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Level 2

IRA distribution

How do I find out if my IRA distribution has a California taxable amount that is greater or lesser than federal taxable amount?   Then do I enter the dollar difference be it addition or subtraction?  Thank you

2 Replies
Expert Alumni

IRA distribution

This would only apply if you made Nondeductible Contributions Made Before 1987.  If you made nondeductible contributions before 1987, none of your distribution is taxed until you have recovered your pre-1987 basis.  The adjustment would be a subtraction.


1982 Through 1986 California law was different from federal law. The maximum federal deduction for an individual was $2,000, and was available to active participants in qualified or government retirement plans and to persons who contributed to tax-sheltered annuities. The California IRA deduction was the lesser of $1,500 or 15% of compensation with an additional deduction for a nonworking spouse, for a maximum deduction of $1,750. An IRA deduction was not allowed if you were an active participant in a qualified or government retirement plan or contributed to a tax-sheltered annuity.  

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Level 15

IRA distribution

I wish I knew in 1986 what I know now.

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