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New Member
posted Mar 5, 2024 3:26:53 PM

If I'm Self-employed, received a 1099-Misc, do I enter from my Federal return income amount, SE Health Insurance, and SE taxes under CA Adjustments?

I'm not sure why Turbo Tax just didn't populate these fields

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2 Replies
Level 15
Mar 5, 2024 3:39:55 PM

CA tax calculation starts with the Federal AGI. The AGI reflects adjustments for the deductible part of the self employment tax as well as self employed health insurance on Schedule 1. No further adjustments are required on the CA return. 

Expert Alumni
Mar 5, 2024 3:55:03 PM

No.   CA requires an adjustment to self-employment taxes for self-employed taxpayers classified as employees by the state of California.   Some individuals may be classified as independent contractors for federal purposes and employees for California purposes, which may also cause changes in how their income and deductions are classified. Proposition 22 was operative as of December 16, 2020, and may affect a taxpayer’s worker classification.   The adjustment mentioned above is for these independent contractor/employees.