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

by Intuit Updated 6 days 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. Open the California state return.
  2. Press F6 to bring up Open Forms.
  3. Type OTH to highlight the Other Income Statement.
  4. Select OK to open the Other Income Statement.
  5. Use line 32 for Wildfire relief payments.
  6. 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. Open the California state return.
  2. Press F6 to bring up Open Forms.
  3. Type OTH to highlight the Other Income Statement.
  4. Select OK to open the Other Income Statement.
  5. Use line 31 for Wildfire mitigation payments.
  6. This will add the subtraction to the Schedule CA, Page 2, Line 8z to Column B.
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