You can deduct CA LLC Tax under Taxes and Licenses, from your Federal return but how do you omit these from your State return or does TT do that automatically for CA?

[DS30]

In order to make changes to your CA personal income tax return related to removing the $800 annual tax, you would go under the CA state income tax section and make an adjusting entry after letting TurboTax know that it is an SMLLC (see screenshot)

The tax would still be eligible for a federal Schedule C deduction.

According to the CA LLC website :

Is the annual tax deductible?

No, the annual tax is not deductible.

Is the limited liability company fee deductible?

Generally, the limited liability fee is considered a deductible ordinary and necessary business expense.

[edited 3/17/2018 - 2 PM PST]

[Anonymous]

Yes, but the $800 LLC tax is deductible on the Federal return but is not deductible on the State return.
How do you stop it being used in the State Return if you include it as an expense on the Federal return?

[DS30]

Edited

[Anonymous]

I was going with this...<a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/2948388-is-the-california-llc-tax-800-and-or-llc-fee-900-deductibl...>

I'd love to be wrong...

[DS30]

I did go back and review all the information and the website and it does appear that the $800 annual tax is not deductible for CA state income tax purposes. Why this is, I am not sure since the tax is allowed for federal income tax purposes.

[Anonymous]

Can you please tell me exactly where to override?
And since this version of TurboTax is for Home and Business, including LLC's then you state that one cannot efile using TurboTax?
This sounds like a flaw that TurboTax needs to address.

[DS30]

You actually will be able to just make an adjustment under the interview section related to your Schedule C under the California state return. I have edited my answer to include a screen shot.

[Anonymous]

Thanks!

[Gii]

I still am not able to find a definite answer for this. Different people are saying different things. 800 tax is not deductible on California or federal or both?  the fee based on gross receipts is deductible on federal as buisness expense but not California? Or is it deductible on both?  How do you let turbo tax know . Can anybody with knowledge provide a step by step

Where do I see the screenshot that you posted the link has nothing there

[TR3532]

Questions regarding 800.00 annual business fee that is deductible on federal but not on CA.  The reply  in the information states to change that expense on your CA state taxes.  Please tell me and show me where this should be done.

[DawnC]

Depending on what platform you are using, the screens may be a tad bit different, but when going through your CA state return, you should come to a screen titled Business Summary that references California differences.   On that screen, click the Edit button next to your business.   Click through until you come to a screen titled Other Adjustments.

If the California deduction is smaller than the federal deduction, enter this adjustment as a positive number. If the California deduction is larger than the federal deduction, enter the adjustment as a negative number.   @TR3532

[TdS2022]

Is this in fact necessary? Is the California LLC annual tax of $800 deductible for federal income tax purposes, but NOT for CA state income or CA self-employment tax purposes?

[GeorgeM777]

The CA franchise tax would likely be deductible on your federal return if you itemized your deductions on Schedule A.  Absent the ability to itemize, the CA franchise tax would not be deductible on your federal return. 

@TdS2022

[TdS2022]

My question is whether it is deductible for California - please see above.