Millions of Americans living in California and New Jersey will get more stimulus money. The two Democratic-led states are set to pass budgets which allot money to help residents combat record-high inflation.
California Gov. Gavin Newsom (D) announced more than half of residents in his state could soon receive up to $1050 in stimulus funding as part of a $17 billion inflation relief package. California currently has the nation’s highest gasoline prices. The stimulus payments will be sent directly to residents, instead of suspending the state’s tax on fuel.
Under California’s new budget, only married couples filing their taxes jointly, and with at least one dependent, are eligible for the full $1050. Eligibility for the relief payments, and the size of the payments, are based on three tiers for single and joint tax filers.
Single tax filers will receive:
- $350 if they make less than $75,000 per year
- $250 if they make between $75,001 and $125,000 per year
- $200 if they make between $125,001 and $250,000 per year
Joint tax filers will receive:
- $700 if they make less than $150,000
- $500 if they make between $150,001 and $250,000 per year
- $400 if they make between $250,001 and $500,000 per year
Newsom said those Californians eligible for the stimulus payments will get the money by late October.
On the other side of the country, New Jersey lawmakers recently approved a new child tax credit. Families earning less than $30,000 per year will receive a $500 credit for each child under six years old.
The tax credit is reduced by $10 for every $1000 of taxable income over $30,000 and up to $80,000 per year.
New Jersey lawmakers also passed property tax relief for homeowners. Families making up to $150,000 would get $1500. Those earning between $150,000 and $250,000 thousand would get a $1000 credit. Renters making up to $150,000 a year would get $450.
New Jersey’s tax credits are part of a record budget topping $50 billion.
The Associated Press contributed to this report.