Don't understand difference between federal and state IRA distributions question. What box number on the 1099-Rs?

Can you please clarify which state return are you filing?

Retirement income is only taxed in your state of residence

California -- my Federal has 30,000 in taxable on 1099-r but on the 1099-r there is zerofpr state so does it get entered there as a subtraction??

You should enter your Form 1099-R as it is stated. If there are no entries in your state boxes 14 through 19, just leave them blank.