The MCTR is not taxable on the CA tax return, but no guidance has been provided by the IRS as yet as to whether or not it is taxable on the federal tax return.
Even though you didn't receive a Form 1099-MISC with the Middle Class Tax Refund (MCTR) payment in box 3, you can enter the amount you received following these steps (also referenced by @SteamTrain:(
To enter a 1099-MISC for miscellaneous income in TurboTax:
- Open or continue your return
- Select Search and search for 1099-misc
- Select Jump to 1099-misc
- Answer Yes to Did you get a 1099-MISC?
Report the Middle Class Refund and follow the prompts. The 1099-MISC is showing the amount in Box 3, Other Income.
In the California section, in Here's the income that California handles differently, select Start next to Middle Class Tax Refund and follow the prompts.
You may wish to wait to file the Federal return until the IRS issues further guidance and corresponding enhancements are made to TurboTax.
@munley
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