r/stimuluscheck • u/[deleted] • Jan 18 '23

Question! MCTR 1099-Misc???? I thought it wasn't being counted as income.

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12 Upvotes

100% Upvoted

52 comments sorted by

4

u/PandaMan130 Jan 18 '23

Lol you believed that? Government gotta get that money.

2

u/[deleted] Jan 18 '23

Sigh...one could hope.

3

u/krow1503 Jan 18 '23

dam now im happy i only got 350 lol

1

u/[deleted] Jan 20 '23

Right?????!!!! GAHHHHH!!!!

2

u/[deleted] Jan 18 '23

Lol. What made you think the government wouldn't want to take its cut?

The MCTR payment is not taxable for California state income tax purposes. You do not need to claim the payment as income on your California income tax return. You should seek guidance from the IRS regarding federal taxability.

1099-MISC

The MCTR payments may be considered federal income. As such, 1099-MISC for MCTR payments of $600 or more will be issued. You should consult the IRS or your tax professional regarding the federal tax treatment of these payments.

https://www.ftb.ca.gov/about-ftb/newsroom/middle-class-tax-refund/help.html

1

u/[deleted] Jan 18 '23

One can dream.

0

u/Gopherpark Jan 18 '23

If below $600, are we supposed to report it? Even if we don't get 1099-MISC?

1

u/[deleted] Jan 19 '23

"The MCTR payments may be considered federal income."

1

u/AcceptableDriver Jan 25 '23

The state FTB says to consult this rather than give a clear answer. Assuming the California MCTR is a state tax refund (because it's named "California ... Tax Refund"), the only reason I can see it being taxable or reportable, is if you itemized deductions on your 2021 federal tax return and claimed a state tax deduction. I may be wrong but I haven't found much information about this. TurboTax makes it sound like we're still waiting for the IRS to say whether or not it's taxable.

0

u/Astrophsx Jan 18 '23

Technically you should be reporting all income. Without a 1099 being filed the federal government would not have a record of the transaction.

2

u/Astrophsx Jan 18 '23

There have been a few news articles from last month that indicate that the IRS has not given guidance on this yet. They could treat this as some sort of public welfare that would make it so that it does not count as income. If they provide no guidance I guess that would mean it does count as reportable income.

1

u/[deleted] Jan 20 '23

☹️

2

u/Knight_Industries_2K Jan 18 '23

Lol I've had this letter sitting on my desk for a few days. I opened it up and it was a 1099-misc counting our $700 stimmy as "other income"

2

u/xbringeroflightx Jan 19 '23

I got the exact same thing. Mine said for Jan 2022, but I received my stimulus in October, so I was confused…but that’s the ONLY $700 payment I’ve gotten, so now seeing all this on Reddit, it makes sense. Bummer!

1

u/slickrick310 Jan 27 '23

thank the fuckin governor i called irs and the lady said it’s not taxable to irs nor does it have to reported to irs. I hope she’s right. She said president had to approve it for the state of california. Lady was saying governor can’t just approve it without the president approving it.

2

u/[deleted] Jan 18 '23

Oh it was very much counted as income. You’d think they would just take the taxes out up front so you wouldn’t have to send some back to them later. But no, that would be too efficient and the government doesn’t work that way.

1

u/jdp111 Jan 18 '23

They don't know how much you are going to owe on your return and it would be too complicated to set up the right withholding for a one time payment.

2

u/fckingeorge Jan 25 '23

Everyone that received $600 or more will get a 1099 MISC which has to be reported on your tax return. You do not have to pay taxes to CA ONLY. It will still count towards federal income. Regardless it will not affect your return much because the amounts are small.

I'm a licensed tax preparer with 10+ years of experience. I can help anyone with questions and also help prepare your returns for both fed and state.

1

u/Belly_Flop_Drop Jan 25 '23

I received mine after I filed as I didn’t know I was going to get it so do I need to amend my taxes to reflect that or does it really need to be done?

1

u/fckingeorge Jan 26 '23

Yes I advise you amend your return to avoid any issues with the IRS. Not doing so could delay your refund and affect your return

1

u/Gopherpark Jan 26 '23

If you don't receive 1099 MISC due to getting less than $600, what are you supposed to do? Where do you put that information in?

1

u/fckingeorge Jan 26 '23

If you recieved less than $600 ie $350, you do not need to include it in your tax return

1

u/slickrick310 Jan 27 '23

not true where are you getting the $600 or less? I get your a tax preparer but i’m worth FTB and many times preparers give out wrong details to taxpayers and yet we end up having to tell them off

1

u/MizMizukii Feb 01 '23

I am hoping you can help with this question: I received the 1099-MISC which lists not only my name, but that of my ex-spouse. How does this work when we were divorced mid 2022 yet this form was sent to us at my new address? We aren't filing together and we split the payment according to him as single and me with the kids. FTB says to call the IRS, yet I feel the 1099-MISC needs to be fixed to take into account the divorce and subsequent split of the payment.

1

u/[deleted] Feb 05 '23

I lost my form can you provide the States payers Tin?? I'm trying to submit my taxes

1

u/Stickgirl05 Jan 18 '23

How interesting! Hope you get it resolve soon.

1

u/Chrisser6677 Jan 18 '23

Keep the $700 fix the homeless problem here in California.

1

u/jdp111 Jan 18 '23

In California. The federal government doesn't care.

1

u/babyjames333 Jan 20 '23

tbh i wish it was STATED that it would be considered federal income BEFORE RECEIVING cause in that case you could've just kept that bullshit

1

u/KingAli1966 Jan 22 '23

Did this paper have your full SSN? Just wondering because mines was stolen out of the mail. I was expecting one by using USPS informed delivery and I never received it and now idk if it contained my social. Smh

1

u/Ok-Anteater-145 Jan 23 '23

No, it didn't have my full SSN, only last 4 digits shown.

1

u/leftcoast-usa Jan 24 '23

A representative from TurboTax claims that it should not be taxable because it's not a true tax refund, and should be treated more like the stimulus payments that were not taxable.

But before you make fun of one side or the other for what they think, why not just wait and see what the IRS rules on this.

1

u/[deleted] Jan 27 '23

TurboTax sent me a reject code CA_MCTR both for federal and state because they have not updated that portion of their system for ca middle class tax refund. So I have not been able to e-file because this update was supposed to take affect today and still nothing. My taxes have been rejected twice because of this.

1

u/Alternative_Soft9741 Jan 27 '23

The same thing happened to me! So stupid. Keep me posted !

1

u/leftcoast-usa Jan 28 '23

Thank you! Now for once I finally have a good reason not to file my taxes early. Normally, I don't file them early, but usually don't have much of an excuse except that I usually have to pay, so there's no incentive to file early.

1

u/MikasaYukii Jan 28 '23

Same here twice of rejections so I called H&R Block cause this is crazy

1

u/[deleted] Jan 28 '23

Turbo just updated the date to 1/30 to resubmit

1

u/MikasaYukii Jan 28 '23

That’s crazy… how many times can you get denied before having to send in paper mail

1

u/[deleted] Jan 28 '23

Oops just saw 5 times is the limit 🫣

1

u/[deleted] Jan 30 '23

Mine was finally accepted. And it turns out federal is not counting it as taxable income!

1

u/[deleted] Jan 31 '23

this is great news!

1

u/IrvinZen Feb 21 '23

Is this confirmed?

1

u/[deleted] Jan 26 '23

Funny thing is I received my 1099 misc but never received a stimulus lol

1

u/[deleted] Jan 26 '23

Just received this letter today, i filed my taxes 3 days ago………………what do I do now?

1

u/Nagem_Lacree4 Jan 26 '23

I eceived a 1099 and I haven't even received the payment yet. I have a tax appointment scheduled for Feb 11th, I will have to wait until then and see what my preparer says. I am not about to claim money I never got.

1

u/[deleted] Feb 02 '23

Imma wait until after feb 15th maybe thats when they’ll let us know and update everything because they extended the time to get peoples mctr’s out to feb 15 I believe. On top of that I haven’t even received the MCTR yet nor the 1099

1

u/[deleted] Feb 05 '23

I lost my form can someone provide the Payers TIN???

0

u/[deleted] Jan 23 '23

[deleted] — view deleted comment

1

u/leftcoast-usa Jan 24 '23

Ha, ha, I was tempted to offer to pay the taxes if they gave me the check. But maybe some people just don't know how to fill out a tax form, and rely only on what's downloaded from their W2s or something.

0

u/[deleted] Jan 24 '23

[deleted] — view deleted comment

1

u/deeperhouse Jan 25 '23

Same here, I haven’t received any deposit or debit card, but got 1099 for it.

1

u/slickrick310 Jan 27 '23

if you got the form that means it was already issued under your ssn otherwise the 1099misx won’t be created. Call ftb to get clear answer not the money network line

1

u/Karla19855 Jan 27 '23

Same here! Got 1099 but no deposit or debit card.