There is a bug in the CA form and there is no way around it using the Step by step in the federal section. The only way i could fix it is by manually adjusting the amount in the CA state Step by Step when it asks if there is any adjustment for interest and points reported on FORM 1098. The adjustment that TT is calculating is $1,100,000/'total loan(s) amount (incorrectly calculated by TT)l' x total interest minus the federal interest deduction. If you are below the $1,100,000 in mortgage loan amount then just simply take the total mortgage interest minus the adjusted federal mortgage interest and put that number there. It should be a positive number. This brings the full interest being deducted in the CA forms. It's a ridiculous workaround and honestly should be fixed.
On a side note, if you do it manually you can get TT for free since you will get a bigger refund doing it manually over using the software. They guarantee a maximum refund and this artificially lowers your refund.
