Does 2021 turbotax premier take care of filing requirements for A.B. 150 California

[PattiF]

No, you would need to update to TurboTax Online Self-Employed or TurboTax Home and Business Desktop.

The California relief grant is reported as self-employed income. You are able to deduct expenses associated with the grant. This is taxable on the federal return, but not counted as California income.

[trold]

Hi Patti,

So a partnership paid the CA taxes in order to take advantage of AB150.

So I am still not clear. According to California information, I need to take a credit for the partnership paying the tax through AB150..  It says I need to file Pass-Through Entity Elective Tax Credit 3804-CR.

I don't see that in Turbotax Home and Business.

Where do I indicate in Turbotax that the tax was paid for by the partnership?

Thank you

[trold]

Or maybe clearer:

How do I enter a California PTE credit in turbotax?

It does not give me the option on 15(F) in k-1 to enter this credit?????

[DaveF1006 · Accepted solution]

@trold If you entered a K1 in your federal return, there will be questions that will generate when you begin your California state Return. As you navigate through your state return:

1. You will reach an entry that is entitled Partnership Schedule K-1 Summary. Select edit next to the K1. There will be some preliminary questions to enter.
2. Then go to Partnership K-1 Adjustments. Continue past the first page, to go to the second page in the adjustments screen.
3. In the second page, scroll to the section where it says credits and there will be a entry to make that says 15f-Form 3804-CR Pass-Through Entity Elective Tax Credit.  

[trold]

I will try it. Thank you.

[trold]

So I have a related question concerning this.

Once I fill out the 3804-CR, I am left with a credit on line 5 of form 3804-CR.

Say for instance the credit is $1000 - I would like to apply that amount to my quarterly estimated payments for 2022 - how do I do that in Turbotax? I.e. allocate $400 for the 1st quarter and $600 for the next quarterly payment. This is not using my refund but specifically my CREDIT from line 5 on 3804-CR.

Thanks

[DaveF1006]

It depends. Since your credits have already reduced your tax liabilities, you cannot reapply them again to reduce your tax due amounts.

@trold

[trold]

Hi again,

I don't think that is correct...I have a credit on Form 3804-CR line 5 that I can apply to future years i.e. 2022. How do I do that - I want to apply the credit towards 2022 quarterly payments rather than paying out of pocket. The money on line 5 can be carried over but I am unsure how to do it in Turbotax.

Thank you

[RobertB4444 · Accepted solution]

If you have a credit on line 5 you will apply it forward.  You can't apply it to your estimated payments - you will enter it on line 2 of the 3804-CR next year.  You can, however, reduce the amount of your estimated payments to California because of that credit.

[s_colgrove10]

I'm told that if the Subchapter S corp pays that pass through before 03/15/22, then it is an available credit for your 2021 tax year.  Is this true??

[trold]

I'm unfortunately not a tax experts so cannot answer that.

[RobertB4444]

@s_colgrove10  You can only use the credit for the year that is represented on the form.  The S-Corp is filing for 2021 right now.  If they fill out a 3804-CR for you for 2021 then you can absolutely use it for your 2021 taxes.  However, they may be issuing a 3804-CR for 2022 at this point in which case you will use it next year.