ellenabel
Level 3
‎04-15-2022 06:21 PM
The current instructions to CA SCH line 2 (California tax liability) say to use CA Form 540 Line 48 tax liability without reduction for other state tax credits.  However the CA form 540 line 48 is being reduced for the CA PTE credit.  This greatly reduces the CA Tax liability with which the Schedule S uses to compute the other state tax credits.  This results in a large loss of the other state tax credits.  Does anyone know if the CA SCH S instructions for Line 2 will be revised to use CA Form 540 line 48 before OSTC and before CA PTE credit or is this just another bad result in the CA PTE regime?
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Karl
Level 8
Level 8
‎04-16-2022 02:53 PM

Per the "forms" page of ftb.ca.gov: "Attention: Due to California SB 113 we are revising tax forms instructions. If SB 113 changes do not affect you, you can still file with these forms."

I would expect them to be updated.  It's just taking an annoyingly long time.

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ellenabel
Level 3
‎04-16-2022 03:36 PM

I see that the FTB says they are updating instructions, however, I don't see anywhere in writing that this particular issue on the schedule S will be addressed.  Do you have information from the FTB that the Schedule S instructions will be updated to address this issue? 

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Karl
Level 8
Level 8
‎04-16-2022 03:48 PM

Nope, I'm just waiting for the whole thing to be updated and then going from there.

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