California Middle Class Tax Refund (MCTR)

[bekatz]

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.

[KrisD15 · Accepted solution]

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. 

[mia0579]

It still isn’t fixed

[EbonyA]

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