ERC refund not taxable income for CA
View More DetailsPer the California Minute sent out on 08/06/2023 CA does not conform to the ERC. For CA purposes the ERC refund is not taxable income nor do we have to reduce CA expense claimed. Initially the FTB had said ERC refunds may be taxable income. Because of that initial statements we prepared amended returns for clients who received ERC refunds under the assumption it was taxable income for both Fed & CA. Because now the FTB has reconsidered the treatment it sounds like we may need to amend CA returns again to add back the wage expense and exclude the credit as taxable income. My question is do we have a date of when the FTB released the statement that they had reconsidered? This would be useful for us to explain this to our clients.
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