I think thats where the miscommunication was.


If you made $10k in wages and $5k in unemployment compensation, youre saying that your AGI is $15k. Federal will tax you on 15k. CA will take your $15k agi and as a deduction take out the $5k and tax you on the $10k.

I think most here thought you thought the $5k is reduced from your original $10k.