cramanitax,
Yes, you are almost exactly correct. I have dealt with this on my CA taxes for years. California is quite greedy about these and many other income items. For exempt interest dividends to be untaxed by CA, 50%+ of the exempt interest must be from CA sources, typically municipal bonds. As it is unlikely in the extreme that the $950 had anything remotely close to that 50% CA threshold, that portion is CA taxable. For the remaining $50, you do still need to check what the actual percent of CA source was. It is not always 100% as some funds try to goose the income a little with some side investments not eligible for CA exemption. Fidelity has given you the percentage for their own funds. To find the percentage for the other CA bond fund, you will need to go to the website of the company that manages that fund. Quite often Google'ing "[insert company name] 2022 supplemental tax information" will get you to the correct spot in which to look up the details for the specific fund you own. If you have trouble tracking that down, let me know the name of the other fund and I can take a stab.
