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I have discovered that the IHSS income is not flowing from the Federal Other Income wksht to the CA Schedule CA. The 540 itself is reflecting an accurate return starting with the federal AGI; however, the CA Schedule CA does not show the negative adjustment for "other income" and the CA FTB is going by what the CA Schedule CA is showing as the adjusted gross income which includes the IHSS income; therefore, end result is more taxable income which is wrong.
There is no way to override the fields to input a negative IHSS income adjustment in the Federal column of the CA Schedule CA. If you put the IHSS income in the subtraction column of the CA Schedule CA, it reduces the correct Federal AGI on the 540, thus giving the taxpayer an even greater refund.
Has anyone experienced this and do you have a work-a-road. CA FTB says the return has to be amended when the actual return is correct but, the CA Schedule CA is wrong.
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♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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Exactly, there shouldn't be anything to adjust due to the 540 being correct and starting with the Federal AGI which has the negative adjustment. However, CA FTB factors in the CA Schedule CA when determining the accuracy of the 540 and due to the Sch CA not showing a negative adj on the other income line for the IHSS income, CA FTB is making their own adjustment to correct the Federal AGI on the 540.
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Did you ever get this resolved? We just received our first correspondence in regards to this same issue. Did you file an amendment?
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FTB is going to fix it on their end
♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪