CA Dependent - Spidell

CA Dependent

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Message Board CA Dependent

This topic contains 2 replies, has 2 voices, and was last updated by Sandy Weiner 1 week, 6 days ago.

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  • #184103
    Steve Dicus
    Participant

    I need your assistance in how to address a Notice of Proposed Assessment from the FTB for one of my clients. Taxpayer claimed her 19 year old full time college student daughter as her qualifying child and filed as Head of Household. Daughter had a part time summer job and earned $5400. The notice claims the dependent’s income exceeds the limit and has disallowed taxpayers HOH filing status for taxpayer. Per FTB pub 1540, ‘Your qualifying relative’s gross income must be less than the federal exemption amount $4,150.’ The $4150 limit is what a gentleman on the Practitioner Hotline sited on why the dependent dis-allowance. However, there is also mention in the publication of a qualifying child and a qualifying relative. In IRC Section 152 there is no income limit for a qualifying child, which the daughter is. I am under the impression that CA conforms to the IRS definition of a dependent. The best I can determine is we need to prove taxpayer provides more the half of the support of her daughter for the year in question and the income issue is not really a factor. So, assuming I am making sense, how would you recommend I protest this FTB notice and get this matter straightened out, or do you think I am out of luck and should accept the FTB’s assessment? Thank you in advance for your reply.

  • #184115
    Sandy Weiner
    Participant

    We’ve written several articles about this issue (see below for the latest). There was a glitch earlier this year and the FTB was supposed to fix this. I would call the Practitioner Hotline. Please let us know the outcome.

    Research Corner

  • #184125
    Sandy Weiner
    Participant