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New Member
posted Feb 19, 2023 10:05:07 PM

Why am I asked to fill out a 'new employment credit' ? It isnt needed

0 4 357
4 Replies
Expert Alumni
Feb 20, 2023 5:46:59 AM

Please clarify your question.

  • The New Employment Credit is a CA income tax credit for businesses located in former enterprise zones, as well as areas with high unemployment or poverty.
  • It looks like you're using TurboTax Deluxe Online.
  • There is no indication that you have a business.
  • Is this something coming up in the CA state input section?

Level 1
Feb 25, 2023 1:38:51 PM

I'm not the original poster, but I have the same question.  The first thing that comes up when reviewing my CA return is Form 3554 asking for Credit Owner for New Employment Credit.  I don't know why this is coming up nor how to resolve it.

Expert Alumni
Feb 28, 2023 6:54:20 AM

There may be a stray entry causing the CA form 3554 to generate.  Since you do not have a business and therefore are not claiming the New Employment credit you can delete the form.  

 

1. Select "Tax Tools" in the left hand menu
2. Select "Tools"
3. Select "Delete a Form"
4. Find the  CA form 3554 

5. "Delete"
6. "Confirm Deletion"

Level 1
Feb 28, 2023 7:17:26 AM

I do own a business.  This message came up in TurboTax Business.

 

I was able to get past the check by entering my name as the Credit Owner even though I'm not requesting a New Employment Credit.

 

I imagine deleting the form may be the cleaner resolution.  Thank you!