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See what's trending for the November 15th deadline (Form 990) and resources for the upcoming tax season. View ProSeries Hot Topics.
See what's trending for the November 15th deadline (Form 990) and resources for the upcoming tax season. View ProSeries Hot Topics.
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BUSINESS INCOME ALLOCATED TO STATES
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nolanm
Level 4
03-02-2024
08:19 AM
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Hi all
Client has $350k net income on Sched C. Lived 1/2 NY 1/2 CA. Allocated 50% of $350k to each state. SE taxes and SEP contribution are $80k.
Both NY and CA calculate state tax on AGI from federal after the $80k deduction. NY tax is allocated as 50%, makes sense. CA has an allocation sheet and Proseries defaults to deducting this $80k, so that CA share of income reduces to below 50%.
This is double dipping right? I should set the CA allocations of SE taxes and Sep contribution to zero, as CA tax is already after the $80k deduction?
Sorry if this is a bit basic, my head is spinning as there are a lot of other moving parts in this return.
Thanks for any help Nolan
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