How to Add California Schedule R - Apportionment and Allocation of Income to state 100S

[WaltCub]

I am a Florida S-Corp doing business in California so I need to complete the CA state S-Corp return, 100S. I have income that is sourced in both Florida and California. However, when I complete the CA 100S, it is counting all of my income as if it is source in California. In my research I see I need to complete a California Schedule R - to apportion the income. But that is not one of the schedules available. How do I add it to my CA 100S return?

[Anonymous_]

See https://care-cdn.prodsupportsite.a.intuit.com/forms-availability/turbotaxbusiness_ca_windows_scorp.h...

Schedule R is supposed to be available on or before 1/26/2024

[WaltCub · Accepted solution]

Many THANKS "Tagteam" for quicky sharing that answer and list of forms.  That is a great resource. I would have never of found that. Much appreciated!

[WaltCub]

Follow-up question @Anonymous_, I need to also file 2021 and 2022 California S-corp and purchased those extentsions as I did for 2023. Understand I need to wait for 2023, but how do I download the "Schedule R - Apportionment and Allocation of Income" for 2021 and 2022?. It also does not appear in the list of forms for  either year.

Also when 2023 Schedule R is ready, will it automatically install with that current update, or do I also have to download that as well?

Again, MANY THANKS, for you kind assistance.

[Anonymous_]

It should if you pay for the California S corporation state return.

If not, you should contact Support.

How do I contact TurboTax? (intuit.com)

[WaltCub]

Much appreciated @Anonymous_. Unfortunately the schedule R did not download for either 2021 or 2022. I will give customer service a try.  MANY THANKS!

[MANI1346]

Hi, I have an S corporation. In 2025, the S-corp earned $1,500 of income during 29 days in California, and the rest of the year the activity was in Virginia.

The S-corp terminated its California activity on January 29, 2025, and started operations in Virginia immediately after the California termination.

The business activity is service-based (accounting services).

Do I need to file Schedules R-1 and R-2?

Since I do not have any other income, I do not need to report anything on the other Schedule R sections, correct? Since I have to file one Federal and two states I am confused how to file them. CA return is a final return should I use Schedule R?

[DaveF1006]

Yes, you will file Schedule R and R-1 for the State of California Schedule R  Schedule R is the main form used to determine how much of your total S-Corp income is "sourced" to California. Schedule R-1 is used to determine your Single-Sales Factor formula to determine the apportionment by listing your  California sales ($1,500) vs. your "Everywhere" sales (CA + VA total).

You won't use Schedule R-2 because you have no non-business income to report. Here is the order on how to prepare your tax return.

1. First file Federal (Form 1120-S): It will show your total income for the whole year.
2. Next file California (Form 100S + Schedule R). It will report  full-year federal figures, but  Schedule R  will apportion only the $1,500 for California. Mark it as your Final CA Return.
3. Now file, Virginia (Form 502): Report the full-year figures, but  Virginia's version of apportionment (Schedule A)  will determine that only the income earned after Jan 29 belongs to VA.

[MANI1346]

Thank a lot, but I can not get rid of R-2 how can I skip it on software, I have some errors for R-2 ?

If I use Form 502-A in 2025 for Virginia, and in 2026 all of my income is Virginia-source income, do I need to file any special form related to the fact that Form 502-A was filed in 2025, or do I need to complete a different form for 2026?

I do accounting may I have your help how do I fill out section A and B on 502-A? If I choose the single-factor computation, which part of Section A applies to my business? 

[DaveF1006]

To delete Schedule R2, go to the forms mode in your business return.  Select it and select delete form ‌that appears at the bottom of the page. 

As far as Virginia Form 502 A, here is a complete link for instructions in filling out Form 502A. This guide will explain how to fill out the form for your reporting needs better than I.

@MANI1346 

[MANI1346]

You said : You won't use Schedule R-2 because you have no non-business income to report but R-2 is for : Sales and General Questionnaire I think should be fill it out 

[DaveF1006]

Yes, you are correct. I apologize, when I first researched the R2 form. I originally interpreted it as a reporting tool for non-business income but the form is used for the following factors.

• If you changed your method of determining business vs. non-business income?
• Do you have a "Unitary" relationship with other entities in your organizational structure
• Where are your sales of services being assigned (Market Assignment rule)?

Thank you for bringing this up for my own edification. You do need to fill out this form.

@MANI1346