What amount of Sonny's lottery winnings can he exclude from taxable income on his California tax return?

In California, lottery winnings are considered taxable income under both federal and state tax laws. However, when it comes to the specific situation of excluding a portion of winnings from taxable income, the relevant figure is that California generally allows individuals to exclude the first $600 of lottery winnings. Therefore, the correct approach is to recognize that Sonny can exclude up to this amount from his taxable income.

Considering lottery winnings, the remaining amount after excluding the first $600 is subject to taxation. Thus, if Sonny's total winnings were $1,600, he would only exclude the initial $600, making the excess ($1,000) fully taxable. Therefore, the appropriate amount Sonny can exclude on his California tax return is indeed $600, aligning with California's tax treatment of lottery winnings. As such, the exclusion cannot exceed this specified threshold, confirming why the answer regarding the exclusion amount is valid.