Oh please. Your CA income taxes are deductible, IIRC there's a line on the 1040 specifically for you to fill in your state income taxes. And I say that as someone who has filed self-employed for several years and so pay double the payroll taxes (ie picking up the employer's part as well as the employees).
I was trying to figure out where this was myself, digging thru last year's tax forms. Looks like you need to itemize and complete a Schedule A to use it.
