Dave Fogel is one of THE smartest tax preparers around, and know CA inside/out:
https://img1.wsimg.com/blobby/go/310b78c2-6a3e-4922-acb3-709b44966191/downloads/CSEA-Fogel-MiddleCla...
His article gives a lot of substantiation to exclude the MCTR from taxable income for Federal purposes.
YMMV & consider disclosures.
HumanKind... Be Both
