Turbo Tax California State Allowing Itemized Deductions on Payments Made Outside of CA

[rxc93]

Filing a CA nonresident/part-year resident 2020 return. TT CA State is allowing Property Tax and Mortgage interest payments made on my TX property (primary residence until July 2020, then I moved to CA) as an itemized deduction on the CA return. 

The CA itemized deduction amounts are directly carried over from my federal tax Schedule A form, and there doesn't seem to be a way to modify those amounts on the TT desktop software. 

Is that correct? Would be great if someone could shed some light on this. 

[MaryK4 · Accepted solution]

Yes- in general, California nonresidents or part-year residents determine their California tax by multiplying their California taxable income by an effective tax rate.

The effective tax rate is the California tax on all income as if you were a California resident for the current tax year (and for all prior taxable years for any carryover items, deferred income, suspended losses, or suspended deductions) divided by that income. This method ensures that nonresidents pay the correct tax on their California sourced income and does not tax non-California sourced income.

[BotSpotter]

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