on the CA540 you will enter - http://www.ftb.ca.gov/forms/2008/08_540.pdf
line 13 - Enter federal adjusted gross income from Form 1040, line 37
line 14 - California adjustments – from Schedule CA (540), line 37, column B - http://www.ftb.ca.gov/forms/2008/08_540ca.pdf
line 16 - California adjustments - from Schedule CA (540), line 37, column C
You will do adjustments only if there is additional CA taxable income or some income that taxable on the federal return is not taxable in CA.
In most situations you do not need to do any adjustments - but should read instructions for each specific item. - http://www.ftb.ca.gov/forms/2008/08_540cains.pdf
For the student loan interest deduction - see page 6 instructions - http://www.ftb.ca.gov/forms/2008/08_540cains.pdf
Line 33 (Student Loan Interest Deduction) - California 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 on this page to compute the amount to enter on line 33. For more information, get FTB Pub. 1032.
For IRA deductions - see page 5:
Line 32 (IRA Deduction) - If you are an active duty military servicemember domiciled outside of California, you may have an adjustment. See line 36.
California does not conform to the federal increase to the indexing of AGI requirements for IRAs. The phase-out for California remains at:
• Single or Head of Household . . . . . . . . . . . . . . . $50,000 - $ 60,000
• Married/RDP filing jointly or qualifying Widow(er) . . . . . . . . . . . . . . . . . . . . . $80,000 - $100,000
• Individual not active, spouse/RDP participant . $150,000 - $160,000
Federal amounts have increased to:
• Single or Head of Household . . . . . . . . . . . . . . . $53,000 - $ 63,000
• Married filing jointly/qualifying Widow(er) . . . . . $85,000 - $105,000
• Individual not active, spouse participant . . . . . . $159,000 - $169,000
Compute your federal IRA deduction following the federal instructions using the federal IRA worksheet. Compute your California IRA deduction using the federal IRA worksheet using California phase-out amounts instead of federal amounts. Enter as an adjustment in column B, the difference between the amount determined for the federal IRA deduction and the California IRA deduction.