How to enter California stimulus payment 1099 Misc so that it is not taxable to the state?

[SteamTrain · Accepted solution]

Fill out the Federal as-is...entirely first, including that 1099-MISC.....All your income Deductions&Credits...and don't worry about that ...... yet

Then, when you go thru the CA tax questions, there is one page where there is one menu page that has that CA Middle Class (rebate/tax cut...whatever they called it) line as a menu item...start that and put in the $$ you entered with that 1099-MISC, and the $$ will be removed from CA income.

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One of the helpers had a picture of that page....but I don't have it.

[dengold]

I found that page.

Thank you very much.

[Achavez809]

So by entering the 1099 MISC from California for the $700 they sent out, I have to upgrade to “self-employed” and can no longer use the free version? 

[JamesG1]

TurboTax Free version will not support the entry of the 1099-MISC.  

Report the California Middle Class Tax Refund as follow:

• 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.

@Achavez809

[Kenn]

Looking at your instructions, on step three I do not see a "show more" option. Can you provide more details?

[JulieS]

You may see an arrow to the right of Other Common Income. Click on that and the section will expand. 

[Kenn]

I see no arrow. By the way, the section is called "1099-MISC and Other Common Income" not just "Other Common Income". I am using Downloaded Deluxe version on a Mac if that makes a difference?

[Kenn]

[HopeS]

The California Middle-Class Tax Refund will not be taxable on your California or Federal returns.

Assuming your question is about the CA Middle-Class Tax Refund (MCTR) you are correct the amount is non-taxable.  You probably received a form 1099-Misc which is how you enter the amount.  The latest update in TurboTax should correctly handle the MCTR payment. 

1. Go back to the "Wages and Income" section.
2. "Edit" the 1099-Misc
3. "Delete" the form entry
4. Click "Done"
5. On the summary page scroll down to "Other Common Income"
6. "Revisit" the 1099-Misc topic
7. Re-enter the form information
8. You will arrive at a page titled "Does one of these uncommon situations apply?"
9. Click the button "This was a California Middle-Class Tax Refund (MCTR)
10. Finish the interview section.

@Kenn 

[Kenn]

That worked! Thank you.