During 2022 and into 2023, inflation has been challenging for many households, wreaking havoc on budgets and leading many to struggle with making ends meet. While many people had little else to do but try and tighten their belts, California provided inflation relief checks to ease some of the burden. For residents of California, the program was welcome news. If you’ve yet to receive your payment, here’s what you need to know about how to get the California inflation relief checks.
What Is the California Inflation Relief Check?
While people refer to the program as California inflation relief, the one-time payments are technically part of the Middle Class Tax Refund (MCTR) program. Through the program, eligible households began receiving their payments – which ranged from $200 to $1,500 – in October 2022. Technically, checks weren’t part of the equation. Instead, funds were provided via direct deposit or through a debit card.
The program was designed to assist an estimated 32 million California taxpayers. It aimed to alleviate some of the burden associated with rising inflation. The eligibility requirements are reasonably straightforward. Recipients must be a resident of California currently, as well as have resided in California for a minimum of six months during the 2020 tax year. Income levels must be no more than $250,000 for single filers and at or below $500,000 for couples. Individuals who were claimed as dependents in 2020 are not eligible.
Information from 2020 tax filings was used to determine eligibility. As a result, Californians needed to have submitted their 2020 taxes no later than October 15, 2021, to potentially qualify for relief.
How to Apply for the California Inflation Relief Checks
There is no application process for the California inflation relief checks. Eligibility was determined automatically based on a person’s tax filing for the 2020 tax year. As long as your 2020 taxes were submitted by October 15, 2021, the necessary information was available to issue the funds.
What to Do If You Haven’t Received Your California Inflation Relief Check
Payments through the MCTR program have largely already been issued. However, if you didn’t receive your relief check, you can potentially take action. First, use the Middle Class Tax Refund Estimator to confirm you’re eligible for relief.
If you’re eligible but have yet to receive the associated payment, contact the California Franchise Tax Board (FTB) at 800-542-9332 to speak with a customer service representative. They’ll be able to assess whether you qualify and provide assistance if you’re eligible for a payment but haven’t received one yet.
Will You Owe Taxes on Funds Received Through MCTR?
Many people were concerned that any money received through the MCTR program could lead to federal tax implications. However, the Internal Revenue Service (IRS) made an announcement that money obtained through the program won’t be subject to federal taxation.
Additionally, the California inflation relief checks aren’t being taxed by the state of California either. As a result, recipients don’t need to worry about reporting the money on either their state or federal taxes.
For anyone who listed the funds on their 2022 tax returns, you can file an amended return to correct your information. Any taxes paid on that money is potentially eligible for a refund, so it’s wise to amend the return.
Do you have anything you want to add about how to get California inflation relief checks? Have you already obtained a California inflation relief check and want to tell others about your experience? Share your thoughts in the comments below.
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