I (the husband) amended my Married Filing Separately 1040 via 1040 X to add my wife who also filed Married Filing Separately 1040 in 2020 . I had no issues adding the amount of her separate federal refund to Form 1040-X per https://ttlc.intuit.com/community/amending/help/how-do-i-amend-married-filing-separately-returns-to-....
The issue is with Form X and the confusing way CA handles the tax refund. My wife's tax refund was $61.00 and wasn't taken into account by Turbotax as the question of 2020 tax refunds for her return is not asked (not sure why). Please see the screenshots below.
On Form 540 as amended, the tax refund for the state return is shown as $495.
Yet State Schedule X is negating the refund as is showing $0 refund. Why?
Note that the prior state tax refund I received is shown on the applicable worksheet.
Can anyone unpack this and explain: 1) why the 495 refund has been negated and 2) what steps I should take to reflect the $61.00 refund my wife received?
