How Form 3554 was populated and how to remove:
Most likely what happened is when you got the portion of your CA state return that says " Credit and Taxes" if you scroll down the page there is a section called "Credit Recapture" and right underneath it says, “New Employment Credit Recapture. Learn More".
Clicking start on this portion brings you to a screen that says, “New Employment Credit Recapture".
Here you will see where it says "New Employment Credit Recapture" and there is a box where there must have been a figure inserted, most likely "0" if you did not need this credit. Putting a figure in that box automatically populated that form causing it to now give you errors on the State Return review asking numerous questions about form 3554.
You can delete your state return in TurboTax Online as long as you haven't paid or registered yet.
- Sign in and open your return if you don't already have it open.
- From the left menu, select State (if you don't see this menu, select the menu icon in the upper-left) and then select Continue on the "Let's get your state taxes done right" screen.
- On the "Status of your state returns" screen select Delete to the right of your state, then answer Yes.
If you don't see the option to delete your state (you'll probably see Edit instead), you've already paid your TurboTax fees (including the state fee) or registered your free version while the state was on your return. If you've done either of these things, you can't delete your state return.
