Question

In: Accounting

If the taxpayer has already filed Form 540 with Form W-2 that included the amount of...

If the taxpayer has already filed Form 540 with Form W-2 that included the amount of medical coverage for his or her nondependent adult children in his or her California wages, he or she should contact his or her employer to have them issue him or her Form W-2C excluding the amount from his or her California wages. The taxpayer should use which FTB Form as a substitute for Federal Form W-2C if his or her employer does not issue him or her a Form W-2C?

Solutions

Expert Solution

Solution:-

The taxpayer should use which FTB Form as a substitute for Federal Form W-2C if his or her employer does not issue him or her a Form W-2C:-

Use form FTB 3525 as a substitute for federal Form W-2C if your employer does not issue you a Form W-2C.

Explanation:-

If you have already filed Form 540 with Form W-2 that included the amount of medical coverage for your nondependent adult children in your California wages, contact your employer to have them issue you Form W-2C excluding the amount from your California wages. Use form FTB 3525 as a substitute for federal Form W-2C if your employer does not issue you a Form W-2C. File Form 540X to report the reduction in your California wages.

For self-employed individuals who reported a California adjustment excluding the health insurance premium paid for nondependent adult children, file Form 540X to report the allowed deduction for California.


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