The residents of California recently received news that the IRS had decided the tax fate of the stimulus check payments that had been sent to the citizens of the state in 2022. In the Golden State, the payments were referred to as Middle-Class Tax Refunds. The MCTR program went on to issue more than $9 billion in surplus funds- which benefitted around 31 million residents, as mentioned by the California Franchise Tax Board.
A few weeks back, the IRS had asked the citizens and taxpayers in several states around the country to hold off on filing for the 2022 federal income tax returns until a decision could be made about the special payments. Currently, the agency has finally declared that it will not be taxing the MCTRs that the citizens receive in the state.
Stimulus Check Payments in California Will Not Be Taxed
For those unaware, the California Middle-Class Tax Refunds were one-time stimulus check payments ranging from $200 to $1,050. The amount that the residents received was entirely dependent on filing status, adjusted gross income, and family size- as was reported on the 2020 tax returns of the state. The payments were issued by the state from October 2022 to January 2023, either through debit cards or via direct deposit. Currently, most of the MCTR payments have been issued by now.
The Stimulus Check payments from California were a part of the relief payments sent throughout the country in 2022. Many states with budget surpluses had decided to issue tax refunds or rebates to the residents who were eligible. Due to the unique nature of the different state programs, the IRS decided not to tax the payments of around 21 states- which includes California.
