California Form 3804-CR is not accurately calculating PTET carryover when there is Other State Tax Credit also

Forum|Forum|1 year ago
April 14, 2024
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Form 540 accurately utilizes Other State Tax Credits (OSTC) before PTET credits, but Form 3804-CR Part II Line 4 does not carryover the correct amount of PTET used from Form 540 (it ignores that OSTC was used on Form 540 and reduces the PTET carryover by the amount of the OSTC used as well as the PTET utilized on Form 540). I can't seem to manually override this entry. Is there a workaround?

starrant

The CA PTET is non refundable. Is it possible that the credit is being limited to the remaining liability

R-n-B

I have the same issue with TurboTax 2024 Desktop (Windows). Form 3804-CR Part II line 4 should show the amount of the PTET credit claimed on Form 540NR, but it shows 0 instead. The PTET credit is claimed correctly on Form 540NR, line 59 (I have OSC credit on line 58).

The big problem is that Form 3804-CR Part II line 4 cannot be overridden or edited. I cannot file my return without correcting this line!

user231

Did you find a solution to this? I am having the same issue.

R-n-B

So far, my only solution is to fill in the form

manually using the PDF from the FTB website, and file a paper return (substituting my manual Form 3804-CR for the one generated by TurboTax). Luckily, this works because the issue with 3804-CR doesn’t affect any other part of the return.