Downloads for 2011 Editions of California Supplement

Release 2011.01d differs from release 2011.01c as follows:

• Schedule P (pages 1 and 2) added to all versions of the software.
• Forms 3540, 3803, 5805 (pages 1 and 2), and 5805F added to all versions of the software.
• California Tax Forms Guide revised to reflect changes in the above forms.
• Schedule D graphic form tax year designation corrected.
• Control Form line references to 2009 Form 540 corrected on screen 3.

Release 2011.01c differs from release 2011.01b as follows:

• Form 540-ES added to all versions of the software, including scannable Form 540-ES vouchers for Standard and Premium Levels.
• Form 540X added to all versions of the software.
• California Tax Forms Guide revised to reflect changes in the above forms.

Release 2011.01b differs from release 2011.01a as follows:

• e-file error averted. You could formerly encounter a rejection from the IRS with ERC 540 in field 341 of Form 540 if you had an amount on line 63 of Form 540 (Other taxes). Merely create e-file output anew using the new release, and the error will no longer arise.

Release 2011.01a differs from release 2011.01 as follows:

• Form 3519 added to all levels of the software.
• Schedule G-1, Form 3501, and Form 8822 added to the Premium Level of the software only.
• California Tax Forms Guide updated to the 2011 Edition.

Common California e-file errors and how to avoid them

There are a number of peculiarities of California e-file that can make it more difficult to generate an FTB-accepted return that it is to generate an IRS-accepted return. In fact, most of the following common error codes are a direct result of unduly restrictive requirements placed on e-file by the FTB, and four of these errors are even in the FTB list of their five most common errors (listed below in numerical order of the error code).

• Error code 013 in field 0363 of Form W-2. For an e-file return, line 14a of our W-2 Worksheet for our California e-file form is reserved for reporting state disability insurance paid. As result, the error can arise for one of two reasons:
  • Use of line 14a for a non-SDI amount. Even when a non-SDI amount is listed first in box 14 of a taxpayer's Form W-2, you must report the type and amount in line 14b or 14c instead.
  • Entering a type for line 14a that is not an FTB-sanctioned indicator for SDI. The only FTB-allowed entries for type in line 14a are CASDI, SDI, VPDI, VD, VP, and VI. No spaces or hyphens are allowed. The entry of any other type will result in the cited error.
  Whatever the reason for the error, the solution is easy. Just access the offending W-2 Worksheet from screen 3 of the California e-file form and alter the entries for lines 14a, 14b, and 14c as necessary.
• Error code 123 in Form W-2. This error can arise when a blank W-2 is transmitted with the return. A blank W-2 is generally created by accident when you access a W-2 Worksheet and accidently create an additional one by paging past the end of the valid W-2. To correct this error you must access the W-2 Worksheets from screen 3 of the California e-file form and remove any blank W-2 worksheets with the Remove Key (ctrl-R or shift-F3).
• Error code 521 in field 0360 of Form 540. This error means that the sum of state withholding on W-2 (box 17), W-2G (box 14), and 1099-R (box 10) worksheets for our California e-file form is not equal to the total for state withholding at line 71 of Form 540. This error is a common consequence of the deviations caused by rounding to the nearest dollar. Because the FTB does not recognize the inevitability of such rounding errors, when you encounter this error you must change the withholding amounts on the worksheets for our California e-file form to whole dollar amounts that, when added together, total the amount on line 71 of Form 540.
• Error code 522 in Schedule CA. This error is caused by using release 2005.01 to generate e-file output for California. You must update to a later release in order to avert this error.
• Error code 530 in field 0200 of Form 540. This error means that the sum of state wages (box 16) on the W-2 worksheets for our California e-file form is not equal to the total for State Wages on line 12 of Form 540. There are two common causes for this error:
  • Differences caused by rounding to the nearest dollar. Unlike the IRS, the FTB does not seem to recognize that their requirement to report only dollar amounts for e-file can lead to deviations of a dollar or so between a total and the sum of the individual parts. As a result, you must sometimes change the amounts on the W-2 worksheets for our California e-file form to whole dollar amounts that, when added together, total the amount on line 12 of Form 540.
  • Differences between state and federal wages. Because only federal wages are available on Form 1040 for translation to Form 540, the federal wages are initially used in place of state wages at line 12 of Form 540. Therefore, if a taxpayers's W-2 shows that state wages (box 16) are different from federal wages (box 1), you must itemize to the W-2 worksheets at line 12 of Form 540, check that the proper state wages are entered on line 16 of the worksheets, then escape back to Form 540. The proper state total should now appear at line 12 of Form 540 and should agree with the wages entered on the W-2 worksheets for our California e-file form within a dollar or so. (If they don't agree precisely, see the preceding bullet for more information.)
• Error code 543 in field 42 of Form 540. This error arises when the spouse's last name is a compound name (such as JONES-SMITH), and is a result of an FTB restriction on last names that is contrary to the acceptable IRS format. The FTB allows no hyphens or spaces in a last name. As a result, you must go to screen 1 of the California Form 540 and remove all punctuation or spaces from the spouse's last name (such as JONESSMITH in place of JONES-SMITH).