When entering the 1099-MISC CA MCTR , there will be a question asking if the payment is for the California Middle Class Tax Refund. Select “Yes” to automatically exclude this amount from federal income. Not answering this question correctly could cause errors.
To get back to the 1099-MISC screen:
- Open or continue your return
- Select Search and search for 1099-misc
- Select Jump to 1099-misc
The MCTR is not taxable on the CA tax return, but no guidance has been provided by the IRS as to whether or not it is taxable on the federal tax return. Therefore, TurboTax software is not treating this payment as taxable income.
Once we get more guidance from the IRS, we will notify you of the changes and how to handle them.
