Californians, you might be in for some good news! From October 2022 to September 2023, the Middle-Class Tax Refund (MCTR) program was rolled out to help ease the cost of living for state residents with a nice stimulus check. The program had a hefty budget, but six months after the subsidies ended, at least $125 million was still unclaimed.
Unclaimed money
Hundreds of thousands of middle-class folks haven’t grabbed their share yet. This money could really help cover the rising costs of living we’ve all been dealing with lately. About 624,000 residents haven’t claimed their portion, which ranges from $200 to $1,050, depending on their family circumstances.
The main hiccup seems to be how the money was distributed. Some people got their funds directly deposited into their bank accounts, while others received pre-loaded debit cards. The latter appears to be causing most of the trouble.
According to California’s Franchise Tax Board (FTB), 7.2 million residents received direct deposits, giving them instant access to a total of $4 billion. On the other hand, 9.6 million people were sent debit cards, adding up to $5.2 billion. Of these, 90 percent of the cards have been activated, with another 3.5 percent converted to checks, but that still leaves 624,000 cards unused.
Reclaim you money
This isn’t a huge problem yet, but there’s a ticking clock since recipients have two more years to claim their funds. The longer people wait, the less likely they are to claim what’s theirs. The FTB plans to send reminders and encourages anyone with trouble with their cards to reach out.
Interestingly, even among the activated cards, many haven’t been fully used. The FTB found that more than half of these cards still have funds, with only 46 percent showing a zero balance. The good news is the funds will be available until April 30, 2026, so there’s still plenty of time. Officials hope most of the money will be used well before the deadline.
It’s surprising to see so much unclaimed money still sitting in the pot, but there have been numerous issues with the cards, as detailed in forums like Reddit, where users have shared their frustrating experiences.
One user was particularly harsh on the program, blaming the state and officials for the bumpy process: “California did a terrible job. They sent them in these ratty cards that looked like those scam cards that people get sent all the time.” This sentiment was echoed by many others, with comments like, “I know a lot of people who tossed them thinking it was a scam.”
Others faced different issues, such as stolen cards or simply forgetting about them. One user shared, “I just forgot about it because it’s a weird credit card sitting where I store excess mail. If it were a check, I would have deposited it.”
Hope after frustration
The most frustrated group seems to be those who couldn’t access their funds. One commenter said, “It’s been made impossible to collect. The first notice I got about not cashing it was met by a disconnected phone number. Second, I noticed that I hadn’t collected it. I gave it to my grandson and told him that he could have the money if he knew how to jump through the hoops they placed in his way. 600K haven’t touched their money because the government has made it impossible to touch it!” Another user added, “Tried to use my card, and it got declined.”
Despite these issues, there’s hope that things will get sorted out before the deadline and everyone will get to claim their funds. The FTB is sending out periodic reminders and encourages residents to reach out if they’re having trouble with their cards. With the funds available until April 30, 2026, there’s still time for residents to get what they’re owed. Let’s hope the process becomes smoother so everyone can benefit from the MCTR program.
Though the government made it mistake they are trying to fix and do better. With this extended deadline many can reclaim their money. Hopefully more Californians will get relief.
