Enter the CA Middle Class Tax Rebate on a 1099Misc and put the amount in box 3. It will show up as Other Income on Schedule 1 line 8z and also as a separate negative amount to zero it out.
ONLINE
Go to Federal > Wages & Income, you might need to continue though the general screens.
When you come to the Wages - Your Income screen click on Add Income or
scroll down to Other Common Income, then 1099Misc.
Put the amount in box 3 and follow the prompts.
The next screen says…..
Do any of the uncommon situations apply? In my Desktop program the 3rd item listed is California Middle Class Tax Refund.
When you click on that then at the bottom it will say....The California Middle Class Tax Refund (MCTR) will not be taxable on your California or federal returns. It will show up as Other Income on Schedule 1 line 8z and also as a separate negative amount to zero it out.
Enter the CA Middle Class Tax Rebate on a 1099Misc and put the amount in box 3. It will show up as Other Income on Schedule 1 line 8z and also as a separate negative amount to zero it out.
ONLINE
Go to Federal > Wages & Income, you might need to continue though the general screens.
When you come to the Wages - Your Income screen click on Add Income or
scroll down to Other Common Income, then 1099Misc.
Put the amount in box 3 and follow the prompts.
The next screen says…..
Do any of the uncommon situations apply? In my Desktop program the 3rd item listed is California Middle Class Tax Refund.
When you click on that then at the bottom it will say....The California Middle Class Tax Refund (MCTR) will not be taxable on your California or federal returns. It will show up as Other Income on Schedule 1 line 8z and also as a separate negative amount to zero it out.
That doesn't matter. Just pick the person listed first or whose ssn is on the form.
I have tried to reenter the 1099-MISC multiple times but keeps getting rejected. I dont know why this keeps doing this? Is anyone else having this issue? Does it need to be entered on my taxes if its not taxed?
My returns keep getting rejected because of this item. Anyone know why?
I have the same issue, rejected 4 times.
Most likely this will be fixed in next Thursday's weekly TT update.
Yes, mine were both rejected also. It says there is a message in Turbo Tax on the state rejection but the message is blank. Also says Turbo Tax will have an update on January 30. Hopefully that will address the issue.
Update: I read a response from someone who said that he deleted the 1099 Misc information from his federal return and made sure it was not on the state return. He then saved the return and exited Turbo Tax. Came back in and went to the federal claim under wages and re-entered the 1099Misc info. Did the check and found no errors and so refiled both fed and state return and they both got accepted. So I followed those instructions and my returns have now been accepted. Seemed to have resolved the issue!
It is my understanding that the MCTRC is taxable to the fed's and not the state.
Not true. when you file your taxes on TurboTax, it tells you that it is not taxable by either the state or feds. they zero out the amount.
suehenner2801, when you say not true...are you a tax professional saying this, or are you just using tubro tax and that is what turbo tax is doing. As of today, I still do not see any announcements from the IRS saying it is not taxable federal.
Do you have "proof" it is not taxable?
No, I am not a tax professional. However, in addition to Turbo Tax doing the calculations saying it is not, I have several friends who have contacted their tax professionals and these professionals say it is not taxable by either state or feds. IRS treats it the same as they do a welfare payment. It will show up on IRS Schedule 1 showing that it has been deducted as income.
It states that you’re only getting a 1099 if your check was $600 or more mine was $350 but when doing my taxes it wants information from the 1099 how do I enter that $350
Thank you for this information. It worked for me, too. Federal and state finally accepted!
A recent update fixed the issue with filing the 1099-MISC for the CA Middle Class Tax refund. If you continue to experience issues, please post here and let us know.
Is there still no solution for the MCTR submission? I still have no re filed because it gets denied
You might need to delete and re-enter the form 1099-Misc for the MCTR.
Go back to the "Wages and Income" section.
"Edit" the 1099-Misc
"Delete" the form entry
Click "Done"
On the summary page scroll down to "Other Common Income"
"Revisit" the 1099-Misc topic
Re-enter the form information
You will arrive at a page titled "Does one of these uncommon situations apply?"
Click the button "This was a California Middle Class Tax Refund (MCTR)
When you click on that then at the bottom Turbo Tax will say....The California Middle Class Tax Refund (MCTR) will not be taxable on your California or federal returns. It will show up as Other Income on Schedule 1 line 8z and also as a separate negative amount to zero it out.
The issue I am seeing is prior to transmission of the federal return. It says the amount is not valid even though is exactly from the 1099 that the State sent out.
Report the California Middle Class Tax Refund as follows:
The California Middle Class Tax Refund will not be taxable on your California or Federal returns.
View the entries at Tax Tools / Print Center / Print, save or preview this year's return / Include government and TurboTax worksheets.
Along the same line of thought, how should we treat the 1099-misc that we received?
We moved last year to another state and did no cash the check California sent. We still have the check BTW.
Thanks for any advice on this issue !
The IRS ruled the CA Middle Class Tax rebate is not taxable. You do not have to enter it on your tax return at all.
I know the CA MCTR is non taxable but since its reported on a 1099 I entered that info with the correct label on my tax return which has now been filed.... but no where on the Form1040 or on Sch 1 does it zero out thus this error affected by decreasing my refund. How does this get corrected by turbo tax for this faulty glitch?