Filing CA state 100S after 1120S, Turbotax says "Form 100S p4-6: Schedule M2 Line 3 total shouldn't be less than or equal to zero"

Forum|Forum|3 years ago
February 28, 2023
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Hi I'm in the final check up for my CA State filing. But the software always errors out at Schedule M-2. My current line 3 is "Other additions", where column (a) is "AAA", column (b) is "Other Adjustments". In Line 3, it automatically fills in "Tax Exempt Interest", and the value filled in column (a) AAA and column (b) Other Adjustments are both 0 right now. So the total other additions of Line 3 is 0 in column (a) and (b). But it gives me red color and I can't proceed. The software says the total shouldn't be zero. What's going on here and where could I fill wrong? Thank you!

TurboTax Business Windows

PatriciaV

Employee

The numbers for the CA Schedule M-2 flow from the federal form. Open Form 1120S p3-5 & scroll down to Sch M-2 Line 3. Green numbers were carried over from the prior year; blue are manual input that can be changed. If there is a zero in any of the lines under Line 3, you may delete them as long as the box doesn't stay/turn red.

If you're unable to delete the zeroes, click "QuickZoom" under Line D in the box at the top of Sch M-2 and open the Sch M2/Retained Earnings Worksheet. It's possible a total from this worksheet is flowing to Sch M-2. Once you fix this worksheet, the other form errors should be resolved.

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abonniestarAuthor

Hi, there is only one line in line 3 from Sch M-2 in my Form 1120S p3-5 and it's called "Tax exempt interest", the value is 0 in column (d) and the color is black. When I click the number 0, the background change to blue but I can't delete the number 0. So the bottom "Total other additions" in Line 3 is also showing 0. I clicked QuickZoom and opened the Sch M-2 worksheet, in Line 'Income- Tax exempt', column "Other adjustments account", the value is black 0, I still can't delete it. When I clicked the 0, the background is also in blue. So if I can't delete 0 in Sch M-2 worksheet and in Form 1120S p3-5, the Red number 0 would be in Form 100S Schedule M-2? And the system prevents me to submit the tax return because of this issue. Please advise how to bypass or where to click initially to delete the value 0 in "Tax exempt interest"? Thank you!