Tagged: California Adjustments to Taxable Income

Picture of Part I of California Form 540NR Schedule CA with questions regarding taxpayer residency status.

California Form 540, Schedule CA, Line 25: Adjustment to Health Savings Account Deduction

When preparing a California resident’s state income tax return on a Form 540, the form begins with the taxpayer’s federal Adjusted Gross Income (AGI) to calculate the taxpayer’s state taxable income. However, one or several adjustments may be required to be made to the taxpayer’s federal AGI. These adjustments are based on the fact that, although the California code generally...

Picture of crayons in a line, one of the many supplies used in a classroom.

Does California Follow the Federal Educator Expenses Tax Deduction?

Under federal law, certain K-12 teachers can qualify for a pre-AGI deduction of qualified educator expenses of up to $250 per tax year under Internal Revenue Code Section 62. For teachers who are California residents, however, the question often comes up whether California tax law follows the federal law regarding the educator expenses deduction, or rather does not follow the...

California Adjustments to Federal Taxation of Interest Income

Although for state tax purposes California primarily couples with federal tax law on income and tax adjustment items, there are nevertheless many possible adjustments that can be required on a California taxpayer’s Form 540, which would be recognized on Schedule CA. One of the most common adjustments that are made between a California taxpayer’s federal and state tax return relates...