California’s Middle Class Tax Refund (MCTR) is a one-time payment to provide relief to Californians. The payments, which are beginning to be distributed now, are part of a $300-billion budget deal to help offset the high price of fuel and inflation-related cost increases. The package returns a portion of California’s $97 billion budget surplus to taxpayers in relief payments of up to $1,050 for some families.
When and how should taxpayers expect to receive payment?
Payments started going out October 7 and will finish in mid-January 2023. They will be sent as either direct deposits or as debit cards. The Franchise Tax Board (FTB) expects about 90 percent of the direct deposits to be issued in October 2022. To see when you will receive your payment, click the FTB website.
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. The total rebate will arrive in a single direct deposit or debit card.
| QUALIFYING INCOME | First Tier | Second Tier | Third Tier |
| Single Tax Filers | Up to $75,000 | Up to $125,000 | Up to $250,000 |
| Joint Tax Filers | Up to $150,000 | Up to $250,000 | Up to $500,000 |
| PAYMENT AMOUNT | |||
| Single Tax Filer | $350 | $250 | $200 |
| Single Tax Filer + Dependent | $700 | $500 | $400 |
| Joint Tax Filer | $700 | $500 | $200 |
| Joint Tax Filer + Dependent | $1,050 | $750 | $600 |
Payments can be estimated on the Franchise Tax Board website.
How do the debit cards work?
The FTB is working in partnership with Money Network Financial to distribute the debit card payments. For help on how to activate your card and check your balance visit www.mctrpayment.com.
What if an individual did not file a 2020 California tax return?
Most Californians who did not file a 2020 tax return by Oct. 15, 2021, will not receive the rebate.
There is an exception those who:
- Applied for an Individual Taxpayer Identification Number (ITIN)
- Did not receive it by October 15, 2021
- Filed their complete 2020 tax return on or before February 15, 2022.
For help visit taxrefund.ca.gov or call 800-542-9332.
