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How do I amend my 2022 state tax return to correct the California scholarship/fellowship income?

by TurboTax•25• Updated 1 month ago

Some TurboTax customers might have underpaid their 2022 California taxes because TurboTax didn't report scholarship/fellowship income greater than tuition on the state return or let the customer allocate the amount earned in California. 

To amend your return, select your product and follow the instructions.

  1. Write down the original refund or balance due amount for your California income taxes. We recommend you check the paper/PDF copy of your return, or your banking records to verify the correct amount.
  2. Sign in to the TurboTax account where you prepared your 2022 return. In Tax Home, scroll down to Your tax returns & documents, and choose 2022. If you haven't already done so, we recommend that you print a copy of your original 2022 tax return for your records by selecting Download/print return (PDF).
  3. Select Amend (change) return and then Amend Using TurboTax Online
  4. On the OK, let’s get a kickstart on your 2022 amended return screen, choose TurboTax sent me an email, then Continue.
  5. On the What did we contact you about? screen, choose Something else then Continue.
  6. On the Tell us which 2022 return(s) you want to amend screen, select 2022 California return, and then Continue. Your state refund/balance due tracker will usually reset to $0. This is normal.
  7. On the Let’s get your state taxes done right screen, select Continue.
  8. On the Let’s amend your state taxes screen, choose Amend next to California.
  9. On the Let’s Amend Your California Return screen, select Yes, let’s amend and get it done (Recommended), then Continue.
  10. On the Report Tax Year screen, select Continue.
  11. On the Important: Read and Follow Your California Amend Instructions screen, select Continue.
  12. On the Confirm Previous Refund or Tax Paid screen, enter the amount you wrote down in step 1 as either the original refund or balance due amount. Then select Continue.
  13. On the About Your California Amended Return screen, make the following entries:
    1. In the Part II Reason(s) for Amending 1, select m Other.
    2. For 2, type TO REPORT THE AMOUNT OF SCHOLARSHIPS AND FELLOWSHIPS TAXABLE IN CALIFORNIA ON SCHEDULE CA (540NR).
    3. Scroll down and select Continue.
  1. On the Let’s Make Sure You’re Ready to Review screen, select No, I still have state amend info to enter and then Continue.
  2. On the Let’s review your amended return screen, select I’ll choose what I work on.
  3. On the Your 2022 California taxes are ready for us to check screen, select Edit next to Income and adjustments.
  4. On the California Federal Itemized Deductions screen, select Continue.
  5. On the Here’s the income that California handles differently screen, scroll down to the bottom of the screen and select Done with adjustments.
  6. On the Nonresident Adjustments screen, select Continue.
  7. Continue through the income screens until you reach the Other California Taxable Income screen. The screen will display the amount of Scholarship grants from the Federal return. Enter the portion of the scholarship grants earned while you were a California resident. If none, enter zero. Then Continue.
  8. On the Your 2022 California taxes are ready for us to check screen, select Let’s check it over.
  9. On the Smart Check Results screen, select Continue, then Continue again.
  10. On the Let’s get your return ready to file screen, select Check my return.
  11. On the Here are the numbers for your amended return screen, the balance due amount, if applicable, will be displayed. Select Continue.
  12. On the Great job so far! screen, select Continue.
  13. On the Just one more step and we’ll file your return screen, select Start by Step 3 then continue through the screens to download, print and save your California amended return. Then follow the instructions to e-file your California amended return.

Note: Even though your California amended return might not reflect any change in your refund or balance due, we recommend you e-file the amended return to report that none of the scholarship/fellowship amount shown on the federal return was earned as a resident of California.

  1. If you can't e-file the amended return, you will need to print, sign, date, and mail the amended return with, if applicable, the balance due. The mailing address, balance due amount, and payment instructions are included on the File by Mail Instructions for your 2022 California Amended Tax Return.

Note: Be sure to Print and Save the amended return for your records.

  1. Write down the original refund or balance due amount for your California state income taxes. We recommend you check the paper/PDF copy of your return(s), or your banking records to verify the correct amount.
  2. Launch TurboTax and open your 2022 return.
  3. Before you make any changes, select File and Save As... then add Amended 2022 return to the file name to preserve your original return.
  4. Select Online and Check for Updates. Allow the program to update if any are available.
  5. Select the Federal Taxes tab, (Personal tab if you’re using Home & Business), and then select Other Tax Situations. You might be asked to answer a few preliminary questions before you see a list of categories. Scroll down to Other Tax Forms select Start next to Amend a Return.
  6. On the We’ll help you change (amend) your return screen, select Continue.
  7. On the Did you already file your return? screen, select Yes, I’ve already filed my return. Then select I was contacted by TurboTax and told I may need to amend for some other reason. Then choose Continue.

Note: The refund meters will reset to -0-. This is normal.

  1. On the What do you need to change on your return? screen, scroll down to the bottom and select Update next to State Return.
  2. On the Let’s work on your state return screen, select Continue.
  3. On the Your State Returns screen, select Edit next to California.
  4. On the Your 2022 California Return screen, select Continue.
  5. On the Let’s Amend Your California Return screen, select Yes, let’s amend and get it done (Recommended), then Continue.
  6. On the Report Tax Year screen, select Continue.
  7. On the Important: Read and Follow Your California Amend Instructions screen, select Continue.
  8. On the Confirm Previous Refund or Tax Paid screen, enter the amount you wrote down in step 1 as either the original refund or balance due amount. Then select Continue.
  9. On the About Your California Amended Return screen, make the following entries:
    1. In the Part II Reason(s) for Amending 1, select m Other.
    2. For 2, type in TO REPORT THE AMOUNT OF SCHOLARSHIPS AND FELLOWSHIPS TAXABLE IN CALIFORNIA ON SCHEDULE CA (540NR).
    3. Scroll down and select Continue.
  10. On the Let’s Make Sure You’re Ready to Review screen, select No, I still have state amend info to enter and then Continue.
  11. On the Let’s review your amended return screen, select I’ll choose what I work on.
  12. On the Your 2022 California taxes are ready for us to check screen, select Start next to Income and adjustments.
  13. Continue through the screens until you reach the Here’s the income that California handles differently screen. Scroll down to the bottom and select Done with adjustments.
  14. On the Nonresident Adjustments screen, select Continue.
  15. Continue through the income screens until you reach the Other California Taxable Income screen. The screen will display the amount of scholarship grants from the federal return. Enter the portion of the scholarship grants earned while you were a California resident. If none, enter zero. Then select Continue.
  16. On the Your 2022 California taxes are ready for us to check screen, select Let’s check it over.
  17. On the Check This Entry screen, review any warning and make the corrections. Then select Continue.
  18. On the Review Your Return screen, select Continue. Then select Done With Review.
  19. On the You’re Done with 2022 California screen, select Done With States.
  20. On the Let’s make sure your taxes are correct screen, select Continue.
  21. On the Let’s Check These Entries screen, select Check Entries. No changes are being made to the federal return, so continue through these screens.
  22. On the Run Smart Check Again screen, select Done, then Continue.
  23. On the You’re Done! Print and Mail Your Returns screen, follow the instructions at the bottom of the screen to e-file your California amended return by selecting the File tab. 

Note: Even though your California amended return might not reflect any change in your refund or balance due, we recommend you e-file the amended return to report that none of the scholarship/fellowship amount shown on the federal return was earned as a resident of California.

  1. If you can't e-file the amended return, you will need to print, sign, date, and mail the amended return with, if applicable, the balance due. The mailing address, balance due amount, and payment instructions are included on the File by Mail Instructions for your 2022 California Amended Tax Return.

Note: Be sure to Print and Save the amended return for your records.

TurboTax experts are available to answer your questions at 844-333-2161 (5 AM to 9 PM PT every day). When you speak with an expert, just mention California scholarship and fellowship income so they know exactly what you’re calling about.