How to Reflect Wife's Tax Refund on CA Schedule X for 2020 Where Filing Status is Amended to Joint

[richard2022]

I (the husband) amended my Married Filing Separately 1040 via 1040 X to add my wife who also filed Married Filing Separately 1040  in 2020 .  I had no issues adding the amount of her separate federal refund to Form 1040-X per https://ttlc.intuit.com/community/amending/help/how-do-i-amend-married-filing-separately-returns-to-....

The issue is with Form X and the confusing way CA handles the tax refund.  My wife's tax refund was $61.00 and wasn't taken into account by Turbotax as the question of 2020 tax refunds for her return is not asked (not sure why). Please see the screenshots below.

On Form 540 as amended, the tax refund for the state return is shown as $495.

Yet State Schedule X is negating the refund as is showing $0 refund. Why?

Note that the prior state tax refund I received is shown on the applicable worksheet.

Can anyone unpack this and explain: 1) why the 495 refund has been negated and 2) what steps I should take to reflect the $61.00 refund my wife received?

[KrisD15]

When you entered your wife's refund on the Federal Screens in TurboTax, that would have been carried over to the state return. 

It looks like you are using TurboTax Desktop, in which case if you click the 495 in blue on Part I Line 2, it should show you where that number came from.  I assume it is the sum of your two refunds. 435+61=496, and perhaps you donated one dollar or there was a rounding difference.

The state amended return shows that the result for 2020 is a refund of 495 and that you both together already received 495, so there is nothing left to refund and no payment due. 

Part X is showing only your refund because you were the primary Taxpayer on the original state return, and you are the primary Taxpayer on the amended return. I assume this is a security measure to verify your identity. 

[richard2022]

Thanks. We received $496 collectively, but were only entitled to $495.00 per the joint return so we paid the $1.00 owed. 

[richard2002]

Now what has happened is the State of CA accepted our new 2020 joint return but assessed $443.00 on her amended married filing separately return. Doesn't the joint filing supersede and make null and void the married filing separately return or my wife? How should I proceed?

[Mike9241]

duplicate question