Question

California Proposed Assessment - 2015. Wages excluded in error?

Forum|Forum|6 years ago
July 19, 2019
4 replies
0 views

Hello,

I received a Noticed of Proposed Assessment from California for the 2015 tax year stating the following: "We disallowed the deduction for those wages you subtracted on your Schedule CA (540) California Adjustments-Residents. As a California resident, all your wages are taxable, including those wages earned outside of California."

Apparently, when my federal income information was fed into the state tax returns, all of the California wages for my wife (who was on paid family leave for a portion of 2015) were keyed in as a deduction. I've reviewed the tax information I submitted, and downloaded the software to view and amend a prior filing, and everything hows I did not claim any deductions for wages. I'm at a loss as to why the entirety of her CA wages were deducted. This appears to be a filing issue that I may need to address with TurboTax and their 100% accuracy guarantees.

Has anyone experienced this? Any insight would be appreciated. We have a large tax bill plus interest charges being assessed from 2015-2019.

A

Anonymous

file a claim . but all TT pays if it was at fault is penalties and interest. I would say this is the first time I've seen a post about your issue.

R

rbernal22a

I had received the exact same letter, same year and details. Paid family leave, filed thru TT and all amounts have been disclosed in the return. Any word or advise on what steps to take next?

S

SL37Author

I submitted a claim for under the 100% Accurate Calculation Guarantee. I'm waiting for TurboTax to research and determine if there was in fact a calculation error (which I highly suspect, especially if you and others may have been impacted by the same thing).

If there was a calculation error, they will reimburse for the penalties/interest. The tax is still due, which is fine and makes sense. If we under reported in error, we're on the hook for that. But we should not be assessed the interest, as it never would have been charged had the initial calculation been correct.

You can find info here about how to submit a claim: https://ttlc.intuit.com/community/charges-and-fees/help/how-do-i-submit-a-claim-under-the-turbotax-100-accurate-calculation-guarantee-or-100-accurate-expert/00/26065

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rbernal22a

Thanks for the info! After review of my 540 Form, a substantial amount was entered in Line 14 - California Adjustments -Subtractions, lowering our taxable income which in turn meant lesser tax. No protest here, will pay the taxes but will go the same route as far as resolving the interest/penalties with TT. Again, thanks for your help!

B

BradWalker212

I received the exact same notice for apparently the exact same reason. After review, I am seeing the same error of wages being reported as subtraction. Very frustrating.

J

jalaraz

I have the same letter and issue! Your post has been very helpful. Will submit a claim as well...