I guess that's why my submission has been rejected twice already. Although the MCTR1099-misc is entered into the tax forms, it is not considered taxable income for the State of California but it is considered taxable income by the Feds. I have submitted and been rejected twice so far. It does not seem as if the "experts" you chat with are aware of this since they keep telling me to resubmit. The email from "Intuit" told me to try again on the 27th (today), after they perform an update to the system; which I did and it was again rejected. I am now waiting to see if my recent 3rd submission is accepted.
