schwarcz
Returning Member

State tax filing

Thanks for the response.  Perhaps my posting was not clear enough.

 

Fed cap gains is taxable in California but TT makes the Fed cap gains a California subtraction (see Sched CA(540) line 7 column B Subtractions.  I believe this excludes the amount of cap gains from California taxable income and leads to an underpayment of taxes.

 

Am I incorrect here?