Thursday: In addition to three federal stimulus payments, some Californians also qualify for the Golden State Stimulus.
Good morning.
Today we’re going to talk about money, money, money — or more precisely, government stimulus payments.
Several rounds of federal and state payments directed at individuals in 2020 and 2021 were intended to help people cope with the pandemic’s shock to the economy.
Each of them has different rules, but all of them are pegged to taxable income. In a recent report, the California Policy Lab estimated that up to 2.2 million eligible Californians will not get up to $5.7 billion in federal payments because they earn too little to file tax returns and therefore aren’t popping up in government computer systems.
That means it’s important to file your 2020 federal and state tax returns to get all the payments that you qualify for. The deadline is May 17 for both this year.
Here’s a quick guide to the government checks.
What payments were made by the federal government?
The federal government has sent out three rounds of checks, which most eligible people should have received by now.
The first payment, for up to $1,200 per adult and $500 per child, went out starting last April. The payments were phased out at higher levels of taxable income, based on your 2018 or 2019 tax return.
The second payment, for up to $600 per adult and child, went out in December and January. Again, the payments were reduced for those with higher incomes.
The third payment, for up to $1,400 per adult and child, started going out last month. And like the other two, the payments are being phased out at higher income levels, reaching zero for individuals earning $80,000 and couples earning $160,000.
What if I didn’t get a payment?
If you didn’t get the first two federal payments but think you might be eligible, you can calculate any amount due and claim a credit on your 2020 tax return. At this point, that’s the only way to catch up on those payments.
For the third payment, the I.R.S. calculated eligibility and amounts based on 2019 returns. If your income dropped in 2020, you are likely to qualify for a bigger payment. After you file your 2020 return, the I.R.S. says, it will send out any higher amount that you are owed. If you still don’t get a payment and think you are owed one, you can file for a credit when you complete your 2021 return.
What is the Golden State Stimulus?
In February, California lawmakers approved a separate state stimulus payment of $600 to $1,200 for residents who qualify for the earned-income tax credit or who earned less than $75,000 last year.
California isn’t sending out checks under this Golden State Stimulus program. Instead, any money you’re entitled to will be added to your tax refund or reduce your tax due when you file your 2020 state return. Unlike the federal payments, undocumented residents can receive the California funds as long as they have a valid tax identification number.
San Francisco also runs a separate stimulus program for low-income residents. And yes, that, too, requires a tax return.
Will there be a fourth federal stimulus payment?
No more big checks are in the works.
But as part of the March stimulus package, many taxpayers with children will get a higher child tax credit, and the Treasury Department is supposed to start paying it out in monthly installments of $250 to $300 per child starting in July.
On Wednesday, the Biden administration also proposed $1.8 trillion in spending increases and tax cuts, including new federal support for child care and education, financed by higher taxes on wealthier Americans.
You keep telling me to file my taxes. Could you do them for me?
No, sorry. But here is our special pandemic guide to your 2020 taxes to help you do them yourself.
Senior citizens, low-income residents, the disabled, military personnel and those who speak limited English can also get assistance from two state programs.
(This article is part of the California Today newsletter. Sign up to get it delivered to your inbox.)
Here’s what else to know today
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A New York Times analysis of body-camera footage recording the police encounter with Mario Gonzalez shows that one officer appeared to keep his knee on the upper right side of Mr. Gonzalez’s back for 2 minutes 50 seconds. Mr. Gonzalez died in police custody on April 19 after officers in Alameda County pinned him face down on the ground for five minutes.
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Researchers have discovered more than 25,000 DDT-tainted barrels on the seafloor off California. The barrels are now disintegrating, posing a risk to fish, sea lions and other marine life.
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The Atlantic asks: Can Senator Alex Padilla help win back Latinos for Democrats?
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The Supreme Court refused to consider Texas’ challenge to California’s ban on state-funded business trips to Texas and other states that discriminate against L.G.B.T.Q. people, The Associated Press reports.
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The government will open a $28.6 billion grant fund for restaurants, bars and other food businesses, but the money is expected to go quickly.
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Five previous attempts to recall Gov. Gavin Newsom fizzled. We looked at how the sixth effort got to the ballot.
And finally …
The recent wave of violence against Asians and Asian-Americans, including attacks in California, has brought new attention to anti-Asian bias, what it means to be of Asian descent in the United States, and what the term “Asian-American” means to the millions of people it aims to describe.
If your family is from Asia, how do you feel about being identified as Asian-American? Tell us what it means to you. We’ll report back on what we hear.
California Today goes live at 6:30 a.m. Pacific time weekdays. Tell us what you want to see: CAtoday@nytimes.com. Were you forwarded this email? Sign up for California Today here and read every edition online here.
Vindu Goel has lived in California for about half his life, including stints in San Diego, Silicon Valley, San Francisco, and now, Oakland. He is currently an emerging platforms editor on the Audience team.
California Today is edited by Julie Bloom, who grew up in Los Angeles and graduated from U.C. Berkeley.
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April 29, 2021 at 07:59PM
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Here’s How to Claim Your Stimulus Payments: File Your Tax Return - The New York Times
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