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?
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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