OH...and dealing with the bond Premiums?
Yeah, I've done that. I subtract all of the tax-exempt $$ belonging to my state out of box 8 & 13 in the original 1099-INT, and put them in a separate 1099-INT form as-if from the same brokerage. You would do that for your CA bonds (and any US Territory bonds). That way, only the proper amount of amortized premium gets assigned to the CA bonds. Also, I guess it allows you to declare all of the box 8 (&13) $$ as being CA bonds on the new-separate 1099-INT....and they are now the proper amounts.
AND do similar if you have OID to report for any CA bonds you own...create two, one for CA, and another for everything else.
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
