California income tax witholding changed to code GC

[agnesturbo]

I got a letter in the mail from FTB that my balance has now changed from a $300 refund to $1,175. On the explanation of changes, all the calculations match, with the only difference being CA Income Tax Withholding line. Why did the balance change with only this line being different, when the other numbers, especially the CA Adjusted Gross Income, match perfectly. Shall I dispute it?

[TomYoung]

Here's the California instructions about this situation, and I'd say it's exactly on point about what to do:

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Return Information Notice - Code GC

The withholding claimed on your return has been revised to the amount that we could verify with the Employment Development Department (EDD).  We also considered any W-2’s and forms 1099 reporting withholding that you provided with your tax return.

Why did I receive this notice code?

The amount you entered on the California income tax withheld line did not match the amount on your form W-2 or other documents, or we could not verify. This commonly occurs when:

• You did not total the withholdings from your Forms W-2 correctly.
• Withholding is from a state other than California.
• Real Estate and other withholding is entered on the wrong line.
• Local tax or SDI is claimed in error.

What do I need to do?

Compare your tax return to your Form W-2 and make sure you entered the correct amount. State withholding is in box 17.

If you agree with the revision, you do not need to contact us. Please update your records. If a revised balance due exists, please pay the amount due.

If you do not agree, If you have documentation supporting the original amount of withholding claimed, please contact us.

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Tom Young

[dom1234]

I got a similar notice from CA Tax. I used their chat feature on ftb.ca.gov.

I did not have an account on their web site, so I had to wait about 5 days to get a PIN (via USPS mail) to complete my account, before I could go further.  Once I confirmed the account with the PIN I was able to use the chat, during business hours only.

After a 20min waiting time, I was connected to an operator. After few verifications, the operator asked if I was in position to upload my W2s within the next 5min. I did the upload, the operator checked the numbers and cleared my account. 

For this issue, I say the chat is the way to go, just make sure you have the W2s in a file ready for upload. And you account for the time to get the PIN via mail.