How to claim California Pass-through entity (PTE) credit for past year?

[mms2020y]

I paid California Pass-through entity (PTE) tax in 2022 but did not pay it in 2023. I did not pay any CA state tax in 2023 as I had enough credit from 2022. How do I claim that credit in my 2023 tax return?

[PatriciaV]

Please clarify if your California state tax return from last year shows your overpayment was credited to next year's taxes. If so, TurboTax should have carried this credit to your current year state return.

[mms2020y]

My 2022 3804-CR Part II, line 5 does show a Credit carryover to future years. However, it does not get imported into 2023 3804-CR. I guess, I may need to enter it manually?

Thanks

[PatriciaV]

Yes, if the amount wasn't automatically carried over to your current return, you would enter it in your state tax return. From the main California screen, go to Business >> Partnership K-1 >> (edit) >> Partnership K-1 Adjustments >> Credits >> 15f-Form3804-CR.

[cybershawngates]

same problem here the carryover amount on 3804-CR didn't automatically populate from last year. 

[Runner23]

It took me hours to finally figure this one out.  My company did not make PTET payments in 2023, so I did not enter anything on K-1 for PTE.  So Form 3804-CR did not show up.  And TurboTax can not find nor open this form when I tried manual search. 

I had to do a combo of what PatriciaV did and add a second step: 

Step 1:  Add an amount (I used $1) by going to : Business >> Partnership K-1 >> (edit) >> Partnership K-1 Adjustments >> Credits >> 15f-Form3804-CR. 

Step 2:  Switch to Forms view (forms icon on upper right corner).  Find Form 3804-CR.  Then right-click and chose Override  on the field you want to make changes on.  I changed my $1 PTE payment to $0.

As other have said, it is NOT ACCEPTABLE that Turbotax does NOT automatically have the PTE credit carryover to 2023 from the prior year (Form 3804-CR)!

In addition, Turbotax's California state tax reporting is get more and more confusing and less user-friendly.
Turbotax needs to step up or we'd have to switch to a better software, and there's plenty out there.

[MaruyWH]

Agree TurboTax is very confusing on non-resident PTE for California and NY.

Someone mentioned there's better software if TurboTax doesn't step up game.

What's the better software?  I'm going to switch if above fixes don't work>

[Meldeen7602]

Know the amount that was carried forward (from last year's tax return Form 3804-CR.

Now, Select the Forms Tab > Open Form > State > Form 3804-CR > Select the existing form > Open Form

Part II, line 2 allows you to enter the carryover, then recalculates the form