F540-400 - Form 540, Line 12 [State Wages] must equal the sum of all Forms W-2’s, Line 16 [State Wages]. 1040 Line 16 for State Wages includes cents but 540 doesn’t? Why?

[sksakata]

Rejected by State electronically. Tried to fix 1040 after it was initially accepted, but State rejected again. What’s going on?

[sksakata]

Some additional info:

This is for California. TurboTax ran an error check twice - once before being rejected by State and after amending return. Email instructions explained TurboTax would assist, but I don't know what I'm doing wrong. Please help.

[KeshaH]

Do you have W-2s with income from different states? If so, are those wages included in Form 540, Line 12?

[sksakata]

Hi Kesha,

No. I do have a W-2 from my work, but also a W-2 from IHSS for my wife in taking care of her mom in our home. Box 1 actually had a monetary amount, but I believe Box 12 was marked “II” with an amount. I attempted to look online on how to report this and read I should leave Boxes 1-8 blank but mark 12? Is this why? What do you recommend from here if my Federal was accepted already?

[KeshaH]

If you'd like, we can look at your return and see exactly what you see to help come to a resolution. The return will be scrubbed and won't include any of your personal details.

If you're using TurboTax Online:

Once you're logged in to your account and have your amended return open,

- on the left hand panel, click on Tax Tools and then choose Tools

- on the pop up window, select Share my file with Agent

- you'll see a message saying you'll give us a copy of your tax return. Your personal information will be changed so we can't see any private information.

- click okay and you'll get another message with a token

If you're using TurboTax Desktop:

• Click on Online in the top menu of TurboTax Desktop for Windows
• Select 'Send Tax File to Agent'
• Write down or send an image of your token number and state then place in this issue.
• We can then review your exact scenario for a solution

Please reply to this message with your token so that we can further assist you. Let us know all other states that are included on the return.

[sksakata]

@KeshaH Token #: 170576808-44678568

• W-2 from North Carolina
• W-2 from California (IHSS)

Can you email me directly or advise me to call a certain reference/ticket/token #? I don't feel comfortable replying here despite personal identifiers redacted.

[KeshaH]

Thank you for sending over your token.

Because you updated Box 1 of your IHSS W-2 to 0, your California return can't be e-filed. You will need to print and mail the return. Attach a copy of your federal return and W-2s, and mail to:

Franchise Tax Board

PO Box 942840

Sacramento CA 94249-0001

[sksakata]

Hi @KeshaH ,

Thank you for your response. I spoke to another TurboTax Expert earlier this morning and she had also advised to print and mail all forms to the FTB.

How do I avoid this in the future? It's convenient to e-file, but printing all forms is close to 100 pages. 

I followed these instructions: https://ttlc.intuit.com/turbotax-support/en-us/help-article/form-w-2/qualified-medicaid-waiver-payme...

But had I entered the Boxes 1-8, is there a way to NEGATE Box 1 in a different form in TurboTax?

[sksakata]

@KeshaH :

Thank you for your advice. I called the California Franchise Tax Board and Internal Revenue Service. Both were very helpful and advised that an IHSS W-2 (Boxes 1-6) still needs to be entered on Federal, but under Schedule 1, I can negate Box 1 under Miscellaneous. I was able to amend the Federal Tax Form (1040-X) and e-file the California 540 earlier this evening. I received notification that both 1040-X and 540 were accepted by the Federal and State, respectively. No need to print 97 pages of 1040/540 and saved a trip to the post office!

I strongly recommend that the "Tax Experts" at TurboTax create a FAQ Forum by Topic. A couple "tax experts" couldn't advise where to enter IHSS W-2 information. One instructed me to print everything out, submit to the FTB, then take my chances. Rest assured, the FTB spokesperson explained I wouldn't be "flagged" in the system for future audits; rather, I would have expected a "Notice of Tax Return". No thanks. She advised that I call the IRS for assistance as well. The wait time to speak with a FTB representative took about an hour; however, the wait time to speak with an IRS Agent (800-829-1040) took only 4 minutes. If tax matters become more complicated, I'll consider hiring a CPA.