Over a year has passed since California began distributing inflation relief funds to residents. Despite over 7 million payments being sent out, more than 600,000 recipients have yet to claim their funds. Fortunately, there’s still time to do so.
How to Claim Your Middle Class Tax Refund
The inflation relief funds, officially known as the Middle Class Tax Refund, were distributed between October 2022 and September 2023. These payments, ranging from $200 to $1,050, were issued via direct deposit and debit cards.
Approximately 7.2 million residents received their payments directly into their bank accounts, amounting to around $4 billion. About 9.6 million payments were made through debit cards, of which over 90% have been activated, and approximately 3.5% were converted to checks.
Among the activated or used cards, more than half still have some funds remaining, while around 46% have a zero balance, according to California’s Franchise Tax Board (FTB).
FTB’s analysis also indicates that approximately 624,000 debit cards remain unused, totaling about $125 million in unclaimed funds. Those who haven’t yet accessed their inflation relief funds can still do so by activating their cards before the program ends on April 30, 2026. To activate the card, recipients need to contact FTB at 1-800-240-0223. Additionally, cardholders can transfer the funds on their card to a bank account of their choice.
FTB is sending reminder letters to those who haven’t yet activated their cards. If the card has been lost, stolen, or never received, individuals should call the same number to request a replacement. For those who haven’t received the debit card but are eligible for the payment, it’s essential to ensure their address is current with the FTB. Instructions for updating the address can be found on FTB’s Help with the Middle Class Tax Refund page.
Possible Reasons for Unclaimed Inflation Relief Funds
There is no clear explanation for why over half a million people have not claimed their inflation relief funds. However, discussions on Reddit about the Middle Class Tax Refund program suggest several reasons.
Some individuals may not have received their cards, others might be unaware of the program, and some didn’t understand why they received the card in the mail. Many mistook the relief cards for a scam and discarded them.
Additionally, some users reported forgetting to activate their cards, while others encountered issues during the activation process.
The Middle Class Tax Refund is a one-time payment and is not subject to state or federal taxes.