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dnssros
New Member

In my California return I am being asked to file some credit recapture forms. For example New employment credit for 3554. I am not a business owner. Is this a mistake?

 
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1 Reply
MonikaK1
Expert Alumni

In my California return I am being asked to file some credit recapture forms. For example New employment credit for 3554. I am not a business owner. Is this a mistake?

California Form FTB 3554New Employment Credit (NEC) is available for each taxable year beginning on or after January 1, 2014, and before January 1, 2026. 

 

If that form doesn't apply to you, what may have happened is that when you got to the portion of your CA state return that says " Credits and Taxes" if you scrolled 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 may have been a figure inserted, even a "0". if you did not need this credit, putting a figure in that box automatically populates that form causing it to now give you errors on the State Return review. 

 

If you tried deleting the form and that didn't work, or going back to the box and remove the "0", the only thing that will work is deleting your CA State return and starting over, this time without going into the "New Employment Credit Recapture" if you do not need to fill out form 3554.

 

 

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