The form 3514 EIC with CAFTB calculate wrong-BUG

[Mybesttaxservice]

Tp has two dependents : one is 20 years and one is 24 years by the end of 2023 
On the fed, we coded the child 24 years as no qualified child for EIC and other child 20 yrs as qualified child for EIC 
Tp has AGI is $10265. filing status MFJ and earned income $10265. Fed is fine, but state has issue
On state CA, form 3514 Part V line 2: Professional Proseries automatic calculates EIC $832 based on EIC table from CA FTB for 2 children instead of 1 get $190 . We cannot override 
CA FTB sent out the letter "We revised your EIC because one exceed age limit (CODE: DU)
If any expert acknowledged and helped me to pay attention and fix this for future clients, please help. Else tax software support should fix bug
We dont want customers get any letter from tax agencies. They got panic and not trust tax preparer. Thanks all in advanced

[Just-Lisa-Now-]

So youve got the 24 year old Coded as N (nonqualifying person) and O (Other dependent)?

[Mybesttaxservice]

Hello Lisa

I original coded as N and L (the child living with parents 12 month)

I try to change and code as you said N and O (other decedent): the amount of EIC taxble has not change (the Professional Proseries computed for 2 children $832), but it should be $190 (for one qualifying child)

Thank you so much for sharing info

[Just-Lisa-Now-]

If they're 24 they're not a child anymore, so I thought N and O would do it.

I wonder if its the son/daughter relationship designation that makes CA pick it up?  If you change that to None does it change the CAEITC?  (just trying to narrow down the trigger)

Or maybe CAs EITC rules are just different than Fed?  I dont even know anymore, is it April 15th yet?

[Mybesttaxservice]

Hello Lisa 

Again, thank you for your sharing 

Today I have tried several ways:

Facts: non qualifying EIC child 24 yrs old by the end of 2023 TY 

Working on Info worksheet from State, if any to change for the child (SON) 24 yrs old . 

Working direct on form 3514 EIC CA FTB, Professional Proseries popped up only one child 20 yrs old, I filled in other child 24 yrs and answered "no under 24 yrs old, non disabled permanent" , but EIC table has not changed at all

FED and CA FTB are conformity for EIC regarding age <Must be under 24)

Again, thank you for your time and sharing info. 

[Just-Lisa-Now-]

24 years old isnt a "child" anymore, so that may be where the disconnect is, that's an Other Dependent....Im curious if you change the relationship from son/daughter to something else, if it figures correctly or not.

[Mybesttaxservice]

Hello Lisa

I tried to changes as you suggested and worked more with specified form 3514 EIC CA, to answer specific situation, but not work. I also tried to update the installed products

It does not resolve. 

Thank you for your time 

[Just-Lisa-Now-]

Im not sure what to tell you, at this late of a date, Id file it as is, and let the client know that CA may send a letter reducing the refund by XX amount.

[Mybesttaxservice]

Hello Liza

Today I have time to look back at the issue . Because I dont believe Professional Proseries had this bug (I trust Intuit and also a stock investor:)

I was  look up the wrong column (0 child EIC $190 which CA FTB indicated); instead look correctly (1 child EIC $832). So, the tax software PP is right

I am calling CA FTB to ask now and let you know if CA FTB fix it 

I should withdraw this post which made PP user think negative 

Again thank you your time to share with me 

[Mybesttaxservice · Accepted solution]

I found out the issue after talking with CA FTB 

Fed qualified child code : correct (in this case the qualified child is full time student under 24 and also disabled child )

Last year 2022 , I coded S 

This year 2023, I code D

When we transfer from Fed to CA FTB 3514 

Last year, form 3514 checked 9a (student under 24 and younger than taxpayer)

This year, form 3514 it did not automatic check 9b (permanent disabled child), even PP calculated one qualifying child for EIC $832

CA FTB agreed to fix the error and made additional refund and I just need to fax to them notice and copy of social card of qualified child 

Thank you all