Level 2

How do I backout the FTB middle class payment on federal return?

Forum|Forum|3 years ago
January 29, 2023
3 replies
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Intuit Community Champion

FTB: The MCTR payment is not taxable for California state income tax purposes. Individuals do not need to claim the payment as income on their California income tax return. However, the MCTR payments may be considered federal income. As such, a 1099-MISC for MCTR payments of $600 or more will be issued.

S

singh

Level 6

For MCTR I filled the Form 1099-misc and entered the amount on Box 3. Do not check box for 'Other income' , go down to where there is a 'Box for YES / NO California Middle Class Tax Refund' check mark the Box for YES. This information will automatically flow to SCHEDULE 1 Line 8 (z). It will subtract the amount entered on 1099 Misc. This MTCR is not taxable.

abctax55

Level 15

@singh

nor for Federal. (from your other post on the topic)

Please cite your authority for this statement as there are *several* differing opinions and the IRS (AFAIK) has yet answered the question posed directly by Spidell.

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