I recently received a letter from the “state of California franchise tax board” saying a might need to pay more taxes for a return I made in 2021. We were moving out of CA to Oregon and I claimed moving expenses around $14K and received a deduction for my CA state tax.
but now the IRS is saying this:
”California does not allow a deduction for personal expenses such as moving expenses incurred when moving out of California. Such expenses are not treated as California sourced income. Therefore, your California AGI has been adjusted to disallow your moving expenses.
Based on your revised federal adjusted gross income, we have reduced or denied your California exemption credit (s).”
however when I looked online it says California does allow this type of deduction.
What should I do?