Form 3540 is a California tax form used for the carryforward and recapture of certain credits. Code 218 refers to the Environmental Tax Credit.
To clarify, did you have a CA environmental tax credit on a prior return? If not, you can delete Form 3540.
To delete a form in TurboTax Online, follow these instructions:
How do I view and delete forms in TurboTax Online?
To delete a form in TurboTax Desktop:
1. Go to Forms mode in the top right corner of the screen
2. Click on the form you want to delete (in the left panel)
3. Click on the form name
4. Select Delete Form on the bottom of the screen
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