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

[Terry53029]

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.

[Terry53029]

Here is  link you may want to read.

https://proconnect.intuit.com/community/proseries-tax-discussions/discussion/mctr-middle-class-tax-r...

[BobKamman]

Don't enter it there in the first place.

[singh]

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]

@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.

[Blue_1962]

Yes resolved thank you very much for all the replies

[George4Tacks]

It seems the authority is "TurboTax does it so it must be right". "ProSeries does it so it must be right". OOPS! "Lacerte doesn't do it so it must be wrong"...

[abctax55]

G I G O

A quote from a colleague (who was a "Champ" on the old Tax Almanac).

TAX SOFTWARE IS NO SUBSTITUTE FOR A GOOD TAX PROFESSIONAL.

[BobKamman]

And when you take a case to Tax Court, a revenue ruling (remember those?) has no special weight there because they are deemed merely to represent the contention of one litigating party. IRS silence on this issue indicates at least that there is no obvious answer.  I'll rely on an eventual IRS statement that MCTR is not taxable, whether more or less than $600.  If IRS says it's taxable and will be an issue in every California audit it conducts -- I'll be surprised.