California State Income Tax Adjustment?

Question

1. On federal return, you can deduct the tax you paid to CA state. Now when you file Form 540 for CA, TurboTax seems to put your state income back to your taxable income, as if you can only deduct paid state income tax on federal return, but not for CA return. Anyone knows why?

2. On federal return, you can carry over $3000 capital loss. Somehow when you file CA tax, TurboTax suddenly put a lot of capital gains to the "addition" of the CA adjustment, as if you not only can't use the capital loss carryover, but have to pay a lot more for your recent gains? Is TurboTax buggy for CA returns?

Thanks!

Answer 1

1. Just like in your Federal Form 1040 you can't deduct Federal income tax paid in 2006, you can't deduct California state income tax paid in 2006 on your California Form 540 tax return. Same concept.

2. I had a $3000 capital loss on line 13 of my Form 1040. TurboTax transferred that to line 13 column A of my California Schedule CA(540). There were no adjustments in columns B or C on line 13. I don't know why TurboTax treated your situation differently than mine. Maybe if you look at the worksheets in the copy you printed for your files, you'll find the answer to your question.

Answer 2

in the experience that your in ordinary terms Calif. area is a pob, the place is your economic employer account? you haven't any Calif. handle? what state do you talk your place state? in many situations your tax house is the place you artwork and because you artwork distant places, is that your tax domicile? non resident? as a Calif. resident you're taxed on all factors of earnings, you will desire to no longer be a Calif. resident

Answer 3

1. That's the law.

2. That's the law.