To adjust taxable amounts for unemployment compensation, which schedule should be used?

The correct choice for adjusting taxable amounts for unemployment compensation is Schedule CA. This schedule is specifically designed for California taxpayers to make adjustments to their federal income tax return as it pertains to state-specific items, including adjustments related to unemployment compensation.

In California, unemployment benefits are typically treated differently than they are at the federal level. Therefore, when filing state taxes, individuals may need to use Schedule CA to accurately report their unemployment compensation if it is not fully taxable at the state level or if there are other adjustments that need to be made.

Schedule D is generally used for reporting capital gains and losses, Schedule A is for itemizing deductions, and Schedule E pertains to supplemental income and loss, none of which would apply to the adjustment of unemployment compensation. Thus, Schedule CA is the appropriate form to reflect these specific adjustments in accordance with California tax law.