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State tax filing
I did a bit more digging. I still can't figure out a way to edit the line 78 in the manual form editor. However, I found another way to get the number in there.
The CA 540 tax instruction book clearly says to add the "claim of right" credit amount on line 78 of form 540, however, you can't edit this in Turbotax. However, I found that I could enter a value in the "Tax Pymt wks" worksheet, on line 6, "Overpayment from Previous year applied to current year".
By adding the value on this line, it will then add it into line 72 on form 540. The credit amount then ends up in the calculation on line 78, however, I don't know if this will cause an issue when being reviewed by the tax authorities. It has the same result/impact if I were to just add it into line 78. When I added the credit amount to line 6 in the Tax Pymt Worksheet, I was able to enter a description. I included the text "IRC 1341 Bonus Repayment".
This is the only way I have found that I can include this. Is this the way to do it, or is this the recommended workaround to do it? If anyone knows a better way to do this (or the correct way) I would greatly appreciate the advice.
‎October 11, 2021
12:36 AM