How do I enter the 1099-MISC from the state of California for my spouse and me?

[sadie1321]

Thank you for this information. It worked for me, too. Federal and state finally accepted!

[DaraLO]

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.

[jroman198915]

Is there still no solution for the MCTR submission? I still have no re filed because it gets denied

[VolvoGirl]

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.

[DLWeber67]

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.

[JamesG1]

Report the California Middle Class Tax Refund as follows:

• Select Federal from the left side menu.
• Click on Wages & Income.
• Scroll down to Other Common Income.  Click Show more.
• Click Start / Revisit to the right of 1099-Misc.
• At the screen Does one of these uncommon situations apply? select This was a California Middle Class Tax Refund.

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.

@DLWeber67 

[davej]

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 !

[VolvoGirl]

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.  

[davej]

Thank-you !  

[JR-V]

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?

[PattiF]

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 

[VolvoGirl]

@JR-V   So where  did the amount show up as income?