Draft of the new Schedule CA released

Because the Tax Cuts and Jobs Act (TCJA) makes major changes to itemized deductions and standard deduction amounts (among other things), taxpayers are likely to have significant Schedule CA adjustments for 2018 California returns. In anticipation of these adjustments, the FTB is updating the 2018 Schedule CA.

We have been anticipating a draft of the new form for months, and it has just been released to certain media and forms companies. The new form is three pages long and offers additional lines to make adjustments where the TCJA has created known nonconformity. Spidell is reviewing each line of the form, and we will share all of our thoughts and concerns with the FTB. Our goal is to help them create a Schedule CA that is accurate and helpful for California practitioners and taxpayers.

Additional details on the form will be available in the October issue of Spidell's California Taxletter®.