Are property taxes deductible separately on state taxes in California?

[Bend371]

Thank you - this link refers to the deductibility from federal tax return? I'm looking for the rule(s) as to the deductibility from CA tax return. Thanks so much.

[DoninGA]

Sorry for the confusion.  The reply concerning a California state income tax return specifically states that California does Not conform to the Federal limitations for personal and real property taxes.  Therefor there is no SALT cap of $10,000 on a California Schedule CA (540) for property taxes when itemizing deductions on a California tax return. 

[Bend371]

Thx for clarification. I’ll relook at my return but looks like Turbo Tax capped my deduction at 10,000 on CA tax return. But I might not be looking in the correct place. Any other CA’s or CA experts out there who can point me to where I look for this info on my 2022 return? Thx.

[Bend371]

Thanks - do you happen to know what section on CA return? I'd like to confirm that it was done properly on my CA return. 

[DoninGA]

@Bend371 Look at your California Schedule CA (540) Part II. 

Your state and local real estate taxes paid should be entered on Line 5b Column A.  The SALT limit of $10,000 would be entered on Line 5e Column A (assuming that Line 5d Column A is greater than $10,000 and you are filing as Married Filing Jointly)

Look at your California Schedule CA (540) Part II, Line 5e Column C.  The additional property tax above the SALT limit on a federal tax return should have been entered on that Line in that Column.

Schedule CA (540) 2022 - https://www.ftb.ca.gov/forms/2022/2022-540-ca.pdf

Schedule CA (540) 2022 Instructions - https://www.ftb.ca.gov/forms/2022/2022-540-ca-instructions.html#Specific-Line-Instructions

[TomD8]

@Bend371 --

From the instructions for California Schedule CA (540), Part II, Line 5e:

Line 5e – The federal deduction for state and local tax is limited to $10,000 ($5,000 for married filing separate) for the aggregate of state and local income taxes and property taxes. California does not conform. If your deduction was limited under federal law, enter an adjustment on line 5e, column C for the amount over the federal limit.

https://www.ftb.ca.gov/forms/2022/2022-540-ca-instructions.html

Note: Add back only the federally disallowed property tax amount.  You cannot deduct CA state income tax on a CA return.