Head of Household NPAs may be wrong

Due to an error in one of the tax software programs, the FTB disallowed Head of Household filing status and mailed Notices of Proposed Assessment to taxpayers whose head of household qualifier was a full-time student under age 24 who had gross income in excess of the allowable amount.

In these cases, the student/child does not qualify for the young child credit but is a qualifying child for the Head of Household filing status.

The FTB is in the process of identifying which notices were erroneous, and they will withdraw the NPAs. In the meantime, you may contact the Tax Practitioner Hotline or the toll-free number. Until the problem has been resolved, the FTB will suspend mailing any more NPAs for Head of Household disallowance.

One of our subscribers reported that the error was in the LaCerte® program. However, the FTB is checking to see if there were other programs affected.

Thanks to the subscriber for bringing this to our attention so we could follow up.