Form 568 K1 Adjustments - Is TurboTax miscalculating? Why should Net loss be twice as much as Federal?

[LLCHERMOSA]

I'm using TurboTax business desktop 2024. My first question is whether form 568 Sched. K-1 Line 1 California adjustments are supposed to be a negative or positive amount? I find it difficult to understand why if I have a -7882 Federal Net income loss, why on form 568, I also have a California negative adjustment of -7757 which makes my total loss 15,639.  I am also unable to file because of TurboTax has automatically populated a value on Sch M1 Line 10 that doesn't balance.  I have reinstalled the software, and started over again fresh without any 568 overrides yet I have been plagued by this issue for two weeks.  I need assistance from TurboTax because this is quite frustrating. I had no issue with my Federal and State of GA e-filing and yet I can't e-file CA as I've done for the last several years.

[JotikaT2]

Your California loss would only differ if you have a state specific adjustment between your federal return, and the amounts allocated between Georgia and California.  I suggest reviewing the entries on your federal return first to make sure you do not have any other amounts entered that could be flowing into your California return.  You may also need to review the input in your Georgia return to ensure it only reports the Georgia portion of the loss. The remaining amount would then be allocated to California.

As far as the Schedule M-1, if you meet the requirements, there is an option to not complete the reconciliation and still be able to file your state return if you meet the requirements as listed in the instructions.  

If you do meet these requirements, go through your federal interview section again.  Click on the Balance Sheet tab.  Proceed through the screens and if you qualify, you will see a screen that says "Good News."  If you meet the requirements, select the circle to the left of Yes, I want to skip the balance sheet section.  

This should allow you to continue with your return and e-file as long as there are no other items needing correction.