Why the FTB 3800 is need when I have unearned income that is NOT sourced from CA?

[tianwaifeixian]

I am a college student who did internship in CA in 2025 for 12 weeks. I am NOT a CA resident, and my unearned income is NOT sourced from CA. I am preparing my 2025 return. For some reason, the FTB 3800 form keeps popping up. It also asked for my parent's 540 NR info. My parents are Non Resident of CA as well but my Dad may have some taxable income. He would have to file an extension for all his returns this year. I did some research and it looks like I really don't need to fill 3800 since non of those income is taxable for CA. Anyone can help me?

[MonikaK1]

If your only California-sourced income was from your internship, you were only in California temporarily, and were a California nonresident all year, then you would only need to report your California earnings on a California Nonresident return.

When entering your personal information in TurboTax, state that you were a resident of your home state all year. If you tell TurboTax that you were a part-year resident of California, it will want to allocate your non-California income for the period of time you reported that you were a California resident.

See the California Instructions for Form 3800 (the 2024 version is the latest available online) for more information.

[tianwaifeixian]

I did say full year nonresident of CA in Turbo tax and it still generated 3800 form. See below

[MonikaK1]

You could revisit the California section of TurboTax to see where you can eliminate that income from the California return. There is a section near the end of the California interview, "Here's the income that California handles differently". You could enter a description of any item that should not be subject to California tax as a nonresident and an amount to subtract from California taxable income. However, the Form 3800 may still come up.

Have you tried completing the Form 3800? If your parents are not going to file a Form 540NR, you can enter zeros in the section that asks for the parents' taxable income and tax from their Forms 540NR.

If none of the unearned income is California-sourced, and you are not going to file a nonresident California return, then you can enter zeros in the sections of California Form 3800 that ask what you entered on your nonresident California return.

In the alternative, you can delete the Form 3800 as follows:

1. Sign in to TurboTax.
2. Select Deductions & Credits.
3. In the left-side menu, select Tax Tools, then Tools.
4. Select Delete a form, from the list in the pop-up window.
5. Check the list for Form 3800, under the California return, select Delete next to the form.
6. Confirm your Delete, select Continue.
7. Select Continue with my return.
8. Select Review and Check my return.

[Edited 03/04/26| 3:28pm PST] 
 

@tianwaifeixian (edited)

[tianwaifeixian]

Thank you for your reply.

My dad does have CA- sourced income as a nonresident as well. He is going to file extension for his tax, so I don't have those numbers to enter on 3800. But the most important thing is, this should not even require 3800 in the first place. 

Also, I can't find "delete a form" forms from Tools menu. I tried at the form view, but it will regenrete the form again. 

Here is my "Tools" menu:

[AmyC]

Thoughts and solutions:

Thoughts: 

• The form: You are using the desktop version and delete form is correct. It regenerates when it believes there is important information. The kiddie tax may be on your federal return but CA does not get to tax you with it since CA is only earned income.
• I just created a CA nonresident, dependent  return. You really have to answer each question asking about the nonresident income. Be sure when it asks about the unearned income that you mark zero, do not leave it blank.

Solution steps:

1. Go through your answers again, inputting zeroes for all income not from CA.
2. Switch back to Forms mode.
3. If the Form 3800 is still there wanting kiddie tax, look for the pink boxes that want information. 
4. You may need to enter zero for your parents income to get rid of the kiddie tax issue. This gives you an accurate amount of income and tax to pay to CA - which is the goal.

The states and federal government share information so I expect CA will realize it is not a necessary form. If CA FTB does send you a letter, let them know that your only income in CA was earned.