Thank you for the clarification. Did you end up entering the entire amount from Box 3 in Box 1 in the W-2 section? If you only entered the smaller amount it may show as an error.
If you met all the qualifications to have the IHSS wages excluded from Federal and California income, but just didn't have the Form SOC 2298 on file with the Department of Social Services until November, then you can still exclude all of the income.
If you saw a change in the refund meter for California when you entered the W-2, finish your Federal return and then go through all of the California interview and answer the questions. The IHSS income is excludable from California income as well.
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