Where do you file the middle class tax refund?

See this info

https://www.ftb.ca.gov/about-ftb/newsroom/middle-class-tax-refund/index.html?WT.ac=Global_banner_MCTR

The payment is taxable by Federal but not by California. 

To report on Federal >Income >choose what I want to work on >Other common income >1099-misc>other income. Report the Middle Class Refund and follow the prompts. 

On California section you will see HERE’s INCOME THAT CALIFORNIA HANDLES DIFFERENTLY. Scroll down to Miscellaneous and scroll down to MIDDLE CLASS TAX REFUND and follow the prompts to exclude the income from CA. 

The Middle-Class Tax Refund (MCTR) is a one-time payment to provide relief to Californians. It is not taxable on your California State return, but it may be required be reported on your Federal Income Tax Return.

The IRS has not issued final guidance on the reporting the Middle-Class Refund on your Federal Income Tax Return.  Click on this link for more information: https://ttlc.intuit.com/turbotax-enter-state-stimulus-payment-turbotax

It sounds like you may have received Form 1099-Misc for this payment.

If the IRS determines that your stimulus payment is taxable on your Federal Tax Return, click on the following link for information on entering a Form 1099-Misc in Turbo Tax: https://ttlc.intuit.com/turbotax-enter-1099-misc

@Bsch477 explains how you enter this tax refund on your California State Return. 

You will not be taxed on this income for your California State Return purposes.

It appears to enter this amount you are forced from "free" filing to a "deluxe filing"; even though on the 1099-Misc instructions for box 3 it clearly states to list as "other income" line of schedule 1 Form 1040.    Last year I used the free edition too and it provided my taxes on the Form 1040.  Is upgrading the only option? 

What about if you didn't receive it? How do you report that? 

My MCTR experience...

I entered the info from my CA 1099-MISC for the MCTR $700 (MFJ).  TT accepted it and all appeared good.  Flowed it through to the CA 540 Sch CA etc.  Checked all the forms and everything looked great.  I e-filed the Fed and, REJECTED.  "CA_MCTR_Payment - There is a potential issue with Form 1099-Miscellaneous if you received this form for payment of the California Middle Class Tax Refund."  

Called TT for phone support.  The agent looked and declared that everything was perfect.  Must've been a fluke, she said.  I believe her when she said she tried everything her book told her.  Maybe if you don't know, escalate to someone who might.  E-filed again and same reject. 

In the meanwhile, I filed CA on the FTB web site (TT forms weren't ready and I didn't want to pay the $20 fee).  Took 10 minutes to enter everything, plus FTB didn't hit me with an underpayment penalty.  All accepted and in the queue in Sacramento (or wherever).

Back to Federal.  After some add'l research, all I could find was that the MCTR MAY be subject to federal tax.  Nothing definitive one way or the other.  So I removed it from my federal TT.  e-filed again and it was accepted.  Plus I saved the tax on $700.  Only issue now is that the Fed return #s do not match CA.  If I remove the 540 CA adjustment (since there is nothing to adjust anymore), the end result is unchanged and all is correct.   

So maybe I'm one of the first to try this.  I don't have any W-2's so had all my data early. Or maybe there was something else that triggered the IRS reject.  

IRS released on 02/10/23 that the California Middle Class Tax Refund IS NOT TAXABLE ON FEDERAL.  I received a 1099-MISC.  Do I still need to enter it?  Where do I enter it?  How do I make sure TurboTax calculates correctly and doesn't count it as taxable income? 

https://www.irs.gov/newsroom/irs-issues-guidance-on-state-tax-payments-to-help-taxpayers