MaryK4
Expert Alumni

Get your taxes done using TurboTax

Add the calculated credit amount to Line 78 (the "Total Payments" line).  You must write "IRC 1341" and the specific credit amount directly to the left of the total on that same line.

 

On Schedule CA (540), Part I, Section B, Line 16 (Column B), enter the amount of the federal deduction you took for the repayment. This essentially "adds back" the federal deduction so you can properly take the dollar-for-dollar credit on Form 540 instead. 

 

NOTE: You will not be able to do this with TurboTax online (you may print the return for mail filing and write in the IRC 1341 notation).  If you are using the TurboTax Desktop you can make the entries in Forms mode, but you will have to print and mail the returns.  

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"