PTE credit not flowing to K1 from CA 3804 using TurboTax Business

This issue has been identified by our tech support and will be addressed in a future update. We don't know when that update will be released. But having the focus of the tech team is a positive step toward resolving the issue. If a support article is released, we'll post that link here.

In the meantime, you will need to manually enter information in Forms Mode (icon in the TurboTax header) to both allocate and pay PTE tax.

1. On the California Information Worksheet, check the box just above Part VI "Form 3804 Pass-Through Entity Elective Tax" and use the QuickZoom link to open Form 3804.
2. On Form 3804, check the box for identification number you wish to use (typically FEIN). Note the total tax on Line 3.
3. Open Form 3893 (PTE) and check the box to activate the form. Enter the total tax to be paid from Form 3804 Line 3 to the bottom of Form 3893.
4. Open Sch K-1 Wks and check the box for each partner to indicate consent to use Form 3804.
5. Open Form 100S p4-6 and scroll down to Credits Line 13d. Enter a description for the PTE Tax Credit from Form 3804 and the total amount in the middle column. This step will allocate the tax credit to all Schedules K-1.
6. Review each California Schedule K-1 Line 13d to confirm the allocated amount matches Form 3804. The supplemental information is presented under Line 17.

Form 3804-CR is not available in TurboTax Business, but you can obtain a copy here: Pass-Through Entity Elective Tax Credit 2021 3804-CR