Net income before state adjustments, also referred to as net income computed in accordance with federal tax laws, is the taxpayer's total income from all sources, reduced by all allowable deductions, as determined under the Internal Revenue Code. State adjustments are items that are deductible for federal tax purposes but are not allowed as deductions for California tax purposes, or are deductible for California tax purposes but not for federal tax purposes. These adjustments are added back or subtracted from net income before state adjustments to arrive at California taxable income. The taxpayer should carefully review the instructions for Form 100 and complete Schedule A, California Adjustments to Income, to calculate their California taxable income.