Seth has a bank account at First Street Bank. He received Form 1099-INT, Interest Income, shown below. He has

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?
 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.

GPT-5 mini · Answer

Report the $1,200 as interest income on Form 540, line 16.  
On Schedule CA (540), Part I (Section A) enter the $1,200 on line 2b in the Federal amount column (Column A) and make no California adjustment (Columns B and C = 0).

(“U.S. Savings Bonds” exemption is not relevant here — Seth’s bank interest is taxable by California.)

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