I am a Nevada resident. I want to know what fed form and where I can put California state income tax. I can't add this tax to schedule E line 16 (Taxes) because it will be counted as additional tax payment and will reduce CA tax which is wrong.
State and local income taxes are entered on Line 5a of Schedule A on your federal return.
The Calif tax is a cost of doing business.
If you were in a state that had an income tax, you would have been able to receive a credit for taxes paid to other states to avoid being taxed on the income twice.
However, since Nevada does not have a state income tax, you aren't being taxed on that income twice and as a result, no credit, no deduction on Sch E.
As noted, you might be able to deduct on Sch A if you itemize.
I take standard deduction. This state tax is on rental income. So it is a cost of doing business in California. I don't understand why I won't be able to deduct it somewhere other than schedule A.