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State Controller and Franchise Tax Board (FTB) chair Betty T. Yee announced that her Disbursements team has issued the first round of Middle Class Tax Refund (MCTR) payments, and funds will start hitting Californians’ bank accounts soon!
The MCTR is a one-time relief payment to help California residents hard hit by global inflation. It is available to Californians who filed their 2020 income tax return by October 15, 2021, and met adjusted gross income (AGI) limits and residency requirements. Eligible Californians will automatically receive a payment ranging from $200 to $1,050, depending on AGI and filing status.
“Inflated costs for everyday necessities have forced many to cut corners or make impossible choices, and pain at the pump has been compounded by the return of the commute for many Californians,” said Controller Yee. “As the holidays approach, my team members are laser-focused on getting these payments into the hands of those who have been struggling, so they can enjoy a measure of relief.”
An estimated 20 million MCTR payments will be issued by the State Controller’s Office (SCO) and FTB. The approximately seven million eligible taxpayers who have bank account information on file with FTB will be paid by electronic funds transfer (EFT), or direct deposit, from SCO. Direct deposit payments to people who are eligible for MCTR and received a Golden State Stimulus (GSS) payment will be issued from October 7 through October 25. EFT payments for filers who are eligible for MCTR but not GSS will be issued October 28 through November 14.
FTB contracted with a vendor to issue MCTR payments by debit card to eligible taxpayers who do not have banking information on file with FTB. Approximately 13 million eligible Californians who normally receive their tax refund as a paper check can expect to receive their MCTR on a debit card. For those who also received a GSS payment, these cards should be mailed between October 25 and December 10. All remaining debit cards should be mailed by January 15, 2023. Approximately 95 percent of MCTR payments are expected to be made by year’s end.
MCTR program details – including an eligibility estimator – can be found on the FTB website.
