TurboTax inserted $0 as the amount of my taxable income on my Federal return. But on my state return, it inserted -$350 as my state taxable income. The state return says that entry is supposed to carry over from the federal return. Why is it a different number? And why is it a negative number?
Do you have an entry on the federal return in the amount of $350? You might have a state-specific credit carryover of some other transaction that is not applicable on the federal return but is applicable on your CO return. Compare your state and federal returns, what is different and where is the $350 amount on the CO return?
The Colorado property tax/rent/heat rebate is an example of a credit you may be eligible for on your state return that would not be reported on your federal return. Colorado allows a property tax/rent/heat rebate for a qualifying Colorado resident who is at least 65 years old, or a surviving spouse at least 58 years old, or disabled for the entire year, regardless of age. For 2021, individuals must be single with an income less than $15,831 or a married couple with income of less than $21,381 to qualify.
Federal and state have different rules. So it is common for the amounts to be different for your taxable income between the two of them. As to whether or not it is ok for it to be a negative number, that will depend on the state. Which state are you in?
Do you have an entry on the federal return in the amount of $350? You might have a state-specific credit carryover of some other transaction that is not applicable on the federal return but is applicable on your CO return. Compare your state and federal returns, what is different and where is the $350 amount on the CO return?
The Colorado property tax/rent/heat rebate is an example of a credit you may be eligible for on your state return that would not be reported on your federal return. Colorado allows a property tax/rent/heat rebate for a qualifying Colorado resident who is at least 65 years old, or a surviving spouse at least 58 years old, or disabled for the entire year, regardless of age. For 2021, individuals must be single with an income less than $15,831 or a married couple with income of less than $21,381 to qualify.