(a) The Franchise Tax Board shall, as soon as possible, make a one-time payment in the applicable amount to each qualified recipient. A qualified recipient shall not receive more than one payment of the applicable amount. The payments may be made in the form and manner determined by the Franchise Tax Board.
(b) For purposes of this section, the following definitions shall apply:
(1) “Applicable amount” means any of the following:
(A) In the case of spouses filing a joint return pursuant to Part 10.2 (commencing with Section 18401) of Division 2 of the Revenue and Taxation Code, that reported a California adjusted gross income, on the
return described in clause (i) of subparagraph (A) of paragraph (4), of:
(i) One hundred fifty thousand dollars ($150,000) or less, the applicable amount shall be seven hundred dollars ($700) plus an additional three hundred fifty dollars ($350) if the qualified recipient claimed a credit for one or more dependents under paragraph (1) of subdivision (d) of Section 17054 of the Revenue and Taxation Code on the return described in clause (i) of subparagraph (A) of paragraph (4).
(ii) Two hundred fifty thousand dollars ($250,000) or less, and more than one hundred fifty thousand dollars ($150,000), the applicable amount shall be five hundred dollars ($500) plus an additional two hundred fifty dollars ($250) if the qualified recipient claimed a credit for one or more dependents under paragraph (1) of subdivision (d) of Section 17054 of the Revenue and Taxation Code on the return
described in clause (i) of subparagraph (A) of paragraph (4).
(iii) Five hundred thousand dollars ($500,000) or less, and more than two hundred fifty thousand dollars ($250,000), the applicable amount shall be four hundred dollars ($400) plus an additional two hundred dollars ($200) if the qualified recipient claimed a credit for one or more dependents under paragraph (1) of subdivision (d) of Section 17054 of the Revenue and Taxation Code on the return described in clause (i) of subparagraph (A) of paragraph (4).
(B) In the case of an individual filing a head of household return pursuant to Part 10.2 (commencing with Section 18401) of Division 2 of the Revenue and Taxation Code, or an individual filing a surviving spouse return pursuant to Part 10.2 (commencing with Section 18401) of Division 2 of the Revenue and Taxation Code that reported a California adjusted gross income, on
the return described in clause (i) of subparagraph (A) of paragraph (4), of:
(i) One hundred fifty thousand dollars ($150,000) or less, the applicable amount shall be three hundred fifty dollars ($350) plus an additional three hundred fifty dollars ($350) if the qualified recipient claimed a credit for one or more dependents under paragraph (1) of subdivision (d) of Section 17054 of the Revenue and Taxation Code on the return described in clause (i) of subparagraph (A) of paragraph (4).
(ii) Two hundred fifty thousand dollars ($250,000) or less, and more than one hundred fifty thousand dollars ($150,000), the applicable amount shall be two hundred fifty dollars ($250) plus an additional two hundred fifty dollars ($250) if the qualified recipient claimed a credit for one or more dependents under paragraph (1) of subdivision (d) of Section 17054 of the Revenue and Taxation Code on
the return described in clause (i) of subparagraph (A) of paragraph (4).
(iii) Five hundred thousand dollars ($500,000) or less, and more than two hundred fifty thousand dollars ($250,000), the applicable amount shall be two hundred dollars ($200) plus an additional two hundred dollars ($200) if the qualified recipient claimed a credit for one or more dependents under paragraph (1) of subdivision (d) of Section 17054 of the Revenue and Taxation Code on the return described in clause (i) of subparagraph (A) of paragraph (4).
(C) In the case of any other individual that reported a California adjusted gross income, on the return described in clause (i) of subparagraph (A) of paragraph (4), of:
(i) Seventy-five thousand dollars ($75,000) or less, the applicable amount shall be three hundred fifty dollars ($350) plus an
additional three hundred fifty dollars ($350) if the qualified recipient claimed a credit for one or more dependents under paragraph (1) of subdivision (d) of Section 17054 of the Revenue and Taxation Code on the return described in clause (i) of subparagraph (A) of paragraph (4).
(ii) One hundred twenty-five thousand dollars ($125,000) or less and more than seventy-five thousand dollars ($75,000), the applicable amount shall be two hundred fifty dollars ($250) plus an additional two hundred fifty dollars ($250) if the qualified recipient claimed a credit for one or more dependents under paragraph (1) of subdivision (d) of Section 17054 of the Revenue and Taxation Code on the return described in clause (i) of subparagraph (A) of paragraph (4).
(iii) Two hundred fifty thousand dollars ($250,000) or less and more than one hundred twenty-five thousand dollars ($125,000), the
applicable amount shall be two hundred dollars ($200) plus an additional two hundred dollars ($200) if the qualified recipient claimed a credit for one or more dependents under paragraph (1) of subdivision (d) of Section 17054 of the Revenue and Taxation Code on the return described in clause (i) of subparagraph (A) of paragraph (4).
(2) “Individual” shall have the same meaning as that term is defined in Section 17005 of the Revenue and Taxation Code.
(3) “Resident” shall have the same meaning as that term is defined in Section 17014 of the Revenue and Taxation Code.
(4) (A) “Qualified recipient” means an individual that satisfies all of the following:
(i) Filed a California individual income tax return on or before October 15,
2021, for the taxable year beginning on or after January 1, 2020, and before January 1, 2021.
(ii) Is a resident of the state on the date payment is issued pursuant to subdivision (a).
(iii) Was a resident of the state for six months or more of the taxable year beginning on or after January 1, 2020, and before January 1, 2021.
(iv) Cannot be claimed as a dependent, as defined in Section 17056 of the Revenue and Taxation Code, by another taxpayer.
(B) In the case of an individual who included either their federal individual taxpayer identification number or, if married, the federal individual taxpayer identification number of their spouse, on their California individual income tax return for the taxable year beginning on or after January 1, 2020, and
before January 1, 2021, and who meets all of the other requirements of a qualified recipient, if the individual or their spouse applied for, but did not receive, a federal individual taxpayer identification number on or before October 15, 2021, the individual is a qualified recipient for purposes of this section if the tax return described in this subparagraph was filed on or before February 15, 2022.
(C) Notwithstanding subparagraphs (A) and (B), “qualified recipient” shall not include an individual that satisfies all of the following:
(i) Is an individual without a dependent, as defined in Section 17056 of the Revenue and Taxation Code.
(ii) Files or filed their California individual income tax return using the single filing status for the taxable year described in clause (i) of subparagraph (A).
(iii) Is either of the following:
(I) Is deceased on the date the payment would otherwise be issued as authorized under subdivision (a).
(II) Is incarcerated, other than incarceration pending the disposition of charges, in a jail, prison, or similar penal institution or correctional facility on the date the payment would otherwise be issued as authorized under subdivision (a).
(c) In the case of a qualified recipient who files a joint return with their spouse pursuant to Part 10.2 (commencing with Section 18401) of the Revenue and Taxation Code for the taxable year described in clause (i) of subparagraph (A) of paragraph (4) of subdivision (b), the qualified recipient and their spouse shall be considered one qualified recipient for purposes of this
section, and shall receive only one payment of the applicable amount.
(d) (1) The Franchise Tax Board shall issue the payments authorized by this section no later than September 30, 2023.
(2) Notwithstanding paragraph (1), the Franchise Tax Board may reissue stale, dated, or replacement warrants for the payments pursuant to subparagraph (B) of paragraph (2) of subdivision (b) of Section 905.2 of the Government Code after September 30, 2023, in the form and manner prescribed by the Franchise Tax Board.
(3) Notwithstanding paragraph (1), the Franchise Tax Board, through a third-party vendor, may reissue replacement debit cards after September 30, 2023, in the form and manner prescribed by the Franchise Tax Board.
(e) The payment
authorized by this section shall not be a refund of an overpayment of income taxes under Chapter 6 (commencing with Section 19301) of Part 10.2 of Division 2 of the Revenue and Taxation Code of any liability imposed under Part 10 (commencing with Section 17001) of Division 2 of the Revenue and Taxation Code.
(f) Notwithstanding any other law, the payment authorized pursuant to this section shall be treated in the same manner as the federal earned income refund for the purpose of determining eligibility to receive benefits under Division 9 (commencing with Section 10000), excluding benefits under Chapter 7 (commencing with Section 14000) of Part 3 of Division 9, or amounts of those benefits.
(g) Notwithstanding any other law, the payment authorized pursuant to this section shall not be taken into account as income, and shall not be taken into account as resources for a period of 12
months from receipt, for purposes of determining the eligibility of such individual, or any other individual, for benefits or assistance or the amount or extent of benefits or assistance under any state or local program not covered in subdivision (e). With respect to a state or local program, this subdivision shall only be implemented to the extent that it does not conflict with federal law relating to that program, and that any required federal approval or waiver is first obtained for that program.
(Amended by Stats. 2023, Ch. 55, Sec. 15. (SB 131) Effective July 10, 2023. Repealed as of January 1, 2027, pursuant to Section 8165.)
(a) (1) A Better for Families Tax Refund payment made pursuant to Section 8161 shall be automatically exempt from a garnishment order.
(2) This subdivision does not apply to a garnishment order in connection with an action for, or a judgment awarding, child support, spousal support, family support, or a criminal restitution payable to victims.
(b) Notwithstanding any other law, a financial institution receiving directly from the state the payments described in subdivision (a) shall exempt those payments from any garnishment order if the
payment is marked by the state as a “Better for Families Tax Refund payment” or includes some other industry-standard unique identifier that is reasonably sufficient to allow the financial institution to identify the funds as a Better for Families Tax Refund payment.
(c) (1) In exempting a Better for Families Tax Refund payment from a garnishment order, a financial institution shall identify an exempt deposit using a lookback period during an account review.
(2) The financial institution shall perform a one-time account review consistent with the requirements described in subsection (a) of Section 212.5 of Title 31 of the Code of Federal Regulations.
(d) A financial institution that attempts in good faith to comply with this section shall not be subject to liability or regulatory action under a federal or state law, regulation, court or other order, or regulatory interpretation for actions concerning applicable payments.
(e) As used in this section:
(1) “Account review” means the process of examining deposits in an account to determine if a benefit agency has deposited a benefit payment into the account during the lookback period.
(2) “Garnishment order” means a writ, order, notice, summons, judgment, levy, or similar written instruction issued by a court, a state or state agency,
or a municipality or municipal corporation, including an order to freeze the assets in an account, to effect a garnishment against a debtor.
(3) “Lookback period” means the two-month period that begins on the date preceding the date of account review and ends on the corresponding date of the month two months earlier or on the last date of the month two months earlier if the corresponding date does not exist.
(Added by Stats. 2022, Ch. 51, Sec. 6. (AB 192) Effective June 30, 2022. Repealed as of January 1, 2027, pursuant to Section 8165.)