How the Golden State Stimulus (GSS) will work
On February 23, 2021 Governor Gavin Newsom signed into law a package of legislative actions that includes the Golden State Stimulus plan to provide financial support due to economic impacts caused by the COVID-19 pandemic.
This is a one-time $600 or $1200 payment - payments will be distributed via direct deposit using the bank account information on your 2020 tax filing. Alternately, a check may be mailed using the mailing address on your 2020 tax filing, qualification requirements apply. Please refer to CA.gov for additional details including qualification requirements, and when payment will be disbursed.
Stimulus Payments: How we are changing our overdraft process
We made the decision to amend our overdraft processes to provide you access to stimulus payments in their entirety for clients who deposit their Golden State Stimulus payment into a Union Bank deposit account via a check or direct deposit.
If at the time your stimulus payment is deposited your account has a negative balance, we may apply a Temporary Credit to cover the negative balances in your account so that you may have full access to your stimulus payment. Clients who cash their check are not eligible to receive a Temporary Credit.
The Temporary Credit will remain in your account for 90 days, after which it will be reversed, and the amount will become due. You will see this transaction labeled as “Miscellaneous Bank Originated Item” online and in your statement. If you close your account before the end of the 90-day period, the Temporary Credit amount becomes due and you will have 45 days to repay. If your account has been or is overdrawn for 45 consecutive calendar days, the Temporary Credit will become due and the account will be closed, even if it’s before the end of the 90-day period. If you do not wish to participate in this service, we can reverse the Temporary Credit when you contact a branch. To find your local branch, visit our branch locator. If you deposited your Golden State Stimulus into a Union Bank deposit account and did not receive a Temporary Credit and you would like to receive a Temporary Credit please contact a branch or call us at 1-800-238-4486 Monday - Friday 7:00 a.m. to 5:00 p.m. PST, Saturday 8:00 a.m. to 5:00 p.m. PST.
These examples are for illustrative purposes only. The actual balances, amount and timing of Temporary Credit issuance may vary based on the method of deposit of your stimulus payment.
Example #1: Account Balance is Negative at the time the Golden State Stimulus Payment is Deposited
Let’s say the balance in your account at the time a $600 stimulus payment is deposited is negative $250. To ensure you have full access to your stimulus payment, we will temporarily credit the amount overdrawn into your account. Here is an example:
Temporary Credit Reversed
After 90 days, regardless of your account balance, we will reverse the Temporary Credit.
Let’s say that 90 days later, the balance in your account is $300. The previously applied Temporary Credit of $250 will be reversed, bringing your account balance to $50. Here is an example:
Example #2: Continuous Overdraft Closure
If your account remains or becomes overdrawn for 45 consecutive days, your account will be closed, even if it’s before the 90-day period ends.
Example #3: Reversal of a Temporary Credit from a prior stimulus payment and current Golden State Stimulus (GSS)
If you received a Temporary Credit from a prior stimulus payment, it will be reversed at the end of that initial 90-day period as previously communicated.
Temporary Credit from current Golden State Stimulus (GSS) Reversed
After 90 days, regardless of your account balance, we will reverse the Temporary Credit applied to your Golden State Stimulus.
Let’s say at the time the current Temporary Credit is scheduled to be reversed, the balance in your account is $300. The previously applied Temporary Credit of $250 will be reversed, bringing your account balance to $50. Here is an example:
California Franchise Tax Board Information Center
The Calfornia Franchise Tax Board has created a "Golden State Stimulus" page with the most up-to-day answers to many of your questions, including:
- Do I qualify for the Golden State Stimulus
- How much will I receive?
- When will I receive my stimulus?
- How do I check the status of my stimulus payment?
Tools to help track your payments
If my account is closed and the California Franchise Tax Board tries to deposit into it, what will happen?
We will attempt to redirect your stimulus payment to an alternate Union Bank account with the same account ownership. If we are unable to do so, the GSS will be returned to the California Franchise Tax Board. Please refer to CA.gov for more information.
Will I receive a 1099 for this amount? Will it be taxable?
Union Bank will not be sending a 1099 for the GSS. We ask that you please contact your tax advisor for information on how this impacts you.