AnhNgoc
Level 4

California form 540: married filing joint with 1 child under 6 years old

Earned Income: $4,496

Unemployment Benefit: $25,500

=> Federal AGI: $29,996

Pro Series calculate:

- Earned Income Credit $1

- Young Child Tax Credit $1,000

=> Total refund: $1,001

But Franchise Tax Board send out a letter for taxpayer with Explanation of Change:

- We disallowed your Earned Income Tax Credit because your federal adjusted Gross income exceeds the limit for your number of qualifying children (CODE:AP)

- We disallowed your Young Child Tax Credit because you did not qualify for Earned Income Tax Credit (CODE:HQ)

So what I have to do in this situation?

Thanks.

0 Cheers