Deduct California SMLLC taxes on Schedule C for federal only in Lacerte

To deduct the LLC taxes for federal but not state, the taxes will need to be entered normally on the Schedule C, and then an addition will need to be added to add it back for California.

1. Go to Screen 16, Business Income (Schedule C).
2. Select Expenses and enter a fee description and amount in the field Other expenses (Ctrl+E) for Federal purposes.
3. Go to Screen 51.011, California Modifications.
4. Enter the CA LLC fee in the field Other additions (Ctrl+E) to add back the expense amount for California purposes.