Residents of This State Could Soon See $1,050 Stimulus Checks Hit Their Bank Accounts

Talk about a financial lifeline.

To say that Americans need inflation relief would be an understatement. These days, consumers across the country are buckling under the weight of higher gas prices, food costs, and rent. And given that many people depleted their savings during the early stages of the COVID-19 pandemic, they don't have cash reserves to tap to help cover higher bills.

Now last year, when Americans were struggling due to high levels of unemployment, lawmakers stepped in with a round of federal stimulus checks. This year, that doesn't seem to be in the plans -- largely because unemployment levels are low and job growth has held steady.

But some states are taking stimulus matters into their own hands, and California is one of them. In fact, based on a recently agreed-upon budget deal, California households will soon be in line for up to $1,050 in stimulus funds. And that money could provide a world of relief during these tough economic times.

A generous payday is on the way

California drivers are facing the highest gas prices in the country, and many parts of the state are notably expensive due to sky-high housing costs. Now, residents of the state can anticipate relief thanks to a $17 billion relief package.

California residents who are single and earn less than $75,000 a year will be eligible for a $350 stimulus check. Those who are married and file a joint tax return making under $150,000 a year will receive another $350. And taxpayers with dependents will get an additional $350. All told, qualifying California households could receive a stimulus worth $1,050. 

But while the program is targeted toward lower earners, moderate and higher earners will get a piece of the pie, too. Single taxpayers earning between $75,000 and $125,000 a year will be eligible for a $250 stimulus. Married couples who earn between $150,000 and $250,000 will be eligible for another $250, plus another $250 for a dependent. So all told, that's $750 per moderate income household.

Finally, singles earning between $125,000 and $250,000 a year will be eligible for a $200 stimulus. Married couples earning between $250,000 and $500,000 will be eligible for another $200, plus a $200 payment for dependents. So higher earners can still qualify for a $600 stimulus. 

If these income thresholds seem high for stimulus eligibility, well, they are. But let's also remember that California is one of the most expensive states in the country to live in. And given that a starter home could cost over $1 million in some parts of California, it's easy to see why higher earners are being thrown some relief funds -- even though they clearly don't need the money the same way lower income households do.

When to expect stimulus funds

California residents who are eligible for stimulus funds should expect that money via direct deposit or debit card by late October. Since so many households are struggling right now, that lag isn't the best of news. But given how generous California is being with stimulus payments, it's also a situation residents may not want to complain about.