CA adj for divs from eligible fedl agencies.

Forum|Forum|1 year ago
April 9, 2025
1 reply
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I initially forgot to enter the amt when entering federal divs. Then when working on state, I remembered, so I went back to fedl & entered the amt. Quite high amt at $399. This did NOT INCREASETHE TURBO TAX STATE REFUND AMT. Why not?

Ask the Experts - Tax Due - April 2025

mglauner

Check your California Interest and Dividends Adjustment Worksheet, Line 1. The subtraction for interest from a US obligation may already be showing there.

If not, check your Federal Schedule B, Interest Income Smart Worksheet, Box 3 entry, which would carry the interest over to your CA return as a subtraction.

If you're using TurboTax Online, clear your Cache and Cookies, after verifying your Federal entry is correct.

Here's instructions for California Adjustments.

@batty2

batty2Author

Thank you for the answer. However, it did not answer the question. The fedl agency funds were already reflected in Turbo Tax. As I stated before, I entered the amount through the fedl instructions as soon as I realized I had omitted it. So I didn't need to find it in the Turbo Tax forms. I knew it was already there. My question was, why didn't entering that amount increase my refund.

The answer is that I overpaid my state taxes by having a part of my IRA distributions go to state withholding. That amount, plus the Exemption Credit (540, Line 32) means that I actually get a full refund of the withholding - either with or without the federal agency funds. (I am expert in Excel and have a tax spreadsheet which calculates all this. It is much easier for me to see results on the spreadsheet, and to do "what-ifs". That's how I finally saw the result of including the fedl agency funds or omitting them.) It turns out that the refund can't increase due to the fedl agency funds, because it's already a full refund of my withholding, even without the fedl agency funds. Franchise Tax Board will not refund more than the full amount of withholding.