Top 10 California Individual Income Tax Filing Mistakes
Source: Franchise Tax Board
Do you want to know how to get your tax return processed
with minimal errors? Here are 10 solutions to avoid delays in the processing of
your 2008 tax return:
Mistake #1 No attached proof of the claim for
Excess State Disability Insurance or Voluntary Plan Disability Insurance on
Form W-2 or other wage documents.
Solution: Check on line 39 of Form 540 or line 46 on
540NR to see if the disability insurance applies. If it does, attach the proper
documentation to prove the claim.
Mistake #2: The original tax refund amount on the
amended return does not match the original refund amount received.
Solution: Check the original refund amount on Line
28 of Form 540EZ, Line 66 of 540 or Line 73 of 540NR when you record it on the
Mistake #3: Incorrect amount of estimated tax to be
transferred to next year’s return.
Solution: Make sure to check any FTB notice with
adjustments that you have received, or go to ftb.ca.gov under My FTB
Account to check estimated tax payment amounts.
Mistake #4: Incorrect total tax amount due to an
incorrect transferred exemption amount, incorrect exemption number or amount
computed, or incorrect total exemption amount claim based on adjusted gross
Solution: Make sure that the exemption credit amount
is correctly computed and transferred from Line 11 of Form 540, 540A or 540NR to
Line 21 of 540A or 540, Line 26 of Form 540NR or Line 25b of Form 540NR. Also,
if the federal AGI amount exceeds $163, 187 on Line 13 of Form 540A, 540 or
540NR than see instructions to claim the correct amount on Line 21 of 540A or
Mistake #5: Incorrectly computing total tax amount
from adjusted growth income, filing status or dependents.
Solution: Make sure that your filing status is
correct. Then check if the unclaimed dependents are the dependents that are
being used on Line 10 of Form 540. All names of dependents should be listed.
Lastly, check to see that the CA AGI has been computed correctly on Line 17.
Mistake #6: Adjusted gross income amount is
Solution: Check the computed adjusted gross income
amount on Line 16 of Form 540 2EZ or Line 17 of Form 540 to ensure that it is
Mistake #7: If there is an error in calculating
the total tax or total credits, the total tax amount will be incorrect.
Solution: Verify that the computed tax amount is
correct on line 21 of Form 540 2EZ, Line 34 of 540 and 540A or Line 42 of Form
540NR. Then check to ensure that the total credits are calculated correctly on
Line 20 of Form 540 2EZ, Line 29 of Form 540A or 540 or Line 36 of Form 540NR.
Mistake #8: Incorrect total tax amount computed
which can affect computation on any applicable schedule.
Solution: Check the total tax amount on Line 21 of
form 540 2EZ, line 34 of form 540 or 540A, or line 42 of Form 540NR to make sure
that the amount is computed correctly. Check any schedules to make sure that the
amount is transferred over.
Mistake #9: Incorrect standard or itemized deduction
amount used based on filing status.
Solution: Line 18 of Form 540A, 540 or 540NR for
correct standard deduction amounts or instructions and worksheet for correct
itemized deduction amount.
Mistake #10: Estimated tax payment amount claimed is
different from total amount received.
Solution: Check personal tax records for estimated
payments made to the FTB. Check line 46 of last year’s Form 540A or 540, or Line
53 on Form 540NR to see that the amount requested is correct. Corrections made
to last year’s return can affect the total amount paid for this year. FTB
notices received will show these adjustments. Verify payments that are made on