Following your answer, I went through the comprehensive 1099-MISC flow to enter the California Middle Class Tax Refund I received. As a consequence, the amount is shown on Schedule 1 and my federal taxes increased as expected. However, my California taxes increased as well which they shouldn't because the CA MCTR is supposedly non-taxable in California. I assume that the TurboTax update you mentioned will correct this. Is this true?
I received the Debit card for the CA MCTR just in January 2023. This raises the question if it should be specified on the 2022 tax return or the 2023 tax return? In the meantime, I received a 1099-MISC from the State of California Franchise Tax Board as well specifying that it is for the calendar year 2022.
I guess I should wait with the submission of my tax returns until the questions concerning the CA MCTR have been answered satisfactorily.
