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I have still not yet seen a clear and authoritative statement whether or not the CA MCTR is taxable on the federal tax return. (Maybe I missed it.) This is certainly contributing to the confusion surrounding the issue. I would appreciate if somebody with the appropriate authority could give a clear answer to this question. This should be a TurboTax tax expert or, even better, someone from the IRS (assuming that they listen into this discussion). Thus, is the CA MCTR taxable on the federal tax return? YES or NO?