Patricia,
Yes, I did enter on the Federal Schedule E for passive activity loss carryover identified for Federal. My original problem was I could not figure out how to enter additional passive activity loss carryover only for my California return.
Since I submitted my question multiple hours ago, I stumbled across how to enter the passive activity loss carryover for my California return. I was able to successfully add the additional California passive activity loss to my California return, when I stumbled across the "step by step" screen that asked "Any Section 179, Passive or At-Risk Loss Carryovers?" embedded in the "Rental and Royalty Summary" section. After updating this screen, I checked California Form 3801 using the "forms" feature on Turbo Tax and I was able to verify that the passive activity loss carryover did indeed show up on the form. So I think I am OK. I found the solution on my own.
However, I do now have another question. While reviewing our 2020 California return in preparation for the addendum we are working on, we noticed that almost all of my tax exempt interest that was imported from our Vanguard accounts was taxed on my California return. The majority of this tax exempt income comes from California Municipal Bonds, so it should mostly be both tax exempt for both state and federal. How do I go back and change the characterization on for this imported interest to reflect that it is mostly California tax exempt? Is there a way to precisely indicate how much is California tax free interest and how much is only Federal tax free interest?
Thank you.
