California 2011: Self-Employment Deduction
California taxpayers with a self-employment tax deduction may have differing state and federal deduction amounts. In 2011, the federal government increased the deduction to more than 50% of the self-employment tax. California did not conform to this change, and does not use the more than 50% deduction.
Certain customers, who had a deduction for self-employment tax paid, may have filed an incorrect California tax return.
TurboTax has fixed this issue.
How to tell if you may be impacted
You may be affected if ALL of the following are true:
- You filed a 2011 California Income Tax Return prior to March 1, 2012 AND
- You had an amount of Federal Form 1040, Line 27 AND
- You had no amount on your California Schedule CA (540) California Adjustments, Line 27, Column B
If you are affected, you may have underpaid your California state tax.