California taxpayers, have you received a debit card like the picture below in the mail, or a direct deposit with “FTB MCT REFUND” in the bank detail?
Don’t throw the debit card away thinking it’s spam like so many people did with the stimulus payments!
This is the “gas tax refund” (officially the Middle Class Tax Refund) that was authorized months ago. Payments are just now starting to come out.
Will this be taxable? Yes.
FTB should be sending a 1099 tax form. Make sure the form is accurate (these one-off payments are often prone to errors), and provide it to your tax pro at tax time.
Do yourself and your taxpro a favor, keep track of it and provide it at tax time.
You should already have a 2022 tax folder (either online or a physical folder). Print or PDF the record of how much you received and put it in that folder.
If you received a debit card and don’t know how much is on it, there’s a lookup tool and chart on the FTB website that you can find by clicking here. You’ll need your California 2020 (yes 2020, not 2021) income tax return.