CALIFORNIA MIDDLE CLASS TAX REUND $350.

[munley]

How to report on Federal 2022 TAX form my $$350.00 MCTR California. No 1099 issued under $600.?

[SteamTrain]

@munley 

Instructions here:

Solved: For the Middle Class Tax refund here in California, I did not see where Turbo Tax asked for ...

[MonikaK1]

The MCTR is not taxable on the CA tax return, but no guidance has been provided by the IRS as yet as to whether or not it is taxable on the federal tax return. 

Even though you didn't receive a Form 1099-MISC with the Middle Class Tax Refund (MCTR) payment in box 3, you can enter the amount you received following these steps (also referenced by @SteamTrain:(

To enter a 1099-MISC for miscellaneous income in TurboTax:

1. Open or continue your return
2. Select Search and search for 1099-misc
3. Select Jump to 1099-misc
4. Answer Yes to Did you get a 1099-MISC?

Report the Middle Class Refund and follow the prompts. The 1099-MISC is showing the amount in Box 3, Other Income. 
 

In the California section,  in Here's the income that California handles differently, select Start next to Middle Class Tax Refund and follow the prompts.

You may wish to wait to file the Federal return until the IRS issues further guidance and corresponding enhancements are made to TurboTax.

@munley

[munley · Accepted solution]

California and Federal MCTR income are not taxable income! Filed taxes today! TurboTax gives alert  

[lovely45]

Does anyone know how to fix the issue with the filing the 1099 misc for the California middle tax refund. I filed and it rejected my return .Turbo tax said something about a software update. Do I need to file the 1099 misc or can I fix the return without the middle class tax info since I read it’s not taxable. Has anyone filed without it?

[JamesG1]

You may want to remove the 1099-MISC and report the California Middle Class Tax Refund as follows:

• 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.

@lovely45

[NaturallyAspirated]

Per California's FTB's website  ("https://www.ftb.ca.gov/about-ftb/newsroom/middle-class-tax-refund/help.html") "Individuals who received a California Middle Class Tax Refund (MCTR) of $600 or more will receive a 1099-MISC for this payment".

My son received $350, and therefore did NOT receive a 1099-MISC (and therefore no Payer's TIN/EIN).   How can this $350 of income be correctly reported in TurboTax?

I'm using TurboTax Deluxe for Windows (Version [phone number removed] ; TurboTax.exe Version 2022.47.16.35) with latest updates as of 2023-02-02 applied.

If I attempt to report the $350 as an MCTR payment in Box 3 on a 1099-MISC form in TurboTax Deluxe, then TurboTax Deluxe complains that "the EIN or Box3 amount is not a valid value for a CA MCTR".

TurboTax Deluxe recommends that the EIN and/or Box3 Amount is changed or the "CA MCTR" flag is unchecked (which seems like a bad idea since the $350 will then probably become taxable).

[NaturallyAspirated]

[phone number removed]  was actually the TurboTax Deluxe version stamp that was incorrectly interpreted as a phone number by this website :(
So, let's try again and hope for the best.  The version of TurboTax Deluxe for Windows that I'm currently using is:
022#000~0366  <----this is NOT a phone number (the hash and tilde were periods originally)

[munley]

Same Issue! So, I entered the $350.00 in other income and CA MCTR in box.

On State I followed MCTR prompt and it reduced income $350.00, I'm not going to fight it! Fed will tax me!!

[NaturallyAspirated]

I wrote (via e-mail) to Intuit's CEO a few minutes ago and to my pleasant surprise, he was very responsive and per his reply, has contacted the head of the TurboTax business unit accordingly.  I am optimistic the 1099-MISC California MCTR issue for refunds less than $600 will be addressed and probably resolved in a timely manner.

[munley]

Great except I filed my takes!

I guess  IRS got the benefit and taxed me!

Maybe you can contact the CEO and ask him about 1095A request when I am covered by employer insurance and not

by Coverage care or Obama care!

[bregaliza]

what kind of alert? does that mean I should not add it to my federal portion? 

[NaturallyAspirated]

The issue being discussed here is CA FTB did not issue 1099-MISCs for MCTRs less than $600, yet honest citizens wish to report their MCTR income, without it being incorrectly taxed.

On the current (as of the date of this post) TurboTax 1099-MISC form, If you enter an EIN of 68-0204061 (California's State Revenue Department), a Box3 (Other income) amount greater than or equal to $600 and then flag the "This was a California Middle Class Tax Refund (MCTR)" option, Smart Check does not complain about the EIN or the amount in Box3.  However, if the amount in Box3 is less than $600, then Smart Check reports it as an error.

So, we are waiting for a software fix from Intuit to allow people who received an MCTR of less than $600 to correctly report their actual (for example, $350) MCTR and not be taxed on that income.

[oldmankingsfan]

Excuse my ignorance. Today is Feb 5. I received the **bleep** CA socialist $250 clams. I want to file now.

1. Can I show the $250 on the Fed income section (even if it causes an error) and move on to file my taxes?

2. I honestly cannot remember when I received that **bleep** debit card. I may have received it in late December (2022 event?) or in January. When is this income - when the benevolent State issued the refund to the serfs, when the serfs actually 'received' the benevolence or when the serfs actually utilized the debit card?

Thoughts?