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Anne, Master Tax Preparer
Category: Tax
Satisfied Customers: 2430
Experience:  Enrolled Agent with 25 Years Experience specializing Individual and Small Businesses
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Im using TurboTax. I received a 1099C (cancelled debt income)

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I'm using TurboTax. I received a 1099C (cancelled debt income) and claimed it as income on line 21 Other Income on my Federal. However, on my CA State it doesn't use this as income, it subtracts it, bringing my taxes down to "0". This cancellation of debt was for property in ID not CA. Is it correct that the CA doesn't tax this?
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Turbo Tax is correct on this issue, since CA does not tax rental income from other states, it would not tax your cancellation of debt from other states.

You may need to file ID state tax though.

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