Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 2
posted Jan 29, 2023 9:44:17 AM

California Middle Class Tax Refund (MCTR)

I was entering my MCTR as a 1099-MISC for Federal tax & there was a dropdown to indicate the MCTR as a category. In Forms Schedule 1 to 1040B, the amount is fully offset a "General Welfare Exclusion" and is not included in taxable income.  I have searched on-line & found it to be taxable & I have not seen where the IRS has made this non-taxable but apparently it has. Is this the correct treatment?

 

Thanks in advance.

0 3 712
1 Best answer
Employee Tax Expert
Jan 30, 2023 7:56:09 AM

There is very little guidance from the IRS, but the program does make it non-taxed. 

The general consensus is that because it is labeled as a "Refund" it is not taxable

 

Customers were getting an error when trying to e-file, but this was resolved. 

If you are using the Desktop version, please be sure to update the program before filing. 

3 Replies
Employee Tax Expert
Jan 30, 2023 7:56:09 AM

There is very little guidance from the IRS, but the program does make it non-taxed. 

The general consensus is that because it is labeled as a "Refund" it is not taxable

 

Customers were getting an error when trying to e-file, but this was resolved. 

If you are using the Desktop version, please be sure to update the program before filing. 

Returning Member
Jan 30, 2023 11:01:23 AM

It still isn’t fixed

 

Expert Alumni
Jan 30, 2023 12:34:23 PM

You may also try deleting the form and re-adding it. This has worked for many others @mia0579.