Question

What is the purpose of Schedule CA (540)?

Answer 1

Schedule CA (540) is the California adjustments schedule you attach to Form 540. Its purpose is to reconcile your federal amounts (federal adjusted gross income and federal itemized deductions) with California tax law by reporting additions and subtractions required by state law. In short, you use Schedule CA (540) to convert your federal income and deductions into California taxable income (and California itemized deductions).