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540 ca showing subtraction of 6300 on line 13 is that correct

rugby1
Level 3

540 ca showing subtraction of 6300 on line 13 is that correct

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itonewbie
Level 15

It may sound a bit strange but it will work out mathematically if you follow the logic.  The bottom line is, it will be added back to Federal AGI even though it would appear as a subtraction on Sch CA (540).

On line 27 of Sch CA (540), that will end up as a negative number if there are no other subtractions.  That negative number will bypass Line 14 on F.540 and get added to Line 16 (as if it's part of the additions on Sch CA (540).

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Still an AllStar

View solution in original post

4 Comments 4
sjrcpa
Level 15

We have no way of knowing.

The more I know, the more I don't know.
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rugby1
Level 3

Major apologizes, made zero sense in original post, HSA is an allowable deduction to federal tax return, 

amount of $ 6,300.00 shows on 540 CA line 13 column A, shows as a subtraction ( column B ) is that 

correct ? I just needed clarification from other experts.

 

Greatly appreciated, 

Scott ( Nick ) Mota

 

0 Cheers
itonewbie
Level 15

It may sound a bit strange but it will work out mathematically if you follow the logic.  The bottom line is, it will be added back to Federal AGI even though it would appear as a subtraction on Sch CA (540).

On line 27 of Sch CA (540), that will end up as a negative number if there are no other subtractions.  That negative number will bypass Line 14 on F.540 and get added to Line 16 (as if it's part of the additions on Sch CA (540).

---------------------------------------------------------------------------------
Still an AllStar
rugby1
Level 3

Greatly appreciated that is what I thought I just needed confirmation from fellow tax preparer