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Entering tax year 2024 Wildfire relief payments and Wildfire mitigation payments for CA in ProConnect Tax

by Intuit Updated 1 week ago

Wildfire relief payments:

Per the IRS news release: Qualified wildfire relief payments made to Los Angeles County taxpayers affected by California wildfires that are not covered by insurance or other reimbursements are excluded from income, even if these payments are made by nonprofit organizations or other non-governmental entities.

CA doesn't conform to this federal tax relief and requires the payments to be entered as taxable income:

To enter Wildfire Relief Payments for CA:

  1. Go to Input Return State & Local Modifications CA Modifications.
  2. From the Income Adjustments section scroll down to Other Additions (Click on button to expand).
  3. Enter a description and the amount of the payments.
  4. This will add the income to the Schedule CA, Page 2, Line 8z to Column C.

Wildfire mitigation payments:

California law allows a qualified taxpayer an exclusion from gross income for any amount received as a California qualified wildfire loss mitigation payment through the California Wildfire Mitigation Financial Assistance Program. If any qualified amount was included as income for federal purposes, enter the amount on line 8z, column B

To enter Wildfire Mitigation Payments for CA:

  1. Go to Input Return State & Local Modifications CA Modifications.
  2. From the Income Adjustments section scroll down to Other Subtractions (Click on button to expand).
  3. Enter a description and the amount of the payments.
  4. This will add the subtraction to the Schedule CA, Page 2, Line 8z to Column B.
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