See this info
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.
Thank you, worked perfectly. Now if California would just finalize their forms so I could file.
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?
Where is this? What form? "HERE’s INCOME THAT CALIFORNIA HANDLES DIFFERENTLY."
But what about federal? can you use the free edition for federal and still report under “other income”?
Hello, I did and based on my experience it was forcing upgrade.
I am asking IF anybody was able to find a way to do it with free version on Federal since per #3 on the back says you can use the Form 1040, which IS the free version, but TurboTax wants to charge. Thanks anyway.
What about if you didn't receive it? How do you report that?
There’s nothing to report if you didn’t receive it.
If you believe you should have received it by now and haven't, call 1-800-240-0223 to find out why and/or get a replacement debit card.
TurboTax Free version will not support this entry of the 1099-MISC. See that 1099-MISC is not supported where tax forms are listed here.
Report the California Middle Class Tax Refund as follow:
In the California tax return, you will see Here's Income That California Handles Differently. Scroll down to Miscellaneous, then to Middle Class Tax Refund. Follow the prompts to exclude the income from the California tax return.
View the entries at Tax Tools / Print Center / Print, save or preview this year's return / Include government and TurboTax worksheets.
My CA middle class tax refund was under $600 and per State of CA website they will not be issuing a 1099. Where and how should I input this income? The 1099-MISC screen is asking for the Payer's Federal ID# which I don't have since I don't have the 1099. Under "Payer" should I just put "State of CA"?
Thanks.
@AT168 If you are not receiving the 1099-MISC because you received less than $600, then there is no need for you to enter the income on the federal page. It is not taxable.
@MapleK Thank you for your response. However I read online that "taxpayers must report any income even if they did not receive their 1099 form, unless it is a gift" I believe the $600 limit is just the IRS requirement for Form 1099-MISC to be considered necessary to file by the payer.
I just saw a previous post regarding this matter...
To enter your other income as other miscellaneous income:
@AT168 I can’t find any IRS guidelines on this refund. If you are going to enter the amount, then the TIN is 68-0204061 and use State of California as the payer.
You are correct that all income must be reported. In TurboTax under Income go to Less Common Income and scroll down to Miscellaneous income. Scroll down to Other Reportable Income. Then you can report your rebate without a payer number and enter text—CA Middle Class Rebate.
I've followed these steps to the T, and my return is still getting rejected because of this 1099-MISC for the MCTR. Any ideas to why this might be?
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.