Line 11 through Line 19a and Line 20 through Line 23 and Line 25

California law is the same as federal law with the exception of the following:

Line 11 Educator Expenses – California law does not conform to federal law regarding educator expenses. Enter the amount from line 11, column A on line 11, column B.

Line 12 Certain Business Expenses of Reservists, Performing Artists, and Fee-Basis Government Officials – If claiming a depreciation deduction as an unreimbursed employee business expense on federal Form 2106, Employee Business Expenses, you may have an adjustment in column B or column C. For more information, get FTB Pub. 1001. Federal law eliminated the $3,000 deduction for living expenses for members of Congress while away from home. California law does not conform. Enter the amount of living expenses on line 12, column C.

Line 13 Health Savings Account Deduction – Federal law allows a deduction for contributions to an HSA account. California law does not conform. Enter the amount from line 13, column A, on line 13, column B.

Line 14 Moving Expenses – California law does not conform to federal law regarding the suspension of the deduction for moving expenses, except for members of the Armed Forces on active duty. Non-military and military taxpayers, prepare form FTB 3913. After completing form FTB 3913, if you are a non-military taxpayer and checked the "No" box on line 5 of form FTB 3913, enter the amount from form FTB 3913, line 5 on Schedule CA (540), Part I, Section A, line 1h, column C. If you are a non-military taxpayer and checked the "Yes" box on line 5 of form FTB 3913, enter the amount from form FTB 3913, line 5 on Schedule CA (540), Part I, line 14, column C.

Line 15 Deductible Part of Self-employment Tax – A taxpayer may be classified as an independent contractor for federal purposes and as an employee for California purposes. This deduction is not allowed to an employee. If for California purposes, the taxpayer is classified as an employee, an adjustment is needed in column B. Enter the amount from line 15, column A, on line 15, column B.

Line 17 Self-employed Health Insurance Deduction – A taxpayer may be classified as an independent contractor for federal purposes and as an employee for California purposes. This deduction is not allowed to an employee. If for California purposes, the taxpayer is classified as an employee, an adjustment is needed in column B. Enter the amount from line 17, column A, on line 17, column B. Note : A taxpayer classified as an employee for California purposes who makes an adjustment on this line may be able to claim this amount as a deduction for medical and dental expenses. For more information, see instructions for Part II, line 4.

Line 19a Alimony Paid – Under federal law, the TCJA, alimony and separate maintenance payments are not deductible by the payor spouse, if made under any divorce or separation agreement executed after December 31, 2018, or executed on or before December 31, 2018, and modified after that date (if the modification expressly provides that the amendments apply). California law does not conform. If you paid alimony and did not deduct it on your federal tax return, enter the alimony paid in column C. If you are a nonresident alien and did not deduct alimony on your federal tax return, enter the amount you paid in column C.

Line 19b (Recipient’s SSN/Last Name) – Enter the SSN or ITIN and last name of the person to whom you paid alimony.

Line 20 – IRA Deduction 408 election – To take the election, the federal deduction is taken on line 20, column A. The election for California will be on line 20, column B or C. Get FTB Pub. 1005 for more information. IRA age – If you report an IRA deduction on line 20, column A at age 70½ or older, include that amount deducted for federal in the total you enter on line 20, column B. Get FTB Pub. 1005 for more information. Catch-up contributions for certain individuals – If the amount reported on line 20, column A, is more than the amount allowed for California, enter the difference between the amount deducted for federal purposes and the deduction amount allowed for California on line 20, column B. Get FTB Pub. 1005 for more information.

Line 21 Student Loan Interest Deduction – California law conforms to federal law regarding student loan interest deduction except for a spouse/RDP of a non-California domiciled military taxpayer residing in a community property state. Use the Student Loan Interest Deduction Worksheet to compute the amount to enter on line 21. For more information, get FTB Pub. 1032. Student Loan Interest Deduction Worksheet Enter the total amount from Schedule CA (540), line 21, column A. If the amount on line 1 is zero, STOP. You are not allowed a deduction for California. Enter the total interest you paid in 2024 on qualified student loans but not more than $2,500 here. Add federal Schedule 1 (Form 1040), line 21 (student loan interest deduction) to federal Form 1040 or 1040-SR, line 11 (AGI). Enter the result here. Enter the amount shown below for your filing status. Single, head of household, or qualifying surviving spouse/RDP – $80,000 Married/RDP filing jointly – $165,000 Is the amount on line 3 more than the amount on line 4? No . Skip line 5 and line 6, enter -0- on line 7, and go to line 8. Yes . Subtract line 4 from line 3. Divide line 5 by $15,000 ($30,000 if married/RDP filing jointly). Enter the result as a decimal (rounded to at least three places). If the result is 1.000 or more, enter 1.000. Multiply line 2 by line 6. Student loan interest deduction. Subtract line 7 from line 2. Student loan interest adjustment. If line 1 is less than line 8, enter the difference here and on Schedule CA (540), line 21, column C.

Line 22 (Reserved) – For taxable years beginning after December 31, 2020, the tuition and fees deduction was repealed.

Line 24 – Other Adjustments b. Deductible expenses related to income reported on line 8l from the rental of personal property engaged in for profit – Generally, California law conforms with federal law and no adjustment is needed. However, if differences exist, enter the difference between the federal and California amount in column B or column C. c. Nontaxable amount of the value of Olympic and Paralympic medals and USOC prize money reported on line 8m – Federal law allows an exclusion from gross income for the value of any medal awarded or prize money received from the U.S. Olympic Committee on account of competition in the Olympic Games or Paralympic Games. The exclusion does not apply to a taxpayer for any year in which the taxpayer’s AGI exceeds $1 million, or half of that amount in the case of a married individual filing a separate return. California law does not conform. If you deducted the amount for federal purposes, enter that amount in column B. d. Reforestation amortization and expenses – California law allows a deduction for reforestation amortization and expenses with respect to qualified timber property located in California. Enter the amount from column A that is for non-California qualified timber property in column B. f. Contributions to IRC Section 501(c)(18)(D) pension plans – If the contribution amount for California is different than the federal amount, you will need to make an adjustment in column B or column C. For more information, get FTB Pub. 1005. g. Contributions by certain chaplains to IRC Section 403(b) plans – If the contribution amount for California is different than the federal amount, you will need to make an adjustment in column B or column C. For more information, get FTB Pub. 1005. i. Attorney fees and court costs you paid in connection with an award from the IRS for information you provided that helped the IRS detect tax law violations – California law does not conform to federal law regarding the deduction of these attorney fees and court costs. Enter the amount from column A in column B. j. Housing deduction from federal Form 2555 – If you claimed the foreign housing deduction for federal purposes, enter the amount from column A in column B.

Line 26 – Add line 11 through line 23 and line 25 in column B and column C.

Line 27 – Total

Subtract line 26 from line 10 in column B and column C.

Also, transfer the amount from:

Line 27, column B to Form 540, line 14. If column B is a negative number, transfer the amount as a positive number to Form 540, line 16.

Line 27, column C to Form 540, line 16. If column C is a negative number, transfer the amount as a positive number to Form 540, line 14.