California Premium Tax for Guaranteed Income Annuity

State premium taxes are sales taxes assessed on insurance premiums. Because annuities are insurance products, they are regulated by the insurance commissions in each state. 

If you itemize expenses on your federal return and if you deduct actual sales taxes, instead of using the IRS pre-determined amount, or deducting state income taxes in your itemized deductions, then you can include the tax paid both as an itemized expense on your federal return as well as in your California State return. To claim:

1. Go to Federal>Deductions and Credits
2. Estimates and other Taxes paid>sales tax