The MCTR is not taxable on the CA tax return, but no guidance has been provided by the IRS as yet as to whether or not it is taxable on the federal tax return. Depending on the amount you received, the California Franchise Tax Board may not issue you a Form 1099.
The IRS announced yesterday that they are working on this issue and expect to have guidance soon as to whether these payments are taxable on the Federal return. See here for further explanation from the IRS.
You may wish to wait to file the Federal return until the IRS issues further guidance and corresponding enhancements are made to TurboTax.
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