Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

Young child tax credit - Franchise Tax Board wrong or Pro Series wrong?

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

This discussion has been locked. No new contributions can be made. You may start a new discussion here

1 Solution

Accepted Solutions
Just-Lisa-Now-
Level 15
Level 15

Pull out the FTB instruction book and see IF the income does exceed CAEITC limits its telling you?  If so, then the program has a bug.

Maybe the unemployment is creating an issue since CA doesnt tax unemployment?  Making CAs AGI much lower than the fed?


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

View solution in original post

1 Comment 1
Just-Lisa-Now-
Level 15
Level 15

Pull out the FTB instruction book and see IF the income does exceed CAEITC limits its telling you?  If so, then the program has a bug.

Maybe the unemployment is creating an issue since CA doesnt tax unemployment?  Making CAs AGI much lower than the fed?


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪