California's Middle Class Tax Refund (MCTR) program provided eligible Californians with one-time inflation relief payments. The California "stimulus" payments began two years ago and continued until January last year. However, despite more than 9.5 million debit cards containing refund money being sent to eligible Californians, data show millions of dollars in benefits remain unspent.
As a result, the California Franchise Tax Board (FTB) has urged residents to activate their Middle Class Tax Refund debit cards to access this financial aid.
Here’s more of what you need to know.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Unspent California inflation relief
The California Middle-Class Tax Refund (MCTR) was created to assist middle-class families with high housing costs, healthcare, and everyday necessities.
- Eligible California residents automatically received relief payments between October 2022 and January 2023.
- MCTR payments typically ranged from $200 to $1,050, with the exact amount based on income, filing status, and number of dependents.
California sent funds to residents through direct deposit or MCTR debit cards. FTB data indicates that 9.6 million debit cards were distributed, but millions in unspent benefits reportedly remain because many debit cards have yet to be activated. (According to a March 7 audit report, "more than one million debit cards, worth approximately $611 million in payments, had not yet been activated by their recipients as of January 2024.")
To address this, the FTB reminds residents to activate their MCTR debit cards. The agency also encourages those who haven’t received their cards to contact the agency to ensure they get their MCTR benefits.
Some residents might not know the funds on the cards can be transferred to a bank account of their choice. The FTB also points out that the MCTR debit cards are valid for three years from the date of issuance.
California Middle Class Tax Refund: What to Do
According to the FTB, if you received a Middle Class Tax Refund (MCTR) debit card and have not activated it, you may have received or will receive an activation reminder letter with instructions on how to do so.
If you need assistance with activation, replacement, or lost or stolen MCTR cards, call 1-800-240-0223.
If you have not received your debit card and believe you are eligible, ensure your address is updated with FTB. Visit the FTB’s Help with the Middle Class Tax Refund page for instructions on updating your address.
Is California MCTR taxable?
The FTB says the MCTR payment is not taxable for California state income tax purposes. Also, as Kiplinger reported, the IRS announced last year that it would not tax California Middle-Class Tax Refunds at the federal level.
Related
-
3 Ways to Stretch the 2026 Social Security COLA For Your BudgetThree steps retirees can take to stretch the Social Security COLA to fit their budgets.
-
How to Keep Your Charitable Giving Momentum Going All YearInstead of treating charity like a year-end rush for tax breaks, consider using smart tools like DAFs and recurring grants for maximum impact all the year.
-
Uber Takes Aim at the Bottom Lines of Billboard LawyersUber has filed lawsuits and proposed a ballot initiative, in California, to curb settlements it claims are falsely inflated by some personal injury lawyers.
