You'll need to sign in or create an account to connect with an expert.
I have a different take. I think you can only deduct proportionally based on the income earned in the state. And, as you are probably aware, MA doesn't allow a deduction at all, which will create a MA basis for the SEP. This appears to agree with the calculations outlined in the FTB publication.
I have a different take. I think you can only deduct proportionally based on the income earned in the state. And, as you are probably aware, MA doesn't allow a deduction at all, which will create a MA basis for the SEP. This appears to agree with the calculations outlined in the FTB publication.
It depends on your point of view. The way how California calculates tax is they pretend that all of your income is taxable in California, and then prorate the amount of tax based on the percentage of income earned in California. Because of this, California will allow you the entire deduction, but when the tax is prorated to the income, the effect will be as if your deduction were also prorated.
For a consideration of California's SEP deduction rules, please click on this link: (FTB Publication 1005). (A PDF will download; the SEP rules are on page 11).
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
BRB99
New Member
seemabimran123-g
New Member
cindyruiz299-gma
New Member
chunhuach
Level 1
sherryburke1206
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.