I wish I knew, but alas I do not. I'm not a CPA, nor a tax-professional, but just a regular taxpayer who has used TurboTax (Microsoft Windows version) for decades to make filing taxes less arduous.
We filed our taxes earlier today (Feb 10). Later on, I went to check my e-mail and was confronted by "breaking news" stories that the IRS is asking taxpayers NOT to file taxes for at least another week or so because they have yet to decide if California's MCTR is taxable income or not, and likewise for similar programs in about 20 other States.
However, the link provided by VolvoGirl to the IRS' website contradicts the "breaking" news stories, so I'm inclined to believe the IRS's website. That IRS website page indicates they are not treating it as taxable income, in the majority of cases.
Depending on the specifics for each State, for those who have already filed, I guess it is best to double check your tax forms and if the MCTR was treated as taxable income, then maybe filing an amended tax return is worth the effort, depending on the size of the tax hit.
For the current version (see previous post) of TurboTax I ran today and using a1099-MISC form, the CA MCTR amount was not treated as taxable income for either Federal or State.
