I filed taxes for two friends this weekend. One was married filing joint, and one was single. Both received the CA MCTR. The single filer was accepted, the joint return was rejected. I went through the suggested steps from previous posts and while it looks on the surface like everything was working, I was still being taxed on the CA MCTR amount. I checked this by editing the 1099 and putting $0 in the box 3 amount, which reduced the tax owed, or increased the refund amounts for both Fed and State. Putting the correct amount into box 3 reduced the refund amounts on both Fed and State. The CA MCTR is supposed to be non-taxed but TT is including it as taxable income. Still waiting for a new release to become available that will hopefully fix this.
