Recipients of the Middle Class Tax Refund of 600 dollars or more should wait to file their 2022 tax returns as the IRS is working on guidance for tax prepares on how to enter the state inflation benefit.
The Orange County Register says tax filers in California who got a Middle Class Tax Refund and a corresponding 1099 form should wait to file their federal tax returns, the IRS said Friday.
The Internal Revenue Service, now weeks into tax season, issued a statement on February 3rd saying it is working on guidance for tax preparers and at-home filers.
For tax filers who got the 1099-MISC form, the question remains: Will the IRS tax the inflation refund?
“The IRS is aware of questions involving special tax refunds or payments made by states in 2022; we are working with state tax officials as quickly as possible to provide additional information and clarity for taxpayers,” the statement reads.
The agency previously said it was working on guidance for 19 states that provided refunds of some form in 2022.
The IRS said it expects to provide “additional clarity for as many states and taxpayers as possible next week.”
California has sent out 6.4 million 1099-MISC forms to MCTR recipients who got at least $600, according to the Franchise Tax Board. The payments cap at $1,050 for joint filers who earn less than $250,000 and have a qualifying dependent. Between October and January, the tax board sent out 16.6 million payments worth a combined $9 billion.
For anyone still struggling to determine their MCTR eligibility or status, be sure to call the Money Network and FTB early in the day and stay in the phone tree until you find a human who can answer your questions.
Here’s one way to check:
-Call 1-800-240-0223-Press 1 for English (or 2 for Spanish)-Listen to options-Press 2 “if you have not received a payment”-It will ask for the last 6 digits of your Social Security number-Then it will ask for your ZIP code-It will then say “you may call us back if you have not received a payment by Jan. 31.” That means, we were told, “you’re still in line - most likely.”
For more questions, try the Money Network at 800-542-9332.
Call the Franchise Tax Board: 1-800-852-5711