California adjustment to income for ira deduction

[bekatz]

My wife & I are over 70 1/2 & we're allowed an IRA deduction for federal purposes.  I know there is a difference between the federal & California rules; however, I cannot determine how this is calculated.  I was unable to find Pub 1005 for 2021.  Can you help explain this reduction or how it is calculated?

Thank you.

[DanaB27]

The SECURE Act repealed the maximum age of 70½ for traditional IRA contributions. California law does not conform to this federal provision (FTB Publication 1005 2021, page 6). Therefore the full amount deducted on your federal return will be added back to your California income if you are older than 70 1/2.

[bekatz]

Thanks Dana.  Both my wife & I took the fed deduction-hers at the max- but the reduction was only for part, which was confusing.  I would think the entire amount would be removed.  Is there something I'm missing? I will check the reference to the FTB Pub.

Thanks again.

Barry

[DanaB27]

I cannot recreate the issue. The amount of IRA deduction added to the CA adjusted gross income should match what was deducted on line 20 of Schedule 1 on the federal return.

If you cannot figure out why there is a difference it would be helpful to have a TurboTax ".tax2021" file that is experiencing 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 Download: 

1. On your menu bar at the very top, click "Online"
2. Select "Send Tax File to Agent"  
3. Click "Send"
4. The pop-up will have a token number
5. 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 see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution.

The instructions for TurboTax Online: 

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

[bekatz]

Thanks again Dana.  I simply went into the CA Adjust form & overrode the amount to reflect the total IRA deductionto correct the error, so my file probably no longer has the defect that caused the problem.  I had checked my 2020 return & the adjsutment was calculated properly for that return.  If the file may still show how the erroneous amount was reflected I would be happy to send it to be reviewed.

Barry Katz