You enter the Form 1099-C on the federal tax return. The amount is on Form 1040 Schedule 1 Line 8c. The total from Schedule 1 Line 10 flows to the Form 1040 Line 8. This amount is included in your federal Adjusted Gross Income Form 1040 Line 11.
The amount from the federal return, Form 1040 Line 11 flows to the California Form 540 Line 13.
There is no California adjustment from income for the cancellation of credit card debt.
