Do You Need to Amend Your 2010 California Return to Correct Your California W-2 Wages?

Although most taxpayers  have already filed their 2010 income tax returns with the California Franchise Tax Board they may have to amend their 2010 returns to adjust taxable wages downward due to the impact of new legislation (A36) that conforms California law to federal law and now excludes health insurance premium payments and medical reimbursements for medical care expenses on behalf of nondependent adult children under the age to 27.  If your Form W-2 included an amount for nondependent adult children's medical coverage in your California wages, you should contact your employer to have them issue Form W-2C excluding the amount from your California wages.  Alternatively you can use Form FTB 3525 as a substitute for federal Form W-2C if your employer will not issue a Form W-2C.  You should file Form 540X to report the reduction in California wages; self-employed individuals who reported a California adjustment excluding the health insurance premium paid for nondependent adult children, should file Form 540X to report the allowed deduction for California.