I elected to send 9.3% of my Partnership K-1 earnings to CA FTB last year to take advantage of the Pass-Through entity elective tax credit. TurboTax Home & Business seems to count this money twice.
For example (using rough numbers), my calculated state tax for 2022 is $45k. The amount sent to FTB in 2022 was $60k. Entering $60k in line 15f of the CA K-1 adjustments creates Form 3804-CR, which shows that I have available credit of $60k, which after subtracting the tax owed of $45k leaves line 5 showing $15k credit carryover for future years. Great so far.
However, on the CA 540 form, it shows a tax of $45k, and a credit of $45k, thus $0 owed for tax. Yet it STILL shows $60k in payments so the form is trying to say I am due a $60k refund!
Somehow the program is double counting the state withholding such that on one hand it is correctly taking the withholding and creating a credit that zeroes out my tax owed and leaves the remainder as a credit for the next year (form 3804-CR) but on the other it is still taking the amount paid to the state already (perhaps from the Federal form?) and counting that again after the credit is applied, leaving me (on paper!) with a refund of all the money I paid to the state last year, which is clearly not right.
Is there a pending fix to this? I can just delete form 3804-CR and the numbers *seem* to be correct with the expected refund amount, but I doubt this is the 'correct' way to do it!
