drkdhl
New Member

Why did CA tax rate for dependent filing separating with non-earned income double after entering parent's taxable income?

For 2018, dependent on parents' return is filing 1040 and CA 540 separately. Tax owed for non-earned income is $500 until parent's taxable income from parent's 1040 is entered, then dependent's tax due is doubled. Parents are NOT including dependent's income - earned or non-earned on their return. Why is the tax so high?