I had the same issue. This appears to be a Turbo Tax issue. I spoke to both Turbo Tax support and California FTB help. Turbo Tax support doesn't even seem to be aware of the issue, they were effectively useless. My state return was rejected 3 times even though Turbo Tax review can't saying it was 100% correct and error free (BS).
The error seems to be that the state does not allow the additional $600 cash deduction above the standard deduction allowed by federal. The way I fixed it was to go to "forms" view and check CA (540) schedule A. Go to part II, side 5 and manually input $600 in the subtraction column (B) line 11 (gift by cash or check). This will eliminate the $600 additional deduction when using the standard deduction on your federal return. California does not allow this deduction. Once this was done my return was accepted by the state of California. The lack of awareness and support by Turbo Tax regarding this issue is inexcusable.
