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Sold some stock as a nonresident in California. What do I do with Schedule D (540) that was generated?

I worked in CA for 10 days in 2023.  During the year, I also sold some stock (which was not affiliated with CA sources).

 

I do not understand why TurboTax Desktop 2023 generated a Schedule D (540).  On the form itself, it says "Do not complete this schedule if all of your California gains (losses) are the same as your federal gains (losses)."

 

Can I delete this form?


Or is the correct way to do this is to go to the Miscellaneous -> Other adjustments to income section?  (To remove the capital gain/loss)

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1 Reply
TomD8
Level 15

Sold some stock as a nonresident in California. What do I do with Schedule D (540) that was generated?

If the program generated a CA Schedule D (540), then it "thinks" that you're a California resident.  A non-resident or part-year resident would have received a Schedule D (540NR).

https://www.ftb.ca.gov/forms/2023/2023-540nr-d.pdf

 

This suggests that you may not have answered the state residence questions correctly in the Personal Info section of TT.  

 

 

 

**Answers are correct to the best of my ability but do not constitute tax or legal advice.
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