In 2020, I reported my IHSS Wages ( although it showed $ 0 in Box 1 of W2) I showed the amount in Box 3 as Wages and then showed the IHSS wage amount as negative under Additional Income Line 8 Z referring to IRS Notice 2014-7. I received both my Federal and CA State tax refunds as calculated by Turbot tax.
In 2021 I reported it the IHSS Wages similar to what I did in 2020, my Federal tax refund was given to me as calcaulated by Turbo tax. However my CA State tax refund was adjusted as CA adjusted my CA AGI
by taxing the IHSS income, and disregarded the negative amount entered under Additional Income Line 8Z.
I received a letter from CA FTB stating that me CA AGI was adjusted hence the reduction in my refund.
I want to file an amendment so I can claim my full CA Tax refund as calculated by Turbo tax.
The Tax Audit Defense person from Turbo Tax ( since I paid for the service) told me that I need to file amended returns for both Federal and State by showing Zero in Box 1of the IHSS W 2 and removing the negative from Line 8Z.
In Turbo tax if one one puts a Zero amount in Box 1of a W2 , it requires you to print and mail a hard copy return and you cannot E file. If I out $1 in Box 1 of the IHSS W , it allows me to Ef ile the amendment, just want to check if that OK for me to do.
Appreciate a response.
Thanks
Renuka Yoga
