BettyJo, this is for you.

Now that the IRS has issued its decision on CA MCTR being non-taxable to Federal, we need revised, *Lacerte-specific* instructions on how to handle the 1099-MISC forms that CA sent out.   If we enter on Sch 1 line 8z, and then back out on 8z, Lacerte will not print a Sch 1, showing the income and subtraction.  Will it still be sent to the IRS?  If not, how do we memorialize that we received a 1099-MISC, but it is not taxable?

We need to avoid CP 2000 letters, and so far I haven't seen anything from Lacerte on this.  TurboTax (and I assume ProSeries) clearly show it being added and subtracted on Sch 1.