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@trold If you entered a K1 in your federal return, there will be questions that will generate when you begin your California state Return. As you navigate through your state return:
If you have a credit on line 5 you will apply it forward. You can't apply it to your estimated payments - you will enter it on line 2 of the 3804-CR next year. You can, however, reduce the amount of your estimated payments to California because of that credit.
No, you would need to update to TurboTax Online Self-Employed or TurboTax Home and Business Desktop.
The California relief grant is reported as self-employed income. You are able to deduct expenses associated with the grant. This is taxable on the federal return, but not counted as California income.
Hi Patti,
So a partnership paid the CA taxes in order to take advantage of AB150.
So I am still not clear. According to California information, I need to take a credit for the partnership paying the tax through AB150.. It says I need to file Pass-Through Entity Elective Tax Credit 3804-CR.
I don't see that in Turbotax Home and Business.
Where do I indicate in Turbotax that the tax was paid for by the partnership?
Thank you
Or maybe clearer:
How do I enter a California PTE credit in turbotax?
It does not give me the option on 15(F) in k-1 to enter this credit?????
@trold If you entered a K1 in your federal return, there will be questions that will generate when you begin your California state Return. As you navigate through your state return:
I will try it. Thank you.
So I have a related question concerning this.
Once I fill out the 3804-CR, I am left with a credit on line 5 of form 3804-CR.
Say for instance the credit is $1000 - I would like to apply that amount to my quarterly estimated payments for 2022 - how do I do that in Turbotax? I.e. allocate $400 for the 1st quarter and $600 for the next quarterly payment. This is not using my refund but specifically my CREDIT from line 5 on 3804-CR.
Thanks
It depends. Since your credits have already reduced your tax liabilities, you cannot reapply them again to reduce your tax due amounts.
Hi again,
I don't think that is correct...I have a credit on Form 3804-CR line 5 that I can apply to future years i.e. 2022. How do I do that - I want to apply the credit towards 2022 quarterly payments rather than paying out of pocket. The money on line 5 can be carried over but I am unsure how to do it in Turbotax.
Thank you
If you have a credit on line 5 you will apply it forward. You can't apply it to your estimated payments - you will enter it on line 2 of the 3804-CR next year. You can, however, reduce the amount of your estimated payments to California because of that credit.
I'm told that if the Subchapter S corp pays that pass through before 03/15/22, then it is an available credit for your 2021 tax year. Is this true??
I'm unfortunately not a tax experts so cannot answer that.
@s_colgrove10 You can only use the credit for the year that is represented on the form. The S-Corp is filing for 2021 right now. If they fill out a 3804-CR for you for 2021 then you can absolutely use it for your 2021 taxes. However, they may be issuing a 3804-CR for 2022 at this point in which case you will use it next year.
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