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California state EITC not checking residence status

To qualify for the California state Earned Income Tax Credit (EITC), one must live in California for more than half the year, see this link. It appears that TurboTax does not take this rule into consideration when checking eligibility for the California EITC.

 

For my case, I did not live in California for more than half the year of 2021, and I indicated this situation during the health coverage exemption step. However, TurboTax still thinks I am qualified for California EITC, and I cannot find a way to remove this tax credit working with TurboTax. Is there a fix?

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1 Best answer

Accepted Solutions
MayaD
Employee Tax Expert

California state EITC not checking residence status

Make sure you've set up your personal information correctly.

  1. Sign in to Turbo Tax and select Personal Info.
  2. Personal info summary screen will pop up.
  3. Question number 2 asks you the state(s) you lived in during 2021. Select your state of residence from a drop-down menu.
  4. You'll also be asked if you lived in another state in 2021. Answer Yes and a new section will appear asking for your previous state of residence. Select the other state you lived in.
  5. Fill out the date of when you moved to your current state.
  6. If the rest of your information is accurate, select the blue Continue button in the lower-right corner of the screen.

Also on your state return, select Edit next to General Info confirm your Residency Status.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

2 Replies
MayaD
Employee Tax Expert

California state EITC not checking residence status

Make sure you've set up your personal information correctly.

  1. Sign in to Turbo Tax and select Personal Info.
  2. Personal info summary screen will pop up.
  3. Question number 2 asks you the state(s) you lived in during 2021. Select your state of residence from a drop-down menu.
  4. You'll also be asked if you lived in another state in 2021. Answer Yes and a new section will appear asking for your previous state of residence. Select the other state you lived in.
  5. Fill out the date of when you moved to your current state.
  6. If the rest of your information is accurate, select the blue Continue button in the lower-right corner of the screen.

Also on your state return, select Edit next to General Info confirm your Residency Status.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

California state EITC not checking residence status

This worked! I was actually living abroad for the whole year of 2021, so I ended up selecting Foreign or U.S. Possession for my resident state, and that solved the problem. Thank you very much!

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