WHY IS TUITION EARNINGS BEING ADDED TO 540 SCH CA

[sjrcpa]

What is tuition earnings?

[abctax55 · Accepted solution]

HSA earnings are *supposed* to be added back to CA income....maybe it's something similar?

[sjrcpa]

That's what I was thinking but thought I'd ask.

[abctax55]

Are you back up to full speed yet?

[dwalker]

I hit send too soon.  This is a 529 plan.  Since the tuition expenses were more than the tuition earnings it is not taxable.  The 1040 was correct but the 540 was adding the tuition earnings and taxing it.  I since spoke with Lacerte and they said it just got fixed in the update from yesterday so I should see it fixed in the morning.  

[abctax55]

Hey thanks for the update....I haven't stumbled onto it yet & now won't have to !

[sjrcpa]

@abctax55 Yes. They got the system to start up yesterday. Today I spent a full day in the office - 1st time since last Wednesday.