Form 100 $800 Addback

[wunnsoon]

California Form 100. The main form page 1 and 2 shows the $800 addback of California Franchise Tax. However, on Schedule M-1, the program does not add back automatically. When I tried to mannual addback through M-1 input screen, it messed up my income per book. Anyone has a solution?

[George4Tacks]

Screen 4, check boxes just before Other Information (Schedule K) - Press F1 and you will get:

Accrue State Tax Option 1

Miscellaneous

Screen 4; Code 15

Select the box to perform the following functions with the "calculated" state tax:

FUNCTION	DESCRIPTION
1	Deducts the "calculated" state tax on Form 1120.
2	Adds back the state tax on the state return.
3	Credits the ending balance of "Prepaid State Tax" (Screen 37, code 208) by the amount of the actual state tax, up to the amount of prepaid state tax* and then credits "State Tax Payable" (Screen 37, code 254) in the amount of any excess.

* When accruing state taxes using either option, the program automatically carries the sum of overpayments applied from 2019 plus 1^st – 4^th quarter estimated payments to the balance sheet as prepaid state tax (before adjustment by the calculated tax). Alternatively, the unadjusted ending balance of prepaid state tax can be entered directly in the balance sheet. The program functions in the same manner with respect to city, county, and other local taxes.

Note for New York corporations: If you select the box, the program also accrues the New York City and Form 3M/4M taxes.

Note for Oregon corporations: If you select the box, the program also accrues the Multnomah county tax.

Note for Kentucky corporations: If you select the box, the program also accrues the taxes for Kentucky cities being generated.

Note for Ohio corporations: If you select the box, the program also accrues the taxes for Ohio cities being generated.

This may help - Also Form 100 instructions state: 

"

Schedule M-1 – Reconciliation of Income (Loss) per Books With Income (Loss) per Return

Schedule M-1 is used to reconcile the difference between book and tax accounting for an income or expense item. The federal and state Schedule M-1 may be the same when the corporation uses the federal reconciliation method for net income computation. See General Information I, Net Income Computation, for more information. The California Schedule M-1 will be different from the federal Form 1120, Schedule M-1, if using the California computation method for net income. The California computation method is generally used when the corporation has no federal filing requirement, or if the corporation maintains separate records for state purposes."