Middle class tax refunds to start hitting bank accounts

Starting tomorrow, $9.5 billion in Middle Class Tax Refund payments will begin going out to Californians, with refunds of up to $1,050 that will benefit millions of eligible Californians under the largest such program in state history. Up to 23 million Californians will benefit from $9.5 billion in direct relief, regardless of immigration status, according to the governor´s office.

“We know it’s expensive right now, and California is putting money back into your pockets to help. We’re sending out refunds worth over a thousand dollars to help families pay for everything from groceries to gas,” said Governor Newsom in a press release.

This refund program builds upon last year’s Golden State Stimulus, which distributed $9 billion to California families. Payments will range from $400 to $1,050 for couples filing jointly and $200 to $700 for all other individuals depending on their income and whether they claimed a dependent. Refunds are available for Individual Taxpayer Identification Number filers, in addition to those who file tax returns with a SSN. Payment amounts will be based on the CA AGI on your 2020 California state income tax return, as well as your filing status and whether you claimed a dependent.

According to the governor’s office, a total of 18 million payments will be distributed, benefitting up to 23 million Californians. An estimated 8 million direct deposits will start arriving in bank accounts from October 7 through November 14, and an estimated 10 million debit cards will be delivered from October 25 through January 15. To determine your eligibility and estimate your payment, visit taxrefund.ca.gov.

Californians will receive their MCTR payment by direct deposit or debit card. Direct deposit payments will be made to eligible taxpayers who e-filed their 2020 CA tax return and received their CA tax refund by direct deposit. In general, other MCTR payments will be issued on debit cards. Debit cards will be mailed to eligible taxpayers in an envelope prominently displaying the following wording: “Not a bill or advertisement. Important information about your Middle Class Tax Refund.” For more information regarding MCTR payments, visit taxrefund.ca.gov.

Direct deposit MCTR payments for Californians who received Golden State Stimulus (GSS) I or II are expected to be issued to bank accounts from Oct. 7 through Oct. 25, with the remaining direct deposits occurring between Oct. 28 and Nov. 14. FTB expects about 90% of the MCTR direct deposits to be issued in October.

MCTR debit cards are expected to be mailed between October 25 and Dec. 10 for Californians who received GSS I and II, with the balance mailed by Jan. 15, 2023. About 95% of all MCTR payments – direct deposit and debit cards combined – are expected to be issued by the end of this year. For more information, including the most recent updates on payment schedules, visit taxrefund.ca.gov.
For a complete list of requirements and other MCTR information, visit taxrefund.ca.gov
or call 800-542-9332. For more information, including how to activate your card, how to check your balance, and to view images of the MCTR envelope and debit card, visit www.mctrpayment.com.

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