Could the experts please check the top California tax bracket used in turbotax 2022?

[ljin011]

In California form 540, when line 19 taxable income is $1,565,032 for married filing jointly, turbotax calculated line 31 tax to be $159,183, but California FTB website calculated line 31 to be $157,560, same as in manual calculation using the tax rate schedule. If line 19 is below $1,354,550, turbotax calculated the tax correctly. It appears turbotax is using 13.07% for the top CA tax bracket, instead of 12.30%. 

FTB online calculator:

https://webapp.ftb.ca.gov/taxcalc/?Submit=2022+Tax+Calculator&Lang=english&redirectURL=OTC

From the FTB 2022 tax rate schedule for married filing jointly:

 If the amount on Form 540, line 19 is $1,354,550 AND OVER,

    enter on Form 540, line 31 $131,671.04 + 12.30%  of the amount over 1,354,550

[DianeW777]

If you would like, you can send us a “diagnostic” file that has your “numbers” but not your personal information.  Here are the instructions: 

TurboTax Online:

Go to the black panel on the left side of your program and select Tax Tools. 

1. Then select Tools below Tax Tools. 
2. A window will pop up which says Tools Center.  
3. On this screen, select Share my file with Agent. 
4. You will see a message explaining what the diagnostic copy is.  Click okay through this screen and then you will get a Token number. 
5. Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information.  

TurboTax CD/Download:

If you like, you can send a copy of your return that will be scrubbed to eliminate your personal data by using these steps:

1. Click on Online in the top left menu of TurboTax CD/Download for Windows
2. Select 'Send Tax File to Agent'
3. Write down or send an image of your token number then place in this issue.
4. We can then review your exact scenario for a solution.

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution. 

[tax007]

I have the same problem as ljin011 using TurboTax Premier Desktop for Mac and filing a married filing jointly return. The problem is very simple to replicate. Just try $2M, $3M, $4M, upto $9M as the taxable income on line 19 of form 540. You will see that the tax on line 31 goes up by $130,708 for each $1M in income. This means that TT is using 13.0708% as the marginal rate. The top marginal rate for CA is 12.3%, so the calculation is clearly incorrect

[BillM223 · Accepted solution]

Please see this TurboTax Help article about CA rejecting returns with errors on line 31. Please sign up so that you will be notified of a resolution.

[ljin011]

I verified that the latest turbotax update has fixed the problem. Now line 31 calculation is correct. Thanks!