This month, Californian residents will receive stimulus checks worth up to $12,000 for eligible individuals. The checks are to provide financial aid and relief to individuals within California provided they meet qualifying criteria through tax rebates. The Franchise Tax Board (FTB) has yet to announce exact dates for when eligible residents will receive their checks, but it will be before the end of the month.
Stimulus checks provide economic relief to encourage spending during economic contraction
Stimulus checks are not a new concept and have often been provided by the government to provide aid to low-income families. However, the overarching goals of stimulus checks is to up the spending of citizens to create economic activity during times when such activity is low. California has one of the highest cost-of-living expense in the U.S, consistently coming in as one of the top five most expensive states to live in.
Recently, the U.S government and Federal Deserve provide stimulus checks to qualifying individuals during the COVID-19 pandemic. California also provided additional stimulus checks for residents during COVID-19. The September 2024 $12,000 stimulus checks encompass both direct payments and tax rebates and is not a single check.
Californian residents must meet qualifying criteria to receive up to $12,000
The stimulus checks are aimed at low-income residents. To qualify, residents must have earned an annual income less than $63,398 in 2023 . Additionally, residents must also qualify for the Federal Tax Credit. Residents may also qualify for the California Earned Income Tax Credit (EITC). An individual is eligible if they earn less than $30,931 dollars. This application may earn an individual additional tax rebates and credits.
To maximize the full $12,000 benefits, California residents are encouraged to file for the CalEITC, Young Child Tax Credit (YCTC), and the federal Earned Income Tax Credit (EITC) when filing their 2023 tax returns. This must have done by April 2024.
The full $12,000 worth of stimulus checks and tax rebates will apply mostly to families with three or more children who claim their tax rebates and meet the income criteria. Families with two children are expected to receive up to $6,600, single-child families may receive up to $4000 and individuals without children may receive up to $600. The checks will provide the most relief to low-income household with dependents like children.
Rising cost-of-living is the U.S is pushing for nationwide stimulus checks
While the current $12,000 stimulus checks are limited to Californian residents, the rising cost of living across the U.S is forcing a consideration of a nationwide stimulus check program. The feasibility of this would depend on the availability of funding and considerations for how nationwide stimulus checks would impact the national debt.
The checks are also calling for consideration for long-term solutions to solve the cost-of-living crisis. While stimulus checks may provide immediate economic breathing room, they bring with them their own problems such as increased national debt. Further, they do not solve the root cause of why the checks are needed in the first place. While they are useful for disaster management such as during COVID-19, there needs to be a more sustainable approach to reducing cost-of-living.
Examples of long-term approaches to the cost-of-living process are increasing wages, specifically increasing minimum wage, and increased targeted social programs such as affordable housing initiatives. Healthcare reform should also be considered, as well as tax reform to decrease the disproportional burden low- and middle- income earners pay in taxes.
Californian residents are encouraged to stay up-to-date with announcements regarding the September stimulus checks through official channels and to not look to social media for updates. Circulation of false claims towards stimulus checks are often made online. Residents must always take caution for where they receive their information on government policy.
