Question

CA IRA Deduction- lived in CA and moved back to TN due to Covid.

Forum|Forum|5 years ago
February 14, 2021
1 reply
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I am unsure where to make my IRA deductions.

I worked in CA (nonresident), but due to overwhelming Covid cases, I moved back to TN (resident). I maxed out my Trad IRA contribution while in TN, but I've made no TN income for 2020.

On TurboTax, it says "Enter the CA portion of your IRA deduction. This amount may be limited to the amount of your CA compensation. If none, enter zero."

Would I put the entire $6k IRA deduction under CA, since that's where I made my income or do I allocate under TN since it's my resident state?

Thank you!

AmyC

Employee

You want to claim the CA deduction to your CA income. You want to put the full amount under CA. CA money was used to fund the IRA so you should take the deduction and reduce your taxable income.

The amount may be limited wording means the lesser of your IRA contribution or CA income.

CA law: IRA, Keogh, SEP, and SIMPLE deduction. The amount of the California deduction for IRA, Keogh, SEP, and SIMPLE contributions is the same as the federal deduction. However, the California deduction may be limited by California compensation or by California self-employment income.

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