California Adjustments to Federal Itemized Deductions (despite not itemizing)

[taxes4739]

I'm reading through the Schedule CA (540) that TurboTax generated.  In Part II, line 5a (state and local income tax or general sales tax), it put $267 in columns A & B.  This is not the amount of estimated state & local taxes I paid (I paid $203 state, and $0 local) - I have no idea where it got the number $267.

In the software, when I go to Forms view & view Data Source for that field, it says it comes from federal Schedule A. I did not itemize my Federal return, and thus it did not print a Schedule A, but in Forms view I can see a Schedule A with $267 on line 5a. Again, no idea where it got that number.

1) Why is TurboTax filling out Schedule CA (540) Part II at all, when this section is for adjustments to federal itemized deductions, but I did not itemize?

2) Where did it come up with "$267" on Schedule A (which I'm not using) line 5a?

[taxes4739]

Addendum: I figured out where it's getting 267.  It's 203 (state estimated payments) + 64 (2019 state tax paid in 2020) = 267.

That still leaves the question of why it's filling out this section at all though, when I'm not itemizing my Federal return.

[AmyC]

The program will transfer itemized deductions from federal Schedule A even if you cannot itemize deductions on the federal return. If you can itemize deductions on California, you should complete the Schedule A included in the federal program as completely as possible

For the part II, there is a check box that says to check it if you are not itemizing on the federal but are on the state. I bet that box is checked for you.

[taxes4739]

Nope, that checkbox was unchecked - it's not having me itemize for State, either.  No itemizing for state nor for federal.

[JoannaB2]

If you're not itemizing your State income tax, you can just let it be. The 2020 Schedulle CA(540) part 2 (adjustments to itemized deduction), line 5a is state and  local income tax or general sales tax.  When you enter the state of residence, that also computes your general sales tax on Schedule A. If your general sales tax was more than the local and state income tax, then Turbo tax will chose the higher amount which (in your case) was general sales tax.  In other words, $267 must be general sales tax.  You may not itemized your federal return but the amount entered on federal Schedule A will flow through Schedule CA 540 including adjustments to income and deduction.

[taxes4739]

>If your general sales tax was more than the local and state income tax, then Turbo tax will chose the higher amount which (in your case) was general sales tax.  In other words, $267 must be general sales tax.

Nope - as stated in my addendum, $267 was estimated state income tax payments + state income tax payments paid with return.

The remaining question is #1: why is it filling out Part II at all, aka "adjustments to itemized deductions," when it's not itemizing on either federal or state.  If there's no itemizing going on, it seems a bit odd for it to be printing forms related to itemizing.

[DianeW777]

I understand your observation.  It's important to have documentation for your records to show the expenses and why you did not use them. It's extra paper work (or computer files), but it's for reference and taking a look back should you ever need to.

[taxes4739]

They were printed as part of the forms to submit to FTB, not just when printing for my records.

[too_thorough]

I am also wondering about this! However, for me, I don't have the potential explanation - the number I see for state and local income taxes or general sales tax doesn't match what I paid/owed in state taxes for 2020 or 2019 as far as I can tell. But it doesn't make sense that it'd be general sales tax either - I didn't tell turbo tax anything about how much money I spent. That would be a prerequisite to it computing sales tax, right? Or does it make an estimate based on your income, or something like that?

[VolvoGirl]

State and local taxes paid are:

-any state withholding from your paychecks, retirement checks, unemployment checks, etc.

-a state tax due (for any year) you paid last year

-any state estimated tax payments you made during year including an overpayment applied from last year

-any local taxes withheld on your checks like SDI in box 14 or 19 on your W2

[too_thorough]

actually, I see that there is an estimated sales tax table in the instructions for schedule a. However, the estimated sales tax is much lower than the number I have on my schedule CA for "state and local income tax or general sales taxes), so I'm still confused. Somehow turbo tax is adding ~$1229 to the state taxes that are reported on my W2. I don't have any other forms that show that I paid state taxes, and I also got a refund in 2019, so I'm not sure where that additional money is coming from.

[too_thorough]

oh thank you so much! that's it! the extra comes from box 14. Thank you!

[scottzzzz]

For my 2022 return I had a similar problem.  On my California Adjustments - Residents worksheet, Part II, line 5a, where was it getting the value and is the value correct?  I tired everything and just couldn't get my numbers to add up to the value shown on 5a.  After a very long search I stumbled upon what appears to be a hidden form that clearly showed how turbotax got the number (what they added and subtracted).  Here is how to find that form that I think is hidden.  (turbo tax should identified values that link).

Go to your Federal Forms and open the form "Tax & Int Wks".

Double click on the number in the column on line h.  (Most turbotax numbers aren't linked but this one is.)

This brings up the (hidden?) form "Schedule A Line 5" titled "State and Local Tax Deduction Worksheet"

This worksheet shows the detail of what is included in line 5a of the California form.  At this level I was able see the appropriate detail and see that line 21 is subtracted, and have confidence in the result.

Hope this helps.

[Clark1234]

I believe that I am also Clark123.  I logged in differently this year. I am doing my taxes for 2023 and I see now that Turbo Tax did not generate a Schedule A 1040 for either this year or last year for me at least that I can find in all info that I can look in the Print Center.  Yet it used the sum of my current my State Taxes plus underpayment to the State for prior year plus SDI tax.  I just thought it was worth mentioning since I see from the previous discussions that others do see there Schedule A 1040 from the Print Center.  Maybe Turbo Tax has changed since when they used it.  I too did not have to submit either the Federal Schedule A but I do have to submit the California 540 California Adjustments (my box in Part II is also not checked for having not itemized for federal). Additionally, I find no where in the Print Center for this year's documents the amount I owed to the state for last year's income tax.  This is a number is needed to fill out a Schedule A 1040.