MonikaK1
Expert Alumni

Deductions & credits

California still does not follow Federal law on this issue. Because California still allows miscellaneous itemized deductions, the fees are still deducted on Schedule A for California and not as a deduction from gross income.

 

A bill, California SB 1377, was introduced in 2022 to change the treatment to conform with the Federal return, but the bill ultimately did not pass.

 

How were the fees entered on your Federal return? Did you make any adjustments on the California return?

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