CA Middle class tax refund

[Grogu]

Has anyone had any luck getting their returns accepted yet? Or, are we all still waiting on TT to update their program?

[Grogu]

Has TT updated their software? Are we good to go, can we file, and will it be accepted today?

[whiskeytango]

I have not seen any updates come through yet so I'm hesitant to file again until I see something change.

[Mommyof4girlz]

i refiled on saturday after so many people did the add and delete method and it worked and was accepted. i filed my daughters and sons  taxes today and both accepted with no issues and they both got $700 for mctr. its fixed just that turbo tax has not said anything.

[kizquierdo]

Yes, it’s fixed. Delete and re-add the 1099-MISC under federal income and it should work. You don’t need to do anything special in your state return.

[whiskeytango]

I went ahead and refiled today as well. Deleted the 1099 MISC, then re-added. Nothing changed for the numbers on my refund. It all looked exactly the same. So I was nervous, but for some reason it was indeed accepted this time. Hooray!

[EbonyA]

We were told that the issue was fixed as of today; glad to hear that you all were able to successfully file. For anyone else that has not  yet attempted to continue your return, please delete and re-add your 1099-MISC as referenced above.

[John-S II]

Well, it's interesting that TurboTax has decided on their own that the MCTR is not subject to federal tax when the IRS has stated as recently as yesterday (2/3/2023) that they have issued no guidance on the matter.  Any position taken by TurboTax is not, as they say in the tax business, "substantial authority".  The IRS said on Friday 2/3/2023 that guidance clarifying whether California’s Middle Class Tax Refund payments should be considered income for federal tax purposes could come next week.  I think the appropriate advice would be to wait for that guidance before filing your return.

[GSH3]

TurboTax Deluxe's state form CA 540 is still not picking up the $700 on line 14 which it pulls the info from Line 8z of the Adjustments  I did my taxes on the State's Franchise Tax Board (FTB) website to cross check TurboTax.  FTB properly deducted the $700 from my gross income which resulted in additional $60 added to my refund above what TT said.  

[VolvoGirl]

Did you go back and change the federal side to enter the  1099Misc properly?  You might not have started the state return over to update the federal changes.  

[GSH3]

Yes, I included the 1099MISC info and did the update/review of both Federal and State forms.  I only had W2 wages and this tax refund so took standard deductions.  FTB asked if I included the 1099MISC on my federal taxes, relyed yes and then asked for amount.  Still believe TT wasn't including adjustment correctly on CA540.

[VolvoGirl]

UPDATE

Feb 10, 2023 IRS has ruled the California Middle Class Tax Refund is NOT taxable
https://www.irs.gov/newsroom/irs-issues-guidance-on-state-tax-payments-to-help-taxpayers

[tremllojh]

I read the IRS ruling concerning the California Middle Class Tax Refund. The ruling says that "taxpayers in the following states do not need to report these state payments on their 2022 tax return: California, ...".

I have the following question: Does this mean that the appropriate 1099-MISC need not be reported at all and, thus, lines 8z of the Schedule 1 and of California Schedule CA(540) do not need that cumbersome explanation "CA payment, CA payment - general welfare exclusion" and can be left blank? 

Does TurboTax plan an appropriate update?

[Bsch4477]

Just delete the 1099-misc and any related input on the California return. 

[sudz1949]

If you haven't heard, as of last night (02/10/2023), the IRS has determined that the Middle Class Refund for California WILL NOT BE TAXED for 2022 income tax year.  In other terms, they are handling these refunds the same way they handled Federal stimulus amounts issued; not to be reported as income.😁