I appreciate your reply. I am clear on the law as it stands now, just not the mechanics in ProSeries for making the necessary changes to ultimately increase the income allocated out on the CA K-1. For example, when I try to change line 8 on Schedule F on the 100S to decrease my payroll expenses, it doesn't allow an entry directly on the 100S as everything flows from the federal return. I was hoping others were making these adjustments within ProSeries and could help with the mechanics. I know I can override it, but thought there may be a better way. I wasn't able to find anything directly related to non-conforming states in ProSeries help. If anyone has a link to something like that I would greatly appreciate it. Thanks!