Doing CA state taxes. Turbo Tax auto-populated IRC965 as a "Special Condition" I cannot find any reference to what this is. What is IRC965 and where did it pull from?

Internal Revenue Code Section 965 requires certain United States shareholders to pay a transition tax on the untaxed foreign earnings of certain specified foreign corporations as if those earnings had been repatriated to the United States. This was part of the Tax Cuts and Jobs Act of 2017, impacting federal returns. This would be from information on your investments.

The California Franchise Board does not follow the federal for these earnings, so they are treated differently on your California state return.

Here is a California Franchise Board article about IRC965 with links for additional information. California and IRC965

 

Thank you for your response, although I still do not understand why Turbo Tax keeps populating this field with the  IRC965 reference. I have no foreign investments. I keep removing it but when I go back to review my Fed return it is there again. I clear it and when I do the review, there it is. I am concerned that it will be there when I submit my taxes. Is this a glitch that Turbo Tax needs to fix?

@jjetson  Is it possible that you have foreign investment income coming through on a 1099-DIV or similar form?  If not then you need to delete the form.  

 To Delete a form:

1. Select Tax Tools from the menu on the left
2. Then select Tools
3. When the new menu pops up select Delete a Form
4. You will see a list of all the forms in your return
5. Find the form that you want to delete
6. Select the Form
7. Click Delete on the right  

Tax forms are interconnected.  While you are on this screen don’t start deleting forms you don’t recognize.

Thank you for the suggestion.

Not to my knowledge, which is why this is such a mystery.

I filed earlier today. I wish I had known I could delete that form before I did.