I have tried it and it worked. First I entered all information on 1099 misc and entered  $700.00 on BOX 3  and check marked 'Other income' there was $84.00 tax to be paid to IRS. 

Then I unchecked the 'Other Income' Box, check marked 'YES' Box CA MITC the infor. automatically got transferred to Schedule 1 Line 8 z , and there was no tax due.