According to the California Franchise Tax Board, the direct payment program for inflation relief checks will have mainly run its course in a few days.
The state agency is currently sending the Middle-Class Tax Refund (MCTR) to a select group of recipients who have moved since filing their 2020 taxes. This is the final stage of planned payments.
Inflation Relief Checks
Almost all other eligible recipients ought to have already gotten their payments, either by debit card or direct deposit. Nevertheless, there is still time for those who haven’t received payment to seek assistance. There isn’t a deadline approaching soon.
Californians who think they are owed a payment are urged by the FTB to first confirm their eligibility. For instance, the agency claimed that some people believed Californians needed to have timely filed their state taxes in the tax year 2020, not 2021 or 2022, in order to qualify.
An agency representative stated that FTB encourages anyone who has read the MCTR eligibility requirements and payment schedule on our MCTR website to call Money Network’s (800) 542-9332 customer service line to discuss their situation. In order to distribute the payments, the state collaborates with Money Network.
The FTB emphasized that the majority of inflation relief checks have already been distributed and that there are only a small number of unpaid amounts remaining. This week, the agency was unable to offer an estimation.
The state claims that more than $9 billion has been distributed as a result of the program, which was established to assist in reducing the financial pressures brought on by rising inflation. Depending on a number of variables.
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No Tax On Middle-Class Tax Refunds
Additionally, The Middle-Class Tax Refund that the state issued last year will also not be taxed by the Internal Revenue Service.
Californians and residents of other states who received payments or special tax refunds were asked to wait to file their taxes earlier this month while the IRS investigated whether the funds were taxable as income.
The IRS has decided not to tax the MCTR payments, which ranged from $200 to $1,050, made by California, one of 19 states that contributed money that the federal government might classify as taxable income. Residents of the Golden State will likely be relieved to hear this.
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