TurboTax says "Do not attach any Form(s) W-2" to the California 540 return. CA FTB says that W-2s are to be included with all returns. Is this is mistake by TT?

[baldy95307]

The printed instructions from the Turbotax program entitled "File by Mail Instructions for your 2017 California Tax Return" stated what is to be mailed. The list includes the CA tax return, a copy of the Federal return, any Form(s) W-2G, 592-B, 593, and 1099s that have California withholding. But then it specifically says "Do not attach any Form(s) W-2."

The CA FTB says W-2s are to be included on all returns.

Somebody is wrong.

To be a little more specific, this was a non-resident military return that the Defense Depart withheld CA taxes because CA was the home-of-record (or domicile as CA likes to call it). I don't know why that would make any difference as to why TT would say to NOT includes W-2s. My conversations with the FTB are short and to the point: always include W-2s, no exceptions.

[MichaelDC · Accepted solution]

No. This is not a mistake. However, there are certain instances when you must attach copies of your W2s. 

If you see the W-2 listed on the "Wage and Tax Statement" within the CA 540NR form, this fulfills the reporting requirement and there is no need to add the W-2 copies. Attaching copies in this instance is not advised by the Franchise Tax Board as it could slow down the processing of your return.

[baldy95307]

I see that now that you mention it. Now I'm curious why TT bothers to print out a separate Wage and Tax Statement. Or why the FTB even has such a form. The small print instructions on the form tell the person to not include the W-2s.  I guess its only natural in California for a small W-2 to be replaced by a new 2 page form.

[MichaelDC]

🙂 Good luck!