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Unclaimed California Middle Class Tax Refund
How to Claim Your Middle Class Tax Refund
According to MARCA, millions of California residents have yet to claim their Middle Class Tax Refund (MCTR) a one-time inflation relief payment that began distribution in 2022. The Middle Class Tax Refund was designed to assist residents with rising living costs and has left about 10 million debit cards unclaimed holding approximately $611 million in total. The California Franchise Tax Board (FTB) is urging eligible residents to activate their MCTR cards. Those who haven’t received their card are encouraged to update their information with the FTB to avoid missing out on their payment which ranges between $200 and $1,000. The urgency to claim these funds is heightened by the risk of fraud. Unclaimed cards are being targeted by hackers and about one percent of the funds have already been lost to fraudulent activities. If recipients fail to activate their cards they might lose their money to these schemes.
Eligibility for the MCTR is based on filing 2020 tax returns on time and meeting certain income limits for that year. However, some residents face challenges in claiming their funds due to outdated banking or address details. Tax refunds including programs like the Middle Class Tax Refund are a common occurrence in the U.S. tax system. Throughout the year employers withhold taxes from employees’ paychecks to prepay federal, state, and sometimes local taxes. Self-employed individuals also make estimated tax payments quarterly. At the end of the year when taxpayers file their returns the government refunds any amount that exceeds the taxpayer’s actual liability. Various credits and deductions play a significant role in determining tax refunds. Credits like the Earned Income Tax Credit (EITC), Child Tax Credit (CTC), and education credits can greatly reduce the amount of tax owed. If these credits exceed the tax due a refund is issued. These credits and deductions provide financial relief and support to eligible taxpayers.
READ ALSO: 2.5 Million Texans Affected: Lieutenant Governor Dan Patrick Announces Relief Measures For Hurricane Beryl Victims, Including $10 Million In Replacement Food Benefits!
Unlock Your California Tax Relief: Get Your Fair Share of the Middle Class Tax Refund Today! (PHOTO: YouTube)
Avoid Fraud and Reclaim Your Funds
Furthermore, the complexity of the U.S. tax code often leads to cautious withholding or errors in estimating tax liability resulting in taxpayers paying more than they owe. Consequently, tax refunds are essentially interest-free loans given to the government throughout the year. As of now, the FTB continues to call for action from eligible Californians to claim their MCTR cards. With millions of dollars still unclaimed it remains crucial for residents to activate their cards and update their information to prevent losing their funds to fraud.
READ ALSO: Tax Trouble? Don’t Be Silent: How To Get The Service You Deserve From HMRC
