It's taxable on federal but not on California.
Anyone know how to subtract it from income other than on schedule CA, section B, Line Z?
Open the 540, hit F6, then type Oth and the Other Income worksheet will open, scroll down t the line for Middle Class Tax Refund
Perhaps review this thread before filing a return with MCTR.
The taxability at the Federal return is under debate.
https://proconnect.intuit.com/community/proseries-tax-discussions/discussion/mctr-middle-class-tax-r...
