In response to the economic challenges brought on by COVID-19, the federal government provided several rounds of stimulus checks to help Americans. While there won’t be a fourth federal stimulus check, California has introduced a $1,200 stimulus payment for its residents, known as the Middle-Class Tax Refund (MCTR).
This article will explain what the MCTR is, how it’s calculated, and how eligible Californians can receive their payments.
The Middle-Class Tax Refund (MCTR)
What is the MCTR?
The Middle-Class Tax Refund (MCTR) is a one-time payment designed to provide financial relief to Californians who have been hit hard by inflation and rising living costs. This program aims to support middle- and lower-income families struggling with the high cost of living in the state.
Why was the MCTR Introduced?
In 2022, inflation in the United States, particularly in California, reached a 40-year high. The cost of food, housing, healthcare, and gas soared, putting immense financial pressure on residents. In response, the California Legislature and Governor passed the Better for Families Act, which led to the creation of the MCTR.
Calculating the MCTR Payment
How is the MCTR Payment Computed?
The Franchise Tax Board (FTB) used data from 2020 individual income tax returns to determine MCTR payment amounts. The payment is based on the taxpayer’s adjusted gross income (AGI) and filing status.
MCTR Payment Amounts by Filing Status
Individual Status
Up to $75,000 AGI:
Without dependents: $350
With dependents: $700
Up to $125,000 AGI:
Without dependents: $250
With dependents: $500
Up to $250,000 AGI:
Without dependents:
$200With dependents: $400
Joint Status
Up to $150,000 AGI:
Without dependents: $700
With dependents: $1,050
Up to $250,000 AGI:
Without dependents: $500
With dependents: $750
Up to $500,000 AGI:
Without dependents: $400
With dependents: $600
Surviving Spouse or Head of Household Status
Up to $150,000 AGI:
Without dependents: $350
With dependents: $700
Up to $250,000 AGI:
Without dependents: $250
With dependents: $500
Up to $500,000 AGI:
Without dependents: $200
With dependents: $400
Receiving the MCTR Payment
How Will Eligible Candidates Receive Their Payments?
In January 2024, the California Department of Finance found that over one million MCTR debit cards, worth $611 million, had not been activated. These cards were sent to middle- and lower-income families who needed help with inflation-related costs.
Activation Reminder
If you received an MCTR debit card and haven’t activated it yet, you’ll get a reminder letter with activation instructions. Make sure your address is updated with the FTB if you think you qualify but haven’t received your debit card.
How to Activate Your MCTR Debit Card
Call 1-800-240-0223 to activate your card, set your 4-digit PIN, and check your balance.
Review your cardholder agreement, fee schedule, and transaction limits.
Sign the back of your MCTR debit card.
The Middle-Class Tax Refund (MCTR) aims to help Californians manage the rising costs of living due to inflation. While the federal government may not provide another stimulus check, state initiatives like the MCTR offer much-needed support. Eligible residents should ensure they activate their debit cards and keep their information updated with the Franchise Tax Board to receive their payments.
FAQs
What is the Middle-Class Tax Refund (MCTR)?
The MCTR is a one-time financial relief payment for California residents affected by inflation.
How is the MCTR payment calculated?
The payment amount is based on the taxpayer’s adjusted gross income (AGI) and filing status from 2020 tax returns.
Who qualifies for the MCTR?
Californians with certain income levels and filing statuses as outlined by the FTB qualify for the MCTR.
How will I receive my MCTR payment?
Eligible individuals will receive a debit card, which needs to be activated.
What should I do if I haven’t received my MCTR debit card?
Ensure your address is current with the Franchise Tax Board and look out for activation reminder letters.