California 10% penalty waiver for 401K withdraw during COVID-19

[turbota888]

During COVID-19 I had to make an early withdraw from my 401K...

For those filing under California, how are you entering in Turbo Tax for your distributions?

For Federal it's a 1/3 rule which is easily done, but where do I enter that for California? Turbo tax didn't have a step to walk through that, unless I missed it?

[ErnieS0]

There is nothing extra to enter into California. The Golden State uses federal adjusted gross income as a starting point for income tax. If you chose to spread your 401(k) distribution out over three years for federal, CA will use the same 401(k) taxable amount for state purposes.

[turbota888]

so in turbo tax i was able to spread it 1/3 for federal does that auto apply into my california return? or i need to fill that out somewhere in the california return?

[ErnieS0]

Yes. You do not need to do anything special in California.

California picks up the federal number so for the next two years federal and California will add one third of your distribution back into income (unless you pay it back sooner).