In the middle of the year it was announced that California would grant money to vehicle owners to help with the out-of-pocket imbalance due to inflation and the high costs of products, especially gasoline. Later, lawmakers opted to help low- and middle-income Californians through a state stimulus check known as the Middle Class Tax Refund (MCTR).
Money has started pouring in for some Californians, but it has also created a lot of confusion among those who either haven’t received their money, or are receiving a prepaid card instead of a check.
Governor Gavin Newsom announced in October that the distribution would begin $9.5 billion in one-time direct aid that would benefit up to 25 million Californians regardless of immigration status.
Refunds vary, depending on number of people in the household and income; so be prepared to receive a card between $050 to a maximum of $1,050 per family.
People who qualify do not have to do anything at all since the money will arrive by mail. Payments will continue to be sent through January 2023.
An Urban Institute report published in November revealed that mixed-status families who received stimulus checks in the In the past, they stated that it significantly helped them meet their basic needs and avoid a housing crisis.
With the advent of the Covid-19 and the economic crisis, families were forced to use personal funds for hard times, seek multiple sources of support, file taxes as quickly as possible, and accept stimulus funds despite concerns about immigration.
Several respondents stated that the payments helped them avoid eviction and avoid accumulating more debt.
Most respondents felt it was risky to receive stimulus checks due to fear of immigration consequences, all based on misinformation circulating in the community . Despite their fear, most chose to receive the funds, resolving to deal with the possible consequences later.
The “Do it for your children” report ” also found that many people felt the need for accurate information and to identify credible entities and organizations that could help them support the well-being of their children.
Details of the prepaid card
Despite the fact that the aid is significant for taxpayers and mainly for families in need, problems have arisen such as not knowing what the envelope that they receive is like arrives by mail. Several people have expressed skepticism because the mail is sent in an envelope with a Nebraska return address and the prepaid card belongs to a New York bank.
The card is real and when you receive it you must activate it by calling 1-600-600-0223. Do not dial any number other than this one specifically. There they will ask you to include the last six numbers of your social security.
Check which are the ATMs where you can use your card as there are some that will charge you around $1.25 for withdrawing money from those outside the network, such as those from major banks.
If you want to get cash you can also will charge you approximately $1.050.
It is free to get cash at Money Network ATMs, located mainly inside some supermarkets and pharmacies. Otherwise it will cost you about $1.050 to get over-the-counter cash at a bank.
Another problem is for people who move home and the envelope arrives at the previous address. To avoid this problem, it is recommended that people make sure to change their address on the United States Postal Mail (USPS) website so that their emails are redirected.
You can make the change of address by visiting the United States Postal Service (USPS) page.
How it affects your taxes
The California State Franchise Tax Board page indicates that the MCTR payment is not taxable for California state income tax purposes. California.
This means that if you receive the monetary stimulus you do not need to claim the payment as income on your state income tax return.
The payments can be considered as federal income. For this reason, a form 2023-MISC will be issued for payments of $600 or more. It is recommended that you consult with the IRS or your tax professional regarding the federal tax treatment of these payments.
To find detailed information (in English) on how much MCTR, if you qualify, and how much you qualify for, visit: https://www.ftb.ca.gov/about-ftb/newsroom/middle-class-tax-refund/index.html#receive