A one-time payment called the Middle Class Tax Refund (MCTR) is being issued to eligible Californians between October 2022 and January 2023. Optima Tax Relief details the eligibility requirements, payment methods, and timeline of this stimulus check.

Eligibility Requirements

In order to receive the MCTR, Californians need to have filed a 2020 tax return by October 15, 2021. Those who could be claimed as a dependent in the 2020 tax year do not qualify for this stimulus check. Recipients must have held California residency for more than half of 2020 and must be a resident on the date of the payment issue. Finally, they must meet the following income requirements:

• Single or Married/Registered Domestic Partnership Filing Separately: Max AGI of $250,000

• Head of Household or Qualifying Widows: Max AGI of $500,000
• Married/Registered Domestic Partnership Filing Jointly: Max AGI of $500,000

Payment Methods

While most eligible Californians who e-filed their 2020 returns will receive their stimulus check via direct deposit, others will receive a MCTR debit card via mail. This includes taxpayers who:

• Filed a paper tax return

• Had a tax balance due
• Received their Golden State Stimulus payments via check
• Received their tax refunds via check
• Received their tax refund via direct deposit, but have changed their banking information on file
• Received an advance payment from their tax service provider

• Paid their tax preparer fees using their tax refund

Most Californians will wonder exactly how much money they will receive, and the amounts will vary based on reported AGI and the number of claimed dependents. Payments for couples filing jointly range from $400 to $1,050, while eligible individuals can receive $200 to $700.

Timeline

Eighteen million payments will be issued between October 2022 and January 2023, with about 90% of the direct deposits sent out in October 2022. The remaining 10% will be issued in November 2022. Direct deposits usually take 3-5 business days from the issue date to become available in bank accounts. Debit cards are set to be mailed out between October 2022 and January 2023 in alphabetical order by last name. The final group to be issued their debt cards will be those who received their 2020 tax refund via direct deposit but have since changed their banking information. Taxpayers should allow up to 2 weeks from the issue date to receive their debit cards in the mail.