The California Middle-Class Tax Refund/Gas Rebate Check: What You Can Expect

TL;DR: In less than two weeks, California plans to begin issuing the Middle-Class Tax Refund (MCTR) also known as California Gas Rebate Checks directly to residents’ bank accounts and mailboxes. If you are eligible, you will automatically receive a payment. This guide explains who qualifies, the rules that apply, and how to apply them to your situation.

In less than two weeks, California plans to begin issuing the Middle-Class Tax Refund (MCTR) also known as California Gas Rebate Checks directly to residents’ bank accounts and mailboxes. If you are eligible, you will automatically receive a payment. Payments are expected to be issued between October 2022 and January 2023.

There are 5 qualification factors that’ll help you determine whether or not you are eligible to receive the Middle-Class Tax Refund.

The qualifications are:

• Filed your 2020 tax return by October 15, 2021
• Meet the California Adjusted Gross Income (CA AGI) limits described in the “How Much Will I Receive From MCTR?” section
• Not eligible to be claimed as a dependent in the 2020 tax year
• Was a California resident for six months or more of the 2020 tax year
• Is a California resident on the date the payment is issued

How Much Money Will I Receive From MCTR?

For your California AGI, go to these lines to determine your CA AGI:

• Line 17 on your 2020 Form 540
• Line 16 on your 2020 Form 540 2EZ

Amount You May Receive On Married/Registered Domestic Partner Filing Joint Tax Returns:

• CA AGI $150,000 or less: $1050 with dependent; $700 without dependent
• CA AGI $150,001 to $250,000: $750 with dependent; $500 without dependent
• CA AGI $250,001 to $500,000: $600 with dependent; $400 without dependent

Amount You May Receive On Head Of Household Or Qualifying Widow(er) Tax Returns:

• CA AGI $150,000 or less: $700 with dependent; $350 without dependent
• CA AGI $150,001 to $250,000: $500 with dependent; $250 without dependent
• CA AGI $250,001 to $500,000: $400 with dependent; $200 without dependent

Amount You May Receive On Single And Married Filing Separate Tax Returns:

• CA AGI $75,000 or less: $700 with dependent; $350 without dependent
• CA AGI $75,001 to $125,000: $500 with dependent; $250 without dependent
• CA AGI $125,001 to $250,000: $400 with dependent; $200 without dependent

Are There Several Rounds Of This Payment?

The Middle-Class Tax Refund is a one-time payment to California residents who filed a tax return in 2020.

Am I Receiving The Refund By Mail Or Electronically?

Qualified taxpayers will be receiving their MCTR payments by direct deposit or a debit card. If you requested a direct deposit and e-filed your 2020 tax return, a direct deposit will be sent to your account. If you filed a 2020 paper return then a debit card will be mailed to you.

The first batch of direct deposit payments also called inflation relief checks, is set to go out on October 7, stated by the Franchise Tax Board. Those who received the Golden State Stimulus I or II payments will be receiving the first wave of MCTR direct deposits between October 7 and October 25. The rest of the direct deposits will be distributed between October 28 and November 14. Taxpayers who received debit cards for the Golden State Stimulus will have their debit cards mailed out between October 25 and December 10; as for the remaining debit cards, they’ll be mailed out by January 15, 2023.

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