2025 Investment advisor fee deductible in CA tax return?

[marianwu260]

Hi, I have entered my 2025 advisor fee in Federal tax return under Turbo Tax, "Deductions & Credits", as "Other investment expenses".  But I did not see it showned in the Schedule A, line 16 as "Other itemized deductions" ( I used itemized deductions".  So it didn't automatically converted to California tax return as adjustment.  Am I not doing something right?  Is it still tax deductible in California?

Thanks.

[MonikaK1]

Yes, miscellaneous itemized deductions such as investment expenses are still allowable in California. However, they are still limited to those expenses that exceed 2% of your federal AGI (Adjusted Gross Income). See this Franchise Tax Board webpage for more information. You might not have had enough expenses to exceed the threshold.

Enter the expenses in the Federal section of TurboTax, and the program will flow the information through to your California return.

Look at California Schedule CA in your California return, which summarizes all of the differences between your Federal and State returns for income and deductions. If you are using TurboTax Desktop you can view it in Forms mode. If you are using TurboTax Online, you can preview your return before filing to find out how your taxes were calculated. See here for details.