IRS REJECTED RETURN BECAUSE OF 1099 misc for CALIFORNIA MIDDLE CLASS TAX REFUND

[Mommyof4girlz]

I filed on 1/22 and my return was rejected yesterday because of the 1099 misc form we received for the mctr payment. its saying i have to wait until January 27 to file. What is this about? were we not suppose to report it?

[Vanessa A]

The IRS has not given an official response yet as to whether or not the MCTR is taxable.  

At this point it is best to wait until the 27th, if that is what the rejection code is saying as that may be the date they will have an official reponse /answer on the taxability of the MCTR. 

[Mommyof4girlz]

Description of error:

There is a potential issue with Form 1099-Miscellaneous if you received this form for payment of the California Middle Class Tax Refund.

What needs to be done:

We've identified an issue in your federal tax return. This issue is being resolved in a product release scheduled for January 27th, 2023. On or after January 27, 2023. you'll need to sign into TurboTax, complete a quick review (steps below), and resubmit your return. This is just for your federal 1040 tax return. To review and re-submit your return: If you're using TurboTax online: 1.Log into TurboTax.com 2.Select Check my return 3.Select on the left navigation menu Federal 4.Select Federal Review 5.Answer the question about the California Middle Class Tax Refund 6.File your return If you're using a CD or downloaded version of TurboTax: 1.Open TurboTax 2.Select open your return 3.Select on the top navigation menu Federal Taxes 4.Select Federal Review 5.Answer the question about the California Middle Class Tax Refund 6.File your return Note: The calculation change may affect the taxpayer's refund or balance due.

[Mommyof4girlz]

it seems only turbo tax is the one that is having these issues because everyone else i know filing somewhere else got accepted