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Are moving expenses deductible for the California state tax return if moving to California?

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Level 2
 
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5 Replies 5
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Level 15

Yes. 


ex-AllStar
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Level 15

CA conforms to the IRS based on a static date, currently Jan 1, 2015, and does not, therefore, conform to TCJA on moving expenses.

So long as the moving expenses are related to a job in CA and would otherwise meet the time and distance tests under §217, such expenses would be attributable to CA and deductible on the CA return.

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Still an AllStar
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Level 2

Thanks so much.  One more question.  On the Ca schedule 540 NR, Part II, Section A, income adjustment schedule, column E, asks for the income earned in CA.  When I put that amount in, it seems that my client is refunded almost his entire amount of withholding.  Does that seem right?  Is that some kind of incentive for moving to CA?  Thanks again.

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Level 15

Right? Only you, the paid preparer can determine that. Possible? Definitely. If the move in late in the year and the majority of total income is from outside CA, it it entirely possible that the CA wage minus CA moving makes the tax less than the credit for family. 

 


ex-AllStar
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Level 2

Ok, I got that the moving expenses are deductible for the CA state tax return.  He qualifies.  What I am confused on is the figure to put on line 13E Section C of the Calif adjustments schedule.  The column heading says, " CA Amounts (income earned or rec'd as a CA resident and .....)" .  So if you take those words verbatim then I would put his CA income, since March, on that line.  That would give him a refund of almost his entire CA withholding.  This would be nice, but is that the figure that the line wants?  Or does the line want the moving expense figure?  The CA instructions are of no help here. 

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