California’s $1,050 Middle-Class Tax Rebate (MCTR) program has distributed billions in inflation relief payments to eligible residents, yet a significant portion remains unclaimed. Designed to alleviate the burden of rising living costs, the MCTR offers one-time payments ranging from $200 to $1,050.
If you think you qualify, here’s everything you need to know about eligibility, how to claim your rebate, and activating your debit card.
$1,050 Middle-Class Tax Rebate
Purpose
The MCTR was created to provide financial relief to California residents impacted by inflation. The program distributed payments between October 2022 and September 2023, either as direct bank deposits or prepaid debit cards.
Status of Funds
- $125 million remains unclaimed.
- 624,000 debit cards have not been activated.
- The program deadline for activation is April 30, 2026.
Eligibility Criteria
To qualify for the $1,050 Middle-Class Tax Refund in 2024, you must meet the following requirements:
- Tax Return Submission
- Filed your 2020 California state tax return by October 15, 2023.
- If you applied for an Individual Taxpayer Identification Number (ITIN) after October 15, 2023, you must have filed by February 15, 2022.
- Income Thresholds
Eligibility depends on your adjusted gross income (AGI) from your 2020 tax return. - Residency Requirements
- Must have lived in California for at least half of 2023.
- Be a California resident on the payment date.
- Dependent Status
- Cannot have been claimed as a dependent on another taxpayer’s 2020 return.
Payment Amounts
The rebate amounts are based on income levels and dependent status:
| Filing Status | Without Dependents | With Dependents |
|---|---|---|
| Single Tax Filer | $350 | $700 |
| Joint Tax Filers | $700 | $1,050 |
| Single (Income $125,001+) | $250 | $500 |
| Joint (Income $250,001+) | $200 | $400 |
How to Claim Your Rebate
Unclaimed Debit Cards
If you haven’t activated your debit card, follow these steps:
- Call Customer Service: Dial 1-800-240-0223.
- Activate the Card: Follow instructions to set your 4-digit PIN.
- Check Your Balance: Ensure the correct amount is available.
- Use Your Card: The card can be used anywhere Visa debit cards are accepted, including online and in stores.
Lost or Stolen Cards
- Contact 1-800-240-0223 for a replacement.
- Reminder letters are being sent by the Franchise Tax Board (FTB) to non-activated cardholders.
Direct Deposit Recipients
If you qualified for a direct deposit but didn’t receive it, contact the FTB for assistance.
Additional Information
Activation Deadline
Recipients must activate their debit cards by April 30, 2026. Cards not activated by this date may result in funds being forfeited.
Why Some Payments Remain Unclaimed
- Unawareness: Many recipients are unaware of the rebate or its activation process.
- Unused Balances: Even activated cards have unused balances, with only 46% showing a zero balance.
Impact of Upcoming Policies
The 2024 U.S. election results and potential legislative changes could influence future rebate programs or modifications to eligibility criteria.
- Claim: The $1,050 Middle-Class Tax Rebate is confirmed for 2024.
- Status: Unverified. While prior payments were distributed, new payments for 2024 remain speculative and depend on future legislation.
The $1,050 Middle-Class Tax Rebate has been a valuable resource for Californians, but a large portion of the funds remains unclaimed.
If you qualify and haven’t activated your debit card or received your payment, act quickly to ensure you don’t miss out. Stay informed through official channels like the Franchise Tax Board (FTB) for updates on eligibility and payment details.
