The agency is using a welfare and disaster provision to skip taxation on these one-time payments
“In the interest of sound tax administration and other factors, taxpayers in many states will not need to report these payments on their 2022 tax returns,” the IRS said in a statement.California was among 18 states that issued some type of refund to taxpayers in 2022. For those who received an MCTR of $600 or more, a 1099-MISC was issued by the Franchise Tax Board.
Eligible California taxpayers will get one Middle Class Tax Refund debit card between October and January 2023. The inflation refunds were approved by state in summer 2022 to help offset rising inflation. California reported Jan. 13 that it had approved $9 billion worth of payments for 16.6 million recipients. Money Network, which won a $25 million contract with California, is in charge of distributing debit cards to recipients. Direct deposit MCTR payments, issued to electronic tax filers who got a refund in 2021, were handled by the FTB.For those still wondering where their MCTR is, we’ve got a new tip from Marc, a reader who managed to reach a human at the FTB.
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