What Is the Middle Class Tax Refund? Amounts and Card Expiration

The California Middle Class Tax Refund was a one-time payment of $200 to $1,050 sent to about 16.8 million residents between October 2022 and early 2023, based on 2020 income, filing status, and dependents.¹ All payments have already been issued, and the Franchise Tax Board lost authority to reissue missing payments after May 31, 2024.² If you received your payment on a prepaid debit card and still have a balance, those funds expire on April 26, 2026.

Debit Card Balances Expire April 26, 2026

Roughly 9.6 million of the payments went out as prepaid Visa debit cards managed by Money Network.¹ Any balance still sitting on a card becomes inaccessible after April 26, 2026. If a card is in a drawer somewhere, spend it or withdraw the cash before then. You can check the balance for free by calling 1-800-240-0223.³

If you never received your card or lost it, call the same number to ask about a replacement while time remains. Replacement cards cost $2, though the first two replacements were free.⁴ After the expiration date, the money is gone. The Franchise Tax Board can no longer reissue lost payments, so Money Network is the only route.

To avoid the $1.25 out-of-network ATM fee (plus whatever the ATM operator adds), request cash back at the register when you make a purchase, or use an in-network surcharge-free ATM.⁴

Who Qualified

Eligibility was tied entirely to the 2020 tax year. To qualify, you had to have:

Filed your 2020 California return by October 15, 2021. Late or amended filings after that date did not count.
Lived in California for at least six months of 2020 and still been a California resident when the payment was issued.
Reported California adjusted gross income of no more than $250,000 (single) or $500,000 (joint) on your 2020 return.
Not been eligible to be claimed as a dependent on someone else’s 2020 return.

How Much People Received

Payment size depended on 2020 California adjusted gross income, filing status, and whether you claimed at least one dependent. Even one qualifying dependent moved you into the higher tier within your income bracket.

Married Filing Jointly

$150,000 or less: $1,050 with a dependent, $700 without.
$150,001 to $250,000: $750 with a dependent, $500 without.
$250,001 to $500,000: $600 with a dependent, $400 without.

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Single, Head of Household, or Married Filing Separately

$75,000 or less: $700 with a dependent, $350 without.
$75,001 to $125,000: $500 with a dependent, $250 without.
$125,001 to $250,000: $400 with a dependent, $200 without.

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How Payments Were Sent

If your 2020 state tax refund arrived by direct deposit, the MCTR went to the same bank account. Everyone else received a prepaid Visa debit card in the mail at the address on file with the Franchise Tax Board.² About 7.2 million payments went out by direct deposit and 9.6 million by debit card.¹

Is the Payment Taxable?

The MCTR is not taxable for California state income tax purposes, and you do not report it on your California return.³

The federal answer took longer to settle. The IRS first addressed the question on February 10, 2023, then issued Notice 2023-56 in August 2023 covering California and similar state payments.⁶ For most recipients, the payment is not federal taxable income. The IRS treated these payments as general welfare payments and said it would not challenge taxpayers who excluded them.⁷

One exception matters. If you itemized on your 2020 federal return and deducted state income taxes, the tax benefit rule may require you to include the MCTR in federal gross income to the extent that deduction reduced your federal tax.⁷ If you took the standard deduction in 2020, this exception does not apply to you.

Offsets and Garnishment

The MCTR was shielded from most collection. Unlike a regular state refund, it could not be intercepted by the Franchise Tax Board or other government agencies to pay debts such as past-due state taxes.³

Garnishment by private creditors was generally blocked as well, with narrow exceptions. Courts could still direct the funds toward child support, spousal support, family support, or criminal restitution to victims.³ If a bank froze a deposit in error, the Franchise Tax Board directed recipients to work it out with the financial institution.

Watch for Scams

Scammers have targeted MCTR recipients with fake texts, emails, and calls. The California Attorney General’s office noted that the real debit card envelope carried the statement “Not a bill or an advertisement. Important information about your Middle Class Tax Refund.” Mailings without that language were likely fraudulent.⁸

The Franchise Tax Board does not text or email anyone asking for personal information about the MCTR. Anyone asking for your Social Security number, card number, or PIN to “verify” your payment is not the state. The only legitimate customer service line for the card is 1-800-240-0223.³

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Franchise Tax Board. Middle Class Tax Refund Statistics
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Franchise Tax Board. Middle Class Tax Refund
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Franchise Tax Board. Help with the Middle Class Tax Refund
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California State Auditor. Middle Class Tax Refund Payments
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Franchise Tax Board. California Middle Class Tax Refund Payments
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Internal Revenue Service. IRS Issues Guidance on State Tax Payments
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IRS. Federal Income Tax Consequences of Certain State Payments Notice 2023-56
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State of California – Department of Justice – Office of the Attorney General. Attorney General Bonta Warns of Scammers Targeting California’s Middle-Class Tax Refund