Some California Residents Will Receive $600 in Stimulus Funds Separate from Federal Checks
As Washington awaits the House of Representatives’ vote on the $1.9 trillion COVID-19 relief bill on Friday, California Governor Gavin Newsom signed a coronavirus aid package worth $7.6 billion, California news station KRON reported. Under the legislation, 5.7 million California residents will receive one-time, $600 stimulus payments.
Who Will Receive State Funds?
California residents who claimed the state’s earned income tax credit on their tax returns will receive the funds; this includes mostly individuals with adjusted gross income less than $30,000, the KRON report stated. Additionally, immigrants who file tax returns using a federal tax identification number and make $75,000 a year or less after deductions will receive the stimulus check. Those individuals didn’t receive federal stimulus funds last year because they don’t have Social Security numbers, according to CBS News.
Finally, people who receive state assistance for low-income families and individuals with disabilities are also eligible for the stimulus, KRON said. People who fit into more than one category will receive double the funds.
Additional Funding to Support Small Business
In addition to funding to help California’s residents with the greatest needs, Newsom’s legislation delivers $2 million in grants to small businesses and waives $25.6 million in business fees for restaurants and salons, two of the hardest hit categories of small business in the state, according to KRON.
California continues to ban indoor dining and limit the number of people allowed in retail stores at one time, CBS reported. However, some California counties are permitting restaurants to reopen at 25% capacity as part of Newsom’s color-coded reopening plan, Eater San Francisco reported.
Who’s Paying the Bill?
Much of the funding comes from a $15 billion surplus in Newsom’s $164.5 billion 2021 budget. Tax revenue from the state’s wealthiest totaled 23% more than expected in November 2020, due to a bullish stock market and strong tech sector, Bloomberg reported in January.
However, as companies ranging from Hewlett Packard Enterprise Co. to Palantir Technologies Inc. leave the state, budget deficits could lurk on the horizon, Bloomberg said, adding that nearly half of California’s personal income-tax collections come from the top 1% of earners, including some of the world’s wealthiest billionaires.
More from GOBankingRates
- Here’s the Average IRS Tax Refund Amount by State
- 25 Simple Things To Do To Keep Your Car Costs Low
- 27 Ugly Truths About Retirement
- PenFed Auto Loan Review: Competitive Rates for Buying and Refinancing