Despite its name, the California Middle Class Tax Refund is not a refund of state tax like the one you pay every year. Instead, "The Middle Class Tax Refund (MCTR) is a one-time payment to provide relief to Californians."
Instead, it is a one-time payment from the State Treasury to help middle class residents deal with inflation. How you deal with it has nothing to do with last year's Standard Deduction or any of the proposed calculations trying to determine if it is taxable or not.
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