BobKamman
Level 15
01-31-2023
11:07 AM
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@pamdory The "R" in MCTR stands for Relief, not Refund, although part of AB 192 creates the "Better for Families Tax Refund." Some people are referring to it as the "Gas Tax Refund," because gasoline prices were nearing their peak when it was enacted. Refunds of state sales and excise taxes are generally not taxable, especially in a state where many taxpayers hit the $10K SALT limit.
The law itself provides,
"...The payment authorized by this section shall not be a refund of an overpayment of income taxes under Chapter 6 (commencing with Section 19301) of Part 10.2 of Division 2 of the Revenue and Taxation Code of any liability imposed under Part 10 (commencing with Section 17001) of Division 2 of the Revenue and Taxation Code.
(e) Notwithstanding any other law, the payment authorized pursuant to this section shall be treated in the same manner as the federal earned income refund for the purpose of determining eligibility to receive benefits under Division 9 (commencing with Section 10000), excluding benefits under Chapter 7 (commencing with Section 14000) of Part 3 of Division 9, or amounts of those benefits."
