California denied my other state (AZ) tax credit filed on Schedule S

Forum|Forum|3 years ago
July 31, 2022
1 reply
22 views

I am a resident of AZ and for many years have received a tax credit on my California non resident tax return for california income that I paid AZ taxes. Turbo tax has calculated the credit and for some reason this year, California seems to be treating it differently. I would think Turbo Tax would be picking up the latest tax rules if they have changed?

Best answer by SteamTrain

The 2021 CA Schedule S instructions, Section D :

2021 Instructions for Schedule S | FTB.ca.gov

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They still list AZ, GU, OR, & VA as the states where the CA non-residents can still claim this credit.

1) Check your tax forms to make sure that the proper amount carried from the AZ tax return to the CA nonresident return. (I suspect you have to prepare your Resident AZ tax return first....which is backwards from most other Resident/non-resident state situations)

2) You'll probably have to call the CA FTB, (at whatever phone number their notice provided), to see what evidence they require, or if there is some particular reason that they disallowed it (so far?). Perhaps they think you were declaring more CA-income as being taxed than was the actual situation, or perhaps they want to see a printed copy of your AZ tax return, or CA-sourced income documents to prove your claim. You'll really have to ask the FTB.

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@VolvoGirl You do CA taxes....any added input?

SteamTrainAnswer

Level 15

The 2021 CA Schedule S instructions, Section D :

2021 Instructions for Schedule S | FTB.ca.gov

________________

They still list AZ, GU, OR, & VA as the states where the CA non-residents can still claim this credit.

___________________

@VolvoGirl You do CA taxes....any added input?

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

TomD8

Alumni - Champ

Did CA tell you why they denied your AZ tax credit?

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

jmdsfamAuthor

Level 2

The notice said "You made an error in calculating your total credits or tax liability. (CODE:TT)". The amount of the requested additional tax represented the calculated tax credit on Schedule S of my Non Resident CA return taking into account the new penalties and interest. Thanks.