Completing CA form 3800 leads to dramatic increase in tax bill

Forum|Forum|6 years ago
March 23, 2020
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My son is a completing college. He sold some stock and earned some money working over the summer. Nearly all his income came from the stock sale.

I am completing his tax return. When I do the error check, I receive messages that I need to complete Form 3800 Line 6 (Parents Form 540 line 19 my taxable income) and Line10 must be answered (Parents Form 540 line 31--my CA tax).

When I enter this data TT, the tax due increases from $100 to approximately $700

What is going on?

VictoriaD75

In California, dependent's unearned income, such as income from the sale of stock, if greater than $2,200 (for tax year 2019) may be taxed at the parent's rate if the parent's rate is higher. This is determined on Form FTB 3800.

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