Please ensure Javascript is enabled for purposes of website accessibility
Answers to Your Questions About California's Inflation/Gas Rebates
gvw_calmatters
By CalMatters
Published 3 years ago on
October 19, 2022

Share

 

To help with the high price of gas — and the rising cost of living — California started sending payments ranging from $200 to $1,050 to residents in October.

Grace Gedye

CalMatters

Whenever money might be headed to people’s bank accounts, they tend to have questions.

We’ve already answered the basics, including who is eligible for the payments, when they are getting sent out, how people will receive them, and how much you can expect to receive.

But readers responded with more questions via email and social media. We also took cues from questions people searched for a lot online. We’ve answered some of those questions here and will be adding more questions and answers to this page over the coming days.

Q. Does it matter how many cars I have, or whether I have an electric vehicle?

A. No. Whether or not you’re eligible for this payment — or how much you will get — has nothing to do with whether you own a car, how many cars you own, or what kind of car you own.

The reason people might be confused is that back in March, Gov. Gavin Newsom proposed sending payments to Californians based on how many cars they own. But that wasn’t part of the final deal.

Eligibility is based on having submitted a complete 2020 tax return by Oct. 15, 2021, as well as other factors including income and residency.

Q. Are the “gas rebates” the same as the “inflation relief” payments?

A. Basically, yes.

The idea of financial relief for high gas prices was floated by Newsom in March. As the proposal developed it was sometimes referred to as a gas rebate or refund, and sometimes referred to as an inflation relief payment. The official name it ultimately got was the “‘Middle Class Tax Refund.” In most cases, those terms are all referring to payments that started going out in October to offset the high price of gas and other goods.

One wrinkle: In the wake of a recent uptick in the price of California gas, Newsom proposed a new tax on oil companies in late September and called for a special legislative session in December to discuss the idea. His proposal is to turn the funds generated from that tax into a refund or rebate for people affected by high gas prices, so that’s another gas rebate you might hear about, but it hasn’t happened yet.

Q. Why can’t you file something now to get the payment if you didn’t file a 2020 tax return?

A. Some people earn little enough income that they aren’t required to file taxes. That includes some seniors and disabled people, as well as some very low-income people. Unfortunately, if you didn’t file a 2020 tax return by the deadline, you aren’t eligible for this payment.

You can’t file anything retroactively to receive the payment.

If the state allowed people to file amended tax returns, for example, that would have taken more time — both for people to file, and for the state to process — and would have opened up “concerns regarding potential fraud,” said Palmer.

Basing the payments on previously submitted returns, and documentation that has “already been processed and validated by the [Franchise Tax Board] significantly eliminates the possibility of fraud,” Palmer said.

Q. Why is your 2020 tax return important? Why not 2021?

A. There are two main reasons why the 2020 tax return was chosen, Palmer said. One is that the 2020 tax filing is completely done, whereas tax filing and processing for 2021 is still ongoing. (The extension deadline for 2021 tax returns was Oct. 17).

The other reason, Palmer said, is that the tax board “received roughly half a million more low-income tax returns than usual in 2020, since more households filed tax returns to take advantage of pandemic-related assistance.” So, by using the 2020 return, California will be able to reach several hundred thousand more people with these payments, according to Palmer.

According to AAA, the average California price for regular was $5.94 and $6.59 for diesel on Wednesday, Oct. 19, 2022. That compared to a national average of $3.87 for regular. (AP File)

Q. What happens if you were married when you filed your 2020 tax return and filed it jointly but have since gotten divorced?

A. Your tax return for 2020 is important for these payments — without one, you aren’t eligible. Plus, the adjusted gross income reported on your 2020 return will factor into how much money you get. The payments are being sent out either as direct deposits or debit cards.

If you were part of a couple that filed a 2020 tax return jointly, but have since separated or gotten divorced, you will still be issued one debit card jointly with your former spouse or partner, with both names on it, said Martinez. That card would be sent to the most recent address the tax board has on file for the first person named on the 2020 return.

If your address has changed since you last filed California taxes, you can update your address through MyFTB or by phone, dialing 1-800-542-9332 according to Martinez.

Same goes for direct deposit: If you filed a 2020 tax return with a partner or spouse you’ve since separated from, the deposit will go to the bank account of the first person named on the 2020 tax return, Martinez said.

In this situation the formerly coupled taxpayers “should work together to ensure proper handling of the (Middle Class Tax Refund) payment,” said Martinez in a statement.

Any Other Questions?

Have more questions about California rebates. Share them with reporters at this link.

About the Author

Grace Gedye covers California’s economy for CalMatters. Previously, she was an editor at the Washington Monthly. She is a graduate of Pomona College.

About CalMatters

CalMatters is a nonprofit, nonpartisan newsroom committed to explaining California policy and politics.

 

RELATED TOPICS:

DON'T MISS

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

UP NEXT

Congress Members Split Over US Attack on Iran

Investors React to US Attack on Iran Nuclear Sites

12 hours ago

Tulare County’s Colvin Fire Ignites With 80 Personnel on Scene

12 hours ago

World Leaders React to US Attack on Iran

The reaction of world leaders after U.S. forces struck three Iranian nuclear sites on Sunday Iran time ranged from Israel lauding President ...

10 hours ago

Patrons of the Chapel Street Cafe watch as U.S. President Donald Trump delivers an address to the nation following U.S. strikes on Iran's nuclear facilities, in Chicago, Illinois, U.S. June 21, 2025. (Reuters/Dylan Martinez)
10 hours ago

World Leaders React to US Attack on Iran

The U.S. Capitol building is seen in Washington, U.S., December 1, 2023. (Reuters File)
10 hours ago

Congress Members Split Over US Attack on Iran

Emergency personnel work at an impact site following Iran's missile strike on Israel, amid the Iran-Israel conflict, in Haifa, Israel, June 20, 2025. (Reuters File)
11 hours ago

Investors Brace for Oil Price Spike, Rush to Havens After US Bombs Iran Nuclear Sites

President Donald Trump gestures next to a new flagpole with the U.S. flag after disembarking Marine One upon arrival at the White House in Washington, D.C., U.S., June 21, 2025. (Reuters/Kevin Mohatt)
12 hours ago

Investors React to US Attack on Iran Nuclear Sites

A wildfire dubbed the Colvin Fire broke out Saturday near Woodlake in Tulare County, burning 46 acres with 0% containment and threatening two structures, according to CalFire. (CalFire)
12 hours ago

Tulare County’s Colvin Fire Ignites With 80 Personnel on Scene

12 hours ago

US B-2 Bombers Involved in Iran Strikes, U.S. Official Says

U.S. President Donald Trump delivers an address to the nation alongside U.S. Vice President JD Vance, U.S. Secretary of State Marco Rubio and U.S. Defense Secretary Pete Hegseth at the White House in Washington, D.C., U.S., June 21, 2025, following U.S. strikes on Iran's nuclear facilities. REUTERS/Carlos Barria/Pool
12 hours ago

Trump Says Iran’s Key Nuclear Sites ‘Obliterated’ by Airstrikes

Oct 24, 2024; Los Angeles, CA, USA; General view of the centerfield plaza during media prior to game one of the World Series between the Los Angeles Dodgers and the New York Yankees at Dodger Stadium. Mandatory Credit: Jayne Kamin-Oncea-Imagn Images/File Photo
17 hours ago

LA Dodgers Pledge $1 Million to Support Families Impacted by ICE Raids

Help continue the work that gets you the news that matters most.

Search

Send this to a friend