topic CA PTE credit still using the TMT even though SB113 was approved Feb 9th, 2022 in State tax filing

CA PTE credit still using the TMT even though SB113 was approved Feb 9th, 2022

futurerobot — Mon, 09 Mar 2026 08:36:30 GMT

The California PTE credit on Form 3804-CR is still limited to the TMT, even though this was removed on 02/09/2022 by SB 113. Do you know when TurboTax California will be updated to correct the adjustment?

Re: CA PTE credit still using the TMT even though SB113 was approved Feb 9th, 2022

Norbinski — Fri, 25 Mar 2022 16:38:48 GMT

Same question...

Re: CA PTE credit still using the TMT even though SB113 was approved Feb 9th, 2022

grapesofwrath — Fri, 25 Mar 2022 19:51:16 GMT

I called the TurboTax help line and let them know I had the same issue with the CA PTE impacted by TMT (using Premier). I also told them I had no interest in filing an amended return. The problem is that on Schedule P (540) the PTE is entered in Part III Section A instead of Part III Section B. Since this is my only tax credit for my S-Corp, I am considering doing an override of Schedule P (540) Part III line 2. I could enter 0 as the TMT which then enables the full tax credit to be applied into 540 and placed in 3804-CR. Let us know if you have any other ideas.

Re: CA PTE credit still using the TMT even though SB113 was approved Feb 9th, 2022

future_robot — Fri, 25 Mar 2022 23:16:43 GMT

The FTB updated schedule P (540) and removed the Tentative Minimum Tax limitation on March 11, 2022. So now we're just waiting for the Intuit/TurboTax CA team to update the rules to match the new forms.

https://www.ftb.ca.gov/about-ftb/newsroom/news-releases/2022-08-eitc-qualification-filing-separate.html

Would love to hear how long that process takes or if we should expect to file an extension.

Re: CA PTE credit still using the TMT even though SB113 was approved Feb 9th, 2022

MichelleLO — Sun, 27 Mar 2022 17:10:04 GMT

The most recent program update should resolve this issue. Please see the below TurboTax Help articles for assistance with updating your TurboTax software.

Re: CA PTE credit still using the TMT even though SB113 was approved Feb 9th, 2022

future_robot — Sun, 27 Mar 2022 17:19:06 GMT

Hi MichelleLO,

I just updated to the latest version of TurboTax (Home & Business) and the issue is not resolved yet. The CA TMT is still being applied and the "13f Form 3804-CR Pass-Through Entity Elective Tax Credit" is being limited to the TMT, not the value entered. The difference is being shown as a carryover to future years.

Here are the formset details from the latest update:

Per California Ind Formet: 2021.11337

Per Fed Ind Formet: 2021.12279

Let me know if there's a better way to provide help in resolving this change. Thanks for your help.

Re: CA PTE credit still using the TMT even though SB113 was approved Feb 9th, 2022

AliciaP1 — Sun, 27 Mar 2022 18:29:07 GMT

It would be helpful to have a TurboTax ".tax2021" file that is experiencing this issue.

You can send us a “diagnostic” file that has your “numbers” but not your personal information.  If you would like to do this, here are the instructions:

Go to the black panel on the left side of your program and select Tax Tools.

Then select Tools below Tax Tools.
A window will pop up which says Tools Center.
On this screen, select Share my file with Agent.
You will see a message explaining what the diagnostic copy is.  Click okay through this screen and then you will get a Token number.
Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information.

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution.

@future_robot

Re: CA PTE credit still using the TMT even though SB113 was approved Feb 9th, 2022

future_robot — Sun, 27 Mar 2022 19:04:36 GMT

OK. Take a look at this return and let me know what you find:

Token number: 972649

Re: CA PTE credit still using the TMT even though SB113 was approved Feb 9th, 2022

cybershawngates — Mon, 28 Mar 2022 00:31:45 GMT

having exact same issue here - as of 3/27/22 I've installed all updates and still having same problem with TMT applied and rest carryforward on form 3804

Re: CA PTE credit still using the TMT even though SB113 was approved Feb 9th, 2022

grapesofwrath — Mon, 28 Mar 2022 03:43:48 GMT

Same problem using Turbotax Premier. The issue is with Schedule P and how/where the PTE credit is processed with the TMT. Looking forward to the fix.

Re: CA PTE credit still using the TMT even though SB113 was approved Feb 9th, 2022

Norbinski — Mon, 28 Mar 2022 15:50:29 GMT

I still am limited by the TMT despite SB113. Any fix in sight???

Re: CA PTE credit still using the TMT even though SB113 was approved Feb 9th, 2022

balboajohn1 — Mon, 28 Mar 2022 23:16:30 GMT

Same problem, but FTB issued "CalEITC Qualification Expanded/Credit Code 242 PTE Elect". which stated changes have been made to form Schedule P (540) which supports SB113 repeal of TMT limitations. They go on to say "The changes will go into effect for the California FTB e=file program on March 21, 2022.

The actual FTB form, Schedule P doesn't have credit 242 pre printed, so I believe (not an expert) that if you override Turbo Tax's form Schedule P where it puts the credit in section A2 and manually put it in Section B, it will take full credit without limitations.

I would prefer Turbo Tax correct their program, but it probably will take awhile. I will probably give TT a few more days, if no corrections I will e-file and based on the FTB release, they should accept my return with the 242 credit.

Re: CA PTE credit still using the TMT even though SB113 was approved Feb 9th, 2022

future_robot — Thu, 31 Mar 2022 15:41:05 GMT

This is resolved as of this morning! I just updated TurboTax and it is now calculating the PTE credit correctly for me.

Here's the update that worked for me:

California Ind Formset 2021.11382 3/31/22, 8:37 AM

Not sure if this thread helped or not but glad it got resolved before 4/18.

Re: CA PTE credit still using the TMT even though SB113 was approved Feb 9th, 2022

grapesofwrath — Thu, 31 Mar 2022 20:41:51 GMT

I can also confirm that the PTE credit is being correctly applied for me. What's different is that the PTE credit (code 242) is now being applied directly to line 43 of CA form 540. Also form 3804-CR has the full credit inserted. So it all looks good ... so far.

Thanks future_robot for getting this thread started.

Re: CA PTE credit still using the TMT even though SB113 was approved Feb 9th, 2022

balboajohn1 — Fri, 01 Apr 2022 00:12:38 GMT

As others indicated, FTB fixed the problem

Re: CA PTE credit still using the TMT even though SB113 was approved Feb 9th, 2022

Sam Hopi — Sat, 30 Dec 2023 22:16:38 GMT

Hi AliciaP1, I have an S-corp, and I would like to apply for PTE tax, for year 2024 tax return (not for tax return 2023) should I elect it for along with 2023 tax return when it will be filed before March 15 2024.

And as I read its the instruction, the first payment will be June 15, 2024? am I right?

Thanks for your help

PTE Tax

Sam Hopi — Sat, 30 Dec 2023 22:18:42 GMT

And as I read its the instruction, the first payment will be June 15, 2024? am I right?

So, by this I can take this credit for 2024 tax return when will be filed before march 15 2025? Is it correct?

Thanks for your help

Re: PTE Tax

DaveF1006 — Tue, 09 Jan 2024 14:32:51 GMT

Assuming you wish to make this election in the State of California for tax year2024, the first payment will be due June 15, 2024. If this payment is made, you will be eligible for the non--refundable credit you will claim on your 2024 individual tax return

You will make this election this year on your 2023 California S-CORP tax return. Please read this for further information.

@Sam Hopi

Re: PTE Tax

MANI1346 — Wed, 10 Jan 2024 01:50:35 GMT

Thanks Dave, Per your response, if I want take PTE for 2024 tax tear, I should file 3804 in California part for 2023 tax return and find out how much should be for first and second payment; then two payments must pay on due in 2024. Is it true?

Re: PTE Tax

DaveF1006 — Wed, 10 Jan 2024 17:30:37 GMT

Yes, you would make this election and file 3804 on your 2023 tax return.

@MANI1346