California Middle Class Tax Refund

[jdmiller4150]

If the CA MCTR appears on a 1099-Misc. does this count as "income" even though it is not taxable at the State or Federal level?

I am trying to keep my AGI and MAGI to the absolute minimum to avoid the Medicare surcharges.

[PattiF]

No, this is not considered income

From IRS Guidance on state tax payments to help taxpayers:

If a payment is made for the promotion of the general welfare or as a disaster relief payment, for example related to the outgoing pandemic, it may be excludable from income for federal tax purposes under the General Welfare Doctrine or as a Qualified Disaster Relief Payment. Determining whether payments qualify for these exceptions is a complex fact intensive inquiry that depends on a number of considerations.