CA Qualifying Dependent with Negative Income

Forum|Forum|3 years ago
April 14, 2023
3 replies
9 views

Qualifying dependent has negative income from capital loss carryover.

Federal accepted. CA eFile rejected.

Has anyone been able to efile with negative income for a qualifying dependent for state of CA? Has anyone proceeded with paper filing and can provide some insight?

Thanks!

MarilynG

Level 15

Per Expert @GeorgeM777:

"No, that loss can’t be used by you, the parent, to offset your own gains or other income. In terms of what you can include on your return, you may be able to include your child's interest and dividend income (including capital gain distributions) provided the interest and dividends is their only income and such income totals less than $11,000.

If the child has a net capital loss, perhaps the best option is to file a separate return on their behalf to memorialize the capital loss carry forward that can be applied to their future year gains."

@snowwhite11

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snowwhite11Author

Level 2

Sorry for the confusion. I am not claiming the capital loss.

Dependent has filed taxes already.

The negative income is reflected in the form below:

CA Form 3532

Head of Household Filing Status Schedule

Part III Qualifying Person Information

#4 Enter qualifying person’s gross income for 2022

The gross income is negative. This is the information filed with the 2022 taxes for the dependent. By entering this info which is a negative amount, I was not able to efile.