Calif Returns and Sched C

[S T]

Just received a flash email from Spidell Emails

To hold Calif Sched C returns --

The FTB has changed Schedule CA to reduce the amount of self-employment tax deductible for California purposes. According to the FTB, taxpayers may only deduct 50% of the self-employment tax for California purposes, while they can deduct more than 50% for federal purposes. If the FTB is correct, there will be an increase in AGI on Schedule CA for virtually all self-employed taxpayers.
We don’t know how your software is currently computing the self-employment tax deduction for California purposes, and we are not certain that the FTB’s analysis is correct.

Sandy

[Y2KEA]

Lacerte is allowing only 50% of SE tax on the 540CA schedule.

[DMICPA]

Ca Se

I am looking at a Schedule C for a CA resident. Using Proseries Tax Software.

The 1/2 of SE tax is deducted on line 27 of the 1040 is $700.

Now I go to the CA return schedule CA and on Line 27, the amount is same as Federal of $700.

I do not see any difference.

Maybe this is a new development by CA, however several CA returns with schedule Cs have already been filed so a change at this point would be a big deal.

Is anyone else's software doing it different?