How to enter adjustment to ordinary dividends for 2023 California return

engtax_56
engtax_56 Member Posts: 2 Newcomer
edited February 18 in State Filing

In my 2022 California CA(540) return I did through freetaxusa last year, I can see on the California adjustments form Part 1 line 3 for Ordinary dividends, I have a federal amount in Column A, and a Subtractions in column B. I can see in the California Summary the subtraction amount is marked as "U.S. Treasury Interest"

How can I enter a Subtractions value for this adjustment on my 2023 California return? I don't see a way to make this subtraction in the 2023 return. Thank you.

Comments

  • KeriC
    KeriC FreeTaxUSA Agent Posts: 95

    Hello @engtax_56. I recommend logging into your account and contacting customer support. They will be able to view your account information and can guide you accordingly.

  • sleestax
    sleestax Member Posts: 2 Newcomer

    Closely related question: Box 2a on my FreeTaxUSA DRAFT Form 1040 shows the federal tax-exempt interest (from munis) aggregated from all of the 1099s I have manually entered. Will these data automatically get added to my income for my state income tax filing? Or do I need to manually include this as an "addition" to income for state income tax purposes?

  • KeriC
    KeriC FreeTaxUSA Agent Posts: 95

    @sleestax There is a page after you enter your 1099-INT with tax-exempt interest income that will ask if you have state tax-exempt interest. As long as you answer NO, the amount will automatically carry over as an addition to your state income.

  • BillA
    BillA Member Posts: 3 Newcomer

    I have the OP's situation as well. I'm not seeing the secondary page you mentioned.
    When you say "…with tax-exempt interest income…" are you referring to an amount in box 8 of the 1099-INT, or just a 1099-INT that has income that could be excluded from state tax?

  • sleestax
    sleestax Member Posts: 2 Newcomer

    Thank you. These are mutual funds so they are 1099-DIV in this case but same idea. I will try this. I recall having to answer "yes" to be prompted to manually enter — but you are saying that if I answer "no," the software will then know to do the right thing? (For me, it's Box 12 on a 1099-DIV but looks like that is Box 8 on a 1099-INT.)