Received 1099-misc from calif. state for $700 probably re: high gasoline prices. where is this income listed 1040 and 540?

There have been confusing directions for that. A few weeks ago we were told to ignore it and not include it in the reo. Yesterday AARP/VITA tax preparation sites reversed itself and directed tax preparer to report it as other income and then report another other income with the same amount as a negative value to zero it out. You would not have to do anything for the California return. TurboTax might handle it differently so await other replies. 

If the 1099-MISC was received as the Middle-Class Tax Refund, you won't see it on your federal or state tax returns - it is non-taxable.   If you have not filed yet, you can add the 1099-MISC to Other Income and check the box that it is a CA MCTR.  The income will be reported but it won't show up in taxable income.    Look in the Payer's information on the 1099-MISC.  You should see the Payer as State of California - Franchise Tax Board - MCTR.   

Do I Enter State Stimulus Payments in TurboTax?   The 1099-MISC gets entered in the Other Common Income section.   Search for 1099-MISC, use the Jump to 1099-MISC link, and enter the information from your form.   On the follow-up question, make sure to mark the This was a California Middle-Class Tax Refund (MCTR) box.