The problem is that the MCTR may be subject to Federal Income Tax. The IRS is asking that taxpayer's that received the MCTR should wait for a ruling from them as to the taxability of the payments. I brought this to the attention of the TurboTax tax experts on 1/27/23. I was concerned that TurboTax was indicating that the MCTR was not subject federal tax and that might not be true. I received an email that said that it was a known error and would be fixed the next day. So far (2/9/23), TurboTax is still telling its users that the MCTR is not subject to federal tax, without authority or explanation.
