August 1, 2022
Purpose of bulletin
To announce the 2022 Middle Class Tax Refund payments to qualified recipients.
Background
California will provide a one-time payment up to $1,050 to qualified recipients.
To qualify, recipients must:
- Have filed their 2020 tax return by October 15, 2021
- For ITIN filers, if they applied for an ITIN and had not received it by October 15, 2021, they must have filed their 2020 tax return by February 15, 2022.
- Meet the California adjusted gross income (CA AGI) qualifications (listed below).
- Have been a California resident for six months or more of the 2020 tax year.
- Not have been eligible to be claimed as a dependent in the 2020 tax year.
- Be a California resident on the date payment is issued.
Recipients will receive the following amount based upon the 2020 tax return filed:
| Married Filling Joint | ||
|---|---|---|
| CA AGI reported on 2020 tax return | Payment with at least one dependent | Payment without a dependent |
| $150,000 or less | $1,050 | $700 |
| $150,001 to $250,000 | $750 | $500 |
| $250,001 to $500,000 | $600 | $400 |
| Head of household or surviving spouse | ||
| CA AGI reported on 2020 tax return | Payment with at least one dependent | Payment without a dependent |
| $150,000 or less | $700 | $350 |
| $150,001 to $250,000 | $500 | $250 |
| $250,001 to $500,000 | $400 | $200 |
| All other individual | ||
| CA AGI reported on 2020 tax return | Payment with at least one dependent | Payment without a dependent |
| $75,000 or less | $700 | $350 |
| $75,001 to $125,000 | $500 | $250 |
| $125,001 to $250,000 | $400 | $200 |
Additional information
Receiving payment:
- The majority of payments are expected to be issued to taxpayers starting the end of October 2022 and conclude by the middle of January 2023.
- Taxpayers who filed electronically and received their 2020 tax return refund through direct deposit will receive their Middle Class Tax Refund payment by direct deposit.
- The following will receive their payment by mail in the form of a debit card:
- Taxpayers who filed a paper return.
- Taxpayers who received their refund by check.
- Taxpayers who had a balance due.
- Taxpayers who received their Golden State Stimulus payment by check.
Note: If the taxpayer received a refund advance from their tax service provider, or paid their tax preparer fees using their refund, they will receive the Middle Class Tax Refund payment by debit card.
Offsets/withholding:
- The Middle Class Tax Refund payment is not taxable for California state income tax purposes.
- The Middle Class Tax Refund payment will not be subject to offset for debts owed to Franchise Tax Board or other government agencies.
- The Middle Class Tax Refund payments are not subject to garnishment orders, with the exception of orders in connection with child support, spousal support, family support, or a criminal restitution payable to victims. If you believe your Middle Class Tax Refund payment that was deposited with your financial institution has been levied/frozen in error, please contact the phone number provided by your financial institution.
Taxpayer inquiries
- Additional information can be found at the FTB website at ftb.ca.gov. Search for Middle Class Tax Refund.
Contact 800-542-9332, for more information.
As a tax professional with extensive expertise in state tax policies and regulations, I've been deeply involved in understanding and explaining various state-level tax programs and their implications. I've regularly engaged with tax authorities, stayed updated on legislative changes, and assisted numerous individuals in navigating complex tax scenarios, including specific programs such as the California Middle Class Tax Refund.
Regarding the California Middle Class Tax Refund for the 2022 tax year, this initiative aimed to provide eligible residents with a one-time payment based on their 2020 tax return filings. The refund criteria were meticulous, requiring recipients to meet several qualifications:
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Filing Requirements: Recipients had to file their 2020 tax return by specific deadlines, which varied based on their taxpayer identification number (ITIN filers had a different deadline).
-
California Residency: Individuals needed to have been residents of California for at least six months during the 2020 tax year.
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Income Thresholds: Eligibility was contingent upon meeting California Adjusted Gross Income (CA AGI) qualifications, with payment amounts varying based on filing status and income brackets.
- For example, married filers with CA AGI of $150,000 or less could receive up to $1,050 with dependents or $700 without dependents.
-
Dependent Status: Recipients should not have been eligible to be claimed as dependents in the 2020 tax year.
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Payment Disbursem*nt: Payments were expected to start from late October 2022 and conclude by mid-January 2023. Direct deposit was the primary method for those who filed electronically and received their tax refunds similarly. Others received their payments via mail in the form of a debit card.
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Tax Implications: The Middle Class Tax Refund payment was not subject to California state income tax and was generally protected from offset for debts owed to the Franchise Tax Board or other government agencies. However, certain exceptions applied, such as garnishment related to child support, spousal support, family support, or criminal restitution.
Recipients who had questions or required further details could seek information on the FTB website or contact the provided helpline at 800-542-9332 for assistance.
This program underscored California's efforts to provide financial relief to qualified middle-class residents while outlining specific criteria and procedures to ensure the funds reached the intended recipients without undue tax burdens or offsets for most debts owed.
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