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California form 540: married filing joint with 1 child under 6 years old
Earned Income: $4,496
Unemployment Benefit: $25,500
=> Federal AGI: $29,996
Pro Series calculate:
- Earned Income Credit $1
- Young Child Tax Credit $1,000
=> Total refund: $1,001
But Franchise Tax Board send out a letter for taxpayer with Explanation of Change:
- We disallowed your Earned Income Tax Credit because your federal adjusted Gross income exceeds the limit for your number of qualifying children (CODE:AP)
- We disallowed your Young Child Tax Credit because you did not qualify for Earned Income Tax Credit (CODE:HQ)
So what I have to do in this situation?
Thanks.
Best Answer Click here
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Pull out the FTB instruction book and see IF the income does exceed CAEITC limits its telling you? If so, then the program has a bug.
Maybe the unemployment is creating an issue since CA doesnt tax unemployment? Making CAs AGI much lower than the fed?
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