Thank you. A couple points of clarification/additional information- First, my daughter can be claimed on another tax return; but is not claimed on another return. Second, her standard deduction on both the federal return and MO state return is $6625 (earned income plus $400). Third, in turbo tax, the CA Form 3800 auto calculated the the line 1 amount (child's unearned income- interest, dividends, capital gains) as the difference between her AGI and her earned income. This amount (approx. $2700) was greater than the line 2 amount of $2300. Fourth, there are no CA taxes withheld from her CA earnings.
1. Does the above additional information impact the conclusion that there is no need to file a CA tax return (her total income was greater than her standard deduction; but not greater than $12,950)?
2. How would I correct the CA Form 3800 line 1 amount (that turbo tax is populating) that is showing the approx. $2,700 of unearned income? Shouldn't line 1 on CA Form 3800 be $0 (if all passive income was earned in state of residence-MO)? I think you are suggesting in your reply to delete the entire form? Or do I override the Line 1 amount and input a $0?
