Question

Seth has a bank account at First Street Bank. He received Form 1099-INT, Interest Income, shown below. He has no other interest or dividends to report. How should this income be reported on Seth's California tax return?

Answer choices are below the image.
Enter $1,200 on Form 540, line 16.
Enter $1,200 on Schedule CA (540), Part I, Section A, line 2b, column B.
Enter $1,200 on Schedule CA (540), Part I, Section A, line 2b, column C.
He is not required to report interest from U.S. Savings Bonds.

Answer 1

Enter $1,200 on Form 540, line 16.

Explanation: Bank interest is taxable by California. If there are no California adjustments, you report the interest on Form 540 (line 16). You would not put it in Schedule CA column B (subtractions) or column C (additions).