Getting an error on CA state tax return for a Business Code for Form 3514. I 've not had this form in my prior returns. Why am I getting this as an error?

[MayaD]

For Line e – Business code

Use the six-digit code from federal Schedule C (Form 1040) or Schedule F (Form 1040), box B.

Form 3514 is California Earned Income Tax Credit. For Instructions, check here.

If the form doesn't apply to you:

Try to delete it by following the steps:

1. Select the Tax Tools option on your left menu bar

2. Select Tools

3. Select the Delete a form option under Other Helpful links 

4. Look for Form 3514 in the list and delete it

[andrew0071]

What is the form 3514 exactly for?  My concern is why did Turbo Tax include this and pop it up as an error?   Thank you, appreciate your feedback.

[BillM223]

As Maya noted, form 3514 calculates the Earned Income Credit, a tax credit for low income individuals that is similar (in concept at least) to the federal Earned income Tax Credit.

You apparently have a Schedule C on your federal return. This question about a Business Code is related to knowing more about your business by the State of California.

Perhaps it will help you to understand what the state is looking for by reading the Booklet for the 3514.

[andrew0071]

Bill,

I checked my 1040 and do not have a Schedule C.  What is the income level for this form to be included?  

I also do not see it included in our prior years; confused why this is popping up as an "error" all of sudden.

Please advise, thank you.

[andrew0071]

This error automatically popped up in my Turbo Tax Smart Check and what can I check to confirm its not needed and deleting it?  Thank you.

[MonikaK1]

California uses form FTB 3514 to determine whether you qualify to claim the Earned Income Tax Credit, YCTC, and FYTC, provide information about your qualifying children, if applicable, and to figure the amount of your credits.

If you may qualify for Earned Income Credit, and you have any income on your Federal return on  Schedule 1, Line 3, this may be what the program is asking about. Do you have either a Schedule C or Schedule F in your return? See screenshot below from Form 3514:

From the instructions: Line e – Business code

Use the six-digit code from federal Schedule C (Form 1040) or Schedule F (Form 1040), box B.

If you do have a Schedule C or Schedule F, go back to the business section of TurboTax and enter the appropriate sic-digit code.

As @MayaD noted earlier, If the form doesn't apply to you, try to delete it by following these steps:

1. Select the Tax Tools option on your left menu bar

2. Select Tools

3. Select the Delete a form option under Other Helpful links 

4. Look for Form 3514 in the list and delete it

If you have a Schedule C in your return and you don't have a business, you can delete it following the same method.

[andrew0071]

Hi Monika,

We do not have a Schedule C or Schedule F and we do not have any children.  Can we delete this form, 3514?  

Thank you.

[MonikaK1 · Accepted solution]

Yes, you may delete the form if you don't qualify for CA Earned Income Credit.

@andrew0071

[andrew0071]

Thank you very much for your help!