CA_MCTR_Payment causing rejection

Forum|Forum|3 years ago
January 27, 2023
3 replies
2 views

Is anyone seeing their return rejected both on the Federal Level and the State Level due to the California Middle-Class Aid for the year 2022? Does anyone know of a fix in Turbo Tax?

TurboTax Premier Online

Best answer by SantinoD

When entering the 1099-MISC CA MCTR , there will be a question asking if the payment is for the California Middle Class Tax Refund. Select “Yes” to automatically exclude this amount from federal income. Not answering this question correctly could cause e-file reject.

To get back to the 1099-MISC screen:

Open or continue your return
Select Search and search for 1099-misc
Select Jump to 1099-misc

The MCTR is not taxable on the CA tax return, but no guidance has been provided by the IRS as to whether or not it is taxable on the federal tax return. Therefore, TurboTax software is not treating this payment as taxable income.

Once we get more guidance from the IRS, we will notify you of the changes and how to handle them.

Kimirod17

Level 2

Me! and turbo tax isn’t catching the issue when I review. Corrected it and it rejected a second time.

jamesx007Author

Level 2

It seems to be a bug with Turbo Tax. Just today they announced that it will be fixed 1/27/2023. So can try and "fix/revisit" that tax form again and resubmit.

Tim Jin

Level 2

Don't retry! I did and it was rejected again. you only have 5 times to resubmit.

SantinoDAnswer

Level 6

To get back to the 1099-MISC screen:

Open or continue your return
Select Search and search for 1099-misc
Select Jump to 1099-misc

Once we get more guidance from the IRS, we will notify you of the changes and how to handle them.

newuser6

Level 2

I JUST CALLED TURBOTAX AND THEY SAID THE PUSH WILL NOT HAPPEN UNTIL MONDAY 1/30.

jamesx007Author

Level 2

Just checked, yes the message is now changed to 1/30

We've identified an issue in your federal tax return. This issue is being resolved in a product release scheduled for January 30th, 2023. On or after January30, 2023. you'll need to sign into TurboTax, complete a quick review (steps below), and resubmit your return....

And I got on the call with Support and the agent said system update/push happens in the early morning. he also said that there is no limit to the number of resubmits. However, I don't feel that the agent I talked about understands the system very well. So should definitely confirm on your own.

CarissaM

Level 15

This has been fixed as of today. Please follow the instructions here to update your software if you are using the desktop version, and try to file again.

Please let us know if you need additional assistance.

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