@DaveF1006 Thank you. I fully understand that California requires you to take the federally excluded amount into income and I know how to do that. My question is: since California imputes income to me ($600 in my original example), can I deduct the full amount of the cost of cobra ($1200 in the example) instead of the amount I paid directly. If so, is turbo tax programmed to do that if you tell it the amount excluded for FIT? Or do you need to handle it in a different way?
