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Stephen G.
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Need clarification on Schedule H (Reconciliation of Income

Customer Question

Need clarification on Schedule H (Reconciliation of Income per Books with Income Per Return) of Form CIFT-620 SD "Lousiana Income and Franchise Tax Return What line should line 10 of Schedule H tie to? Should it tie to the Federal Taxable Income on line
30 of Form 1120 or should it tie to line 3 of Schedule G of LA Return CIFT-620 SD?
Submitted: 1 year ago.
Category: Finance
Expert:  Stephen G. replied 1 year ago.

Neither. However, depending upon the reconciling items for LA, it is possible that line 3 of Schedule G would agree to Line 30 of Form 1120, but note that Schedule G is only completed if you are apportioning income among two or more states. "(Schedule G is required if Form CIFT-620A, Apportionment and Allocation Schedules are filed with this return.)"

The LA return is pretty good as to which lines on the return should agree to which other lines on the return & it's schedules should agree with one another. For example, in the taxable income lines comparable to those that you are referring to, on page 1 of the Form, Line 1A should agree to either CIFT-620 Schedule D, Line 13 OR from CIFT-620A Schedule P, Line 31.

Customer: replied 1 year ago.
Schedule H, Line 10, does not refer to another line in the return and that's why its confusing. Furthermore, the instructions are vague. I can't tell if Schedule H is for reconciling book income to LA tax return or book income to the federal tax return.
Expert:  Stephen G. replied 1 year ago.

It is reconciling to the LA tax return. Is there a particular issue in the reconciliation process that you are trying to solve? As you state, Schedule H line 10 does not refer to another line in the return, so I'm not sure what (or why) you are trying to agree that particular line to something else? There are enough other lines that reconcile back & forth to highlight anything that is out of whack or out of balance.