mwrightea

Max, my client just lost in CA. They have an employee that works out of his home in CA on his computer and makes less than $50K. They want the franchise tax $800.00 and a 100S. Client has paid all state required withholding, wc, etc.

Amen!

Thanks for the cite and information Max W. My client is under all the thresholds. We will see what FTB does with information. Once again, I appreciate the information from all.

One more question, is the index for inflation updated as of 01/01/2018 ?

Thanks all for your replies.

I need help from all California experts. My client has a company in Colorado they recently received a letter from FTB about an employee that telecommutes for their company in Colorado from the employees home in California. This was news to me (the employee in CA). They have no business, sales, property, equipment, advertising, rent or anything else in California. My understanding is the employee moved to California and my client wanted to retain the employee's particular skill set. They do not pay anything to the employee other than wages. The company uses a payroll company and has paid all the CA SWT & OASDI etc on this employee. This employee uses their own computer and logs into my clients web portal every day and preforms via web, duties in Colorado. FTB is requesting that a FTB4694 be filled out regarding if they need to file a State Tax return in CA. I do not believe that my client has Nexus in CA. I am leaning toward part 2 of the 4694 No filing requirement. Clients answers to part 2 are all NO's. Am I wrong? Is this a can of worms, better addressed by an attorney?

Your welcome, I just realized that the Line 7 entry on EIC removes the Medicaid waiver payments from EIC. Hopefully, ATX will make the corrections on the EIC form for the revenue procedure.

If the DHHS in your State issues a W-2 there is a Medicaid waiver option in Box 14 of the W-2. Once that is selected those wages will appear on Line 7 Earned Income on the EIC schedule of the 1040.

If it's a EFC Reject 38 ATX is working on it according to their news feed.

Look under the Tax Warehouse Tab.

My client with employees with two last names received this letter Social Security only uses the first surname.

No AMT. Several of my clients in Colorado hit the SALT losing thousands in deductions. One client with four children under 17 qualified for the first time for the child credit. That client felt like he won the lottery. I was thankful for the comparison form, and all the people on this board.

Transmitted to EFC and earlier ones were transmitted to agency --woohoo

Mine are now going to error as well

I agree with everything Gail said. She was much better at explaining than my post. I might file a 0 fiscal year return for year one.