FORM 1099-MISC

[Fabulous1]

I filed my year 2022 taxes on Saturday, February 18th, 2022. Using the Turbo Tax software package.  I have a question and reference to my taxes. I received a tax Form 1099 - MISC, from the State of California Franchise Tax Board - MCTR. for the year 2022. There was an amount of $700 in box 3, listed under Other Income; for a stimulus check my husband and I received last year. I didn’t include this payment on my 2022 taxes, because when I tried to enter the $700 under the Other Income category, using the Turbo Tax program,  it wouldn’t allow me to include it. There was a column on the Form 1099-MISC, Copy B, for recipient, that stated “If you are required to file a return, a negligence penalty or other sanction may be posed on you if this is taxable income, and the IRS determines that it has  not been reported. I read a newspaper article last week in my local newspaper that stated that “the State of California and the IRS, are not requiring taxpayers to report income that was received as supplement stimulus income on our 2022 taxes”. Is this correct that I don't have to report the $700 I received on Form 1099-MISC, on my year 2022 taxes?.  When I filed my Federal and State taxes last Saturday, they were both accepted, without having included Form 1099-MISC. 

[ErnieS0]

Yes. You do not have to include the California Middle Tax Refund on your federal or state tax return.

The IRS said it determined it will not challenge the taxability of payments related to general welfare and disaster relief. This means that people in the following states do not need to report these state payments on their 2022 tax return: California, Colorado, Connecticut, Delaware, Florida, Hawaii, Idaho, Illinois, Indiana, Maine, New Jersey, New Mexico, New York, Oregon, Pennsylvania, and Rhode Island. Alaska is in this group as well, but please see below for more nuanced information.

See IRS issues guidance on state tax payments to help taxpayers

[Fabulous1]

Hi Ernie, that you so much for responding to my message. I am so happy I don't have to report the stimulus income on my 2022 taxes. Have a great day!