If you’re still waiting for a California stimulus check payment, you might not have to wait much longer. While the first round of direct deposit payments began Oct. 7 and debit cards began mailing Oct. 24, many Californians are still waiting for their refund to be deposited into their bank account. However, these people will not have to wait much longer. California is set to relaunch the direct deposit machine starting October 28 – that’s today!
California’s one-time stimulus payments — officially known as middle-class tax refunds — range from $200 to $1,050, depending on filing status and income reported on your 2020 California tax return, and if you have dependents. If you’re expecting a direct deposit payment, you might want to check your bank account later in the day. If it doesn’t arrive today and you qualify for a direct deposit payment, it should appear in your account within the next few weeks.
For a broader overview of California taxes, see the California State Tax Guide.
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Who will receive a California stimulus check?
You are eligible for a California stimulus check payment if you:
- filed a 2020 California tax return by October 15, 2021;
- Reported adjusted gross income on your 2020 California tax return of $250,000 or less if you filed a separate tax return as single or married, or $500,000 or less for anyone else;
- Have not been claimed as a dependent on someone else’s 2020 tax return;
- Were a California resident for at least six months in 2020; and
- You are a California resident on the date your payment is issued.
Use the California Franchise Tax Board’s handy guide online tool (opens in a new tab) to check your eligibility and get an estimate of the amount you should receive.
Direct deposit vs. debit card stimulus payments from California
If you filed your 2020 California tax return electronically and received a California tax refund by direct deposit, you will generally also receive your stimulus payment by direct deposit. You can also expect a direct deposit payment if you have already received a Golden State Stimulus (GSS) payment in 2021 or earlier this year through this payment method.
Most other people eligible for payment will receive a debit card in the mail for the appropriate amount. You will also receive a debit card stimulus payment if you received a 2020 California tax refund by direct deposit but have changed banks or bank account numbers since then. People who received an advance payment from a tax service provider or who paid a preparer fee with a tax refund will also receive a debit card in the mail.
If you receive a debit card in the mail, you can activate the card on line (opens in a new tab) or by calling 1-800-240-0223.
When California stimulus payments are sent
Direct deposit payments to people who previously received GSS direct deposit payments began on October 7. The FTB will continue to send these payments until October 25. stimulus payments now, their payments will be sent from October 28 to November 14.
According to the FTB, direct deposit payments typically appear in your bank account within three to five business days from the date of issue. However, this estimate may vary from bank to bank. The FTB plans to issue approximately 90% of all stimulus payments by direct deposit by the end of October 2022.
Debit cards will take longer to dispense. The FTB’s plan is to send out cards in batches, usually based on whether you’ve already received a GSS and your last name. According to the schedule, eligible people who have already received a GSS debit card payment with a last name starting with A through E will receive a California stimulus check debit card between October 24 and November 5, 2022. If your last name starts with a letter from F to M, your card will be issued between November 6th and 19th. Former GSS debit card recipients with last names beginning with N through V will receive a relaunch debit card between Nov. 20 and Dec. 3, while people with the latest surnames beginning with W through Z will have to wait from December 4 to 10.
If you haven’t received a GSS debit card before, but you’re supposed to receive one for your California stimulus payment, the payment schedule will be announced after November 7 if your last name starts with A through L and after November 21 if your last name is between M and Z.
If you get a debit card because you changed banks or bank accounts since filing your 2020 California tax return, your California stimulus payment debit card will be issued between December 17, 2022 and January 14. 2023.
It may take up to two weeks from the scheduled issue date before you actually receive your debit card in the mail. Also note that the FTB will send a debit card to the last address on file, which is usually the address on your last California tax return. So if you recently moved, let FTB know where you live now. You can change your shipping information via the MyFTB portal (opens in a new tab) Where contact the agency through its other official channels (opens in a new tab). However, be aware that processing your stimulus payment may take longer if your address has changed.
Are California stimulus payments taxable?
If you receive a California stimulus payment this year, by direct deposit or debit card, it will not be considered taxable income on the California tax return that you will file next year. That’s according to the California FTB.
However, it is not clear at this stage if it will be taxed on your federal tax return. As the Los Angeles Times reports (opens in a new tab), it depends on how Uncle Sam classifies payments. If they are deemed to be tax refunds (after all, the payments are officially called “middle-class tax refunds”), people who itemize on their federal return instead of claiming the standard deduction may have to pay federal tax on the payment.
On the other hand, if the IRS views the California stimulus payments more as “gift” or “welfare” payments, they shouldn’t be federally taxed. At this point, it is best to assume that the payment will be subject to federal taxes. However, before you file your 2022 federal tax return next year, consult a tax professional to see if any IRS guidance has been issued stating that the payments are tax-exempt.
