-
CTC and state for current tax return
In the training, there are details about dealing with prior year corrections. But I wasn’t able to pick up on the recommendations dealing with the current tax return year. I’m in California (a high tax state). I completed the CTC on federal taxes last month. Now would the reco be to fill out CA 540 and submit corrected informational returns (W-2’s, 1099’s, etc) similarly to what was done for federal? I can’t submit an IRS letter showing acceptance or processing like the checklist recommends since I haven’t received that yet.
4 Comments-
I completed my CA taxes last year using the CTC for the first time. For my CA taxes, I just filled out the 540 and sent my updated IRS transcripts which showed 0 income. I didn’t include the W-2s or anything else…just the 540 and the transcripts. Money hit my account a few weeks later. I DID send it USPS certified and with return receipt just like I did for the Fed returns.
-
@anthonys42 Thank you! And by IRS transcripts, are you referring to the federal return that you submitted and has been processed by the IRS?
Also, I noticed that CA Form 540 has a field (field 12) for entering W-2 state income (box 16), but it doesn’t seem to be used anywhere. When we corrected our W-2 using IRS Form 4852, does that also effectively correct the state income?
-
-
I also had to wait a bit for the transcripts to be updated. In CA, if CA owes you money, then there is an automatic extension until October 15. If you need to wait past April 15, an extension might be needed…
-
Hi Sean, the form I’m referring to is from the IRS website. https://www.irs.gov/individuals/get-transcript There you’ll find the transcripts for your return for 2025. It should have the latest version with income showing as zero based on the1040 that you submitted. That’s the doc I printed out and sent in to the CA FTB.
California relies entirely on the Fed return for their numbers. I put 0 for income on my 540 based on the transcripts. I never sent CA my W2.
-
