How to Eliminate CA Form 3415(EITC) with No Earned Income

[bevantaxservices]

I have ProSeries Basic.  I have a long time client that has filed a Federal and CA state non-resident return for the last 8 years.  Income sources all the same, and nothing new for TY2025.  No earned income.  All income is from brokerage account, SS, and several partnerships.  Transferred return from ProSeries TY2024 Federal and CA.

Income similar to TY2024 and same sources.  Why do I keep getting an error message and directions to fill out CA Form 3415.  I have checked box in Federal Information sheet to not calculate EITC.  Error message directs me to fill out Form 3415, lines 18 with Business Name, etc.  There is no business name.  Lines 8 and 9 are $0, no CA earned income.  When I delete the form it regenerates and causes the same error.  I have deleted the CA return and re-transferred the CA info from TY2024 several times.

How do I correct this issue so I can eFile?

[Just-Lisa-Now-]

Do the partnerships have any SE income on them?

[bevantaxservices]

Each of the 3 K-1s,"Section 199A Information, Box 20, Code Z, show an entry for W-2 wages.  I could find any reference to SE withholding.  Would it be on the K-3?

[bevantaxservices]

Also, last year, TY2024, had W-2 wages in the Section 199A information and no issues with Form 3415.  The only way I found to get the return to be eFile-able was to enter "no business income" and some "nulls" into the address entry boxes in Part IV, Ln 18.

[Just-Lisa-Now-]

So the K-1s dont have any income on them?  Nothing in Box 1 or Box 14?

[bevantaxservices]

Nothing in Box 1 or 14 for 3 partnerships.  Could a "0" entry in the box trigger this issue?  The client has no Earned Income yet the software is trying to hook up and EITC credit.

[Just-Lisa-Now-]

weird, I guess your workaround will have to do, I havent had any that I couldn't explain. 

If its asking for a business name, it must think you've got a K-1 or  Sch C involved somewhere.

[bevantaxservices]

I even checked the Federal Info box that say "no EIC".  I even started from scratch with a new return and transferred in last year's.  As soon as I got a couple of unearned incomes entered the problem started so I gave up on that avenue.   I will double/triple check for any reference to a Sched C or an errant K-1.  I'll let you know if I track it down.  Thanks for looking into it.

[bevantaxservices]

I figured out what was causing the problem.

One of the K-1s had an entry in Ln 14, "Code A, $0".  I know sometimes accountants and tax preparers enter a $0 in some boxes to remind them they have reviewed the box, rather than leaving it blank.  Tax withholding on a 1099 is a common place you might enter a literal $0 rather than leave it blank.

Anyway, the Code D on the K-1 triggered the software to assume there was some kind of SE income and hence CA Form 3415 needed the entry of a business name on CA 3415, Ln l8.  This triggered 6 errors for the address fields and of course made the return not able to be eFiled.

The fix:

1.  Deleted the entry in the K-1.

2.  Deleted Form CA 3415.

3.  Clicked on "General Information" (with the return open), and then "State", which allows the Form 3415 to regenerate in the CA return.

4.  A clean CA 3415 is still there but there, but no error.  (Note:  The 3415 gets pulled in whether there is SE income or not.

What's the fix.  Basically, be aware to the issue.  A solid fix would be to have the software double check for a "$0" entry, and take no action, even if there is a code selected..