Is CA Lottery taxable to CA residents

[Just-Lisa-Now-]

Not taxable to CA, but it is taxable on the federal return.

[itonewbie]

Not for CA lottery and Mega Millions.  See instructions for Line 8: https://www.ftb.ca.gov/forms/2019/2019-540-ca-instructions.html

[hessa333]

How do I enter the winnings so they're reported on federal but adjusted on schedule CA line 21?

[Just-Lisa-Now-]

You enter the W2G in the W2G worksheet and the EIN number should make it automatically pick it up as CA lottery winnings and make the adjustment on Form CA of teh California return.

[hessa333]

Thanks for the quick response. There is no W2G. It's $500 from scatchers.

[Just-Lisa-Now-]

Ive never had anyone claim scratcher winnings that werent high enough to have a W2G issued, but I guess you can just list it on the Other Income worksheet as Gambling winnings not issued on a 1099 or W2G, then enter it again on 540 Schedule CA under lottery winnings as a deduction.

[Don Alfonso]

It appears that Proseries has a glitch with regards to the CA Lottery, you have to enter the information manually into the CA adjustments form

[Just-Lisa-Now-]

Did have to in the past, it picked up the CA EIN on the W2g as CA lottery winnings, its possible that 2020 dropped the ball though.

[Don Alfonso]

Yeah, my 2019 is doing it also, will have to make a few amendments

[drbdrb]

I had some (brief) difficulty in removal of 2021 California lottery winnings from the taxpayer's 2021 CA return, until I found the following. Under the area in which the Form W-2G information is entered, is a section titled, "Other Information", which includes a line item that allows for identification of the winnings as "state lottery winnings". Identifying the winnings as state lottery winnings in this section will result in the inclusion of the winnings as an adjustment on the taxpayer's California Schedule CA.