TurboTax Home & Business California form 568

[lorinchak]

I have the same questsion as albertkuo as to why Turbotax doesn't guide me through the CA 568 or sync with everything else I've gone through.

For example, my wife and I are a SMLLC.  Turbotax advised me to fill out two Sch C's, splitting up our income and expenses and use two business purposes.  Then when I created the CA 568 form, it offered two possibilities to choose from because it thinks I have two, when in fact they are one.

Lastly I read in an old thread that users were able to e-file the CA568 in 2021 but it sure doesn't seem like it this year.  At the bottom of the CA568 form theres a paragraph saying I have to print and mail separately, and file a waiver with the CA FTB.  Where is this waiver I need to file?

[GeorgeM777]

California requires a waiver be included with Form 568 when a taxpayer prints and mails Form 568.  Here is the link to the CA website that relates to waivers. Scroll down the page and select Start Waiver to get your waiver request.  

Business Entity E-File Waiver Request

Perhaps the reason you cannot e-file Form 568 is because you are either reporting income associated with two SMLLCs, or you don't have a SMLLC because you and your spouse are both members, thus, by definition, you don't have a SMLLC.  TurboTax can e-file Form 568 when the taxpayer is reporting only one SMLLC.  If you make the necessary adjustments regarding owner/member for your LLC, you should be able to e-file one Form 568.  However, if not, then use the above link to obtain the necessary waiver and mail Form 568 to the CA Franchise Tax Board.  

@lorinchak 

[lorinchak]

My wife and I are members in one SMLLC, and that is one SMLLC because CA is a community property state.

So why did I mention I created two Sch. C's in Turbotax, one for me and one for my wife?  Turbotax advised me to split the LLC's income and taxes that way between my wife and I.  I can't screenshot that for you because I can't trigger that screen anymore.  Do you work for Turbotax?  

If these two Sch C's are what's stopping the CA568 from generating, Turbotax is giving bad advice and not working altogether.  I will recombine income and expenses into one Sch C, and delete the second, and hope it generates the CA568.

[albertkuo]

Any advice on how I could have Form 568 filled out automatically? Please help. Thanks! -Albert

[albertkuo]

Any update, GeorgeM777 and fellow Intuit experts?

[lorinchak]

@GeorgeM777  @MarilynG1  @AliciaP1 

I was able to capture the screen in Turbotax that advised me to report our one SMLLC we have together as two separate businesses.  Having separated our business into two, is this what is stopping CA568 from being generated, auto-filled and e-file able?  If so, I will delete the second business and only report as one.  (Please respond ASAP as I'd like to finish this before the deadline next Tuesday.)

[MarilynG1]

Yes, you can only Efile one California Form 568 for an SMLLC (since CA considers it to be one owner).  Here's more info from CA FTB. 

If you have created two Schedule C's in your Federal return, you can generate one CA 568 linked to one of the Schedule C's, then in FORMS mode edit the amounts to reflect the totals for both.  The link has screenshots showing how to create the CA 568. 

Or, as you mentioned, combine amounts on one Schedule C in your Federal return, create CA 568, then edit your Federal return back to two Schedule C's. 

Otherwise, you would need to mail your CA 568. 

• Mail Form 568 with payment to:
• E-Filed returns: Pay electronically using Web Pay, credit card, EFW, or mail form FTB 3588, Payment Voucher for LLC e-filed Returns, with payment to:

Franchise Tax Board
PO Box 942857
Sacramento, CA 94257-0501

@lorinchak 

@albertkuo 

[lorinchak]

@GeorgeM777  @MarilynG1  @AliciaP1 @ToddL99 

I was able to go to the State tab to link one of the two businesses as a SMLLC.  (And as a reminder, I do not have two businesses.  I have one between my wife and I who are one community property.  But Turbotax advised me to make two to split our income and expenses, which I still do not understand!)

I will try to fill in CA568 pages 4-7 amounts myself (no thanks to Turbotax doing the taxes for me).

But on page 3, it still generates an error because I did not check the box at the end, because I want Turbotax to e-file for me.  How am I supposed to remove this error without checking the box, and without deleting one of the two businesses?  It thinks I have two businesses...

[AliciaP1]

That is the only correct way to file the return, unfortunately.  You will need to check the boxes and print and mail the return.

@lorinchak 

[lorinchak]

@GeorgeM777  @MarilynG1  @AliciaP1 @ToddL99 

I'd really appreciate if some others could agree/disagree with Alicia?  That is indeed not what Marilyn said to me.  Do any of you work for Turbotax?  I actually work at a CPA firm but navigating Turbotax itself is the headache.

I could definitely mail in my own CA 568 but I'd like to think I'm getting what I paid for, using Turbotax and not worrying about the papers, etc.  I've read from other's posts on Turbotax in previous years that they were able to efile their 568, so .....?

[JimCurtis]

Was this ever resolved?  I have the same questions - why wouldn't TurboTax already include California Form 568 if it is required for every LLC owner to file it?  At least ask the question so it automatically fills out the form for you.  Thought that's why I purchased the "Home and Business" version of TurboTax - so I wouldn't have to fill it out manually?

[Anonymous_]

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@JimCurtis wrote:

.....Thought that's why I purchased the "Home and Business" version of TurboTax - so I wouldn't have to fill it out manually?

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The following page indicates that the form is supported.

https://form-status.app.intuit.com/tax-forms-availability/formsavailability?albRedirect=true&product...

Are you referring to some other issue?

[Supero]

My California LLC is owned by my S Corp. I can not find form 568 in my Corporation TurboTax software. If I purchase a Home and Bushiness Software, it will link to a schedule C, which is not right for my case. How can I file a 568 with my Corporation? Thanks!

[Anonymous_]

California S corporations do not use Form 568 and your LLC would be treated as a disregarded entity if the sole owner is your S corporation.

[Supero]

Really? Thanks for the information! Yes, my LLC is owned 100% by the S corp and it's classified as a disregard entity. But someone said as long as it's CA LLC,  don't need file it on federal, but need file CA 568 for California State. Could you guide me if any CA official document indicate that? Thanks!