The question (and mine) has to do with an CA S-Corp return and the correct method to enter an adjustment to show a CA Small Business Covid Relief Grant on an SCORP return, not a personal return! The CA Adjustments Form is for a PERSONAL return only.
On the FEDERAL S-Corp return, both a PPP forgiven loan and the CA grant need to be included, but only the CA grant is taxable on the Federal return
Intuit (turbotax) has done a VERY POOR job of handling both the PPP loan forgiveness and the CA grant income on both the Federal S-Corp return and the CA return. Frankly they should be ashamed on themselves. I have wasted hours on this issue.
