2022 CA State Refund Checks: The Middle Class Tax Refund (MCTR) - My Free Taxes (2024)

FAQs

How do I know if I am getting the California middle class tax refund? ›

Determine your eligibility

You are eligible if you: Filed your 2020 tax return by October 15, 2021[i] Meet the California adjusted gross income (CA AGI) limits described in the What you may receive section. Were not eligible to be claimed as a dependent in the 2020 tax year.

The MCTR payment is not taxable for California state income tax purposes.

California will provide a one-time payment up to $1,050 to qualified recipients. For ITIN filers, if they applied for an ITIN and had not received it by October 15, 2021, they must have filed their 2020 tax return by February 15, 2022.

To be eligible, you must:

Have an Adjusted Gross Income (AGI) on your 2020 CA tax return, that is: If filing as Head of household, qualifying widow(er), Married/Registered Domestic Partner (RDP) filing jointly: $500,000 or less.

You are eligible if you: Filed your 2020 California tax return by October 15, 2021. Meet the California adjusted gross income (CA AGI) limits. Were not eligible to be claimed as a dependent in the 2020 tax year.

Visit the eligibility information section on the Franchise Tax Board website for more. The Middle Class Tax Refund payment is based on California adjusted gross income brackets. Check the Payment Estimator to understand how much you received. Use the estimator on the Franchise Tax Board website to get your estimate.

As far as California state taxes are concerned, the Middle Class Tax Refund (MCTR) is not taxable income, a FTB spokesperson told Nexstar. That means you don't need to claim your inflation relief payment — no matter the size — on your California income tax return.

Most taxpayers receiving state tax refunds do not have to include the state tax refund in income for federal tax purposes. As a general rule, taxpayers who choose the standard deduction on their federal income tax returns do not owe federal income tax on state tax refunds.

The MCTR was reported via a 1099-Misc, which is entered on line 8 of form 1040. If line 8 is blank, then the MCTR was not claimed as taxable income. If there is a value in line 8, then it's possible you claimed the MCTR as taxable income. Check Schedule 1, line 8z.

How much money will taxpayers receive? The State has created a three-tier system in which each eligible taxpayer will receive either $350, $250 or $200, depending on the adjusted gross income of their 2020 CA state tax return. Taxpayers with at least one dependent will receive an additional payment of the same amount.

Who gets the MCTR payment? ›

Taxpayers receiving payment by the MCTR Prepaid Debit Card include: Taxpayers who filed a paper return. Taxpayers who received their tax refund by check regardless of filing method. Taxpayers who had a balance due for their 2020 tax return.

But data from the U.S. Census Bureau cites a different number as the average salary: just under $75,000. What does this all mean? By the Census data, it means that if you earn between $50,000 and $150,000 a year, you are considered middle class.

Why California is urging people who got middle class tax refunds to withdraw the money ASAP. To prevent fraud, the Franchise Tax Board is urging Californians who receive their middle...

Middle-class income currently ranges from a little under $40,000 to a little over $119,000. The definition of middle class extends beyond income to factors like education, location and marital status.

Common reasons include changes to a tax return or a payment of past due federal or state debts.

California middle class tax refunds (sometimes called California “stimulus” payments) were one-time relief payments that ranged from $200 to $1,050. The amount eligible residents received depended on adjusted gross income, filing status, and family size, as reported on 2020 California tax returns.

If you file electronically through the FTB and IRS, you'll typically get a refund in 21 calendar days. You'll also need to request to receive the fund via direct deposit and not have any errors or issues on it. If you file a paper return in California, it could take up to three months to get your refund.

Some tax returns need extra review for accuracy, completeness, and to protect taxpayers from fraud and identity theft. Extra processing time may be necessary. If you received a refund amount different than the amount on your tax return, we'll mail you a letter. Wait for that letter before you contact us.