Hallelujah, I transmitted this morning and both Federal and CA state has been accepted. I finally deleted the 1099 Misc from my federal return and deleted anything pertaining to it on my state. I then saved my return, and logged out. I logged back in and reentered the 1099 Misc. it again stated that it would not be taxable on the state or federal return. On line 8z of Schedule 1 it shows 0 $s but says “See Stmt”. At the end of my printed return, the last page is Additional Information for Schedule 1. It shows a CA payment of $700. And a minus $700. - stating “general welfare exclusion “. The same was true for the CA return. The CA 540 says see line 8z statement. An additional page was added to the return of the state return, again “additional information”, showing a line 8z payment, then a deduction stating general welfare exclusion.
And I’m getting back refunds that are the same as if I didn’t ever enter the 1099misc, but I did. I must agree this years TT has been pretty frustrating, but part of the blame goes to the IRS for not deciding if the CA MCTR was going to be taxable.
