Free money is coming to Californians to offset high gas prices. Will it also come with a tax bill?
2 years, 2 months ago

Free money is coming to Californians to offset high gas prices. Will it also come with a tax bill?

LA Times  

To help ease the pain of high gasoline prices, eligible Californians will start receiving tax refunds of $200 to $1,050 Friday under a budget deal approved by the Legislature and signed by Gov. The stated purpose of the $9-billion “Middle Class Tax Refund” is to offset high gasoline prices, although under the deal the money will go to people who meet the income limits regardless of whether they drive a gas-powered car. The state Franchise Tax Board says the payments, like ordinary tax refunds, will not be subject to California income taxes — lawmakers explicitly excluded them from the state’s definition of taxable income. According to the Franchise Tax Board, the first people in line for the refund will be Californians who received last year’s stimulus payments via direct deposit. Then from Oct. 28 through Nov. 14, payments will roll out to tax filers who didn’t qualify for the state stimulus payments, which were available only to households earning $75,000 or less.

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IRS says it won’t tax California’s Middle Class Tax Refund
1 year, 10 months ago

IRS says it won’t tax California’s Middle Class Tax Refund

LA Times  

The IRS said taxpayers won’t need to report California’s Middle Class Tax Refund as income on their 2022 return. The Internal Revenue Service issued long-awaited guidance Friday afternoon, saying it “determined it will not challenge the taxability of payments related to general welfare and disaster relief.” California’s Middle Class Tax Refund falls into that category, the agency said, as do …

23 million Californians will get gas tax refunds beginning today: What you need to know
2 years, 2 months ago

23 million Californians will get gas tax refunds beginning today: What you need to know

LA Times  

Gas prices are on the rise again in Los Angeles. The Golden State will send tax refunds to about 23 million Californians starting Friday to help them navigate the rising costs due to inflation. California will spend $9.5 billion as part of the “Middle Class Tax Refund” program, with one-time payments ranging from $400 to $1,050 for couples who filed …

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