Did you think you were entitled to the California Middle Class Tax Refund inflation relief payment but changed your address and never received it? There is a chance the money could return to the state’s general fund on June 1. The Middle Class Tax Rebate was a 2022 program that provided a one-time payment to eligible Californians when the state was dealing with inflation and high gas prices. Payments ranged from $200 to more than $1,000. California is preparing to return $367 million from the middle class tax refund program to the state’s general fund in the coming days, including about $20 million in unclaimed funds. The Franchise Tax Board told the state auditor it believed funding needed to be redirected by language in state law. According to the Franchise Tax Board, the vast majority of that money, $347 million, does not affect individual beneficiaries of the state’s inflation relief program. That amount of money is attributed to differences between the program’s original estimated cost in spring 2022 and its actual cost. “Our original estimate in spring 2022 was based on the best available information from prior years’ tax returns from Californians and their families. However, in some cases, eligibility changed after that estimate based on taxpayers’ life events, such as residency, deceased or incarcerated status, and the number of reported dependents in a family,” the spokesperson said. the Franchise Tax Board, Andrew LePage. “As taxpayer eligibility for payments was fully assessed and finalized in the fall of 2022, it was determined that the full level of funding awarded was not necessary to cover eligible payments.” But there are still about $20 million in payments reserved for 40,000 people that could end up being spent by the state. According to a state audit of the program, the main reason FTB was unable to make those unclaimed payments is because the agency did not have a valid address to send the payments to the correct people. The FTB has several ways that people who have moved or changed addresses since filing their last tax return can let them know. They can update through MyFTB or here as part of a process that takes up to 30 days. After FTB shares the updated address with its provider, Money Network, people can contact Money Network to request their card. However, given that potential 30-day delay, KCRA 3 contacted FTB to ask if people who submitted information to update their address before the June 1 deadline might have a chance to receive their payment. FTB said Wednesday that it “cannot fully guarantee that any additional payment requests can be fully processed through our state processes.” “Over the past 12 to 18 months, FTB has made many attempts to reach eligible taxpayers to submit their MCTR payment via direct deposit, paper court order, or debit card. We are working diligently to process all payments that we know of. They can be reissued before May 31, 2024,” said spokesperson Elías Domínguez. The $20 million represents about 0.2% of the total program size, as FTB has made payments to “substantially all eligible individuals,” according to the state auditor. The vast majority of payments were made in January 2023. FTB said people can confirm their eligibility here and check their bank account to see if they have received a direct deposit marked “FTB REFUND MCT REFUND MCT.” | MORE | Use it or lose it? This is when tax refund debit cards for California’s middle class expire. See more coverage of California’s top stories here | Download our application.
Did you think you were entitled to the California Middle Class Tax Refund inflation relief payment but changed your address and never received it?
There is a chance the money could return to the state’s general fund on June 1.
The Middle Class Tax Rebate was a 2022 program that provided a one-time payment to eligible Californians when the state faced inflation and high gas prices. Payments ranged from $200 to more than $1,000.
California is preparing to return $367 million from the middle class tax refund program to the state’s general fund in the coming days, including about $20 million in unclaimed funds. The Franchise Tax Board told the state auditor it believed funding needed to be redirected by language in state law.
According to the Franchise Tax Board, the vast majority of that money, $347 million, does not affect individual beneficiaries of the state’s inflation relief program. That money is attributed to differences between the program’s original estimated cost in spring 2022 and its actual cost.
“Our original estimate in spring 2022 was based on the best available information from prior years’ tax returns from Californians and their families. However, in some cases, eligibility changed after that estimate based on taxpayers’ life events, such as residency, deceased or incarcerated status, and the number of reported dependents in a family,” the spokesperson said. the Franchise Tax Board, Andrew LePage. “As taxpayer eligibility for payments was fully assessed and finalized in the fall of 2022, it was determined that the full level of funding awarded was not necessary to cover eligible payments.”
But there are still about $20 million in payments reserved for 40,000 people that could end up being spent by the state.
According to a state audit of the program, the main reason FTB was unable to make those unclaimed payments is because the agency did not have a valid address to send the payments to the correct people.
The FTB has several ways that people who have moved or changed addresses since filing their last tax return can let them know.
They can update through MyFTB or here as part of a process that takes up to 30 days. After FTB shares the updated address with its provider, Money Network, people can contact Money Network to request their card.
However, given that potential 30-day delay, KCRA 3 contacted FTB to ask if people who submitted information to update their address before the June 1 deadline might have a chance to receive their payment.
FTB said Wednesday that it “cannot fully guarantee that any additional payment requests can be fully processed through our state processes.”
“Over the past 12 to 18 months, FTB has made many attempts to reach eligible taxpayers to submit their MCTR payment via direct deposit, paper court order, or debit card. We are working diligently to process all payments that we know of. They can be reissued before May 31, 2024,” said spokesperson Elías Domínguez.
The $20 million represents about 0.2% of the total program size, as FTB has made payments to “substantially all eligible individuals,” according to the state auditor.
The vast majority of payments were made in January 2023.
FTB said people can confirm their eligibility here and verify in their bank account that they did not receive a direct deposit called “FTB MCT REFUND MCT REFUND.”
| MORE | Use it or lose it? Here’s When Tax Refund Debit Cards for California’s Middle Class Expire
See more coverage of California’s top stories here | Download our application.
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