Deductions & credits

Real Estate taxes paid in California are not deductble on your CFB California state taxes.

There are some deductible expenses, differing now from the new Federal 2018 tax law.

  • California does not allow several federal deductions, including deductions for contributions to a health savings account (HSA), adoption expenses, federal estate taxes, educator expenses, qualified higher education expenses, and state, local, or foreign income taxes paid. The amount of other federal deductions such as IRA contributions and charitable giving are also limited in California. 

  • You cannot increase your California standard deduction for property taxes or taxes on the purchase of a new car or disaster losses as you can on your federal return. But California has a few additional deductions of its own: 

  • Interest on loans from utility companies is deductible when the loan is used to purchase and install energy efficient equipment or products
    The amount of your federal mortgage interest credit if you qualified for it on your federal return
    Medical expenses

Additionally there are further adjustments available: https://www.taxslayer.com/support/732/California-Itemized-Deductions?language=1

If this posted response is useful to you, please click on the upraised hand in the lower left of this post. Thank you. Scruffy Curmudgeon--PFFM/ IAFF, retired FireFighter/Paramedic - Locals 718/30, Veteran USAR O3 AIS/ASA '65-'67


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