Are moving expenses deductible for the California state tax return if moving to California?

Forum|Forum|6 years ago
February 1, 2020
5 replies
44 views

No text available

ProSeries Professional

This topic has been closed for replies.

George4Tacks

Level 15

Yes.

Answers are easy. Questions are hard!

itonewbie

Level 15

CA conforms to the IRS based on a static date, currently Jan 1, 2015, and does not, therefore, conform to TCJA on moving expenses.

So long as the moving expenses are related to a job in CA and would otherwise meet the time and distance tests under §217, such expenses would be attributable to CA and deductible on the CA return.

---------------------------------------------------------------------------------Still an AllStar

U

uhtaxmbaAuthor

Level 4

Thanks so much. One more question. On the Ca schedule 540 NR, Part II, Section A, income adjustment schedule, column E, asks for the income earned in CA. When I put that amount in, it seems that my client is refunded almost his entire amount of withholding. Does that seem right? Is that some kind of incentive for moving to CA? Thanks again.

George4Tacks

Level 15

Right? Only you, the paid preparer can determine that. Possible? Definitely. If the move in late in the year and the majority of total income is from outside CA, it it entirely possible that the CA wage minus CA moving makes the tax less than the credit for family.

Answers are easy. Questions are hard!

Sign up

Login with SSO

Let's get you signed in

Login with SSO