How to handle 5830G from State of California

[filemytaxes1]

Hello all,

In 2017, we had a baby and because of this event there was a w2 sent to us from Insurance company which my employer used for maternity/paternity leave. This w2 had income of $30,962 which turbo tax entered as subtractions on CA 540 on line 7. The question is was turbotax wrong to subtract this on line 7 or Is state wrong on saying this amount should not be subtracted. 

These are the values from w2 in question:

Box 1 (Wages): 30,962

Box 2 (fed tax withheld): 5,976

Box 3 (SS wages): 17,553

Box 4 (SS tax withheld): 1,088

Box 5 (medicare tax withheld): 255

Box 13: Third-party sick pay checked

Box 16: (State wages): 24,188

Box 17: (State income tax): 1,604

[DanielV01]

This income is taxable in California.  This California memorandum explains (click on link):  California tax of third-party sick pay.  Based on the information you post from the information on that W-2, it looks that while $30962 of the third-party pay is taxable Federally, California considers $24188 to be taxable in the state.  Read through your notification to verify whether or not this is the case.

If you feel that the program may have calculated this in error, contact the Audit Support team for assistance.  For instructions, please see this link:  What is the TurboTax Audit Support Guarantee?