Based on what you have stated, you probably should not be subject to the CA franchise tax of $800. Moreover, it is not all that clear why a CA Schedule C has been created given that you apparently have no on-going business in CA, and further, no LLC incorporated in that state.
If your only current connection to CA is the fact that you had a property in CA, which you sold in 2021, go back and review your Personal info summary (TurboTax online). Given that you sold your CA property in 2021, you will need to indicate on your Personal info summary page that you had Other state income (scroll down to the bottom on the page to see Other state income) and select CA. Also, check to ensure that your resident state information is correct. Resident state information is also on the Personal info summary page at the top.
Because you are a non-resident of CA, after completing your federal return section, prepare you CA return (non-resident state) first before completing your resident state. If you owe tax on your CA property sale, you may likely get a credit on your resident state return for paying tax in CA. You won't know your CA tax from the property sale until you complete your CA return, therefore, prepare your CA return first after entering all federal return information.
You may have to delete your CA Schedule C to clear such return from TurboTax. If you are using TurboTax desktop or download, you can switch to forms mode (upper right side of your page) and select the form in the left menu and then press the delete button. If you are using TurboTax online, follow these steps to delete a form.
- Open or continue your return in TurboTax.
- In the left menu, select Tax Tools and then Tools.
- In the pop-up window Tool Center, choose Delete a form.
- Select Delete next to the form/schedule/worksheet in the list and follow the instructions.
@mmeinhar85
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
