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Should CA Schedule S for NY nonresident return taxes include the NY addback for state taxes in CA SCH S Part I Double Taxed Income.

Level 3
A CA resident individual taxpayer has a partnership nonresident NY K-1 with 1000 of line 1 ordinary income allocated to NY.  NY tax on the NY nonresident return is 200.  The NY nonresident return is also adding back 100 of state taxes deduction in the NY column of IT-203 so that NY AGI is 1100 not just the the 1000 from line 1 ordinary income on the NY K-1.   Lacerte pulls double taxed income from the NY nonresident return of 1000 only into Part 1 of the CA Schedule S.   On Line 9 of the CA Schedule S lacerte puts the NY AGI from the NY return of 1100.  This causes the taxpayer to receive a credit of less than the 200 paid to NY.  Shouldn't the 100 of state taxes added back on the NY return also be included in the CA Schedule S Part 1 double taxed income?  If yes, would I override the entries on Schedule S instead of letting it pull numbers directly from the NY nonresident return?
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1 Comment 1

I spent a few minutes pondering your question. I agree with you and I think $1,100 is the correct amount that is double taxed.


Overrides?  My google search revealed that overrides are used for Pro Series.  Maybe they are needed for Lacerte too.



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