CA Middle class tax refund

[nimaway]

You have to go through the questions on the state return and click the box that asks if you got a MCTR and then it will deduct it.

[nimaway]

It doesn't seem to make a difference. I checked the MCTR box on both the 1099MISC and in the California State questionaire so it would deduct it and the documents were still refused.  TT is now saying next week before they have a solution.   I am not in a hurry for the refund but it is not okay that TT has created a problem for so many filers in California by not fixing the tax program or sending out a mail communication to its members.  They could easily tell California filers to wait in their program until an update is pushed out.   The other option is using another tax program - and asking for a refund because of this but it is a lot of work.  Mistakes happen - Problems happen.  Good communication is always a must which is not happening the way it should.   Wouldn't be surprised if this blows up on TT on the news.  

[Grogu]

Same. I tried on the 1/27/23 date of the supposed updated; however, my return still got rejected, with the same error message.

[rtt1969]

I selected the appropriate box and I was about to send it in again since it got rejected, but I checked the copy of the form first and it still shows it added to income even though it said it wouldn't be taxable and I don't see any place where it deducted it on another form.  That is probably why people keep getting rejected, it's still showing up on the form as income.

Turbo Tax people, you better fix this, this is getting ridiculous.  In 1 or 2 days I will go to another site and that will be the end of ever using you again.  You better fix this tonight.

[Mommyof4girlz]

i tried again and it did in fact deduct the mctr payment however irs rejected it again for the same issue. so idk anymore what is going on

[nickweems]

Also don’t try to resubmit a bunch of times because you can only attempt to e-file 5 times before they make you mail it in. If you need the refund immediately you can remove the 1099-MISC MCTR form from federal income and submit..then after feb 23 amend your taxes with the form at that time.

[gdahlin]

I noticed that TT was handling the offset of the MCTR as a General Welfare Exclusion (GWE).  Does the GWE apply to those who are not members of Indian tribes?

[Grogu]

Let me ask; in addition to the issues with the Federal return, are any of you able to submit your CA return yet? I have a message that I cannot submit my CA state return until after 2/7 or something, because of changes in the tax code. Is this just me? I've never had these issues with TT before.

[whiskeytango]

Not to sound like a conspiracy theorist but I'm starting to wonder if this all has any relation to the severe debt our government is in. Think about it... every day they delay is another they kick the can down the road, another day they make interest off the money before they dole it out. Never had issues like this in the past and I'm not so sure it's just specific to Turbo Tax, though it could be, and how much of it is the IRS not releasing forms they know we will need to file. Guess we shall see. My last update from Turbo Tax moved the expected solution date from yesterday the 27th to Monday the 30th. Guess nobody works the weekends to solve these issues.

[Cyndlou55]

Looks like the problem is fixed. When you review the 1099 misc entry and click on edit there is a box that asks if its Middle Class Tax Refund. I checked that box selected review federal tax, review state tax finished and refiked. Both Fed and State were now accepted.

[tremllojh]

I don't think that the problem has been fixed. Even though I have the newest updates installed and the MCTR button  is turned on for the 1099-MISC, both my federal and California State tax returns include taxes for the California MCTR. California Schedule CA(540) still shows the MCTR as addition rather than a subtraction. I am using the macOS version of TurboTax. May be the problem has been fixed for the Windows version, but not for the macOS version. The fact that your returns have been accepted does not necessarily mean that the returns are correct.

[tremllojh]

I have still not yet seen a clear and authoritative statement whether or not the CA MCTR is taxable on the federal tax return. (Maybe I missed it.) This is certainly contributing to the confusion surrounding the issue. I would appreciate if somebody with the appropriate authority could give a clear answer to this question. This should be a TurboTax tax expert or, even better, someone from the IRS (assuming that they listen into this discussion). Thus, is the CA MCTR taxable on the federal tax return? YES or NO?

[rtt1969]

I’m using the online version and the 1099 part was fixed but I had to remove the 1099 and continue and then go back and put it in again, then it showed up correct on the forms, just clicking the new line they added wasn’t good enough.  So I am ready to submit but others have said they still got rejected so I’m going to wait until Monday evening and then submit since they are supposed to have the rejection thing fixed by then.

[archvyle]

i deleted my state, re did it. waiting until monday. i just wish they would put a statement out or something.

[Tabby1843]

It is NOT taxable for both federal and California.  Yesterday (1/27/23) TT software was not working which resulted including the MCTR into income.  Today at noon (1/28/23), I checked again and it was still including MCTR into income for both federal and state.  Someone posted that I should delete the 1099-MISC and re-enter the information.  I took that advice and reviewed the returns and it has worked by increasing my refund amount by my pre-determined amount.