Question

California - Form 100 Line 1 Income

Accepted Answer

If the amount of net income reflected on California Form 100 line 1 doesn't match the amount on Federal Form 1120 page 1, line 28, it may be due to the amount(s) entered as a deduction for taxes (i.e. state and local, payroll, etc.) entered on Federal Form 1120 page 1, line 17 and also on California Form 100, page 3, Schedule A. As the program is unable to accurately determine the California deductible amount(s) based on entries in the program, the amount(s) cannot be transferred from the Federal return and the California entry must be completed separately. Below are the steps to make that entry.

From within your TaxAct return (Online or Desktop), click State. On smaller devices, click the menu icon in the upper left-hand corner, then select State
Click California under the expanded State menu
Click Continue or No (you will go past approximately 46-49 screens) until you reach the screen titled California Schedule L - Balance Sheet where you must choose Yes or No. Choose No and on the next screen titled California - Schedule A you will be able to enter the nature of the taxes, the taxing authority, the amounts and if any part of the amount is nondeductible (these entries will transfer to California Schedule A.

Once the steps are completed, you will see any tax deduction entered reflected in line 1 of California Form 100.