Line 16 of California Form 540 is supposed to come from Schedule CA (540), Part I, line 27, column C. However, the two values differ. Why?

[gdowdy3]

The details of line 16 say "Enter the amount from Schedule CA (540), Part I, line 27, column C."  How is TurboTax coming up with a different number for these two lines?

[JohnW152 · Accepted solution]

It’s possible that Form 540, Line 16 might also be reflecting an amount from Schedule CA (540) Part I, Line 27, column B.

According to Line 27 – Total in the Part I Instructions of the 2021 Instructions for Schedule CA (540) in 2021 California Form 540 Instruction Booklet: 

Subtract line 26 from line 10 in column B and column C.

Also, transfer the amount from:

• Line 27, column B to Form 540, line 14.  If column B is a negative number, transfer the amount as a positive number to Form 540, line 16.

• Line 27, column C to Form 540, line 16.  If column C is a negative number, transfer the amount as a positive number to Form 540, line 14.

[Bolding mine.]

So, if Line 27, column B is negative, it would also figure into the Form 540, Line 16 calculation.

[gdowdy3]

Thank you, John.  Yes, I agree. I discovered those instructions a day or two after I posted my question, but I forgot to post the solution.

Personally, I think it's ridiculous that the instructions for Schedule CA (540) directly contradict the instructions on Form 540 itself, reproduced here: "Enter the amount from Schedule CA (540), Part I, line 27, column C."  Unfortunately, the people who wrote those instructions probably don't care what I think.

[tuxedorose]

what a complete waste of all of our time that we, american taxpayers who want to file these complex tax returns correctly,  have to struggle through such poorly implemented instructions. I wasted so much time trying to understand what  TT was doing when it combined the negative amount in line 27 column B with the positive amount in column C and stuck the total in Form 540 line 16 rather than put it in line 14 .

even though the CA instructions are poorly worded, TT should at least be FIXED so that when you click on 540 line 16, it highlights both values that went into it rather than just taking you to Schedule CA line 27 col C.  this would save a lot of confusion