Updated October 24, 2026. Quick answer: Line 14 of the California Form 540 is where subtractions from federal income, taken from Schedule CA (540), go. The booklet uses Social Security benefits as its example of a difference between federal and California income. Line 15 then subtracts line 14 from line 13, and it is the subtotal that line 16 and line 17 build on.
What this line does
The form’s line 14 begins “California adjustments” and then names subtractions: “Enter the amount from Schedule CA (540), Part I, line 27, column B”. The booklet repeats the source in brackets under the heading.
Line 15 is the subtotal beneath it. The form’s wording is “Subtract line 14 from line 13. If less than zero, enter the result in parentheses.”
Who it applies to
The booklet gives a rule for filers with no differences: “If there are no differences between your federal and California income or deductions, do not file Schedule CA (540)”. For filers with differences it says “If there are differences between your federal and California income, e.g., social security benefits, complete Schedule CA (540).”
For how California treats those benefits, see whether California taxes Social Security, and for pension and IRA differences see Schedule CA (540) lines 4 and 5.
What the instructions say
| Line | What the form says |
|---|---|
| Line 14, the form | “Enter the amount from Schedule CA (540), Part I, line 27, column B” |
| No differences | “If there are no differences between your federal and California income or deductions, do not file Schedule CA (540)” |
| Differences | “If there are differences between your federal and California income, e.g., social security benefits, complete Schedule CA (540).” |
| What to enter | “Enter on line 14 the amount from Schedule CA (540)” (the part, line and column are those in the form row above) |
| Negative amount | “If a negative amount, see Schedule CA (540)” (the booklet points to the line 27 instructions) |
| Line 15, the form | “Subtract line 14 from line 13. If less than zero, enter the result in parentheses.” |
| Line 15, the booklet | “Subtract the amount on line 14 from the amount on line 13. Enter the result on line 15.” |
| Line 15, below zero | “If the amount on line 13 is less than zero, combine the amounts on line 13 and line 14 and enter the result in parentheses.” |
| Line 15, example | The booklet’s own example is “(12,325)”. |
Where the result goes next
Line 14 comes straight from Schedule CA (540). The booklet says “Follow the instructions for Schedule CA (540).” If the column B total is negative, the Schedule CA (540) line 27 instruction sends it to line 16 instead; that is covered on California Form 540 line 16. Line 15 carries on to line 17, whose form wording is “California adjusted gross income. Combine line 15 and line 16”. Background on the state’s treatment of retirement income is on California retirement taxes and whether California taxes pensions.
A worked example
The form prints the arithmetic for line 15: subtract line 14 from line 13. This is an illustration, not a state example, using invented amounts.
Suppose line 13 is $60,000 and the Schedule CA (540) column B total on line 14 is $10,000. Line 15 is $60,000 minus $10,000 and that is $50,000 (computed). The amounts are invented for the computation; your own lines come from your own return.
Edition and line numbers
This page reads California 540 Forms and Instructions, 2025 Personal Income Tax Booklet, Franchise Tax Board, and Form 540, California Resident Income Tax Return (2025), Franchise Tax Board, for tax year 2025, the current file the Franchise Tax Board served on 2026-10-24. Check the edition printed on your own form and use that edition’s line numbers.
Common mistakes
- Filing Schedule CA (540) when nothing differs. The booklet says “do not file Schedule CA (540)” in that case.
- Entering a negative column B total on line 14. The booklet directs “If a negative amount, see Schedule CA (540)” and its line 27 instructions.
- Writing a below-zero line 15 as a plain negative number. The booklet says to “enter the result in parentheses.”
Related: California retirement taxes, whether California taxes pensions, Schedule CA (540) lines 4 and 5, and whether California taxes Social Security.
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Answer againSources
- California 540 Forms and Instructions, 2025 Personal Income Tax Booklet, Franchise Tax Board: www.ftb.ca.gov
- Form 540, California Resident Income Tax Return (2025), Franchise Tax Board: www.ftb.ca.gov
- Related official page (not quoted): Franchise Tax Board, 2025 Personal Income Tax Booklet page: www.ftb.ca.gov
Read from the state revenue documents linked above on October 24, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer or the state revenue department is the right place to confirm anything consequential.