Form 1099-MISC and Schedule CA (540)
Mike Brailer
(box 3) and I'm entering it into California Schedule CA
(540).
I know it goes on line 21F, "Other (describe)," but should
it appear in column B, column C or both?
No federal tax was withheld from the amount on 1099-MISC,
and the amount is already reflected in my federal adjusted
gross income (form 540, line 13).
If I treat this as an addition to income on CA (540), won't
that be like including it in my taxable income twice?
<< ------------------------------------------------->>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org >>
<< ------------------------------------------------->>
A.G. Kalman
> I have income on Form 1099-MISC designated as "Other Income"
> (box 3) and I'm entering it into California Schedule CA
> (540).
>
> I know it goes on line 21F, "Other (describe)," but should
> it appear in column B, column C or both?
>
> No federal tax was withheld from the amount on 1099-MISC,
> and the amount is already reflected in my federal adjusted
> gross income (form 540, line 13).
>
> If I treat this as an addition to income on CA (540), won't
> that be like including it in my taxable income twice?
Columns B and C of the CA(540) is where you make additions
to and subtractions from Federal Gross Income to conform to
California Gross Income. It is also where you add to or
subtract from the federal amounts any differences in
"Adjustments to Income" and "Itemized Deductions." For a
typical taxpayer (wages, pensions, interest, dividends,
capital gains) the only item that would be on Line 21
requiring an entry in Column B would be CA lottery winnings
as CA does not tax its residents on CA lottery winnings.
JanZtaxNOSPAM
> (box 3) and I'm entering it into California Schedule CA
> (540).
Schedule CA is ONLY to record income that's different
between federal and state returns. So anything that goes on
your federal return and is also taxable to CA (which is most
likely the case) should not be entered on schedule CA,
except with all other federal income in column A.
Jan Zobel, EA
Oakland, CA
D. Stussy
> I have income on Form 1099-MISC designated as "Other Income"
> (box 3) and I'm entering it into California Schedule CA
> (540).
>
> I know it goes on line 21F, "Other (describe)," but should
> it appear in column B, column C or both?
NEITHER. You have not stated any basis on which California
treatment would differ from the federal treatment.
Therefore, there is no adjustment to make.
> No federal tax was withheld from the amount on 1099-MISC,
> and the amount is already reflected in my federal adjusted
> gross income (form 540, line 13).
>
> If I treat this as an addition to income on CA (540), won't
> that be like including it in my taxable income twice?
Yes - and that is normally done for items not taxable at the
federal level and/or items which have different amounts due
to differences in state vs. federal law.