California Schedule S -- Group Nonresident State Tax Return (AZ and OR)

[md_dm]

I am a California resident partner in a California partnership.  The partnership files group ("composite") nonresident state returns in various states including AZ and OR.

In working through the other state tax credit on TurboTax, it says in a note on the interview screen that "California residents cannot claim this credit if it's for tax you paid to [Arizona and Oregon"].  This is consistent with the rules for California resident individuals, estates or trusts, BUT NOT for people like me (California residents who are included in a group nonresident state return) that can claim this credit for taxes paid in AZ and OR.

AZ and OR aren't included in the list of states in the "Other State" dropdown box.  Do I have to generate Schedule S for AZ and OR outside of TurboTax or is there some workaround within TurboTax that will allow me to do this?

Searching for a needle in a haystack  . . . 

[md_dm]

I think I found a workaround that I thought I would share in case it is helpful to others.

On the "Other States" dropdown menu, the first option is blank.  Choose that option and complete for the relevant state (let's say AZ).  Then, click the "Show Relevant Form" arrow in the lower left corner.  After that, go into the body of the form and chose AZ from the dropdown menu in Item A of the worksheet embedded in Part II of the form -- for some reason, AZ is available on this dropdown menu but not in the "Other States" dropdown menu in the main interview.  This will enable you to create a Schedule S for AZ and the entries will be included along with Schedule S entries for other states to calculate your aggregate state tax credit. 

The only hitch is that after you are done with your return and perform an error review TurboTax will flag this as an error on the basis that a California resident cannot claim an other tax credit for AZ (which is true for an individual but not if you are claiming through a partnership that paid AZ tax on a group return).  I plan to ignore this error and proceed to file.