The Middle Class Tax Refund has been approved by the California Franchise Tax Board. The refund is a one time payment for qualifying taxpayers to offset inflation costs. Eligible individuals can expect to automatically receive their payment between Oct. 2022 and Jan. 2023.
There is no application to be filled out, as eligibility is determined by 2020 taxes filed in 2021. Automatic payments will be disbursed by direct deposit to MCTR qualifiers who filed their taxes electronically and received the California tax refund by direct deposit. Qualifying individuals who do not fall within this category will receive their automatic payment in the mail as a debit card.
According to FTB, you will receive your payment by mail in the form of a debit card if you:
- Filed a paper return
- Received your refund by check
- Had a balance due [on your previous taxes]
- Received your Golden State Stimulus payment by check
- Received your tax refund by check regardless of filing method
- Received your 2020 tax refund by direct deposit, but have since changed your banking institution or bank account number
- Received an advance payment from your tax service provider, or paid your tax preparer fees using your tax refund
Recipients must have filed their 2020 taxes by Oct. 2021 and also not be claimed as a dependent on anyone else’s tax return. Additionally, recipients must have made less than $250,000 if filed as single, or $500,000 for couples filing jointly.
Residency status also plays a factor in eligibility. Recipients must have been a resident or citizen of the United States for at least six months of the 2020 tax year. Additionally, they must be classified as a resident on the date the payment is issued.
For more information about the MCTR and how much each qualifying payment may be, visit https://www.ftb.ca.gov/about-ftb/newsroom/middle-class-tax-refund/index.html or call (800)-542-9332.