PattiF
Expert Alumni

Self employed

You will have to amend your return to remove the nontaxable income from your return. You will correct this in TurboTax by deleting the nontaxable income that you included. TurboTax included the 1099-MISC that you entered as income. It does not identify the source of the 1099-MISC as nontaxable, as you may have received a taxable 1099-MISC from California.

 

This discussion in TurboTax states that you do not include the CA MCTR.

 

" You do not have to include the California Middle Tax Refund on your federal or state tax return.

 

The IRS said it determined it will not challenge the taxability of payments related to general welfare and disaster relief. This means that people in the following states do not need to report these state payments on their 2022 tax return: California, Colorado, Connecticut, Delaware, Florida, Hawaii, Idaho, Illinois, Indiana, Maine, New Jersey, New Mexico, New York, Oregon, Pennsylvania, and Rhode Island. Alaska is in this group as well, but please see below for more nuanced information.

 

See IRS issues guidance on state tax payments to help taxpayers"

 

@JR-V 

 

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