My CA state wages are $6,000 lower than the federal because my employer paid benefits for my domestic partner that are taxed by the federal government but not the state.
On my 540, the state income transferred over to box 12 (state wages). However, my federal adjusted gross income is entered for box 13 with no adjustment in box 14 (subtractions). Thus, my 540 is filled out according to my federal rate and not the state rate. This seems to be incorrect since it seems that I should be paying taxes based on my state income, not federal income.
I don't see an adjustment that you can use to subtract an amount from your wages.
Is this for something specific, such as health insurance?
Do you intend to file a RDP CA state return?
Thank you for your reply! I really appreciate it!
We are RDP in our city (which is what my employer required to put her on my health insurance), but not in the state.
So, you are saying that even if state wages on my W-2 are $6,000 lower than my federal adjusted income, I have to use the federal adjusted income on my CA 540?