Question

California pass-through entity elective tax credit and TMT: Urgent fix needed by turbotax!

Forum|Forum|4 years ago
March 23, 2022
1 reply
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The current version of Turbotax incorrectly classifies the California pass-through entity elective tax credit as credits that reduce excess tax on Schedule P of the California tax return, section A. Senate bill 113 signed on Feb 9, 2022 allows for the PTE credit to reduce taxes below the TMT.

https://www.ftb.ca.gov/file/business/credits/pass-through-entity-elective-tax/help.html

https://www.pwc.com/us/en/services/tax/library/califo[product key removed]es-to-pte-tax-and-2022-nol-credit-limits.html

Thus, the credit should show up on section B under "Credits that may reduce tax under TMT".

This is an urgent fix that needs to be fixed by Turbotax before 4/15.