Do I have to file with CA state?

[peterinwa]

I didn't make enough money to reach the federal standard deduction, so I am only filing with the IRS to get my federal taxes withheld back.

Because California has a lower standard deduction, TurboTax tells me I owe California $56. But do I have to file with California?

I don't think I do because form 540 instructions say you don't have to file unless your gross income reaches $19,310 and I'm nowhere near that.

I went ahead and paid California the past two years because of what TurboTax calculated, and now I think that was a mistake. I shouldn't have filed with California because my gross income was well below $19,310.

[ErnieS0]

Yes you probably do have to file and pay if you owe tax.

California has two filing thresholds — California gross income ($19,310) and California adjusted gross income ($15,448).

You can probably over the CA adjusted gross income amount, which is why TurboTax shows you owe tax.

See Filing requirements

[peterinwa]

Ernie,

That would explain it, but it's not the case.

CA tax form line "13 Enter federal adjusted gross income from federal Form 1040" is showing only $7,546.

That is above the CA standard deduction of $4,803 so I do get why it's saying tax is owed. But it's way below the California adjusted gross income required to file of $15,448?

[ErnieS0]

If you are being claimed as dependent you will owe tax because you don't get an exemption credit of $129.

Tax News October 2021

[peterinwa]

Ernie,

I agree with how it's calculating the state tax due. But I guess TurboTax doesn't make a decision on whether or not a person meets the requirements to have to file.

My conclusion is that even though TurboTax has calculated an amount due, I don't have to file because both gross income and AGI are below the limits that require filing.

Please let me know if you think I am wrong.

Thank you, Peter

[peterinwa · Accepted solution]

Ernie,

Thanks for the discussion. I figured out my error!

As discussed, I was looking at filing requirements for gross income at $19,310 and AGI at $15,448.

I missed the bottom line of the chart which says that for dependents you have to file if you made more than the standard deduction.

I'm filing for my granddaughter, who is a dependent. I suspect if I'd mentioned that in the first place you would have had the answer right away!

Thanks again, and I apologize for not explaining the situation more thoroughly.

Peter