Are financial advisor fees deductible in California?

Forum|Forum|2 years ago
April 10, 2024
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From everything I’ve read financial advisor fees are not deductible in California because they are no longer deductible at the federal level since 2017. However, there is a place to enter that into TurboTax in the federal portion of the program which then results in a tax deduction on your California return. So this is confusing.

MonikaK1

California does not conform to the change in Federal law regarding certain Miscellaneous Itemized Deductions. This is why you still see a place to enter them in TurboTax in the Federal section. Even though they aren't allowed on the Federal return, the information that you enter flows through to the California return.

Investment fees, custodial fees, trust administration fees, and other expenses you paid for managing your investments that produce taxable income are miscellaneous itemized deductions and are no longer deductible on the Federal return, but remain deductible on the California return.

See the instructions for California Schedule CA for more information about California differences.

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