We received the following CA FTB notice: "We disallowed the deduction for those wages you subtracted on your Schedule CA 540. All your wages are taxable, including those wages earned outside of California." The only deduction is Paid Family Leave Insurance benefits and those were not earned outside of CA, nor did we claim they were. I am confused by the reference to wages earned outside of CA. I was paid SDI via EDD from my employer while on maternity leave & family bonding and followed the Turbo Tax prompts/recommendations when completing our 2013 tax return. We are now being asked to pay a significant additional tax amount for 2013. We have until 10/1/17 to protest - PLEASE HELP!!!
Should my PFL wages be deducted on my CA 540?
