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Nerkalj
New Member

Federal smart check will not let me check CA MCTR for my 1099

I followed the TurboTax instructions for entering the 1099-MISC received from the CA FTB for the middle class tax refund.  However, the federal tax smart check will not complete with the CA MCTR box checked.  I'm stuck and cannot file until this is fixed.

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3 Replies
CatinaT1
Expert Alumni

Federal smart check will not let me check CA MCTR for my 1099

This money has been deemed non-taxable, so it does not need to be entered.

 

See this link for more information.

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Federal smart check will not let me check CA MCTR for my 1099

I heard on the radio that you were supposed to report this, but there is supposed to be a way to zero this out of your taxable income. I don't see how this is happening. So far, I think this is included in Turbo Tax as taxable income.

PattiF
Expert Alumni

Federal smart check will not let me check CA MCTR for my 1099

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

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