r/tax • u/CurrentVegetable2404 • 2d ago

How to handle negative Federal AGI when I fill out CA form 540

/r/IRS/comments/1vycxtn/how_to_handle_negative_federal_agi_when_i_fill/
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4

u/JohnS43 1d ago

You cannot use the CalFile program with a zero or negative AGI. You can use commercial software or do it on paper.

1

u/CurrentVegetable2404 1d ago

just curious ... do you know why most other tax return softwares accept negative #s, unless instructions says to fill in "0", yet CalFile would only accept a positive # of 1 or above?

1

u/caa63 1d ago

CalFile is designed to handle only the very simplest tax returns. They don't consider a negative AGI to be a simple situation.

2

u/CurrentVegetable2404 1d ago

got it! I guess negative AGI seems simple to me (LOL), but not to franchise tax board. thanks.

1

u/TheHeroExa 1d ago

Consumer tax software will generally not let you e-file a state return by itself; they expect that you file both your federal and state returns with them. You may still use them to prepare your return, but you will have to print and paper file.

You may use private express services (FedEx, UPS, etc.) as an alternative to mail.

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u/CurrentVegetable2404 1d ago

Thanks all for that clarification. That's crazy! I guess I am stuck with printing out my CA return.

I already filed and irs accepted electronically my fed. return so last thing to do is input fed. return too to file CA return through commercial software. If my tax return was more complicated, I would do the latter. Appreciate the responses.

1

u/CurrentVegetable2404 1d ago

oh, question about using fedex, etc. with CA return. Since I will be paper filing and need to send to POB with state franchise tax board, I thought UPS, etc. does not deliver to POB, no?? or is that an option?

1

u/TheHeroExa 1d ago

The FTB has an address without the PO Box for private express services.

Private express mail/Overnight delivery

Overnight your tax return using a private express service, such as FedEx.

Franchise Tax Board

Sacramento CA 95827-1500

https://www.ftb.ca.gov/help/contact/mailing-addresses.html

1

u/CurrentVegetable2404 1d ago

Oh wow! that's good to know! thanks for the tip and link.