Get your taxes done using TurboTax

Hi @Opus 17,

 

Thanks for all your help on this thread. I am finally getting around to filing my 2020 tax return to claim back the over payment in taxes in TY2018. 

 

I calculated the overpayment as I previously posted earlier in the thread. In the desktop version of Turbotax, it was easy enough to add the credit in. You click on Forms, then click on 1040/1040SR Wks and scroll to the bottom of that form. There is a section called "Other Credits and Payments Smart Worksheet". On line E "Claim of right, IRC 1341 credit for repayments of prior year income", I added my credit amount. Then just exit back to the form and I can see that my refund now includes that amount. Great!

 

Now, I would like to understand how to do the same for my state (CA) tax returns. I have already research and it seems I can do this. Here is what I found from the ftb.ca.gov website:

 

"If you deducted the repayment on your federal tax return and are taking a credit for California, enter the amount of the federal deduction on line 16, column B. To help you determine whether to take a credit or deduction, see the Repayment section of federal Publication 525, Taxable and Nontaxable Income. Remember to use the California tax rate in your computations. If you choose to take the credit instead of the deduction for California, add the credit amount on line 78, the total payment line, of the Form 540. To the left of the total, write “IRC 1341” and the amount of the credit."

 

So I tried to do this in TurboTax, I click on Forms, then scroll down to the California forms section. I found the form 540 form. And I can see line 78 with the current amount listed. However, I cannot edit this amount, nor can I write in "IRC 1341" next to it, as there is no field/form to do that. 

 

Am I missing something? Is it not possible to do this in TurboTax? You mentioned I should be able to edit the form for this, so wanted to check. If this is not possible, what is the solution? Thanks!