Middle Class Tax Refund Update
The Middle Class Tax Refund (MCTR) has benefitted 31 million California taxpayers and their dependents. The majority of MCTR payments have been issued. Payments requiring additional review are still being processed.
The Middle Class Tax Refund (MCTR) is a one-time payment to provide relief to Californians. Eligible LWers automatically re- received their payments, which were mostly issued between October and January.
Taxpayers received their payments on debit cards or by direct deposit.
Generally, direct deposit payments were made to eligible taxpayers who e-filed their 2020 state tax returns and received their state tax refund by direct deposit.
MCTR debit card payments will be mailed to the remaining eligible taxpayers.
For questions or to activate cards, visit www.ftb.ca.gov/.
The Internal Revenue Service has determined that in the interest of sound tax administration and other factors, taxpayers in many states, including California, will not need to report these payments on their 2022 tax returns.
The IRS recently decided not to challenge the taxability of payments related to general welfare and disaster relief.
This means that people in the following states do not need to report these state payments on their 2022 tax return: California, Colorado, Connecticut, Delaware, Florida, Hawaii, Idaho, Illinois, Indiana, Maine, New Jersey, New Mexico, New York, Oregon, Pennsylvania and Rhode Island.
