> Yes, manually adjust your dividends entry, then enter everything, and write up copious notes on what you did and why in case the Franchise Tax Board ever asks you.
Ok, thanks. That was my plan.
The FTB doesn't even know about the source of these dividends (no 1099) and the tax return will show no evidence of them having been adjusted, only added to CA (540) line 3 column C (and I'll only be adding 20% since 80% is from government obligations). So I don't suspect they would have any reason to inquire about them unless doing some random audit, in which case possibly they would ask a question such as "I see you entered additional dividends on CA (540) line 3 column C. Could you please provide details on the source of these dividends." So yes, having notes and records handy would be good if this comes 3-4 years down the road.
