Note: the process for entering manual income adjustments is described in the previous section.

California taxes as income certain items which aren’t federally taxable. These should appear on CA Schedule CA, Part I (the specific section and line number are listed in brackets below), but as noted above, in TaxSlayer they appear only on Section B line 8z.

  • [Section A, line 1a] Wages – HSA employer contributions – see Health Savings Accounts in CA, page 108.
    • TaxSlayer automatically makes the CA adjustment.
  • [A, 2] Interest from non-CA state and municipal bonds – see 1040 Line 2, page 31.
    • TaxSlayer’s page allows specifying an amount of tax-exempt interest as taxable on the state return.
  • [A, 2] Interest or other income earned in an HSA – see Health Savings Accounts in CA, page 108.
    • Must manually enter the CA adjustment; it posts to CA Schedule CA Part I, Section B line 8z.
  • [A, 3] Dividends from non-CA municipal bond funds – see 1040 Line 3, page 33.
    • The taxable amount, if any, by the state can be specified in TaxSlayer.
  • [A, 5] Survivor benefits (on a Form 1099-R) attributable to service by a public safety officer killed in the line of duty before January 1, 1997, are excludible from federal income tax; CA does not conform.
    • Must manually enter the CA adjustment; it posts to Section B line 8z.
  • [A, 5] Canadian and German Social Security (all other retirement payments from foreign governments are out-of-scope, as discussed on page 46).
    • The CA adjustment for Canadian and German social security payments must be manually entered; it posts to Section B line 8z.
  • [Section C, line 20] For prior year returns only, IRA contributions after age 70½, as discussed on page 70.
    • The CA adjustment must be manually entered; it posts to Section B, line 8z.

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