Both answer 1 and 2 are correct. Mark for follow up Question 38 of 99. Paid family leave provided by the state of California: Is reported on Form 1099-G on Table A. Is similar to unemployment, but will not report any federal tax withholding. Requires an adjustment on Form 540. Is treated the same as disability income and will not be taxable on either the federal or the California tax return. Mark for follow up Question 39 of 99. What adjustment(s) may need to be made on the California return when a taxpayer has California lottery winnings? O An income subtraction and an itemized deduction addition An income subtraction and an itemized deduction subtraction. An income addition and an itemized deduction subtraction An income addition and an itemized deduction addition Mark for follow up Question 40 of 99. Jeff gehad l eavine