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babytam
New Member

Trouble reporting Foreign Earned Income on 540NR: Schedule CA

In the past years, Turbo Tax helped me moved the Foreign Earned Income (qualified for exclusion for Federal) to 540NR.  But this year, it even told me that I don't need to report CA state tax return.  When I insist on adding CA State tax return, it placed the Foreign Earned Income (FEI) into "combat zone foreign earned income exclusion" which is not true.  Hong Kong, China was not a combat zone in 2023.  So I followed an advice from this community and click on "forms" on the upper right corner to look at the schedule CA.  It listed the FEI in column A but I can't edit it to become 0 so that I can move the amount to column C.
What can I do?  What should I do?  Thanks in advance.

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3 Replies
babytam
New Member

Trouble reporting Foreign Earned Income on 540NR: Schedule CA

Screenshot (2504).pngScreenshot (2506).png

babytam
New Member

Trouble reporting Foreign Earned Income on 540NR: Schedule CA

I'm actually confused why it says "combat zone foreign earned income exclusion" is $186,573.  Where did they get that number?

 

Screenshot (2507).png

babytam
New Member

Trouble reporting Foreign Earned Income on 540NR: Schedule CA

Never mind.  I figure out my mistake now.  The FEI does not need to be taxed in CA so it should be in column A.  The $183k shown on the "Combat Zone FEI exclusion" is hinting to me that I made a mistake on Form 2555 because I accidentally reported the FEI 3 times.  I don't know why Form 2555 line 23 had "NIL" therefore forcing me to put a number there.  Once I deleted "NIL", it lets me move on.  So now I'm reviewing both 1040 and 540NR again for any mistake before filing.  Thank you for reading.

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