Termed the Middle-Class Tax Refund, this initiative was designed to provide direct financial support to California residents, with amounts ranging between $200 and $1,050. Notably, over a million of these payment cards remain inactive, raising concerns about the unclaimed funds. Let’s learn more about the conditions and status of this stimulus check or card.
The California economic boost, also labeled as “inflation relief,” has seen renewed interest, especially since its distribution was believed to have been finalized in 2022. However, the state’s Fiscal Board, upon reviewing the situation, identified two pressing issues. First, there remains a backlog of 5,000 payments awaiting processing. Second, and more concerning, is the data suggesting that out of the 1.2 million preloaded debit cards distributed to the public, a significant number have not been activated.
Unclaimed Stimulus Navigating the Roadblocks of California’s Tax Refund Initiative
Originating in October 2022, these payments, part of the Middle-Class Tax Refund initiative, were aimed at aiding eligible Californians. While a significant portion of these funds reached the intended recipients, 5,000 payments are still in the queue, indicating some roadblocks in the distribution process.
The state utilized two primary methods for delivering these funds. Eligible individuals either received the amount via direct bank deposits or were issued preloaded debit cards, reflecting their entitled amount. The choice of distribution was tailored to cater to various population segments and ensure seamless delivery.
The California Franchise Tax Board (FTB) has shed light on some startling statistics. Out of the whopping 9.6 million debit cards dispatched, a commendable 87% have been activated. However, this also underscores the issue of the remaining 13% – cards that have reached their recipients but remain untouched. In sheer numbers, this translates to approximately 1,248,000 inactive cards.
These untouched cards represent a staggering $600 million in unclaimed financial relief. Addressing this sizable gap, the FTB has taken proactive measures, including reaching out via letters to those with unactivated debit cards, urging them to activate and utilize their entitled funds.
Activation is a straightforward process, and the onus lies with the card recipients. Post-activation, these cards are versatile, allowing purchases both at brick-and-mortar stores and online platforms. Additionally, for those who prefer cash, the card balance can be easily transferred to personal bank accounts.
In cases where the card remains inactive, it’s essentially rendered useless, depriving individuals of their financial relief. Parallelly, the FTB is putting in efforts to ensure the remaining 5,000 taxpayers, still awaiting their funds, receive their due California stimulus check.
The timeline for this effort is tight, with expectations set for completion by the end of September or, at the latest, by early October 2023. Once this phase is concluded, it will signify the final chapter of California’s ambitious economic relief program.
What happens if the preloaded debit card remains inactive?
If a preloaded debit card remains inactive, the issuing authority typically sends a reminder to the recipient. In the case of the California Middle Class Tax Refund (MCTR), recipients who have not activated their payment card will receive a reminder letter that includes instructions on activating their debit card ftb.ca.gov.
However, it’s important to note that if the debit card is lost, destroyed, or mistakenly thrown away, it can be replaced. To replace a lost or ruined MCTR debit card, you can call Money Network at 1-800-240-0223 and press option “3” for card replacement. If you have any questions regarding the MCTR and activating your debit card payment, you can contact Money Network’s customer support at 1-800-542-9332 or via the online .