What amount of Tony's IRA contribution can he deduct on his California tax return?

When considering the deductibility of an IRA contribution on a California tax return, specific factors must be taken into account. In general, the ability to deduct an IRA contribution from state income taxes can depend on several criteria, including the type of IRA established, income limits, and filing status.

In this case, if Tony's contribution is fully nondeductible due to specific circumstances—such as exceeding income limits for tax-deductible contributions, being covered by a company retirement plan, or not meeting eligibility criteria for a deductible contribution—then he would indeed deduct $0 on his California tax return.

California follows certain federal guidelines regarding retirement accounts, but it may also impose distinct rules that could affect deductibility. For example, if Tony's modified adjusted gross income surpasses the set thresholds in a given tax year, he would lose the ability to deduct any amount of his IRA contribution.

Thus, the answer indicates that there are specific limitations or conditions that led to no deductible amount for Tony's IRA contribution, pointing to the importance of understanding both federal and state regulations regarding retirement accounts and their contributions.