How to fix California taxes INCREASING when I enter 1099-MISC for the CA MCTR?

When I enter the 1099-MISC for the CA MCTR (California Middle Class Tax Refund, yes I did select the "uncommon" box stating that it is the CA MCTR) my Federal Taxes are not changed but my California Taxes INCREASE! On the California Schedule CA Section B line z Turbotax automatically inputted CA payment $700 and CA payment - general welfare exclusion -$700, so I can't subtract the $700 again. If I delete the 1099-MISC my CA taxes go back down. Why does this happen? and now do I fix it?

435

Expert Alumni

Feb 16, 2023 8:45:59 AM

The IRS decision is "the CA MCTR is not taxable" taxpayers do not need to enter it on their tax return. Go back to the "Wages and Income" and delete the CA MCTR 1099-MISC form information.

Here is the IRS decision for reference.

Level 3

Feb 16, 2023 10:05:54 AM

Thank you. Removing it does fix it, but I'd like turbotax to know it is happening and fix it!

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How to fix California taxes INCREASING when I enter 1099-MISC for the CA MCTR?