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New Member
posted Apr 13, 2024 5:33:30 PM

California Form 3804-CR is not accurately calculating PTET carryover when there is Other State Tax Credit also

Form 540 accurately utilizes Other State Tax Credits (OSTC) before PTET credits, but Form 3804-CR Part II Line 4 does not carryover the correct amount of PTET used from Form 540 (it ignores that OSTC was used on Form 540 and reduces the PTET carryover by the amount of the OSTC used as well as the PTET utilized on Form 540).  I can't seem to manually override this entry.  Is there a workaround?

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5 Replies
New Member
Apr 15, 2024 6:06:30 PM

The CA PTET is non refundable. Is it possible that the credit is being limited to the remaining liability

 

Level 2
Apr 3, 2025 6:35:07 PM

I have the same issue with TurboTax 2024 Desktop (Windows). Form 3804-CR Part II line 4 should show the amount of the PTET credit claimed on Form 540NR, but it shows 0 instead. The PTET credit is claimed correctly on Form 540NR, line 59 (I have OSC credit on line 58).

 

The big problem is that Form 3804-CR Part II line 4 cannot be overridden or edited. I cannot file my return without correcting this line!

 

New Member
Apr 15, 2025 9:59:49 AM

Did you find a solution to this?  I am having the same issue.

Level 2
Apr 15, 2025 11:20:36 AM

So far, my only solution is to fill in the form

manually using the PDF from the FTB website, and file a paper return (substituting my manual Form 3804-CR for the one generated by TurboTax). Luckily, this works because the issue with 3804-CR doesn’t affect any other part of the return. 

New Member
Apr 15, 2025 12:09:52 PM

Ok.  I guess the only issue with that is that next year TurboTax will port over the wrong amount as a carryover into 2025.  Hopefully there would be a way to manually change the carryover amount.