The state adjustments for S corps get input very differently than CA partnership returns.
Adjustments to the Side 1 and 2 income calculation are input in the California/State Adjustments tab shown below. This is for the calculation of the income for the S corp level entity tax.
The adjustments for the CA Schedule K are input in the Schedule K section shown below. This adjusts the income that gets reported to the owners on the K-1s. Notice you can input details for adjustments on the Adjustments Detail – Income/Deductions/Other tabs so that it prints a statement.
