GeorgeM777
Expert Alumni

Business & farm

@DM007  To follow-up on the response from @RobertB1326, you should see a section entitled "Other California Adjustments to Income" or similar wording.  You are correct in that your CA relief grant while taxable income on your federal return is not taxed by CA. 

 

The CA form that gets created when the relief grant is subtracted from your CA return is Form 540 CA Adjustments-Residents.  Here is a suggestion, click on "Forms" in the upper right side of your page.  On the left side of the page, near the top, click on Open Forms.  Enter CA 540 Adjustment-Residents and see if the form appears.  If it does, open it, and you will notice that column B is where the CA subtractions are entered.  It would appear that you will enter the relief grant subtraction on line 8(f).

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