Californians who received the California Middle Class Tax Refund (MCTR) payment of $600 or more may wonder whether they have to pay taxes or not. The good news is MCTR payment is not taxable for California state income tax purposes, which means you don’t have to include it as income on your California income tax return.
California Middle Class Tax Refund (MCTR)
This news was confirmed by the IRS, which stated that Californians don’t need to report California Middle Class Tax Refund (MCTR) payments on their 2022 tax returns. So, you don’t have to worry about any tax implications or penalties associated with these payments for the 2022 tax year.
Individuals who qualify based on their income and need help with tax preparation or aid can take advantage of the free services offered by the IRS’s Volunteer Income Tax Assistance and Tax Counseling for the Elderly programs. These programs offer support and guidance to help make the tax season easier to manage.
It’s advisable to keep yourself informed about any news or updates regarding California Middle Class Tax Refund (MCTR) payments if you anticipate receiving them in 2023. This is because you will not receive a 1099-MISC until January 2024, and being aware of any developments can help you avoid any delays or misunderstandings related to your payment.
Deadline For Tax Filing in California
The deadline for filing California state tax returns and settling any outstanding amount is until April 18, 2023. However, California provides an extension to file your return until October 16, 2023, but you are still required to make your payment by April 18, 2023.
You don’t have to submit any application for an extension to file your taxes. It is recommended that you file your taxes and make your payment promptly to prevent any charges or fines.
Overall, middle-class Californians who received the California Middle Class Tax Refund (MCTR) payment can breathe a sigh of relief knowing that it is not taxable for California state income tax purposes. However, if you have any concerns or questions about your 1099-MISC or tax preparation, you can contact the FTB or take advantage of the free services provided by the IRS’s VITA and TCE programs. Stay updated and enjoy your tax refund without any worry.