TurboTax

File with experts
File your taxes
Experts at your fingertips

An expert helps with your taxes, or does them for you
TurboTax Expert Full Service

TurboTax Expert Assist

TurboTax Self-Employed
Prior year taxes
File myself
File myself
Do it yourself

We'll guide you step-by-step
TurboTax Do It Yourself

TurboTax Self-Employed

TurboTax Desktop
TurboTax Free

Activate your product

Prior year taxes
Business
Business
Business taxes

Get your T2 corporate return done right, your way
TurboTax Business

TurboTax Business Desktop
Tax situations
Tax situations
Tax situations

Find extra guidance for your big life moves
For investors

For 25 and younger

For self-employed

For new to Canada

For life changes
Resources
Resources
Resources

Explore tax tools, get tips, and read reviews
Personal income tax calculator

RRSP savings calculator

Learning hub

TurboTax support (FAQ)

TurboTax community
Pricing

Level 2

Solved

How do one input the 1099-misc on state of california MCTR , will not expect in turbo tax

Forum|Forum|3 years ago
January 26, 2023
120 replies
698 views

No text available

TurboTax Free Edition Online

Best answer by drew32

was on this morning with a tax expert. She couldn’t see anything wrong either. Federal section, the 1099-MISC was classified as the CA MCTR as instructed. Rejections came back 15 minutes later.

I didn’t see the “See how California handles income differently” button for the MCTR. Seems as though it’s still broken.

ee-ea

Alumni - Champ

California MCTR is not taxed by California.

VolvoGirl

Level 15

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 which flows to 1040 line 8. It is taxable on the federal return but not for California.

I heard Turbo Tax will be putting out more info on it soon.

Go to Federal > Wages & Income, 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.
On the page with a long list of reasons pick None of these apply -Continue.
Say No it did not involve work -Continue
You got it in 2022 -Continue

On California section you will see HERE’s INCOME THAT CALIFORNIA HANDLES DIFFERENTLY. Scroll down to Miscellaneous and scroll down to MIDDLE CLASS TAX REFUND and follow the prompts to exclude the income from CA.

0_o

Level 2

It looks like this process is still broken, if you try to submit any MCTR you stuck in an infinite loop... where the site complains not all of entries have been filled and then you have to sign up for the $100+ version just to submit something they know is a state related thing.
This should have been smooth less and not an issue.
This isn't something last minute from the State of CA and Fed Tax side. When you have one of the largest states in the Union do something and you're a large company that handles doing taxes, you should have had this completed and done.

DK41

Level 2

pause Fed return, go to CA and put in the MCTR 1099Misc. finish state return, then go back and complete with the Fed. All should be good.

Ernieo2627

Level 2

Any update for you? My returns keep getting rejected

Jfel1234

Level 2

Mine keeps getting rejected for this as well. Reject Code CA_MCTR_Payment. Following along for updates....

mrsmyers003

Level 2

I found a link in the turbo tax site... after you enter the 1099 misc, it asks you to describe what the form is for. here you have to enter "CA MCTR" then it should accept it

Ernieo2627

Level 2

Tried doing it this way still was rejected

Jfel1234

Level 2

Mine is still being rejected with suggested changes as well.

drew32Answer

Level 2

RIBEYE44

Level 2

HELLO HAD SAME PROBLEM TOLD TO UPDATE TODAY DID NOT SEE UPDATE

cho_420

Level 2

This is what I received back right now as I just trying to submit my taxes.

Description of error:

There is a potential issue with Form 1099-Miscellaneous if you received this form for payment of the California Middle Class Tax Refund.

What needs to be done:

We've identified an issue in your federal tax return. This issue is being resolved in a product release scheduled for January 27th, 2023. On or after January 27, 2023. you'll need to sign into TurboTax, complete a quick review (steps below), and resubmit your return. This is just for your federal 1040 tax return. To review and re-submit your return: If you're using TurboTax online: 1.Log into TurboTax.com 2.Select Check my return 3.Select on the left navigation menu Federal 4.Select Federal Review 5.Answer the question about the California Middle Class Tax Refund 6.File your return If you're using a CD or downloaded version of TurboTax: 1.Open TurboTax 2.Select open your return 3.Select on the top navigation menu Federal Taxes 4.Select Federal Review 5.Answer the question about the California Middle Class Tax Refund 6.File your return Note: The calculation change may affect the taxpayer's refund or balance due.

Hunt 12

Level 2

I went through the instructions provided, and received a rejection. The issue does not appear to be resolved. Please inform if someone has been successful in E-file and acceptance.

Voltron19

Level 2

I was successful today 01.30.2023 with Fed efiling

Carlos112815

Level 2

I just talked to the expert. They said its a error in the system and should have been fixed today but they said to wait till the 31st (even though it says 27) you will be rejected in minutes.

KirstenK

Level 2

That's exactly what mine told me. Wait until tomorrow or a couple of days since it seems like the update didn't go through yet.

Lark2

Level 2

I got rejected 3 times, even after I check marked that it was a California Middle Class Tax. And when I clicked review, TT says it’s good to file but it’s not cause I’m still getting the rejection.

Banido127

Level 2

I tried the basic way, then the work around today where you click none apply and still got rejected by IRS. Hopefully they fix soon, it's quite frustrating. I even did the online chat and CPA live yelehpke chat and it wasn't resolved.

VolvoGirl

Level 15

People are posting that Customer Service told them the efile rejection is suppose to be fixed on Monday Jan 30. So try Efiling after Monday.

FOR ONLINE

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.

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.