The income and filing requirements that determine who receives the MCTR payment

The California Middle Class Tax Refund (MCTR) goes to residents who filed a 2023 tax return with California, earned between $250,000 and $2 million in federal adjusted gross income (AGI), and were a California resident for the entire tax year. You do not need to have owed taxes or received a refund — the MCTR is a separate payment based on income alone. The payment amount depends on your filing status and income level, not on how much tax you paid.

The state mailed payments starting in October 2024 to people who met the income threshold. If you filed your 2023 return late or amended it, you may receive your payment later or not at all, depending on when the Franchise Tax Board processed your return.

Key Takeaways

  • You must have filed a 2023 California tax return with federal AGI between $250,000 and $2 million to receive the MCTR payment.
  • The payment amount varies by filing status: single filers, married filing jointly, and head of household each receive different amounts at the same income level.
  • You must have been a California resident for the entire 2023 tax year; part-year residents do not receive the payment.
  • The Franchise Tax Board mailed payments automatically to people who met the requirements; you did not need to request or claim the refund on a later return.

Income thresholds and filing status

The MCTR payment begins at $250,000 in federal AGI and phases out at $2 million. Within that range, the amount you receive depends on your filing status. Single filers, married filing jointly, and head of household filers each receive different payment amounts at the same income level. For example, a single filer at $500,000 AGI receives a different amount than a married filing jointly filer at the same income.

The payment is not based on California taxable income or the amount of state tax you owe. It is calculated solely from your federal AGI as reported on your 2023 Form 1040. If you filed a joint return, both spouses receive the payment as one household payment, not two separate payments.

Residency requirements and part-year filers

You must have been a California resident for the entire 2023 tax year to receive the MCTR. If you moved to California during 2023 or left California during 2023, you are considered a part-year resident and do not receive the payment, even if your income falls within the range.

The Franchise Tax Board determines residency based on your 2023 tax return. If you filed as a part-year resident on Schedule CA (Adjustments by Residents and Part-Year Residents of California), you will not receive the MCTR payment. Full-year residents who filed any California return — including those who owed no tax — are included.

Who does not receive the MCTR payment

People with federal AGI below $250,000 or above $2 million do not receive the payment. Nonresidents and part-year residents do not receive it. If you did not file a 2023 California tax return, you do not receive the payment, even if you lived in California and had income in that range.

People who filed their 2023 return after the Franchise Tax Board's processing deadline may not receive the payment. The state did not issue MCTR payments for amended returns filed after a certain date, and late-filed returns may have missed the payment window entirely. If you filed late or amended your return, contact the Franchise Tax Board to confirm whether you are included.

How the payment was delivered

The Franchise Tax Board mailed MCTR payments by check or direct deposit, depending on how you filed your 2023 return. If you chose direct deposit on your tax return, the payment went to that bank account. If you did not choose direct deposit, you received a paper check by mail.

Payments were mailed in phases starting in October 2024. The state prioritized returns processed earlier in the year, so people who filed early received their payments first. If you have not received your payment and believe you meet the requirements, you can check the status through the Franchise Tax Board's website or contact them directly.

What to do if you think you should have received the payment but did not

First, verify that your 2023 return shows federal AGI between $250,000 and $2 million and that you were a full-year California resident. Check your tax return or the Notice of Assessment the Franchise Tax Board sent you. If your income is outside the range or you filed as a part-year resident, you do not meet the requirements.

If your income and residency status may have access to you, contact the Franchise Tax Board at 1-800-852-5711 or through their website to ask about your payment status. Have your Social Security number and tax return information ready. The state can confirm whether your return was processed in time for the MCTR payment and whether a check was mailed or a direct deposit was sent.

Frequently Asked Questions

Do I have to report the MCTR payment as income on my 2024 tax return?

No. The MCTR payment is not taxable income and does not need to be reported on your 2024 California or federal return. It is a one-time payment, not a tax credit or refund of taxes you paid.

What if I filed my 2023 return after October 2024?

Late-filed returns may not have been processed in time to receive the MCTR payment. Contact the Franchise Tax Board to confirm whether your return was included. Some late filers did receive payments, but the state prioritized earlier-filed returns.

Can I claim the MCTR payment if I did not file a 2023 California return?

No. You must have filed a 2023 California tax return to receive the payment. If you did not file and believe you should have, you can file a late return, but it may not be processed in time to receive the MCTR payment.

If I amended my 2023 return, do I get a different MCTR payment amount?

Amended returns filed after a certain date were not included in the MCTR payment. If you amended your return and your AGI changed, contact the Franchise Tax Board to ask whether you are included and whether your payment amount changed.

What if my spouse and I filed separately instead of jointly?

If you filed two separate returns instead of one joint return, each return is evaluated separately based on that return's AGI. You may each receive a payment, or neither of you may receive one, depending on each return's income level.