On 6/11/2022 we received a **"Notice of Tax Return Change - Revised Balance"** demanding a balance of $694.00.
The FTB cited the CA AGI was miss reported, that the gross income should have been 14,210.00 higher. Yet the Federal AGI amount, which excluded IHSS Income, was transferred by Turbo Tax directly to the CA 540 form as instructed by CA's Instructions. The CA Form 540 says "Enter federal adjusted gross income from federal Form 1040 or 1040-SR, line 11 ........ 13"
This difference ($14,210.00) is from IHSS wages, which are considered in, my case, excludable.
In my federal return, I reported the IHSS Income as Misc Income with a negative figure and this explanation:
Per IRS Notice 2014-7 excludable income. IHSS "difficulty of care" payments, referred to as Medicaid Waiver payments are excluded from gross income pursuant to IRC section 131(c).
Does this mean the qualifying IHSS income should have been reported differently in Turbo Tax??
