CA 540NR Sch CA and 3801 issues

[ldvanaman]

I am a NV resident and I need to file a CA 540NR for rental properties I own in CA. TurboTax is saying I can't e-file my CA nonresident return because the Federal amount reported on the Form 3801 (side 2, column D) needs to match the Federal column on the 540NR Schedule CA (section B, Line 5) for amounts from rental properties. I believe the Schedule CA (540NR) is AFTER passive loss adjustments and the Form 3801 is BEFORE passive loss adjustments. These amounts will never match and they did not match on my 2021 return, which I e-filed. Please advise how to fix so that I can e-file my return. Thank you.

[DaveF1006]

It would be helpful to have a TurboTax ".tax2022" file that is experiencing this issue.

You can send us a “diagnostic” file that has your “numbers” but not your personal information. If you would like to do this, here are the instructions: 

If using the online version of Turbo Tax:

1. Click on Tax Tools in the left menu bar
2. Click on Tools>share my file with agent
3. press ok and you should get a token number

We will then be able to see exactly what you are seeing and provide a solution.

[ldvanaman]

Hello, 

I appreciate Turbo Tax looking at this California diagnostic error. I have shared the file with the agent.

To be more specific, below is the diagnostic I am getting for California:

The return is ineligible for electronic filing. If the amount of Fed Net Inc/Loss from Schedule E activities on Form 3801 doesn't equal the Federal amount of Rental real estate, royalties, partnerships, S corporations, trusts, etc. on Schedule CA (540/540NR), then the return must be printed and mailed.

[MoniqueLO_]

Can you please provide the token number so an agent can look into the error and assist you?

@ldvanaman  

[ldvanaman]

Here is the token number: 1107986.

[DaveF1006]

To clarify, which Side 2 Column D of form 3801 needs to match. Is it from the California Adjustment Worksheet or California Passive Activity Worksheet? 

@ldvanaman 

[ldvanaman]

@DaveF1006 

Hi - thank you for your help on this.

This is the error I am getting: "The return is ineligible for electronic filing. If the amount of Fed Net Inc/Loss from Schedule E activities on Form 3801 doesn't equal the Federal amount of Rental real estate, royalties, partnerships, S corporations, trusts, etc. on Schedule CA (540/540NR), then the return must be printed and mailed."

The Form 3801 (page 2, column D) states that it should have Federal amount before passive loss adjustments. The Schedule CA (column A, section B, Line 5) is the Federal amount after passive loss adjustments. These amounts won't ever tie because of passive losses.

I am assuming these two numbers are the issues causing the diagnostic, but I can't view my state return since I have to e-file my Federal first (which I am not ready to do yet).

[DaveF1006]

I apologize for not getting back in touch with you sooner. One of my managers referred me to your post and i was mortified at the fact that I didn't get back to you.

This is something that can be corrected if you used the desktop version of Turbo Tax by making a simple adjustment on SchCA (540NR).  Since you are in the online version, this adjustment cannot be made because of the program's inability to work in forms. When the return is reviewed, there are no errors, which indicates this return is prepared correctly.

The good news is, since there is no taxable impact on your return, you can print and mail the return.  i realize that for expediency purposes you would like to efile your Ca return but since you do not owe or expect a refund, printing and mailing the return is the best option.

Again, I do apologize and i do wish you the very best year in all areas of your life.

@ldvanaman