This issue is also a problem for CA residents who received a 1099-MISC from the State of California for the inflation relief payment in 2022 - called the Middle Class Tax Tax Refund. CA FTB said the refund is not subject to CA tax but issued a 1099-MISC anyway because they said they weren't sure whether it was subject to federal taxes. So now taxpayers must report that 1099-MISC as income, but those of us who believe that the payment is not subject to federal tax because of IRC section 139 (disaster payments) have nowhere in TurboTax to put the adjustment.
