I am helping my daughter complete her 2024 tax returns. She is a full time student, 23 years old by Dec 31, 2024. She worked in CA then moved to start graduate school in OH on Aug 2, 2024. She had unearned income of ~$4600 of which a bit over $2600 was during her time in CA (the rest while living in OH). We completed her Federal return that included Form 8615. We completed her CA return (CA540NR). However, we are struggling with her return's CA form 3800.
CA 3800, part I, deals with the child's unearned income in CA - that is fine.
But CA 3800, part II, line 9 smart worksheet and line 10 smart worksheet are asking for the parent's Part Year or Nonresident income. But as the parents, we lived in CA the full year and we filed form 540, not 540NR. These worksheets call out specific lines to be entered from the parents' 540NR that do not correspond to the same lines in the parents' CA 540 we completed. TurboTax filled in several of the entries in both smart worksheets that are not overridable and I am forced to override the worksheet resulting summary entry in line 9 with the tax on line 8 from the CA 540 Instructions tax schedule.
I completed CA3800 for all the parents' income entries called out from the parents' CA 540 and the final result in line 18 looks correct but TurboTax is flagging the parents' 540NR entries I am missing as errors. If I fill in the parents' 540NR entries with the corresponding parents' 540 entries, I get an obviously incorrect calculated entry in line 18.
What could be our mistake or is there an error with TurboTax? Why is TurboTax requiring parents' nonresident information when we are not nonresidents?
