S-Corp profit different federal vs. california state. Q about california taxes?

Forum|Forum|3 years ago
February 16, 2023
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I 100% own a California based S-Corp. I'm a Cal resident for the entire tax year. When I did my S-Corp return the profit is higher in California than federally because it seems California doesn't allow certain meal deductions that are allowed federally.

When I come to do my California state return it only asks my to input Box 1 from my K1 and makes no mention of the higher profits in Cal. Is that correct or do I need to make an adjustment for the fact that I made higher profits on my Cal S-Corp return than my federal S-corp return? If so how do I make those adjustments? I'm using the turbo tax desktop version.

TurboTax Business Windows

SantinoD

When you enter your K-1, Box 1 amount comes from the Federal 1120-S income amounts. So there is no reason to adjust.

Deductions on the Business tax return don't apply to your personal tax return. So always enter on your personal taxes the amounts from the K-1 and not directly from the business tax return.