@McCartF You are correct. California Paid Family Leave payments are not taxable in California.
You will enter your 1099-MISC just as @ColeenD3 instructs above. Then you will create your California non-resident return BEFORE you create your Massachusetts resident return. That will cause the California return to ask you to adjust your income to show what is taxable in California. You will exclude the income from this 1099-MISC.
Unfortunately, you are also correct that the paid family leave benefits are taxable on your Massachusetts return.
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