CA form 3800 (CA "kiddie tax") does not apply to my situation (no unearned income that is sourced to California). I responded to the Turbotax interview questions correctly where it asks the amount of unearned income sourced to California verses the amount sourced elsewhere. Thus, the Form 3800 should not populate, since there is no unearned California sourced income that is taxable by CA--yet I can not successfully delete this form no matter what I do (it keeps on re-populating after I delete it).
In this situation. the CA tax filer is a nonresident of CA who is a dependent on parents' federal tax return (parents not CA residents). The tax filer is subject to federal kiddie tax and is filing CA 540NR as a nonresident of CA.
I suspect that the software sees the unearned income from the federal tax return that is subject to the federal kiddie tax (IRS form 8615) and is transferring this info to the CA 540NR return, thus generating the CA form 3800, even though this unearned income was not in any way sourced to California. The only way I can "tell" the Turbotax software that this unearned income is not California sourced is via the Turbotax interview questions, as far as I can see.
I would think that the CA state Turbotax questions that specifically ask about the apportionment of unearned income between CA and non-CA sources should negate the generation of CA form 3800 when the filer states that the amount of unearned income that is sourced to CA is zero--but it does not. This to me is a glitch in the system.
Am I missing something? Has anyone else been able to successfully delete a CA form 3800? Can anyone think of a reason why CA form 3800 is being generated when the tax filer correctly responds to the interview questions indicating that there is no CA sourced unearned income?
