Newsletter – September 2021

These payments are specifically excluded from California gross income on the California return, are not subject to offset by the FTB or the California Controller, and may not be subject to garnishment order. We believe these payments would also be excludable on the federal return but are awaiting clarification from the IRS.

The bill also specifies that these payments are not tax refunds or overpayments, so they also appear to be immune from federal tax offsets. Additionally, the payments may not be taken into account as resources for purposes of determining eligibility for state and local benefit programs.

 

Who qualifies?

To qualify for the payment, the taxpayer:

• Must file a 2020 California income tax return by October 15, 2021 (February 15, 2022, if the taxpayer or taxpayer’s spouse applied for, but did not receive, an ITIN on or before October 15, 2021);
• Must be a California resident for more than one-half of the 2020 taxable year, as well as on the date the Controller issues the rebate;
• Cannot be claimed as a dependent by another taxpayer (whether or not someone actually claims the taxpayer as a dependent);
• Must have 2020 California AGI of at least $1 but no more than $75,000 ($37,500 for MFS); and
• Must have 2020 wages subject to California withholding of $75,000 or less ($37,500 or less for MFS).

 

Stimulus payment amount

The amount of the payment is equal to:

• $500 ($250 for MFS) for a qualified recipient, if the taxpayer:
  • Met the requirements of the first round of Golden State Stimulus payments (i.e., had income of $30,00);
  • Filed the return using a Social Security number, and, if married, the Social Security number of their spouse; and
  • Claimed a credit for one or more dependents.
• $600 ($300 MFS) if the qualified recipient did not:
  • Meet the requirements of the first round of Golden State Stimulus payments; and
  • Claim a credit for one or more dependents.
• $1,000 ($500 MFS) if the qualified recipient:
  • Met the requirements of the first round of Golden State Stimulus payments;
  • Filed their return using their federal ITIN, or, if married, the ITIN of their spouse; and
  • Claimed a credit for one or more dependents.
• $1,100 ($550 MFS) if the qualified recipient:
  • Did not meet the requirements of the first round of Golden State Stimulus payments; and
  • Claimed a credit for one or more dependents.

 

Extension of first round of payments

The first round of Golden State Stimulus payments is available to resident individuals with qualifying children who:

• Were granted an EITC by October 15, 2021, for the 2020 taxable year (Note: SB 88 (Ch. 21-8) originally required the returns to be filed by November 15, 2021, but SB 139 moved the deadline back to October 15, 2021); or
• Meet all the following criteria:
  • Filed a 2020 California tax return by October 15, 2021 (February 15, 2022, if the taxpayer or taxpayer’s spouse applied for, but did not receive, an ITIN on or before October 15, 2021);
  • Provided an ITIN for themselves or, if married, their spouse (it appears only one spouse needs the ITIN); and
  • Reported AGI of $75,000 or less on their 2020 return.

The table below summarizes the amount of payments available to qualified taxpayers.

Total Golden State Stimulus Payments Authorized Under Both SB 88 and SB 139
	Californians Who File with SSNs			Californians Who File with ITINs
	Income of $30,000 or less
	First GSS	Second GSS	Total	First GSS	Second GSS	Total
With Dependents	$600	$500	$1,100	$1,200	$1,000	$2,200
Without Dependents	$600	$0	$600	$600	$0	$600
	Income between $30,000–$75,000
	First GSS	Second GSS	Total	First GSS	Second GSS	Total
With Dependents	$0	$1,100	$1,100	$600	$1,000	$1,600
Without Dependents	$0	$600	$600	$600	$0	$600

A taxpayer does not qualify if they are all of the following:

• An individual without a dependent;
• Uses the single filing status on his or her 2020 California income tax return; and
• Is either:
  • Deceased on the date the Controller would otherwise issue the rebate payment; or
  • Incarcerated, other than incarcerated pending the disposition of charges, on the date the Controller would otherwise issue the rebate payment.