I just had one of these, I had to pull out the CA instruction booklet to find where/how to enter this.

I took the income reduction on CA, not the credit, Form CA, Part II, Line 16, Column C is where the income reduction goes....you may have to dig out the instructions for claiming the credit instead.

*** Oh wait, you said Corrected W2, I think you need to amend the prior year return for a corrected W2.***

I just had a repayment.