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

[estes3]

I believe that it's for the 2022 California Middle Class Tax Refund

[VolvoGirl · Accepted solution]

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.

[estes3]

But how do you select the both of you?

[VolvoGirl]

That doesn't matter.  Just pick the person listed first or whose ssn is on the form.  

[gkolesni]

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?

[sadie1321]

I am having this same issue.

[a50svespa]

My returns keep getting rejected because of this item.   Anyone know why?

[Slow Reader]

I have the same issue, rejected 4 times.

Most likely this will be fixed in next Thursday's weekly TT update.

[suehenner2801]

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. 

[suehenner2801]

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!

[TaxKing00]

It is my understanding that the MCTRC is taxable to the fed's and not the state.

[suehenner2801]

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. 

[TaxKing00]

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?

[suehenner2801]

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.

[Cespinoza64]

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