California MCTR

Forum|Forum|3 years ago
February 15, 2023
2 replies
17 views

BettyJo, this is for you.

Now that the IRS has issued its decision on CA MCTR being non-taxable to Federal, we need revised, *Lacerte-specific* instructions on how to handle the 1099-MISC forms that CA sent out. If we enter on Sch 1 line 8z, and then back out on 8z, Lacerte will not print a Sch 1, showing the income and subtraction. Will it still be sent to the IRS? If not, how do we memorialize that we received a 1099-MISC, but it is not taxable?

We need to avoid CP 2000 letters, and so far I haven't seen anything from Lacerte on this. TurboTax (and I assume ProSeries) clearly show it being added and subtracted on Sch 1.

Lacerte Tax

This topic has been closed for replies.

George4Tacks

Level 15

For what it is worth I do the following

Screen 14 - Alimony & Other Income > Other Income > FTB - MCTR with the amount

Screen 24 - Other Adjustments - Other (Ctrl +E) - FTB - MCTR - General Welfare Exclusion with the amount

This puts both on Schedule 1 - One at line 8z and the other at line 24z

I am even doing this when there is no 1099.

Answers are easy. Questions are hard!

abctax55

Level 15

@George4Tacks

That's my M.O. too, except I don't think I'm going to bother unless there's a F 1099-Misc. Under $ 600, I'm going to ignore as the IRS wasn't notified. That 'ass-u-mes' my clients do remember to give me the F 1099-Misc 😉

@jerry - as the IRS ruling came out last Friday around 5:00 p.m. - I wouldn't expect Intuit to have changed any programming that fast. Unless, maybe (?) it's in today's update. I'm not holding my breath... especially since the IRS has said you are safe to just ignore it. Not that I believe them, thus the work-around for matching purposes that me & George (and, a lot of other tax pros) are doing.

HumanKind... Be Both

J

jerryAuthor

Level 6

I certainly wasn't expecting a program fix, but direction from Lacerte would be very valuable.

I'm not entering MCTR without a 1099-MISC either, but a lot of my clients got a 1099-MISC.

I have heard that an entry on 24z is likely to provoke a letter. I don't want to do that.

For now, I'm offsetting all but $1 on 8z, to force generation of Sch 1, but that looks messy to me. If Lacerte could assure me that 8z netting to zero still transmits to the IRS, I'd feel much more comfortable with this approach.

Lacerte????

S

strongsilence

Level 10

Saturday morning. I haven't seen an update.

Sign up

Login with SSO

Let's get you signed in

Login with SSO

Scanning file for viruses.

This file cannot be downloaded