California Publication 1001 includes an explanation of the differences between California and Federal law for Dividend Income.
You would only make an entry in the California Adjustments section in the box for "RIC Capital Gains Distributed (not in federal income)" if you identified that you had a RIC Capital Gains distribution that was not reported on the Federal return but should be on the California return.
According to Pub 1001, California taxes the undistributed capital gain from a Regulated Investment Company (RIC) in the year distributed rather than in the year earned:
If capital gain from a RIC is earned in one year and distributed in a later year, enter the capital gain included in federal income for the year earned on Schedule CA (540), Part I or Schedule CA (540NR), Part II, Section A, line 3, column B and enter the capital gain for the year distributed on Schedule CA (540), Part I or Schedule CA (540NR), Part II, Section A, line 3, column C.
If RIC gains were earned and distributed in the same year, and they were reported on the Federal return, then you would not have a California adjustment to enter in the box for "RIC Capital Gains Distributed (not in federal income)" on the Other Interest and Dividend Adjustments screen in the California interview.
If your Dividend Income included a capital gain distribution for qualified small business stock—RICs, a portion of the gain may be excluded from the Federal return under certain circumstances. See the IRS instructions for Form 1099-DIV for more information.
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