AB150

[andrew0071]

Should payments made for AB150 be inputted into the "Estimated Taxes Paid" section of TT for California Tax Return?

[MaryK4]

You should enter in the K-1: Line 15 - Credits and Withholding for Partnerships (Code f)  and Line 13 - Credits and Withholding for S Corps (Code d).  

[andrew0071]

To clarify, do you mean line 15f "OR" 13d depending on Partnership or S Corp on CA540 return and "NOT" be inputted to Estimated Taxes Paid section?...  Thank you.

[DawnC]

Yes.   line 15 (f) OR 13 (d) depending on whether it is a S-corp or Partnership.   TurboTax will apply the payment from that entry.  

[andrew0071]

Awesome, thanks Dawn. Also would TT account for any AB150 "overpayment" and apply it to next year's return automatically? Where would I be able to see and confirm this on TT?

[RobertB4444]

Any overpayment will be dealt with at the end of the return and either issued as a refund or you will have the option to apply it forward to next year's taxes.

@andrew0071 

[andrew0071]

TT did NOT provide those options at the end of my CA540 return; "Tax Refund" at the top showed "0" and that was it.  I am not absolutely sure, but my understanding is when participating in AB150, any overage is not refunded... Is this true?  I'd appreciate TT Tax Expert's clarification on this.  Thanks.

[RobertB4444]

According to the FTB-

"If the entity overpaid the tax, the overpayment will be applied to other liabilities or refunded to the entity after a tax return is filed.

No entities are able to carry forward an overpayment and designate it specifically or solely to the June 15 prepayment or PTE elective tax for future years. PTE elective tax paid can be carried forward and applied to other tax liabilities, with the excess refunded to the taxpayer. The 565 partnership return does not allow an overpayment to be applied to the following taxable year because these entities’ liability is typically limited to the $800 minimum tax, and these entities do not have other liabilities to apply overpayments to. For these entities, overpayments of PTE elective tax will be refunded to the entity.

For all entities, if the entity overpaid the PTE elective tax, the overpayment will be applied to other liabilities (if any) or refunded to the entity after a tax return is filed."

So you should be eligible for a refund if one is available.

Here's a link to that information.

@andrew0071 

[andrew0071]

What's confusing bet what you are saying and TT software is that I am done with my CA540 tax return and on form 3804-CR it shows a sizeable dollar amount [AB150 payment minus actual tax owed] as "Credit carryover to future years" yet "0" in the "Tax Refund" box at the top of TT.  I read your link but still is not clear whether overpayment related to AB150 is refunded in the filing year or carried over as the only option.  I'd appreciate your feedback, thanks Robert.

[andrew0071]

Accordingly, how are AB150 overpayments treated for a "Partner" in the "Partnership Entity"?...

[nirmal]

yes while participating in ab 150 program, credits keep piling up, I amnot either when and how to use them

Please hep