good things.