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T.T. is automatically subtracting $10,200 from my CA State Return under, "Other Adjustments to Income" but Unemployment Income is already tax free in CA.

Forum|Forum|5 years ago
April 6, 2021
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Under the "Here's the income that California handles differently" section, my unemployment income is ALREADY removed under the "Unemployment Income Exclusion," section because California doesn't tax Unemployment Income. YET, they have added a $10,200 subtraction to my taxable income as "Other Adjustments to Income" with UCE (Unemployment Compensation Exemption) as the reason due to the American Relief Plan. It won't let me delete it. Because Unemployment Income is already removed once, this is falsely reducing my taxable income further.

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Best answer by linaj20201

The reason is due to CA taxes calculation starts with the Federal Adjusted Gross Income which has already excluded the unemployment exclusion. Therefore, any federal unemployment exclusion will be added back on line 8F of Schedule CA to avoid double deduction.

TurboTax for CA are correct and up-to-date.

L

linaj20201Answer

The reason is due to CA taxes calculation starts with the Federal Adjusted Gross Income which has already excluded the unemployment exclusion. Therefore, any federal unemployment exclusion will be added back on line 8F of Schedule CA to avoid double deduction.

TurboTax for CA are correct and up-to-date.

J

jamesholdenproAuthor

So my Federal Adjusted Gross Income already excludes the 10.2K. So on my CA State Return, it's necessary to exclude the total UE, but then re-add the already previously excluded 10.2K? I understand now. I was also confused because my Georgia one was adding the 10.2K, I guess same, adjusting for the Fed AGI already excluding it, but then I had to re-exclude it since the income was not earned in GA. I feel like I've just done gymnastics. LOL!