CA question

[JG EA]

Client is a part year resident of CA - paid for rent for 10 months.

Why does my software say "If you were a resident of California for at least six months in 2006 and paid rent on property in California, which was your principal residence, you may qualify for a credit that you can use to reduce your tax. Answer the questions below to see if you qualify.
1.Were you a resident of California for the enitre year in 2006?
Yes - continue No. Stop. You do not qualifyt for this credit."

Those 2 statements seem contradictory.

[S T]

Ca Renters Credit

Has to do with the Calif Renters Credit which is a non refundable credit, but can reduce some tax liability.

To qualify,

1. t/p had to be a resident of Calif in 2006
2 AGI is $32,272 or less if single or MFS, $64,544 or less if MFJ HOH or Qualified widower
3. t/p had to pay rent for at least half of 2006 for property in Calif that was primary residence.
4. t/p did not live with another person for more than half the year (such as a parent) who claimed you as a dependent in 2006
5. t/p is not a minor living with and under the care of a parent, fostr parent or legal guardian
6. t/p rented property for more than half the year that was not exempt from California property tax in 2006
7. If t/p is maried, neither t/p or spouse was granted a homeowner's property tax exemption during 2006.

Sandy

[jainen]

six full calendar months

>>Why does my software say... <<

Nobody's perfect. A qualified renter is a resident for at least six full calendar months.

[JG EA]

But that is my question

The first real question after talking about the six months is

1.Were you a resident of California for the enitre year in 2006?
Yes - continue No. Stop. You do not qualify for this credit."

[jainen]

might be a workaround.

>>But that is my question<<

It is sometimes possible for a part-year resident to qualify for the renter's credit. Your software should identify certain kinds of errors, but if you can't produce the correct result with it you will have to call your tech support. You might be misreading something or there might be a workaround.

[S T]

Here's a link

Here is the link to the 540NR http://www.ftb.ca.gov/forms/06_forms...0nrlongins.pdf go to page 37 and it will give your the pro-rated amount for a part year resident over 6 months.

Maybe with this info you can trick your software.

Sandy

[JG EA]

Thank you

Jainen and ST. I will call today - because once I answer that question it doesn't work, but if I answer no it puts the credit in.

[JG EA]

I must say

I did it wrong - my software was fine. I didn't read something that was right in front of my face.

[S T]

Glad you figured it out

JG,

I had hoped that if I gave you the link you could make it work in your software. Applying tax regulations sometimes and getting it to work in our software, is our biggest obstacle. We do a lot of second guessing, and rightfully so, as our names are the ones that are on the "Paid Preparer Line"

Sandy