Hi,
IRS have very clearly stated that the CALIFORNIA MIDDLE CLASS TAX REUND is not taxable for both the Federal and State. However, the TurboTax (deluxe) that I'm using is still charging the taxes on it in the calculation. I hope the TurboTax team could correct this error as soon as possible, and meanwhile, everybody needs to pay a great attention to it when you are using TurboTax for your tax return!
