You did not really answer my question. I am still not sure if I should enter all of my capital gains into turbotax on the line labeled "Regulated Investment Company (RIC) Capital Gains Earned (in federal income)". Since almost all mutual fund companies are ETF's, then your answer would suggest that everybody should enter all of their capital gains. However, when I change to the Forms view, I see that the value is entered on line 9, column B of Form CA(540NR). I found the instructions for that form, and they say "Get FTB Pub. 1001, if you received dividend income from Undistributed capital gains for regulated investment company (RIC) shareholders". I found FTB Pub. 1001. It says "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 or 540NR), line 9, column B and enter the capital gain for the year distributed on Schedule CA (540 or 540NR), line 9, column C." So, the instructions from California indicate that I should only enter capital gains that are earned in one year and distributed in a later year. Turbotax does not make that clear at all. I also suspect that turbotax is not doing this correct because it only asks for a single number, but the CA forms want me to enter a value for line 9 column B and line 9 column C.
I don't even know if my capital gains are earned in one year and distributed in a later year. Is that common?
