Question

California state income tax discrepancy

Forum|Forum|4 years ago
April 10, 2022
1 reply
0 views

Line 71 of my CA form 540 shows the withheld tax to be $1410. But item 17 (State income tax) on the CA W-2 form is $1372. Why would these be different from each other? In previous years they have been the same.

M

MAK70

If the amount entered for real estate and other withholding in the California Income Tax Withheld Smart Worksheet line B exceeds the California Tax Payments Worksheet line 13, Other state tax withholding, then some or all of the withholding on Forms 592-B and 593 have not been entered in the federal Tax Payments Worksheet line 18. The program then assumes that the Smart Worksheet line A does not contain withholding from Forms 592-B and 593 and that amount will be used for line C and Form 540 line 71 income tax withheld. This will help avoid a rejection of the electronically filed return for line 71 not matching with Forms W-2, 1099-R, etc.