While most Americans are fixated on their federal IRS refunds this week, millions of taxpayers in specific states are waking up to a different kind of notification: a state-level deposit. If you live in New Mexico, Minnesota, or California, check your bank account.
Surplus budgets from the 2025 fiscal year are triggering automatic rebates in several regions. Unlike federal refunds, these payments often arrive separately and without much warning. The Bottom Line: If you filed your 2025 state return early (before Feb 15), your direct deposit might already be pending.
Here are the 5 states actively distributing or processing surplus rebates right now.
1. New Mexico: The Oil Surplus Rebate
New Mexico continues to lead the pack with rebate checks funded by oil revenue surpluses.
- The Payout: Up to $1,000.00 for joint filers; $500.00 for single filers.
- Status: Direct deposits began rolling out Feb 20, 2026.
- Requirement: Must have filed a 2025 PIT (Personal Income Tax) return. No separate application is needed.
2. Minnesota: The “Walz Check” 2.0
After the massive surplus payouts of previous years, Minnesota has authorized a smaller, targeted rebate for low-income families and seniors for the 2026 season.
- The Payout: Average payment is $260.00 per dependent.
- Status: Processing. Look for deposits labelled “MN REV DEPT.”
- Warning: If you moved in 2025, you might receive a paper check instead of a direct deposit.
3. California: Middle Class Tax Refund (Late Filers)
While the major MCTR waves have passed, California’s Franchise Tax Board (FTB) is still issuing “cleanup” payments for those who resolved eligibility disputes late in 2025.
- The Payout: Varies heavily, typically $200.00 – $700.00.
- Status: Weekly batches are going out on Fridays.
- Check: Log into your MyFTB account to view your payment history.
4. Montana: Property Tax Rebate
This isn’t an income tax refund, but a property tax relief payment.
- The Payout: Up to $675.00 for eligible homeowners.
- Action Required: You must claim this on your 2025 state return. It is not automatic if you don’t fill out the specific line item.
5. Massachusetts: 62F Taxpayer Refunds
Under Chapter 62F, if the state collects more tax revenue than the allowable cap, the excess must be returned.
- The Payout: Approximately 12% of your state income tax liability from 2025.
- Status: Credits are being applied to 2026 refunds.
Eligibility Tracker
Use this table to see if you qualify for the current wave.
| State | Payment Name | Est. Amount (Single) | Deposit Code |
| NM | Rebate 2026 | $500.00 | ST NEW MEXICO |
| MN | Family Credit | $260.00 | MN ST REFUND |
| CA | FTB Adjustment | Varies | FTB MCT REF |
Crucial Step:
Do not ignore mail from your State Department of Revenue. If they cannot Direct Deposit your funds, they will mail a check. Scammers know this, so always verify the return address with the official state website before opening.
Disclaimer: This article is for informational purposes only and does not constitute financial or legal advice. Always consult official government resources.
Evan Cole Editor-in-Chief | Breaking News & Public Policy
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