Are you looking to receive direct deposit or debit card payments in 2023? If so, you have come to the right place! To learn more about how to ensure you receive your California Inflation Relief Payment in 2023, keep reading!
Key Takeaways
- The Middle-Class Tax Refund, or inflation relief program, provides direct deposit payments of up to $1050 per recipient through debit cards and direct deposits if you meet specific criteria.
- If you have changed your bank account number received, stay tuned until January 14, 2023, for the direct deposit to be sent out. If you have adjusted your address, February 14 is the last day for it to be updated with the IRS to receive a refund for debit card recipients.
- Taxpayers don’t have to pay taxes on the Middle-Class Tax Refund – you don’t need to include it on your state income tax return.
Who Qualifies for California Inflation Relief Payment?
Inflation Relief Payment is a program created by The Middle-Class Tax Refund to help Californians struggling financially due to increased living costs in the state through direct deposits and debit cards.
According to Franchise Tax Board, applicants must meet certain conditions to qualify for direct deposits:
- Be a U.S. citizen or legal resident.
- File a 2020 California income tax return by October 15, 2021
- Have a CA-adjusted gross income of $250,000 or less (for individuals) or $500,000 or less (for couples filing jointly) in your 2020 California tax return
- Provide proof of residence in California on the day application is filed
- Be not eligible to be claimed as a dependent in the 2020 tax year
- Be a California resident for six months or more of the 2020 tax year
If you applied for an Individual Taxpayer Identification Number (ITIN) but did not receive it by October 15, 2021, you must have filed your complete 2020 tax return on or before February 15, 2022.
How Much Money Will I Get From Inflation Relief Check?
This program provides direct deposit recipients with up to $1,050 of assistance, including three tiers depending on their adjusted gross income (AGI), filing status, and the number of dependents.
Married Filing Jointly
| California AGI Reported on 2020 Tax Return | Payment with Dependents | Payment without Dependents |
| $150,000 or less | $1050 | $700 |
| $150,001 to $250,000 | $750 | $500 |
| $250,001 to $500,000 | $600 | $400 |
| $500,001 or more | Not eligible | Not eligible |
Head-of-Household and Qualifying Widow(er)
| California AGI Reported on 2020 Tax Return | Payment with Dependents | Payment without Dependents |
| $150,000 or less | $700 | $350 |
| $150,001 to $250,000 | $500 | $250 |
| $250,001 to $500,000 | $400 | $200 |
| $500,001 or more | Not eligible | Not eligible |
Single or Married Filing Separately
| California AGI Reported on 2020 Tax Return | Payment with Dependents | Payment without Dependents |
| $75,000 or less | $700 | $350 |
| $75,001 to $125,000 | $500 | $250 |
| $125,001 or $250,000 | $400 | $200 |
| $250,001 or more | Not eligible | Not eligible |
When Do I Receive MCTR Payments?
If your bank information has changed since you filed your 2020 California Tax Return, you should expect to receive a debit card between December 17, 2022, and January 14, 2023.
For debit card recipients, if you change the address associated with a debit card issued in the final batch, those cards can arrive around February 14.
Please note that direct deposits typically occur within 3-5 business days from the issue date. Additionally, according to the Franchise Tax Board’s schedule, receiving the debit cards from the expected day may take up to two weeks.
What can I do next if I have not received it after two weeks from February 14?
You can try a few things if you still need to receive your inflation relief payments after 14 days from February 14.
- First, please check whether the address stored with the California Franchise Tax Board (FTB) is correct with your current address.
- Second, double-check if you are still eligible for the relief payments – make sure that you qualify for them and that all of the required criteria have been satisfied.
- If you have trouble finding this payment, reach out to us here, and our team will be more than happy to help you define it promptly.
Do I have to pay taxes on the Middle-Class Tax Refund?
No, you don’t have to pay taxes on the Middle-Class Tax Refund. You don’t need to put it on your state income tax return.
What if I still need to file a 2020 California tax return?
You must file the 2020 California tax return to be eligible to receive the MCTR payment.
