Data entry in Turbo Tax for the 1099 Misc received from California for gas tax refunds still appears to be an issue. The most recent comment in this forum was approximately 4 weeks ago. The IRS recently issued IR-2023-23 regarding guidance on state tax payments received for general welfare and disaster relief for California and other states. The CA gas tax refund appears to be in this category, and it does not appear to me to be an MCTR. The best data entry I find in Turbo Tax is to check the box for MCTR. This however does not provide the IRS information as to the character of the item and when the IRS compares the lack of taxable 1099 Misc income on the return to the data received from California, it appears that the IRS will calculate an adjustment for additional taxable income and self-employment tax related to Schedule C. Does Turbo tax plan to issue a program update to resolve? Perhaps an additional data entry check box is required to allow the program to explain the character of the 1099-Misc to the IRS. Turbo Tax, please resolve.
