California Middle Class Tax Refund debit cards about to expire

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SACRAMENTO, Calif. - Californians have one more day to use their Middle Class Tax Refund debit cards before the funds expire.

Deadline to use debit cards

What we know:

The Middle Class Tax Refund, also known as inflation relief payments, was issued in 2022 to help offset rising costs, including higher gas prices. Prepaid debit cards tied to those payments expire Thursday, whether they have been activated or not. Any remaining funds will be returned to the state’s general fund. The deadline to request a replacement debit card passed April 8.

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Billions distributed statewide

The backstory:

The state issued about 16.8 million payments totaling $9.2 billion between Oct. 2022 and January 2023, according to the California Franchise Tax Board. To qualify, residents had to file a 2020 state tax return. About 7.2 million payments were sent via direct deposit, while 9.6 million were issued on prepaid debit cards.

Unclaimed funds remain

What you can do:

Refund amounts ranged from $200 to $1,050, depending on income, filing status and household size. As of March 30, about 90% of debit cards had been activated, but only 43% had a zero balance, according to the Franchise Tax Board. That leaves roughly 960,000 unactivated cards and about $400 million in unused funds set to return to the state.