Thank you for confirming that when claiming a 50% credit, that there should not be anything carried over as a deduction. The adjustments made for California differences relating to this deduction appear to be correct on line 11, and are subtracted out of the state at this step. There are no other deductions or carryforwards that I could see. It still thinks that I can carryforward this deduction.
The only way I know to resolve this problem each year is to override the incorrect carry forward amount on line 17a in the California Carryforward worksheet, and enter zero instead. I did this on my 2023 return and thus it did not show up on my 2024 return. I will do the same thing now on my 2024 return and then this amount will not show up next year on my 2025 return.
Perhaps your programmers could take a quick look to see if this particular deduction is handled correctly. As you have indicated, it is different because it does not qualify for carry forward, compared to other deductions that do qualify, but could not be used in the current year.
Thank you
