Thanks for the help - although, alas - none of it did help. The answer I came up with is: enter PPP loan and expenses non-deductible for CA in screen 13 - this makes fed and CA come out correctly. However, I get the critical diag: #56719 - which isn't an issue in my case. It didn't stop me from efiling - unless it comes back to me. I'm guessing this should be an informational diag and not critical.