I made a charitable contribution to the California College Access Tax Credit Fund that provides a state tax credit of 50% reported on California Form 3592. Since this program provides a state tax credit, my understanding is that my contribution to this fund does not also qualify for a state tax deduction. However, the full contribution can be claimed as a tax deduction on my Federal Tax Return. Thus TurboTax correctly makes a California Adjustment and subtracts this contribution on California Schedule CA (540), Part II Line 11 (Gifts to Charity).
But then TurboTax reports what it thinks is an unused tax deduction as a Charitable Contribution Carryforward on line 17 of the California Carryover Worksheet, thus allowing this deduction to be used in 2025 year tax return. No other limitations on charitable tax deductions have been hit.
My question is:
1. If the state income tax deduction is not allowed because the credit was instead taken, why is there a Charitable Contribution Carryforward on line 17 of the California Carryover Worksheet? Is this correct or in error?
Thank you very much.
