CA form 3800 (CA "kiddie tax") does not apply to my situation (no unearned income that is sourced to California). I responded to the Turbotax interview questions correctly where it asks the amount of unearned income sourced to California verses the amount sourced elsewhere. Thus, the Form 3800 should not populate, since there is no unearned California sourced income that is taxable by CA--yet I can not successfully delete this form no matter what I do (it keeps on re-populating after I delete it).
In this situation. the CA tax filer is a nonresident of CA who is a dependent on parents' federal tax return (parents not CA residents). The tax filer is subject to federal kiddie tax and is filing CA 540NR as a nonresident of CA.
I suspect that the software sees the unearned income from the federal tax return that is subject to the federal kiddie tax (IRS form 8615) and is transferring this info to the CA 540NR return, thus generating the CA form 3800, even though this unearned income was not in any way sourced to California. The only way I can "tell" the Turbotax software that this unearned income is not California sourced is via the Turbotax interview questions, as far as I can see.
I would think that the CA state Turbotax questions that specifically ask about the apportionment of unearned income between CA and non-CA sources should negate the generation of CA form 3800 when the filer states that the amount of unearned income that is sourced to CA is zero--but it does not. This to me is a glitch in the system.
Am I missing something? Has anyone else been able to successfully delete a CA form 3800? Can anyone think of a reason why CA form 3800 is being generated when the tax filer correctly responds to the interview questions indicating that there is no CA sourced unearned income?
If federal Form 8615, Tax for Certain Children Who Have Unearned Income, was filed with the child’s federal tax return, this could be causing it to appear with your California Nonresident return.
You could try (1) deleting the California return and starting it again, to see if this removes the unneeded Form 3800, or (2) completing the Form 3800 information for California showing zero California unearned income, if that is correct.
Thank you for your reply! I have deleted the CA return and re-entered everything and the program is still populating the CA form 3800. And I can not delete the unearned income directly from form 3800 because it is a fixed entry and can not be changed or overridden. It pulls this info from federal form 8516.
From researching this community, I see that this has occurred for other people. Hopefully Turbotax will address this glitch and fix it. The CA tax return Turbotax interview questions specifically ask for the California sourced income (you have to apportion how much of one's unearned income is CA sourced versus sourced elsewhere). I put a zero in the correct spots in the Turbotax interview section to show that there was *no* CA sourced unearned income. These entries should "tell" the program the the CA form 3800 is not needed, despite the fact that the tax filer is filing a federal form 8615, but it does not.
In my situation, Turbotax is assuming that just because a CA 540NR tax filer has unearned income taxed at the federal level, that is has to be taxed at the CA state level and the interview questions that "tell" the program otherwise are not cancelling out this assumption in the program.
Unless this is resolved by Turbotax, or unless someone has come up with a workaround, this glitch will force me to mail in my return rather than e-file, so that I can exclude the form 3800. Not the end of the world by any means, but not what I would prefer to do.
Any other ideas on how to get rid of the unneeded form 3800?
Yes, you can try deleting the Form 3800 only. If all of your unearned income is allocated to a state other than California, that should solve the issue.
Here's how to do that:
Thank you for your reply! I am on the desktop version of Turbotax and do not see the menu options you are referring to. I can go into the *federal return* and select "Deductions and Credits" , (there is no such option that I see on the state return). When I click on Deductions and Credits on the federal return, there is no left sided menu/popups. However, when I click on the top of the page, left-sided menu, there is no "tax tools" choice.
Not sure if I am missing something or if your instructions refer to the online version of Turbotax?
@JulieSoh and for sure the unearned income is not allocated to California, as I specifically noted in response to the relevant Turbotax interview questions. The interview questions ask for the portion of unearned income earned as a resident of California. I put a zero in those spots, just as the Turbotax software instructed me to do if the amount was none/zero. Turbotax correctly filled out the other CA forms correctly showing that the portion of unearned income taxable by CA was zero, (ex. SCH CA540NR). It just will not let me permanently delete form 3800. I delete it and it repopulates.
TurboTax CD/Download
Go into Forms Mode by clicking on the Forms icon in the top right of the blue bar.
In the Forms in My Return list on the left, click on the form you wish to open and delete.
Click on the Delete Form box at the bottom of the screen.
To return to the interview, click on the Step-By-Step icon in the top right of the blue bar.
@CatinaT1thank you for your reply!
I have deleted the form the way you described probably 50 times already and while it does delete the form--the form repopulates once I either go back to the interview or else try to file it. The form will not stay deleted.