Why Exclude Some Low Income Individuals From New California Families Tax Refund?

California  AB 192 (Chapter 5, 6/30/22) adds a few tax provisions including the Better for Families Tax Refund. This will provide a one-time rebate to most California taxpayers other than those with 2020 Adjusted Gross Income (AGI) above $500,000 and individuals with income so low they were not required to file a 2020 return and did not do so.  That is an odd group – highest income and lowest income, to exclude from this rebate which can be as high as $1,050 and as low as $200 depending on 2020 income and whether the taxpayer had a dependent in 2020.

The purpose of the tax refund/credit is to address financial challenges caused by COVID-19, inflation and increasing costs for gas, food and other necessities. (Per Assembly Analysis of 6/26/22.)

The qualifications for the credit:  [also see FTB website (FTB calls this a Middle Class Tax Refund*)]

  • Filed 2020 return by 10/15/21
  • Meet California AGI limits (see tables below)
  • California resident for six or more months of 2020
  • Not eligible to be claimed as dependent by someone in 2020
  • Be California resident when refund is paid

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