Here’s when California Middle Class Tax Refund debit cards expire

Use it or lose it? Right here’s when California’s Center Class Tax Refund debit playing cards expire



>> THIS IS THE 1099 WE RECEIVED ON SATURDAY FROM THE STATE. REPORTER: THIS HUSBAND AND WIFE, WHO ASKED US NOT TO USE THEIR NAMES, ARE DIGGING FOR ANSWERS. THEY’RE TRYING TO FIGURE OUT WHY THEY RECEIVED THIS FORM STATING THEY HAD TO PAY TAXES ON THE MIDDLE CLASS TAX REFUND PAYMENT. >> WHAT WAS YOUR REACTION WHEN YOU SAW $700, STATE OF CALIFORNIA, MISCELLANEOUS? >> I REACTED ALONG WITH HER. WE SAID, WHAT IS GOING ON? REPORTER: THE PROBLEM? THEY HAVEN’T EVEN RECEIVED THE MONEY. >> I SAID TO MYSELF, YOU KNOW, THIS IS CRAZY. I’M NOT GOING TO CLAIM THAT I GOT $700 WHEN I DIDN’T, AND HAVE TO PAY TAXES ON IT. SO YOU KNOW, THAT JUST DIDN’T MAKE SENSE TO ME. REPORTER: AND WHEN THEY CALL THE FRANCHISE TAX BOARD FOR HELP. >> THANK YOU FOR CALLING THE FRANCHISE TAX BOARD. >> I CAN’T GET, TALK TO ANYBODY. THEY’RE RIGHT HERE IN SACRAMENTO. HOW COME WE CAN’T TALK TO THEM? REPORTER: THEY’VE EVEN TRIED REACHING OUT TO THE BANK ISSUING THE MIDDLE CLASS TAX REFUND, MONEY BANK, BUT CAN’T GET THROUGH. >> I THINK IT’S TERRIBLE. I THINK THAT THEY NEED TO TO GET THEIR ACT TOGETHER. REPORTER: KCRA 3 INVESTIGATES ASKED WHAT PEOPLE SHOULD DO IF THEY HAVEN’T RECEIVED A REFUND, BUT DO RECEIVE A 1099 IN THE MAIL? THE FRANCHISE TAX BOARD TOLD US, FOR SOME PAYMENTS THAT WERE ISSUED IN 2022, THE INDIVIDUAL’S PAYMENT MAY STILL BE IN THE MAIL. >> I’M REALLY THINKING POSITIVE HERE, THAT WE MIGHT RECEIVE THE $700 BEFORE WE FILE OUR TAXES. SO IF WE GET THE $700, EVERYTHING’S FINE, WE’LL GO AHEAD. BUT IF WE DON’T GET THE 700 I DON’T KNOW WHO I’M GONNA HAVE TO CALL SOMEONE. BECAUSE I’M NOT GOING TO PUT IT ON, ON MY TAXES. AND IF I DON’T PUT MY TAXES, I CAN BE IN TROUBLE. YOU KNOW. SO I’M JUST, I THINK TIME WILL TELL HOW THIS IS GOING TO PLAY OUT. REPORTER: ACCORDING TO THE FTB, BECAUSE THESE REFUND PAYMENTS MAY BE CONSIDERED FEDERAL INCOME, A ten-99 MISCELLANEOUS FORM WILL BE ISSUED FOR PAYMENTS OF $600 OR MORE. IT ALSO TELLS KCRA IT SHOULD NOT BE PRESUMED THAT BECAUSE A TAXPAYER DID NOT GET A 1099-MISC, THEIR PAYMENT IS NOT SUBJECT TO FEDERAL TAX. BOTTOM LINE, WHETHER YOU RECEIVE A 1099 FORM OR NOT, DON’T IGNORE THIS ISSUE, CONSULT THE IRS OR A TAX PROFESSIONAL. >> THE STATE OR THE FEDS, IRS SENDS YOU SOMETHING, A LETTER OR SOMETHING, YOU BETTER PAY ATTENTION TO IT. BECAUSE THEY DON’T FOOL AROUND. REPORTER: THE MIDDLE CLASS TAX REFUND PAYMENT IS NOT TAXABLE FOR CALIFORNIA STATE INCOME TAX PURPOSES. SO, YOU DO NOT NEED TO CLAIM THE PAYMENT AS INCOME ON YOUR CALIFORNIA INCOME TAX RETURN. HOWEVER, THE FEDERAL GOVERNMENT CONSIDERS THIS INCOME, AND WILL TAX YOU IF IT’S ABOVE A CERTAIN DOLLAR AMOUNT. ANDREA: WHAT IF SOMEONE DOESN’T WANT THEIR PAYMENT OR BELIEVES THEY RECEIVED ONE IN ERROR. IS THERE A WAY TO OPT OUT? REPORTER: THERE IS A WAY TO DECLINE THE PAYMENT. THERE’S A SET OF INSTRUCTIONS FOR YOU TO FOLLOW DEPENDING ON IF YOU RECEIVED YOUR PAYMENT VIA DIRECT DEPOSIT OR DEBIT CARD. YOU WILL ALSO NEED TO INCLUDE AN EXPLANATION THAT DESCRIBES WHY YOU ARE RETURNING THE PAYMENT. I’LL GET ALL OF THIS INFORMATI

Use it or lose it? Right here’s when California’s Center Class Tax Refund debit playing cards expire

California has issued greater than 9.4 million debit playing cards as far as a part of the Center Class Tax Refund program, however the cash gained’t be saved on these playing cards perpetually. Haven’t spent your funds but? Don’t fear; there’s nonetheless time, about three years. After that time, the cash “reverts to the state.” As of this text’s publication, it’s not precisely clear what occurs subsequent. | RELATED | Did you get a Center Class Tax Refund debit card? Here is the way to use it, keep away from feesHere is what you must know. When do Center Class Tax Refund debit playing cards expire? The Franchise Tax Board says that Center Tax Refund Debit playing cards expire in April 2026. “The ‘legitimate through’ date ought to be on the entrance of each MCTR debit card,” FTB spokesperson Andre LePage stated. What occurs after the debit playing cards expire? “In the end, on the finish of this system in 2026, current statute requires the return of all unspent funds to the State of California Basic Fund,” LePage stated. “We’re at the moment researching how this statutory language coordinates with California Unclaimed Property Legal guidelines.”How does the state plan to get the phrase out that individuals may lose entry to their cash in 2026? LePage stated that vendor Cash Community will concern letters in March, April and Could of this 12 months to remind debit card recipients to activate their playing cards in the event that they haven’t achieved so. “Cash Community is contractually obligated to ship a letter in late 2025 to all MCTR debit card holders with a steadiness remaining to encourage them to spend the remaining funds previous to expiration in April 2026,” he stated. The FTB can even regulate MCTR debit card balances and “could select to ship its personal letters in 2024 or 2025 to debit card recipients with remaining balances on unactivated playing cards.”Extra KCRA Protection of the Center Class Tax RefundWere you instructed you owe taxes on California inflation reduction funds? Here is what to do about it California lawmaker needs an audit of the Center Class Tax RefundsNegative steadiness together with your California Center Class Tax Refund debit card? Right here’s what that meansCalifornia’s inflation reduction debit playing cards are presupposed to have chip tech. So why do not they?California inflation reduction: Is your non-public info being offered to advertising and marketing firms?Thieves are draining California’s Center Class Tax Refund debit playing cards. Here is whyHere’s why some seniors and others will not get funds from California’s ‘inflation reduction’ packages Inflation reduction? California SSP grant increase for aged, blind and disabled is cut up over 2 years

California has issued greater than 9.4 million debit playing cards as far as a part of the Center Class Tax Refund program, however the cash gained’t be saved on these playing cards perpetually.

Haven’t spent your funds but? Don’t fear; there’s nonetheless time, about three years. After that time, the cash “reverts to the state.” As of this text’s publication, it’s not precisely clear what occurs subsequent.

| RELATED | Did you get a Center Class Tax Refund debit card? Here is the way to use it, keep away from charges

Here’s what you must know.

When do Center Class Tax Refund debit playing cards expire?

The Franchise Tax Board says that Center Tax Refund Debit playing cards expire in April 2026.

“The ‘legitimate through’ date ought to be on the entrance of each MCTR debit card,” FTB spokesperson Andre LePage stated.

What occurs after the debit playing cards expire?

“In the end, on the finish of this system in 2026, current statute requires the return of all unspent funds to the State of California Basic Fund,” LePage stated. “We’re at the moment researching how this statutory language coordinates with California Unclaimed Property Legal guidelines.”

How does the state plan to get the phrase out that individuals may lose entry to their cash in 2026?

LePage stated that vendor Cash Community will concern letters in March, April and Could of this 12 months to remind debit card recipients to activate their playing cards in the event that they haven’t achieved so.

“Cash Community is contractually obligated to ship a letter in late 2025 to all MCTR debit card holders with a steadiness remaining to encourage them to spend the remaining funds previous to expiration in April 2026,” he stated.

The FTB can even regulate MCTR debit card balances and “could select to ship its personal letters in 2024 or 2025 to debit card recipients with remaining balances on unactivated playing cards.”

Extra KCRA Protection of the Center Class Tax Refund