To provide qualified people one-time payments to offset inflation, California launched the Middle Class Tax Refund (MCTR) program. This program was made to help middle-class families that were struggling to pay for daily needs including groceries, housing, and healthcare.
However, a good amount of the benefits are still unutilized even after more than 9.5 million debit cards holding refund money were distributed. The amount that remains unutilized underscores the necessity for participants to have a better understanding and knowledge of the MCTR program. Eligible residents of California received one-time payments via California Middle Class Tax Refund Card.
Beginning two years ago and running through January of last year, California received stimulus funds. Data indicates that millions of dollars in benefits are still un used and here i will update you on this. I will tell you steps to activate the California Middle Class Tax Refund Card, here in this page, so read it.
California Middle Class Tax Refund Card
- To help residents of California, the Middle-Class Tax Refund (MCTR) program disbursed over 16.9 million payments starting in 2022. The FTB has observed, however, that some holders of MCTR debit cards have not utilized their MCTR cash or activated their MCTR cards till now. Recipients of MCTR debit cards who have not activated their cards till now will get a letter serving as an activation reminder with activation instructions. The program’s funds are restricted and must be utilized before April 30, 2026, the last day of the program. To get this financial relief, residents are advised by the California Franchise Tax Board (FTB) to activate their Middle Class Tax Refund debit cards.
- The California Franchise Tax Board (FTB) is advising citizens to activate their MCTR debit cards to take advantage of the financial help to that they are eligible to get. So to make sure they receive their MCTR benefits, the FTB also strongly urge those who have not received their cards to get in touch with the organization. Recipients should also be informed that they are free to use the relief payments since they can move the money on the cards to any bank account of their choosing.
What is California Middle Class Tax Refund?
Residents of California will get a one-time payout in the form of the Middle Class Tax Refund as assistance. You will get paid right away if you qualify. In most cases, your Middle Class Tax return will be issued via direct deposit if you filed online and got your tax return that way. If not, a pre-paid debit card will be used to receive your payment.
How to activate your CMCTR card?
Activate your card:
- By calling on 1.800.240.0223, you may activate your debit card, establish a 4-digit PIN, and check the amount.
- Check the terms of your card, the fee schedule, and the transaction limits.
- Sign your debit card for the MCTR on the back.
Use your card:
- Purchase from anywhere. Visa Debit Cards can be used over the phone, online, and in-store.
- At participating outlets, earn cash back at the register when making PIN debit transactions.
- Locate an in-network ATM that accepts surcharge-free withdrawals of cash
What if i have not Activated CMCTR Card?
If you received a Middle Class Tax Refund (MCTR) debit card and haven’t activated it till now, you could have received or will receive a letter from the FTB reminding you to activate your card, along with information on how to do so. Contact 1-800-240-0223 if you require assistance with MCTR card activation, replacement, or loss or theft. Make sure your address is updated with FTB if you think you qualify but haven’t gotten your debit card. For help on changing your address, see the FTB’s Assistance with the Middle Class Tax Refund website.
Thousands of Californians haven’t touched their MCTR
- In the coming days, California plans to refund $367 million to the state’s general treasury from the Middle Class Tax Refund program. According to state law, the Franchise Tax Board alerted the state auditor that it thought the money needed to be redirected.
- The Franchise Tax Board claims that the great majority of the $347 million has no bearing on any specific state inflation relief program participants. This fund is said to be the result of discrepancies between the program’s actual cost and its initial estimate from the spring of 2022.
- More than 600,000 low- to moderate-income Californians have not spent any of the free money the state provided them with during the outbreak.
- Although the state referred to the distribution as a “Middle Class Tax Refund,” it was actually a grant from the state’s previous budget surplus, to counter the high cost of fuel and other items. As long as you timely submitted your 2020 state tax return and your income did not exceed USD 250,000 (for single people) or $500,000 (for heads of households or couples), you were eligible for a grant.
- The huge amount of the grants were granted by the Franchise Tax Board between October 2022 and February 2023, giving 16.8 million California taxpayers a total of $9.2 billion in grants.
Is California Middle Class Tax Refund taxable?
The FTB states that for the purposes of California state income tax, the MCTR payment is not taxable. Additionally, the IRS said that it will not impose federal taxes on California Middle-Class Tax Refunds.
Peter H David is a finance graduate who has been active in the field since 2015. He enjoys writing about stimulus programs, social security, and other U.S. finance topics to help Americans better understand their finances.