topic Re: MCTR in State tax filing

MCTR

Lessiemae — Mon, 23 Feb 2026 11:54:34 GMT

The state isn't taxing the MCTR. But when I enter it in the 1099-misc section line 3 in the federal return, it immediately shows that it is being taxed, because the refund amount goes down. Since, they say they are not going to tax it, would it be ok to just leave it off the return completely? Please advise.

Re: MCTR

Bsch4477 — Wed, 22 Feb 2023 03:44:31 GMT

IRS instructions are to leave that form off entirely.

Re: MCTR

ThomasM125 — Wed, 22 Feb 2023 03:58:07 GMT

Originally it was not clear if the payment would be taxable, so form 1099-MISC's were issued. They will show as taxable income on your federal tax return if you enter it, so now that it has been determined that the payments are not taxable on your federal or state tax return, you should not enter the form 1099-MISC that reports the California Middle Class Tax Refund into TurboTax.