I'm using TurboTax Premier 2021 Desktop for Mac. I have input my 1099-B forms showing long term capital gains income received through the sale of stock that was obtained via ISO exercise. The federal tax owed is updated correctly, but TurboTax still shows that I have a refund for California, even though the capital gains are substantial and I am certain that I owe corresponding income tax to California (California taxes proceeds from stock sales as ordinary income). When I open "Forms" mode, I see that TurboTax has generated a California Schedule 540 form automatically, and all of the income from the 1099-B forms appears in the "Subtractions" Column (Column B) on Line 7 "Capital Gain or (loss)". TurboTax is mistakenly excluding all of my 1099-B capital gains from my California taxable income because of this incorrectly generated Schedule 540.
I have contacted support about this issue and have been told that INV-17356 might relate to my problem, but I am not confident that the support engineer understood the problem well enough to be certain that INV-17356 is the same issue. It also appears that another TurboTax user reported this issue back in November, 2021 with TurboTax 2020, but the issue was never resolved: https://ttlc.intuit.com/community/state-taxes/discussion/california-capital-gains-why-the-subtractio....
Can someone familiar with this situation please advise?
