TurboTax 2025 CA State Is using the incorrect amount for the Standard Deduction

[cciancio15]

The CA State Standard Deduction shows the Federal MAGI amount on Form CA-540, instead of

the correct Standard Deduction, which is SINGLE-$5706 or MFJ-$11,412.

As a result, it is incorrectly calculating my CA Taxable Income as zero.

[cciancio15]

This is a BUG in Turbo Tax 2025 Deluxe version on Windows 11

Additional Information:

The software incorrectly uses the Federal AGI as the CA State standard deduction 

because of a 1099-R with the distribution code of T. Once the 1099-R was removed, the system calculated the CA State Standard Deduction correctly. 

[MonikaK1]

In order for us to troubleshoot this issue, you can send us a “diagnostic” file that has your “numbers” but not your personal information. If you would like to do this, here are the instructions for TurboTax Desktop users:

1. From the black bar at the top of your screen, select Online
2. Click Send Tax File to Agent
3. Click Send on the message that pops up
4. TurboTax will create a "sanitized" copy of your return information with no personal info
5. Post the full token number here in this thread

Here are the instructions for TurboTax Online users: 

Go to the black panel on the left side of your program and select Tax Tools. 

1. Then select Tools below Tax Tools. 
2. A window will pop up which says Tools Center.  
3. On this screen, select Share my file with Agent. 
4. You will see a message explaining what the diagnostic copy is. Click okay through this screen and then you will get a Token number. 
5. Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information.  

We will then be able to review your file to see what you are seeing, and we can determine what is going on in your return and provide you with a suggested resolution.