Lacerte is not calculating OSTC for CA PTE

[JimS_1]

Based on what Lacerte is showing me, it would seem that a non-resident of CA would NEVER want to elect into the CA PTE tax.   Here is what I'm seeing and I would love others views if they encountered this or know of a workaround.

A Massachusetts resident is a partner in an entity with operations in CA and the individual has elected into the CA PTE.  This partner has not stepped foot into CA all year, so they file as a NR in CA.   I have entered the CA PTE paid by a partnership in screen 20.1 under line 15.  That credit is showing up on line 58 of CA form 540NR and line 75 of 540NR is showing a "Total tax" of zero.

In the partner's MA tax return, the Other State Tax Credit worksheet is showing ZERO tax liability in California (worksheet for line 30 of MA Form 1), and thus the partner is not getting any credit for the PTE tax that they essentially paid.  I think it's because line 75 is showing a "total tax" of zero.

The same partnership also paid in NY PTE, but the partner IS getting a credit for the PTE taxes paid to NY on the Other State Tax Credit worksheet in MA.  I think it's because Line 50 of IT-203 is showing an amount of "Total NY State Taxes".  The PTE credit for NY is down in line 61 of Form IT-203 as part of "payments" and not reducing the "Total Tax", like CA handles it.

Question:  Should the MA partner be getting a credit for the CA tax similar to the NY tax?  If not, it would seem to defeat the purpose of electing into the CA PTE (i.e. the federal benefit is far less than losing the OSTC in MA).

If they should be getting the credit, is there an override I'm missing that will allow the partner to take a credit for the CA tax?