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13992: CA - Form 540 - EF Message 0807


California

How do I clear EF Message 0807 in a California resident's individual return?

CA EF Message 0807:

CA Wage Calculation Business Rule

CA Business Rule F540-400 - Form 540 line 12 must equal the sum of all form W2s line 16 unless form W2 line 13 (statutory employee indicator) is checked.

For PY and non CA residents:
The software will only pick up amounts sourced to CA (box 15 = "CA" and box 16 > 0) from W2s. Using an override for wages for non CA residents will cause the business rule rejection. If this return is using the wage override to something different than the software's calculation of CA source wages, the return will have to be paper filed.

EF Message 0807 may result from new calculations required by California EIC rules:

  • At least one state must be present on the W-2 (lines 15 and 16).
  • And the total of all state wages on line 16 must equal the amount on line 12 of Form 540.

To resolve the issue:

  1. If the return does not qualify for California EIC, choose one of the following options:
    1. Add a single state to the W-2 if there is no state information on it. This clears red message 0807.
    2. Open CA screen EIC and enter the total state wages in on line 16 of all W-2s in the override field CA Wages Subject To Withholding at the bottom of the screen. This clears EF Message 0807, but makes the CA EIC calculations invalid.
    3. Paper-file the return.
    4. Select the box Check this box to suppress CA EIC calculation at the top of the CA EIC screen. 

  2. If the return qualifies for EIC,
    1. Add a single state to the W-2 if there is no state information on it.
    2. Or paper-file the return.

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