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January 26, 2023
Question

Issues with 1099-MISC: "your from 1099-MISC from state of California ftb-mctr shows $700 on line 3, but this income is not reported on another for or schedule"

  • January 26, 2023
  • 1 reply
  • 0 views
I've tried "correcting" this 4 times now, by verifying the information input is correct, which it is...nothing is advancing or changing... in a constant loop and unable to advance to the next section

1 reply

SantinoD
January 27, 2023

The MCTR is not taxable on the CA tax return, but no guidance has been provided by the IRS as to whether or not it is taxable on the federal tax return. There will be a question asking if the payment is for the California Middle Class Tax Refund. Select “Yes” to automatically exclude this amount from federal income.  Therefore, TurboTax software is not treating this payment as taxable income. 

 

To get back to 1099-MISC screen:

 

  1. Open or continue your return
  2. Select Search and search for 1099-misc
  3. Select Jump to 1099-misc

 

We are not aware of any software issues, so please try the instructions above and confirm if it worked, please.

 

Once we get more guidance from the IRS, we will notify you of the changes and how to handle them.