Hi there! Turbo Tax Premium user for a number of years. Currently using the web version, and most of my Federal is complete, so the details are carrying over from Federal to State.
In the state of California, residents can claim 100% of their State and Local taxes (unlike the $10k federal limit) via an adjustment in Schedule 540 Part II Lines 5a through 5e (see these instructions for reference). However, I cannot for the life of my figure out where to enter this on the California State return. I've searched every section and asked the chatbot, which responds with:
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To input property tax for California State in TurboTax, follow these steps:
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...but this section doesn't exist. I've checked all sections for deductions, credits, etc, and there is no field anywhere for Property Tax. Where do I enter this? How do I factor in all appropriate deductions from Schedule 540 for my California state taxes?
Note that Premium isn't an option in the product drop down so I've selected Premier as the next closest option.
Appreciate the guidance!
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Turbo Tax will calculate the adjustment for you and enter it on Schedule CA (540) part II line 5e column C.
Sure, but where do I enter the property taxes for state in the first place? How does Turbo Tax know what the full amount is?
Is it simply a matter of trusting that the full $ number comes over appropriately from Federal?
Well, you do your federal before state. Under federal, select Deductions and Credits and enter your property taxes in the Your Home section. Then when your done with the federal, Turbo Tax will transfer data over to the state. Before paying and filing, you can review your return including 1040 Schedule A and Schedule CA (540). You can verify Turbo Tax entered the difference in Schedule CA (540) part II, line 5e, column C.
Awesome, thanks for the tip! I was struggling to see where to review the actual Schedules, so once my other forms come in, I'll review before submitting to ensure everything carries over. Feels weird that TurboTax doesn't have better tool tips or details on how this would work, but I'll certainly review and make note of it in case anything looks off. Thanks again!
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