California’s inflation relief program, officially the Middle Class Tax Refund, sent one-time payments of $200 to $1,050 to eligible residents between October 2022 and January 2023. Eligibility was based on your 2020 California tax return, and the program is now closed. If you received a prepaid debit card and still have a balance on it, you have until April 30, 2026, to use or transfer that money before it goes back to the state.
Who Qualified
Qualification came down to your 2020 California state return. You needed to have filed a complete return by October 15, 2021, met the income limit for your filing status, been a California resident for six months or more of 2020, still been a resident when your payment was issued, and not been eligible to be claimed as someone else’s dependent.1State of California Franchise Tax Board. Middle Class Tax Refund
ITIN filers were included. If you applied for an ITIN but hadn’t received it by the October 2021 deadline, your return had to be filed by February 15, 2022. Filing or amending a return after those cutoffs did not create eligibility.1State of California Franchise Tax Board. Middle Class Tax Refund
How Much You Received
The Franchise Tax Board used three factors from your 2020 return: filing status, California Adjusted Gross Income, and whether you claimed at least one dependent. Each filing status had three income tiers, and income above the top tier meant no payment.1State of California Franchise Tax Board. Middle Class Tax Refund
Married or Registered Domestic Partner Filing Jointly
- AGI of $150,000 or less: $1,050 with a dependent, $700 without.
- AGI of $150,001 to $250,000: $750 with a dependent, $500 without.
- AGI of $250,001 to $500,000: $600 with a dependent, $400 without.
- AGI above $500,000: not qualified.
Head of Household or Qualifying Surviving Spouse
- AGI of $150,000 or less: $700 with a dependent, $350 without.
- AGI of $150,001 to $250,000: $500 with a dependent, $250 without.
- AGI of $250,001 to $500,000: $400 with a dependent, $200 without.
- AGI above $500,000: not qualified.
Single or Married Filing Separately
- AGI of $75,000 or less: $700 with a dependent, $350 without.
- AGI of $75,001 to $125,000: $500 with a dependent, $250 without.
- AGI of $125,001 to $250,000: $400 with a dependent, $200 without.
- AGI above $250,000: not qualified.
The top payment of $1,050 went to joint filers earning $150,000 or less with a dependent. The floor was $200, paid to single filers without dependents in the highest qualifying bracket and to head-of-household filers without dependents in theirs.1State of California Franchise Tax Board. Middle Class Tax Refund
How Payments Were Sent
If you e-filed your 2020 return and received that year’s refund by direct deposit, the FTB sent your MCTR to the same account. Those deposits show up on statements as “FTB MCT REFUND.”2State of California Franchise Tax Board. Help with the Middle Class Tax Refund Everyone else got a prepaid debit card in the mail, including paper filers, taxpayers who owed a balance on their 2020 return, and anyone who had changed banks since filing. One card was issued per eligible return.
The cards are managed by Money Network Financial and must be activated before use. Once active, you can spend the balance anywhere debit cards are accepted, withdraw cash at ATMs, or transfer the funds to a personal bank account through the Money Network Mobile App.1State of California Franchise Tax Board. Middle Class Tax Refund
If You Still Have a Debit Card
All MCTR debit card accounts, activated or not, expire on April 30, 2026. Any remaining balance on that date is permanently returned to the California General Fund. It does not go to the State Controller’s Office as unclaimed property, so once it’s gone, there is no way to reclaim it.1State of California Franchise Tax Board. Middle Class Tax Refund
If your card was lost or stolen, the last day to request a replacement is April 8, 2026, which allows time for printing, mailing, and activation. Call 800-240-0223 to report the card and request a new one. If you still have your card, the safest step is to transfer the full balance to your bank through the Money Network app or spend it down before the deadline.
The FTB stopped reissuing MCTR payments entirely after May 31, 2024. If you never received a payment you believe you were owed, there is no longer a way to request one.2State of California Franchise Tax Board. Help with the Middle Class Tax Refund
Taxes and Debt Offsets
The MCTR is not taxable at the California level.3California Legislative Information. AB 192 – Better for Families Tax Refund Federal treatment was addressed by IRS guidance stating the agency would not challenge taxpayers who excluded 2022 state relief payments, and payments issued in early 2023 under programs established in 2022, from federal gross income. That covers the full MCTR distribution window, so recipients did not need to report the payment on their federal returns.4Internal Revenue Service. Federal Income Tax Consequences of Certain State Payments – Notice 2023-56
The payments were also protected from being pulled to cover state tax debts or delinquent accounts owed to state agencies. That protection remains in effect until January 1, 2027.5California Legislative Information. AB 192 – Better for Families Tax Refund