Where do I put the stimulus money?

Forum|Forum|3 years ago
January 27, 2023
2 replies
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I received a 1099g-misc for the $700 stimulus?

TurboTax Live Basic Online

PattiF

To clarify your question, was this a 1099G from a state for a payment issued during the Covid crisis? Please give me a little more information about your form.

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VolvoGirl

Employee

@PattiF Sounds like the 1099Misc for the CA Middle Class Tax Refund. I'm not sure how to enter it now. I Think Turbo Tax updated the program yesterday Jan 26. Also I'm seeing posts that say it is NOT taxable for federal now. Is that right?

Opus 17

Employee

@VolvoGirl wrote:

@PattiF Sounds like the 1099Misc for the CA Middle Class Tax Refund. I'm not sure how to enter it now. I Think Turbo Tax updated the program yesterday Jan 26. Also I'm seeing posts that say it is NOT taxable for federal now. Is that right?

If it is a state tax refund or rebate, that is treated like any other state tax refund. It is not taxable if the taxpayer previously used the federal standard deduction, but it may be taxable if the taxpayer previously used itemized deductions to deduct their state income tax. Virginia did the same thing, although it was only $250 per person.

VolvoGirl

Employee

Go to Federal > Wages & Income, you might need to continue though the general screens.
When you come to the Wages - Your Income screen click on Add Income or
scroll down to Other Common Income, then 1099Misc.
Put the amount in box 3 and follow the prompts.

The next screen says…..
Do any of the uncommon situations apply? In my Desktop program the 3rd item listed is California Middle Class Tax Refund.

When you click on that then at the bottom it will say....The California Middle Class Tax Refund (MCTR) will not be taxable on your California or federal returns. It will show up as Other Income on Schedule 1 line 8z and also as a separate negative amount to zero it out.

Opus 17

Employee

@VolvoGirl wrote:

When you click on that then at the bottom it will say....The California Middle Class Tax Refund (MCTR) will not be taxable on your California or federal returns. It will show up as Other Income on Schedule 1 line 8z and also as a separate negative amount to zero it out.

That makes no sense. Even the FTB says it "may be taxable on your federal return" and refers to publication 525. Are you sure TT isn't doing a benefits rule calculation in a worksheet somewhere, especially if the taxpayer took itemized deductions last year?

VolvoGirl

Employee

We have to ask TT. But it is a 1099Misc not a 1099G. It is not like a regular state refund. So taking the SD or not won't apply. Wish they would put out a FAQ for it. Can you ask the Mod for one or more clarification?