topic TurboTax 2025 CA State Is using the incorrect amount for the Standard Deduction in Get your taxes done using TurboTax

TurboTax 2025 CA State Is using the incorrect amount for the Standard Deduction

cciancio15 — Mon, 09 Feb 2026 06:43:09 GMT

The CA State Standard Deduction shows the Federal MAGI amount on Form CA-540, instead of

the correct Standard Deduction, which is SINGLE-$5706 or MFJ-$11,412.

As a result, it is incorrectly calculating my CA Taxable Income as zero.

Re: TurboTax 2025 CA State Is using the incorrect amount for the Standard Deduction

cciancio15 — Mon, 09 Feb 2026 17:59:17 GMT

This is a BUG in Turbo Tax 2025 Deluxe version on Windows 11

Additional Information:

The software incorrectly uses the Federal AGI as the CA State standard deduction

because of a 1099-R with the distribution code of T. Once the 1099-R was removed, the system calculated the CA State Standard Deduction correctly.

Re: TurboTax 2025 CA State Is using the incorrect amount for the Standard Deduction

MonikaK1 — Mon, 16 Feb 2026 18:47:01 GMT

In order for us to troubleshoot this issue, you can send us a “diagnostic” file that has your “numbers” but not your personal information. If you would like to do this, here are the instructions for TurboTax Desktop users:

From the black bar at the top of your screen, select Online
Click Send Tax File to Agent
Click Send on the message that pops up
TurboTax will create a "sanitized" copy of your return information with no personal info
Post the full token number here in this thread

Here are the instructions for TurboTax Online users:

Go to the black panel on the left side of your program and select Tax Tools.

Then select Tools below Tax Tools.
A window will pop up which says Tools Center.
On this screen, select Share my file with Agent.
You will see a message explaining what the diagnostic copy is. Click okay through this screen and then you will get a Token number.
Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information.

We will then be able to review your file to see what you are seeing, and we can determine what is going on in your return and provide you with a suggested resolution.

Re: TurboTax 2025 CA State Is using the incorrect amount for the Standard Deduction

ajpstew — Mon, 23 Mar 2026 01:49:35 GMT

I had a problem with the standard deduction too for the 2025 California CA 540 income tax return. After inputting all my income and expenses, I completed federal and state reviews until no errors were detected. However, I found that the CA 540 tax return showed NO deductions - not standard or itemized. I did not have itemized deductions for federal, so the standard deduction should have been populated automatically. But the software has some sort of bug because it had a $0 deduction. I looked at prior posts with a similar topic and tried to address any inconsistencies that might be affecting the deduction, but found none. Shouldn't the software have an error check that says "you have no deductions to taxable income - do you want to review? before allowing me to file my taxes? I ended up having to manually override the deduction on Schedule CA line 30 to complete my return. I wonder if the error has something to do with the new tax law this year that removes tips and overtime premium from federal income tax calculations, because that is the only difference between my 2025 and 2024 tax returns.

Re: TurboTax 2025 CA State Is using the incorrect amount for the Standard Deduction

MonikaK1 — Mon, 23 Mar 2026 17:41:08 GMT

What version of TurboTax Desktop are you using? I have not encountered this issue on any of my test returns this year. You should not have to override a field. In fact, I've noted that number fields that are the result of a calculation typically can't be overridden this year.

I invited an earlier poster in this thread to send a diagnostic file but none was received.

Once you finish the Federal return, open the California return and complete the interview, TurboTax completes CA Schedule CA to reconcile the Federal items with the California information.

If you right-click on Line 30 of Schedule CA, TurboTax shows the Data Source as follows:

(1) If you check one of the itemized deduction boxes on the information worksheet, the amount on this line is from line 28 above

(2) If you checked the box on the information worksheet to take the standard deduction even if less than itemized deductions, this line is the standard deduction

(3) If you cannot be claimed as a dependent, this line is the larger of line 29 or the standard deduction

(4) If you can be claimed as a dependent, this line is the larger of line 29 or Line 5 of the Standard Deduction Worksheet.

From the black bar at the top of your screen, select Online
Click Send Tax File to Agent
Click Send on the message that pops up
TurboTax will create a "sanitized" copy of your return information with no personal info
Post the full token number here in this thread

@ajpstew

Re: TurboTax 2025 CA State Is using the incorrect amount for the Standard Deduction

ajpstew — Mon, 23 Mar 2026 22:30:28 GMT

Thank you for the quick response. I am using the 2025 TT Deluxe version. It DID allow me to override line 30 on the Schedule CA (which is how I populated the standard deduction so I could submit my tax forms).

Today I removed the override amount to reset the calculation, and got the $0 amount for the deduction again. However, when I reviewed the data source info in your email (and also available in TT), I read through the pop up box instructions and found the offending entry:

The second item in part V of the California Info Worksheet had the first box checked, allowing TT to calculate the California itemized deductions even if the amount is less than the standard deduction. I don't know how that box got checked - I did not open the Info Worksheet before today, and I don't recall any questions in the CA state interview that would have resulted in that box being checked?

My return is now fixed, but I did submit a diagnostic file in case you want to take a look. The token number is 1350565190-20255509.

I would be interested to learn the outcome of your review of the diagnostic file to understand if there was an issue with the software, or to identify what part of the interviews/input stages populate section V of the California Info Sheet so I understand how that box got checked in the first place!