CA Middle class tax refund

[whiskeytango]

I have had the same issue. Turbo tax checks for errors, says I'm error free and good to go. Upon submission both federal and state were rejected for MCTR errors. I have checked the appropriate boxes, etc. All I can hope is there is some other update released today that will fix this problem. Very frustrating. 

[CarissaM]

Please follow the instructions here to contact us, so an agent can review your return. 

[tremllojh]

Clicking the "This was a California Middle Class Tax Refund (MCTR)" radio button does not help a bit. The California taxes still include taxes for the MCTR and, thus, remain higher than they should be. 

If I understand correctly how California Form 540 and Schedule CA(540) are designed and work, Form 540 starts with the federal AGI and adjustments for differences to the federal tax return are then made by additions and subtractions from Schedule CA(540). Thus, I would expect an entry on Schedule CA(540) increasing the subtractions by the MCTR amount. The way this would work is an entry in Section B, line 8z, column B with the description "California Middle Class Tax Refund" as other income.

[CAsandles]

I deleted my 1099 for the MCTR and reentered it selecting the radio button and it corrected my refund amount. 

[nickweems]

FYI - I deleted the 1099-MISC and added it again checking the box for MCTR and then attempted to e-file and it was rejected again.

[Tabby1843]

On line 8 of Form 1040, I have a positive amount for the MCTR, but where do you see the negative offset of the same amount so it is not taxable for the federal return.  As it stands now, the MCTR is included in my adjusted gross income.  Thanks for your help.

[jabo89]

On my Schedule 1 Part 1 8 Other income it says on mine:

z Other income.  List type and amount:

CA payment   $$$$. (my amount)

CA Payment - general welfare exclusion - $$$$ (negative amount which matches my amount)

[whiskeytango]

And have your returns been accepted?

[jabo89]

Unfortunately I am waiting for one more document before I can submit and see if it's accepted.

[whiskeytango]

I have gone through and deleted, then reentered the 1099 Misc, selecting the MCTR button. It also reflects in the section you mentioned showed the positive and negative offset, but has been rejected twice now for still the same reason. I did a phone call/screen mirror with an agent and they said there is a worksheet that should be released today from IRS to fix the error. So I suppose we are in a waiting game. Was just curious if someone else had success in submitting but it seems not.

[BrandiLO1]

We are aware of this experience. The issue is being resolved in an update that is 
scheduled to be released by this week. Please Login to your return early next week 
and if the issue persists, post back here to let us know. 

Please follow the steps below to review and resubmit your return:

TurboTax online:
1. Log into your account. 
2. Select check my return.
3. Select Federal from the left menu.
4. Select Federal Review.
5. Answer the question regarding CA Middle-Class Tax Refund.
6. File your return.

In TurboTax CD/ Download
1. Open TurboTax
2. Select Open your return
3. Select Federal Taxes from the top navigation menu.
4. Select Federal Review.
5. Answer the question regarding CA Middle-Class Tax Refund.
6. File your return.

[archvyle]

Same issue tried 3 times. Triple checked every possible thing I could. Rejected ca mctr payment. As the error code. 

[kizquierdo]

I'm having the same issue as all of the above. I need my tax refund ASAP.

As the MCTR is not taxable, I don't see why I need to enter MISC-1099 at all. Can't I just delate it and refile? Anyone else done this? Are there rules/laws against this?

[nimaway]

The MCTR question is located in two places.   On the 1099MISC and on the California Tax questionaire.   I clicked the button in both places - and resubmitted.   There was no information from Turbotax that these questions were added on an update that was downloaded.  I found the question on the 1099MISC and resubmitted and was rejected.  The discussion forum informed of the second question on the California State Tax Return Questions.  I selected that one and have to remove the deduction I manually entered on line 27 on the California tax return.    This would have been a lot easier if this was put into the program.  Now I have to wait and see - but I am sure I will be rejected again.   This isn't making TT look very good  and I understand that California didn't do anyone a favor either.  

[archvyle]

@BrandiLO1 please have your PR dept push out a statement on the main page of turbo tax about this. i have no idea whats going on. PLease keep us up to date. this is the first time in 7 years ive had a issue with turbotax. 

And it ALLLLLLL has to do with ca mctr payment