Problem: Recently I had a prospect who received a letter from the State of CA with a bill for taxes, interest and penalties for 2021 when she worked as a traveling nurse in California. Her employer never withheld any taxes from her paycheck for California. She did not file a tax return for CA although she filed a Federal one
Action: I used the already filed Federal tax return and prepared a CA return for 2021.
Result: I was able to reduce the amount of taxes assessed by CA due to being able to remove the heath insurance assessment from the amount due being a non resident, she was not required to purchase health insurance. I was able to reduce the amount due by $2,000