California: deducting tuition & fees?


K

Kevin Arouza

It seems form 540 allows you to deduct Tuition & fees
expenses. Form 540 Line 12b specifies to use the AGI from
Form 1040 line 34. Line 34 is the amount after Tuition &
fees have been deducted on the federal return. Does this
mean I can take this deduction on my state return?

Thanks much!
 
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D

D. Stussy

Kevin said:
It seems form 540 allows you to deduct Tuition & fees
expenses. Form 540 Line 12b specifies to use the AGI from
Form 1040 line 34. Line 34 is the amount after Tuition &
fees have been deducted on the federal return. Does this
mean I can take this deduction on my state return?
Technically, yes, because California AGI starts with Federal
AGI (R&TC 17072), although there may be differences due to
other statutes.
 
A

Arthur L. Rubin

Kevin said:
It seems form 540 allows you to deduct Tuition & fees
expenses. Form 540 Line 12b specifies to use the AGI from
Form 1040 line 34. Line 34 is the amount after Tuition &
fees have been deducted on the federal return. Does this
mean I can take this deduction on my state return?
Not exactly. Although the Federal AGI is used as a basis,
and is used to determine some phase-outs, the deduction is
backed out on Schedule CA.
 
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N

Nan Eklund

540 CA will subtract out the tuition and fees adjustment.
If the tuition is a legitimate Sch A deduction (related to
employment), you can add it back there, again on 540 CA.

Nan, EA in LA
 

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