Hi there! My questions is how do I make adjustment to deductible home mortgage interest for California, on CA form 540, Part II, Adjustments to Federal Itemized Deductions, line 8, column C
So my home mortgage has a principle over 1M. It started before 2017 December. For my federal return, TurboTax correctly calculated that the deductible interest amount is 1M / average principle * total interest paid.
For California state return, per the CA form 540 instructions (
https://www.ftb.ca.gov/forms/2020/2020-540-ca-instructions.html, Line 8 – Home Mortgage Interest), I should be able to use 1.1M as allowed amount to calculate.
Among the final forms Turbotax exported, I can see that there is a "Deductible Home Mortgage Interest Worksheet" attached to CA state return, calculating a different dedictible interest amount based on 1.1M / average priciple * total interest paid. However, this calculated value is not used anywhere. The CA 540 instructions says "If your deduction was limited under the federal law, enter an adjustment on line 8, column C for the amount over the federal limit.", but column C is empty despite the worksheet included in the return.
Is there a way to fix this or override manually?
