With just one week left until the May 17 tax deadline, Gov. Gavin Newsom on Monday proposed a major expansion of California's economic stimulus plan – making it all the more important to make sure you file your taxes on time to get the financial help you're entitled to.
Back in February, Newsom approved a $7.6 billion plan known as the Golden State Stimulus, which promised a one-time payment of $600 for anyone who earned less than $30,000 last year. The state also offered an additional $600 ($1,200 in total) to low-income folks, including undocumented immigrants who file their taxes with an Individual Taxpayer Identification Number. Additionally, the federal government’s third stimulus package delivers $1,400 to individuals who earned less than $75,000 last year. (Find out how long you're likely to wait to receive your payment).
On Monday, Newsom announced a proposal that would essentially expand the the Golden State Stimulus to households with adjusted gross incomes of up to $75,000. The new, higher income cap would mean two-thirds of the state’s taxpayers would be eligible to receive a $600 check, Newsom said at a press conference in Oakland. The proposal is part of a larger $100 billion California Comeback Plan, which will need approval from the Legislature.
While such stimulus efforts are meant to benefit families that have been hit hard by the pandemic, a report released in early April showed it wasn't reaching those most in need.
“We estimate that 2.2 million low-income Californians who are on safety net programs like CalFresh or CalWORKs are missing out on $5.7 billion in stimulus payments,” said Aparna Ramesh, senior research manager with the California Policy Lab and co-author of the report, last month.
Why? In order to send payments quickly, the federal and state governments used previous years' tax filings as indicators for need. But that overlooked folks who weren't required to file taxes at all because they had little to no income and didn't owe money to the IRS.
There’s also folks who made more than $30,000 in 2019 and saw their income drop below the cutoff in 2020. But without your 2020 taxes filed, the state government will use your 2019 information to decide whether you qualify for a stimulus payment.
So, the most dependable way to ensure you get the payments you are due is to file your taxes for 2020 – even if you’re not required to, and even if you have no income to report from the last year.
In this guide, we’ve collected essential information to help you make sure you get the aid you're entitled to, ranging from local tax credit programs like the San Francisco Working Families Credit (which grants up to $500 to eligible families) to the Golden State Stimulus plan.
We've also included relevant information for undocumented and mixed-status families, who may also qualify for an additional $600 from the state this year.
Related: read our guide to filing your taxes if you claimed unemployment benefits.
Click on the links below to skip to a specific section:
- I Earned Between $30,000 and $75,000. Do I Qualify for the Stimulus?
- What You're Automatically Eligible for When You File
- Keeping Track of the California Earned Income Tax Credit
- When Will I Get My California Stimulus Payment?
- Applying for San Francisco’s Working Families Credit
- How to Request an ITIN
- Organizations Offering Free Tax Assistance in the Bay Area
My Household Earned Between $30,000 and $75,000. Do I Qualify for the Golden State Stimulus?
Not yet.
The proposal Newsom announced on Monday, part of a larger $10 billion "California Comeback Plan," is a major expansion of the state’s stimulus package from February and would include households earning between $30,000 and $75,000 per year in a new round of $600 checks.
“We need to provide direct relief to people in the middle class,” Newsom said at a press conference Monday.
But the package still needs the Legislature’s approval. Several legislators have already expressed their support for Newsom’s expansion – but don’t expect a check in the mail just yet if your family earned between $30,000 and $75,000 last year.
Taxpayers with dependents would also see an additional $500. So, if you already received your $600 check, you could expect the extra $500 to arrive later on (the governor’s office hasn’t released a timeline yet of when the $500 would be sent out).
The governor also said he plans to add an extra $2 billion to the state’s rent relief program, an amount he believes could cover 100% of back-rent for tenants who have fallen behind in their rent payments during the pandemic. (Find out how to apply for California’s rent relief program).
What You're Automatically Eligible for When You File
The first step can sometimes be the hardest. But if you don’t file your taxes on time, you may miss out on the money you're entitled to, regardless of your income.
“The goal of the $600 checks is to help those facing the greatest economic challenges due to COVID-19,” said Yolanda López, financial capability coordinator with the Unity Council, a nonprofit organization in Oakland that offers free tax assistance.
“By simply filing your taxes you will then be eligible to receive this aid through direct deposit to the account you used when filing your taxes, or [money] will be sent as a physical check to the address provided in your filing,” López added.
