Question

I have credit carryover amount for my child adoption costs, but TurboTax is including this in my total refund on my CA tax. Is this correct?

Forum|Forum|4 years ago
March 24, 2022
1 reply
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The max tax credit allowed for California is $2500, which TurboTax states it will use this year. However, my total tax refund for CA is higher than expected and seems to be including the carryover amount.

TurboTax Online

DaveF1006

Yes, you can use up to $2500 for the child tax credit this year and this will include carryover amounts you weren't able to use previously. This additional credit will generate a bigger tax refund, which is not a bad thing.

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J

joeruhlAuthor

Ok, my concern was more on what TurboTax was showing me as my CA state refund, which was really high due to the carryover. I understand that for CA I'm limited to just $2500 per year, but then why does TurboTax show my total CA tax refund to be about the same value as my total carry over, which was in the tens of thousands?

Definitely appreciate you taking the time to answer my question, Dave. To be honest I didn't think anyone would answer so I ended up submitting my taxes and hoping TurboTax did it right. If I end up getting that full tax refund amount this year and no complaints from the government then that's cool. Otherwise I'll have to address it later if the government wants that money back, and I'll have to complain to TurboTax somehow for getting my CA tax wrong.

D

DFANOUS

@joeruhl @DaveF1006 I am having the exact same issue. If you look at your Form 540, Line 43 should be no more than $2500. However, the software is pushing the $2500 allowed PLUS your carryover on that line which is inflating your refund. I have tried working through it with several Live Experts but no luck yet. On hold right now and am hoping to get this resolved.