Generally, when completing your Federal Tax Return, 1040Return will transfer the data to the State Return automatically. So, you do not have to enter the data twice. Some States may have special provisions that could affect your return. California State Income Tax laws have special provisions and credits for individuals.
Differences Between California State Tax and Federal Law
For instance, when it comes to Mortgage Forgiveness Debt Relief Extended, California State Income Tax law conforms, with modifications, to federal mortgage forgiveness debt relief for discharges occurring on or after January 1, 2009 thru 2012. Federal law limits the amount of qualified principal residence indebtedness to $2,000,000 ($1,000,000 for married filing separate). California State Income Tax also limits the amount of qualified principal residence indebtedness to $800,000 ($400,000 for married/RDP filing separate) and debt relief to $500,000 ($250,000 for married/RDP filing separate).
Plus, most states will have special deductions for charitable causes. For example, California State Tax allows you to to receive a Donated Fresh Fruits or Vegetables Credit for taxable years beginning on or after January 1, 2012, and before January 1, 2017. This credit is for qualified taxpayers who donate fresh fruits or fresh vegetables to a California food bank. These individuals may receive a credit equal to 10% of the donation’s costs.
So, when you complete your Federal tax return, double check your State tax return for special credits that may apply to your State. This is especially true if you are filing a California State tax income return.
States We Support
You may review your complete state return(s) before filing, along with your federal return.
State Tax Department Websites
Use the links below to get quick access to your state tax website. The state site can provide online refund tracking, news updates, as well as additional forms and information.