Since October, California has began awarding Middle Class Tax Refunds. Most payments of the California Middle Class Tax Refund have been made. Payments that need more scrutiny are still being processed. Due to the small overall volume increase, weekly data updates will no longer be made. The next update is slated for February 22, 2023 at mctrpayment.com.
California Middle Class Tax Refund
The Middle Class Tax Refund (MCTR) is a one-time payment made to assist Californians. If you are eligible, a payment will be issued automatically. 31,650,087 California taxpayers and their dependents have benefited from the California Middle Class Tax Refund.
The one-time payments were created to lessen the impact of inflation, and as of January 13, the Franchise Tax Board reported that more than 16 million had been given out. However, it’s possible that over a million eligible residents are still awaiting their checks, which may total up to $1,050. At first, officials anticipated finishing CALIFORNIA MIDDLE CLASS TAX REFUND by January 14. However, if your address or banking information has changed since you last filed your taxes, you might be one of the people who is still waiting.
However, recipients of debit cards who have moved since submitting their 2020 tax return might not get them until the middle of February. You can update your mailing information on MyFTB if you’ve relocated.
California Middle Class Tax Refund Eligibility
You are eligible If you:
- Filed your 2020 tax return before October 15, 2021.
- the What you may receive section’s description of California adjusted gross income (CA AGI) restrictions
- lacked the eligibility requirements to be claimed as a dependent for tax year 2020.
- were a resident of California for at least six months of the 2020 tax year
- at the time the payment is made, you must be a resident of California
How you’ll receive your MCTR payment?
Californians will be paid for their MCTR via debit card or direct deposit.
In general, eligible taxpayers who e-filed their 2020 CA tax return and received their CA tax refund by direct deposit will be paid via direct deposit. The remaining qualified taxpayers will get MCTR debit card payments by mail.
Your money will arrive in the mail as a debit card if you:
- made a paper tax filing.
- had an unpaid balance
- received your check for the Golden State Stimulus (GSS) payment
- Regardless of the filing method, you received a cheque for your tax refund.
- received your direct deposit 2020 tax refund; however, your banking institution or bank account number has subsequently changed.
- received a deposit from your tax service provider or used your refund to pay your tax preparer’s expenses
How much California Middle Class Tax Refund you should expect?
Based on the adjusted gross income reported on your 2020 California state tax return, the MCTR has been divided into three tiers.
Couples filing jointly who made less than $150,000 and single taxpayers who made less than $75,000 will each receive $350, plus an additional flat fee of $350 if they have any dependents. Therefore, a married couple with kids may get as much as $1,050. According to KCRA, this is the largest bracket, covering more than 80% of beneficiaries.
Couples earning between $150,000 and $250,000 and single filers making between $75,000 and $125,000 will each receive $250, with an additional $250 if they have any dependents. Any family with kids may receive $750.
Couples filing jointly and individuals filing separately who made between $125,000 and $250,000 would each receive $200. A family with kids in this category might get up to $600.
Using the calculator on the Franchise Tax Board website, you can determine your refund.
California Middle Class Tax Refund is not declared as taxable income.
Californians will not have to pay federal taxes for the Middle Class Tax Refund, according to IRS guidance released on Friday. The instructions stated that persons do not need to submit California’s inflation relief payments since they are considered to be a general welfare and catastrophe relief payment.
Similar instructions were given to 16 other states by the IRS.
The IRS stated in a statement that “a number of state programs distributed these payments in 2022 and the laws underlying their treatment for federal income tax reasons are complex.” There are exceptions to the general rule that payments made by states are deductible from income for federal tax purposes that would apply to many of the payments made by states in 2022.
The states listed here are exempt from IRS taxation for pandemic relief.:
- New Jersey
- New Mexico
- New York
- Rhode Island
Concerns with your personal information
Your bank details have changed
You will get your payment by debit card in the mail unless your bank account has been updated, closed, or changed since your 2020 California tax return was submitted. Keep in mind that processing should be permitted 10–14 weeks.
You’ve moved or your address has changed
The FTB uses the most recent address on record (typically the address on your last filed return). If you’ve relocated, you may update your mailing information in MyFTB or by getting in touch with us. Please be aware that processing payments with address changes may take longer than usual.
Utilization of personal data
If you believe you are entitled to a California Middle Class Tax Refund and have not received one by February 14, 2023, call the customer service number listed in the Contact information section of the official website, mctrpayment.com.
The Franchise Tax Board advises calling Money Network customer service at 800-542-9332 if you are having problems with your California Middle Class Tax Refund. Click to Check More Finance Related Queries.