Middle-class Californians can still claim $600 million in inflation relief money. Here’s how

Cortlynn Stark, The Sum
·2 min read
9

California has distributed $9.2 billion in inflation relief money to eligible taxpayers. But more than $600 million of that still hasn’t been claimed.

The California Franchise Tax Board issued 9.6 million debit cards worth $5.2 billion to middle-class households, and made 7.2 million direct deposits totaling another $4 billion, according to its Sept. 11 monthly report.

Of those debit cards, 87% have been activated — a value of $4.6 billion. That leaves $600 million in distributed debit cards that still haven’t been activated.

Almost half, or 45%, of the activated cards have balances of zero, with $2.1 billion spent from those.

It’s unclear how much money has been spent of all the activated cards. The California Franchise Tax Board had not responded to a request for comment as of Wednesday evening.

The Legislature passed the “inflation relief” bill to authorize the California Franchise Tax Board’s “Middle Class Tax Refund” in July 2022. It provided one-time payments of up to $1,050 to help with inflation and high gas prices for joint filers making up to $500,000 in 2020 and single filers making up to $250,000.

The Consumer Price Index, a common measure of inflation, showed prices rose 9.1% from June 2021 to June 2022 — the largest increase in 40 years, according to the Bureau of Labor Statistics.

In May, California Gov. Gavin Newsom said the state would use un-issued Middle Class Tax Refunds to help balance its budget shortfall of roughly $32 billion.

To qualify for the payments, you must have:

  • Been a California resident for at least six months of the 2020 tax year and been a resident when the payment is issued

  • Met one of the several California-adjusted gross income tiers

  • Filed your 2020 tax return by Oct. 15, 2021

  • Not been eligible to be claimed as a dependent in the 2020 tax year

If you need help with your payment, you can visit https://www.mctrpayment.com. You can also call 800-542-9332 for automated customer support or 800-240-0223 for assistance with your debit card — including activation.

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