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CA: What does the "California portion" of my IRA deduction mean? I lived there for 155 days total. Should I multiply resident days (155/365) times the fed deduction amount?

 
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2 Replies
TerryA
Intuit Alumni

CA: What does the "California portion" of my IRA deduction mean? I lived there for 155 days total. Should I multiply resident days (155/365) times the fed deduction amount?

Did you make any contribution to the IRA while living in Calif? If so, enter that amount. If none, enter 0.

CA: What does the "California portion" of my IRA deduction mean? I lived there for 155 days total. Should I multiply resident days (155/365) times the fed deduction amount?

The way the question is worded in TurboTax is very confusing.  The previous reply given to this question is wrong.  It is not based on where you were living when you make the contribution and it is not an allocation based on how many days you lived or worked in California.

 

According to California FTB Pub. 1005:

 

Form 540NR Filers

If you file Form 540NR, your IRA deduction on Schedule CA (540NR), Part II, Section C, line 20, column E, is limited to the lesser of:

  • The IRA deduction allowed on your federal tax return.

  • The compensation reported on your Schedule CA (540NR), column E.

 

Example:

You are a nonresident of California who is under 50 years of age. During the year, you worked temporarily in California.Your California compensation is $1,000, which you reported on Schedule CA (540NR), column E. Your federal compensation is $10,000. Your allowable IRA deduction on your federal tax return is $6,000.

Determination:Your allowable California IRA deduction that you report on Schedule CA (540NR), column E, is $1,000. This is the lesser of (1) the $6,000 IRA deduction allowed on your federal tax return, or (2) the $1,000 of compensation you reported on Schedule CA (540NR), column E.

 

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