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Manual adjustment needed on CA tax return for self-employment tax and SEHI deductions?

Micibug
Level 2

I was finalizing a return for a client who is self-employed (Schedule C) and lives in California. 

During my review I noticed that there were no CA adjustments (additions) on Schedule CA for his federal self-employment tax deduction and the self-employed health insurance deduction. This information from the FTB seems to indicate that these deductions should be added back for purposes of calculating CA taxable income. 

 

The only way to do that in Proconnect would be to do an override under CA modifications. It seems strange to me that this would be a manual override rather than automatic.

 

Now I'm spiraling a bit trying to determine if I need to manually add back these federal deductions on the CA return, or if Proconnect is already doing it correctly. Schedule CA isn't populating at all for this taxpayer. 

0 Cheers
2 Comments 2
sjrcpa
Level 15

So your client gets a federal 1099 but a CA W-2 for the same income?

Or did you not read the info on yout link?


The more I know the more I don’t know.
Micibug
Level 2

Apparently not! I'm feeling a little stupid now, but glad that everything is flowing through as it should.