CALIFORNIA
540NR
Forms & Instructions
2019
Nonresident or Part-Year Resident Booklet
Members of the Franchise Tax Board
Betty T. Yee, Chair
Malia M. Cohen, Member
Keely Bosler, Member
COVER GRAPHICS OMITTED FOR DOWNLOADING SPEED
Table of Contents
Page 2 540NR Tax Booklet 2019
Important Dates .......................................... 2
Do I Have to File? ......................................... 3
What’s New and Other Important Information for 2019 ............ 4
How Nonresidents and Part-Year Residents are Taxed ............. 6
Instructions for Form 540NR .................................9
Nonrefundable Renter’s Credit Qualification Record
...............21
Voluntary Contribution Fund Descriptions
......................22
Credit Chart
..............................................24
Frequently Asked Questions
.................................25
Additional Information
.....................................26
Instructions for Filing a 2019 Amended Return
..................27
Form 540NR, California Nonresident or Part-Year
Resident Income Tax Return
...............................31
Schedule CA (540NR), California Adjustments – Nonresidents
or Part-Year Residents
...................................37
Instructions for Schedule CA (540NR)
.........................41
Schedule D (540NR), California Capital Gain or Loss Adjustment
....55
Instructions for Schedule D (540NR)
..........................57
FTB 3519, Payment for Automatic Extension for Individuals
........61
FTB 3514, California Earned Income Tax Credit
..................63
Instructions for Form FTB 3514
..............................67
FTB 3532, Head of Household Filing Status Schedule
.............81
Instructions for Form FTB 3532
..............................83
2019 California Tax Table
...................................87
2019 California Tax Rate Schedules
...........................92
Paying Your Taxes
.........................................93
How To Get California Tax Information
.........................94
Privacy Notice
............................................94
Automated Phone Service
...................................95
Important Dates
When the due date falls on a weekend or holiday, the deadline to file and pay without penalty is extended to the next business day.
April 15, 2020*
Last day to file and pay the 2019 amount you owe to avoid penalties and interest.* See form FTB 3519 for more information.
* If you are living or traveling outside the United States on April 15, 2020, the dates for filing your tax return and paying your
tax are different. See form FTB 3519 for more information.
October 15, 2020 Last day to file or e-file your 2019 tax return to avoid a late filing penalty and interest computed from the original due date of
April 15, 2020.
April 15, 2020
June 15, 2020
September 15, 2020
January 15, 2021
The dates for 2020 estimated tax payments. Generally, you do not have to make estimated tax payments if the total of your
California withholdings is 90% of your required annual payment. Also, you do not have to make estimated tax payments if you
will pay enough through withholding to keep the amount you owe with your tax return under $500 ($250 if married/registered
domestic partner (RDP) filing separately). However, if you do not pay enough tax either through withholding or by making
estimated tax payments, you may have an underpayment of estimated tax penalty. For more information, call 800.338.0505,
select personal income tax, then select frequently asked questions, and enter code 208.
$$$ for You
Earned Income Tax Credit
Federal Earned Income Tax Credit (EIC) – EIC reduces your federal tax
obligation, or allows a refund if no federal tax is due. You may qualify if
you earned less than $50,162 ($55,952 if married filing jointly) and have
qualifying children or you have no qualifying children and you earned less
than $15,570 ($21,370 if married filing jointly). Go to the IRS website at
irs.gov/taxtopics and choose topic 601, see the federal income tax booklet;
orgo to irs.gov and search for eitc assistant.
California Earned Income Tax Credit (EITC) – EITC reduces your California
tax obligation, or allows a refund if no California tax is due. You may
qualify if you have wage income earned in California and/or net earnings
from self-employment of less than $30,001. You do not need a child to
qualify. For more information, go to ftb.ca.gov and search for EITC or get
form FTB 3514, California Earned Income Tax Credit.
Young Child Tax Credit
Young Child Tax Credit (YCTC) – YCTC reduces your California tax obligation,
or allows a refund if no California tax is due. You may qualify for the credit
if you qualified for the CA EITC and you have at least one qualifying child
who is younger than six years old as of the last day of the taxable year. For
more information, see the instructions for line 86, Form 540NR, California
Nonresident or Part-Year Resident Income Tax Return, and get form
FTB3514.
Refund of Excess State Disability Insurance (SDI) – If you worked for at least
two employers during 2019 who together paid you more than $118,371 in wages,
you may qualify for a refund of excess SDI. See the instructions on page 15.
Common Errors and How to Prevent Them
Help us process your tax return quickly and accurately. When we find an error,
it requires us to stop to verify the information on the tax return, which slows
processing. The most common errors consist of:
Claiming the wrong amount of estimated tax payments.
Claiming the wrong amount of standard deduction or itemized deductions.
Claiming a dependent already claimed on another return.
The amount of refund or payments made on an original return does not match
our records when amending your tax return.
Claiming the wrong amount of withholding by incorrectly totaling or
transferring the amounts from your W-2.
Claiming the wrong amount of real estate withholding.
Claiming the wrong amount of SDI.
Claiming the wrong amount of exemption credits.
To avoid errors and to help process your tax return faster, use these helpful hints
when preparing your tax return.
Claiming estimated tax payments:
Verify the amount of estimated tax payments claimed on your tax return
matches what you sent to the Franchise Tax Board (FTB) for that year. Go to
ftb.ca.gov and login or register for MyFTB to view your total estimated tax
payments before you file your tax return.
Verify the overpayment amount from your 2018 tax return you requested to
be applied to your 2019 estimated tax.
Claiming state disability insurance:
Verify the amount of SDI used to figure the amount of excess SDI claimed on
Form 540NR, line 84, matches amounts from your W-2’s.
Claiming standard deduction or itemized deductions:
See Form 540NR, line 18 instructions and worksheets for the amount of
standard deduction or itemized deductions you can claim.
Claiming withholding amounts:
Go to ftb.ca.gov and login or register for MyFTB to verify withheld amount or
see instructions for line 81 of Form 540NR. Confirm only California income
tax withheld is claimed.
Verify real estate or other withholding amount from Form 592-B, Resident
and Nonresident Withholding Tax Statement, and Form 593, Real Estate
Withholding Tax Statement. See instructions for line 83 for Form 540NR.
Claiming refund or payments made on an original return when
amending your tax return:
Go to ftb.ca.gov and login or register for MyFTB to check tax return records
for refund or payments made.
Verify the amount from your original return line 125 of Form 540NR and
include any adjustment by FTB.
540NR Tax Booklet 2019 Page 3
Do I Have to File?
Steps to Determine Filing Requirement
If you are a nonresident of California and received income in 2019 with
sources in California, go to Step 1. For more details see page 6.
Step 1: Is your gross income (gross income is computed under California law
and consists of all income you received from all sources in the form of money,
goods, property, and services, that is not exempt from tax) more than the amount
shown in the California Gross Income chart below for your filing status, age, and
number of dependents? If yes, you have a filing requirement. If no, go to Step 2.
Step 2: Is your adjusted gross income (adjusted gross income is computed
under California law and consists of your federal adjusted gross income from
all sources, reduced or increased by all California income adjustments) more
than the amount shown in the California Adjusted Gross Income chart below
for your filing status, age, and number of dependents? If yes, you have a filing
requirement. If no, go to Step 3.
Step 3: If your income is less than the amounts on the chart you may still have a
filing requirement. See “Requirements for Children with Investment Income” and
“Other Situations When You Must File.” Do those instructions apply to you? If
yes, you have a filing requirement. If no, go to step 4.
Step 4: Are you married/RDP filing separately with separate property income? If
no, you do not have a filing requirement. If yes, prepare a tax return. If you owe
tax, you have a filing requirement.
Active duty military personnel, get FTB Pub. 1032, Tax Information for Military
Personnel.
On 12/31/19,
my filing status was:
and on 12/31/19,
my age was:
(If your 65th birthday is on January 1,
2020, you are considered to be age 65 on
December 31, 2019)
California Gross Income California Adjusted Gross Income
Dependents Dependents
0 1
2
or more 0 1
2
or more
Single or
Head of household
Under 65 18,241 30,841 40,291 27,193 36,64314,593
65 or older 24,341 33,791 41,351 20,693 30,143 37,703
Married/RDP filing jointly
Married/RDP filing separately
(The income of both spouses/RDPs must
be combined; both spouses/RDPs may be
required to file a tax return even if only one
spouse/RDP had income over the amounts
listed.)
Under 65 (both spouses/RDPs) 36,485 49,085 58,535 29,190 41,790 51,240
65 or older (one spouse/RDP) 42,585 52,035 59,595 35,290 44,740 52,300
65 or older (both spouses/RDPs) 48,685 58,135 65,695 41,390 50,840 58,400
Qualifying widow(er) Under 65 30,841 40,291 27,193 36,643
65 or older
33,791 41,351
30,143 37,703
Dependent of another person
Any filing status
Any age More than your standard deduction (Use the California Standard Deduction
Worksheet for Dependents on page 11 to figure your standard deduction.)
Requirements for Children with Investment Income
California law conforms to federal law which allows parents’ election to report
a child’s interest and dividend income from children under age 19 or a student
under age 24 on the parent’s tax return. For each child under age 19 and student
under age 24 who received more than $2,200 of investment income in 2019,
complete Form 540NR and form FTB 3800, Tax Computation for Certain Children
with Unearned Income, to figure the tax on a separate Form 540NR for your child.
If you qualify, you may elect to report your child’s income of $11,000 or less (but
not less than $1,100) on your return by completing form FTB 3803, Parents’
Election to Report Child’s Interest and Dividends. To make this election, your
child’s income must be only from interest and/or dividends. See “Order Forms
and Publications” or go to ftb.ca.gov/forms.
Other Situations When You Must File
If you have a tax liability for 2019 or owe any of the following taxes for 2019, you
must file Form 540NR.
Tax on a lump-sum distribution.
Tax on a qualified retirement plan including an Individual Retirement
Arrangement (IRA) or an Archer Medical Savings Account.
Tax for children under age 19 or a student under age 24 who have investment
income greater than $2,200 (see paragraph above).
Alternative minimum tax.
Recapture taxes.
Deferred tax on certain installment obligations.
Tax on an accumulation distribution from a trust.
Filing Status
Use the same filing status for California that you used for your federal income tax
return, unless you are an RDP. If you are an RDP and file single for federal, you
must file married/RDP filing jointly or married/RDP filing separately for California.
If you are an RDP and file head of household for federal, you may file head of
household for California only if you meet the requirements to be considered not in
a domestic partnership.
Exception: If you file a joint tax return for federal, you may file separately for
California if either spouse was either of the following:
An active member of the United States armed forces or any auxiliary military
branch during 2019.
A nonresident for the entire year and had no income from California sources
during 2019.
Community Property States: If the spouse earning the California source
income is domiciled in a community property state, community income
will be split equally between the spouses. Both spouses will have California
source income and they will not qualify for the nonresident spouse exception.
If you had no federal filing requirement, use the same filing status for California
you would have used to file a federal income tax return.
Single
You are single if any of the following is true on December 31, 2019:
You were never married or an RDP.
You were divorced under a final decree of divorce, legally separated under a final
decree of legal separation, or terminated your registered domestic partnership.
You were widowed before January 1, 2019, and did not remarry or enter into
another registered domestic partnership in 2019.
Married/RDP Filing Jointly
You may file married/RDP filing jointly if any of the following is true:
You were married or an RDP as of December 31, 2019, even if you did not
live with your spouse/RDP at the end of 2019.
Your spouse/RDP died in 2019 and you did not remarry or enter another
registered domestic partnership in 2019.
Your spouse/RDP died in 2020 before you filed a 2019 tax return.
Married/RDP Filing Separately
Community property rules apply to the division of income if you use
the married/RDP filing separately status. For more information, get FTB
Pub.1031, Guidelines for Determining Resident Status, FTB Pub. 737,
Tax Information for Registered Domestic Partners, or FTB Pub. 1032, Tax
Information for Military Personnel. See “Order Forms and Publications” or go
to ftb.ca.gov/forms.
You cannot claim a personal exemption credit for your spouse/RDP even if
your spouse/RDP had no income, is not filing a tax return, and is not claimed
as a dependent on another person’s tax return.
You may be able to file as head of household if you had a child living with you
and you lived apart from your spouse/RDP during the entire last six months
of2019.
Head of Household
For the specific requirements that must be met to qualify for head of household
(HOH) filing status, get FTB Pub. 1540, California Head of Household Filing
Status. In general, head of household filing status is for unmarried individuals
and certain married individuals or RDPs living apart who provide a home for a
specified relative. You may be entitled to use head of household filing status if all
of the following apply:
You were unmarried and not in a registered domestic partnership, or you
met the requirements to be considered unmarried or considered not in a
registered domestic partnership on December 31, 2019.
You paid more than one-half the cost of keeping up your home for the year
in2019.
For more than half the year, your home was the main home for you and one of the
specified relatives who by law can qualify you for head of household filing status.
You were not a nonresident alien at any time during the year.
For a child to qualify as your foster child for head of household purposes, the
child must either be placed with you by an authorized placement agency or by
order of a court.
California requires taxpayers who use head of household filing status to file form
FTB 3532, Head of Household Filing Status Schedule, to report how the HOH
filing status was determined.
Beginning in tax year 2018, if you do not attach a completed form FTB 3532
to your tax return, we will deny your Head of Household filing status. For
more information about the Head of Household filing requirements, go to
ftb.ca.gov and search for HOH.
Qualifying Widow(er)
Check the box on Form 540NR, line 5 and use the joint tax return tax rates for
2019 if all five of the following apply:
Your spouse/RDP died in 2017 or 2018 and you did not remarry or enter into
another registered domestic partnership in 2019.
You have a child, stepchild, or adopted child (not a foster child) whom you
can claim as a dependent or could claim as a dependent except that, for 2019:
= The child had gross income of $4,200 or more;
= The child filed a joint return, or
= You could be claimed as a dependent on someone else’s return.
If the child isn’t claimed as your dependent, enter the child’s name in the entry
space under the “Qualifying widow(er)” filing status.
This child lived in your home for all of 2019. Temporary absences, such as for
vacation or school, count as time lived in the home.
You paid over half the cost of keeping up your home for this child.
You could have filed a joint tax return with your spouse/RDP the year he or
she died, even if you actually did not do so.
Which Form To Use
Beginning in tax year 2019, Short Form 540NR, has been eliminated. Use Form
540NR if either you or your spouse/RDP were a nonresident or part-year resident
in tax year 2019.
If you and your spouse/RDP were California residents during the entire tax year
2019, use Forms 540 or 540 2EZ. To download or order the 540 Personal Income
Tax Booklet or the 540 2EZ Personal Income Tax Booklet, go to ftb.ca.gov/forms
or see, “Where to Get Income Tax Forms and Publications.”
What’s New and Other Important Information for 2019
Page 4 540NR Tax Booklet 2019
Differences between California and Federal Law
In general, for taxable years beginning on or after January 1, 2015, California law
conforms to the Internal Revenue Code (IRC) as of January 1, 2015. However,
there are continuing differences between California and federal law. When
California conforms to federal tax law changes, we do not always adopt all of the
changes made at the federal level. For more information, go to ftb.ca.gov and
search for conformity. Additional information can be found in FTB Pub. 1001,
Supplemental Guidelines to California Adjustments, the instructions for California
Schedule CA (540NR), California Adjustments - Nonresidents or Part-Year
Residents, and the Business Entity tax booklets.
The instructions provided with California tax forms are a summary of California
tax law and are only intended to aid taxpayers in preparing their state income
tax returns. We include information that is most useful to the greatest number
of taxpayers in the limited space available. It is not possible to include all
requirements of the California Revenue and Taxation Code (R&TC) in the
instructions. Taxpayers should not consider the instructions as authoritative law.
Conformity – For updates regarding federal acts, go to ftb.ca.gov and search for
conformity.
2019 Tax Law Changes/What’s New
Health Care Mandate – Effective January 1, 2020, the Minimum Essential
Coverage Individual Mandate requires Californians to obtain and maintain
qualifying health insurance coverage. Those who choose to go without coverage
could face a financial penalty unless they qualify for an exemption. For information
about health coverage options and financial help, go to coveredca.com. For
information about the penalty, go to ftb.ca.gov/healthmandate.
Voluntary Contributions – You may contribute to the following new fund:
Suicide Prevention Voluntary Tax Contribution Fund
Loophole Closure and Small Business and Working Families Tax Relief Act of
2019 – The Tax Cuts and Jobs Act (TCJA) signed into law on December22,2017,
made changes to the IRC. California R&TC does not conform to all of the
changes. In general, for taxable years beginning on or after January 1, 2019,
California conforms to the following TCJA provisions:
California Achieving a Better Life Experience (ABLE) Program
Student loan discharged on account of death or disability
Federal Deposit Insurance Corporation (FDIC) Premiums
Excess employee compensation
Excess business loss
Like-Kind Exchanges – The TCJA amended IRC Section 1031 limiting the
nonrecognition of gain or loss on like-kind exchanges to real property held for
productive use or investment. California conforms to this change under the TCJA
for exchanges initiated after January 10, 2019. However, for California purposes,
with regard to individuals, this limitation only applies to:
A taxpayer who is a head of household, a surviving spouse, or spouse filing
a joint return with adjusted gross income (AGI) of $500,000 or more for the
taxable year in which the exchange begins.
Any other taxpayer filing an individual return with AGI of $250,000 or more
for the taxable year in which the exchange begins.
Get Schedule D-1, Sales of Business Property, for more information.
Young Child Tax Credit – For taxable years beginning on or after January1,2019,
the refundable Young Child Tax Credit (YCTC) is available to taxpayers who also
qualify for the California Earned Income Tax Credit (EITC) and who have at least
one qualifying child who is younger than six years old as of the last day of the
taxable year. The maximum amount of credit allowable for a qualified taxpayer is
$1,000. The credit amount phases out as earned income exceeds the “threshold
amount” of $25,000, and completely phases out at $30,000. For more information,
see the instructions for line 86 of Form 540NR, and get form FTB3514.
Net Operating Loss (NOL) Carrybacks – For taxable years beginning on or after
January 1, 2019, net operating loss carrybacks are not allowed.
Alimony – California law does not conform to changes made by the TCJA to federal
law regarding alimony and separate maintenance payments that are not deductible
by the payor spouse, and are not includable in the income of the receiving spouse,
if made under any divorce or separation agreement executed after December 31,
2018, or executed on or before December 31,2018, and modified after that date (if
the modification expressly provides that the amendments apply). See Schedule CA
(540NR) specific line instructions for more information.
Small Business Accounting/Percentage of Completion Method – For taxable
years beginning on or after January 1, 2019, California law generally conforms
to the TCJAs definition of small businesses as taxpayers whose average
annual gross receipts over three years do not exceed $25 million. These
small businesses are exempt from the requirement of using the Percentage of
Completion Method of accounting for any construction contract if the contract
is estimated to be completed within two years from the date the contract was
entered into. A taxpayer may elect to apply the provision regarding accounting for
long term contracts to contracts entered into on or after January 1, 2018.
Student Loan Discharged Due to Closure of a For-Prot School – California law
allows an income exclusion for an eligible individual who is granted a discharge
of any student loan under specified conditions. This income exclusion has now
been expanded to include a discharge of student loans occurring on or after
January 1, 2019, and before January 1, 2024, for individuals who attended
a Brightwood College school or a location of The Art Institute of California.
Additional information can be found in the instructions for California Schedule CA
(540NR).
Charitable Contribution and Business Expense Deduction Disallowance – For
taxable years beginning on or after January 1, 2014, California law disallows
a charitable contribution deduction to an educational organization that is a
postsecondary institution or to the Key Worldwide Foundation, and a deduction
for a business expense related to a payment to the Edge College and Career
Network, LLC, to a taxpayer who meets specific conditions, including that they
are named in any of several specified criminal complaints. For taxable years 2014
through 2018, file an amended Form 540NR and Schedule X to report the correct
amount of charitable contribution and business expense deductions. Additional
information can be found in the instructions of California Schedule CA (540NR).
Real Estate Withholding Statement – Effective January 1, 2020, the real
estate withholding forms and instructions have been consolidated into one new
Form593, Real Estate Withholding Statement. For more information, get
Form593.
Other Important Information
California Earned Income Tax Credit (EITC) – For taxable years beginning on or
after January 1, 2018, the age limit for an eligible individual without a qualifying
child is revised to 18 years or older. For more information, go to ftb.ca.gov and
search for EITC or get form FTB 3514.
New Employment Credit – The sunset date for the New Employment Credit
is extended until taxable years beginning before January 1, 2026. For more
information, go to ftb.ca.gov and search for nec or get form FTB 3554, New
Employment Credit.
California Competes Tax Credit – The sunset date for the California Competes
Tax Credit is extended until taxable years beginning before January 1, 2030. For
more information, go to the GO-Biz website at business.ca.gov or ftb.ca.gov and
search for ca competes or get form FTB 3531, California Competes Tax Credit.
540NR Tax Booklet 2019 Page 5
Native American Earned Income Exemption – For taxable years beginning on
or after January 1, 2018, federally recognized tribal members living in California
Indian country who earn income from any federally recognized California Indian
country are exempt from California taxation. This exemption applies only to
earned income. Enrolled tribal members who receive per capita income must
reside in their affiliated tribe’s Indian country to qualify for tax exempt status.
Additional information can be found in the instructions for the Schedule CA
(540NR) and form FTB 3504, Enrolled Tribal Member Certification.
IRC Section 965 Deferred Foreign Income – Under federal law, if you own
(directly or indirectly) certain foreign corporations, you may have to include on
your return certain deferred foreign income. California does not conform. For
more information, see the Schedule CA (540NR) instructions.
Global Intangible Low-Taxed Income (GILTI) Under IRC Section 951A – Under
federal law, if you are a U.S. shareholder of a controlled foreign corporation, you
must include your GILTI in your income. California does not conform. For more
information, see the Schedule CA (540NR) instructions.
Wrongful Incarceration Exclusion – California law conforms to federal law
excluding from gross income certain amounts received by wrongfully incarcerated
individuals for taxable years beginning before, on, or after January1,2018. If you
included income for wrongful incarceration in a prior taxable year, you can file an
amended California personal income tax return for that year. If the normal statute
of limitations has expired, you must file a claim by January1, 2019.
College Access Tax Credit – For taxable years beginning on and after
January1,2017, and before January 1, 2023, the College Access Tax Credit
(CATC) is available to entities awarded the credit from the California Educational
Facilities Authority (CEFA). The credit is 50% of the amount contributed by the
taxpayer for the taxable year to the College Access Tax Credit Fund. The amount
of the credit is allocated and certified by the CEFA. For more information, go to
the CEFA website at treasurer.ca.gov and search for catc.
Schedule X, California Explanation of Amended Return Changes – For taxable
years beginning on or after January 1, 2017, use Schedule X to determine any
additional amount you owe or refund due to you, and to provide reason(s) for
amending your previously filed income tax return. For additional information, see
“Instructions for Filing a 2019 Amended Return” on page 27.
Improper Withholding on Severance Paid to Veterans – The Combat-Injured
Veterans Tax Fairness Act of 2016 gives veterans who retired from the Armed
Forces for medical reasons additional time to claim a refund if they had taxes
improperly withheld from their severance pay. If you filed an amended return with
the IRS on this issue, you have two years to file your amended California return.
New Donated Fresh Fruits or Vegetables Credit – For taxable years beginning
on or after January 1, 2017 and before January 1, 2022, qualified taxpayers
may claim the New Donated Fresh Fruits or Vegetables Credit. This tax credit is
for donations of fresh fruits or vegetables made to California food banks. The
amount of the tax credit is 15% of the qualified value of the donated item, based
on weighted average wholesale price. The credit may be claimed only on a timely
filed original return. However, any credit not used in the taxable year may be
carried forward up to seven years. For more information, get form FTB 3814, New
Donated Fresh Fruits or Vegetables Credit.
Low-Income Housing Credit – Allocations to Partners – For partnerships owning
projects that receive a preliminary reservation of the Low-Income Housing Credit
(LIHC) before January 1, 2020, the prior law exception that requires a partnership
to allocate the credit among partners based upon the partnership agreement is
re-enacted.
Sale of Credit – For projects that receive a preliminary reservation of the LIHC
beginning on or after January 1, 2016, and before January 1, 2020, a taxpayer
may make an irrevocable election in its application to the California Tax Credit
Allocation Committee to sell all or any portion of the LIHC allowed to one or
more unrelated parties for each taxable year in which the credit is allowed. An
original purchaser is allowed a one-time resale of that credit to one or more
unrelated parties. For more information, get form FTB 3521, Low-Income
Housing Credit, or go to the California Tax Credit Allocation Committee website at
treasurer.ca.gov/ctcac.
California Achieving a Better Life Experience (ABLE) Program – For taxable
years beginning on or after January 1, 2016, the California Qualified ABLE
Program was established and California generally conforms to the federal income
tax treatment of ABLE accounts. This program was established to help blind or
disabled U.S. residents save money in a tax-favored ABLE account to maintain
health, independence, and quality of life. Additional information can be found in
the instructions of form FTB 3805P, Additional Taxes on Qualified Plans (Including
IRAs) and Other Tax-Favored Accounts.
New California Motion Picture and Television Production Credit – For taxable
years beginning on or after January 1, 2016, a new California motion picture and
television production credit will be allowed to a qualified taxpayer. The credit is
allocated and certified by the California Film Commission (CFC). The qualified
taxpayer can:
Offset the credit against income tax liability.
Sell the credit to an unrelated party (independent films only).
Assign the credit to an affiliated corporation.
Apply the credit against qualified sales and use taxes.
For more information, get form FTB 3541, California Motion Picture and
Television Production Credit, form FTB 3551, Sale of Credit Attributable to an
Independent Film, go to ftb.ca.gov and search for motion picture, or go to the
CFC website at lm.ca.gov and search for incentives.
Electronic Funds Withdrawal (EFW) – Make extension or estimated tax payments
using tax preparation software. Check with your software provider to determine if
they support EFW for extension or estimated tax payments.
Payments and Credits Applied to Use Tax – For taxable years beginning on or
after January 1, 2015, if a taxpayer includes use tax on their personal income tax
return, payments and credits will be applied to use tax first, then towards income
tax, interest, and penalties. Additional information can be found in the instructions
for California Form 540.
Dependent Social Security Number (SSN) – Taxpayers claiming an exemption
credit must write each dependent’s SSN in the spaces provided within line 10 for
California Form 540NR.
Financial Incentive for Seismic Improvement – Taxpayers can exclude from
gross income any amount received as loan forgiveness, grant, credit, rebate,
voucher, or other financial incentive issued by the California Residential Mitigation
Program or the California Earthquake Authority to assist a residential property
owner or occupant with expenses paid, or obligations incurred, for earthquake
loss mitigation. Additional information can be found in the instructions for
California Schedule CA (540NR).
Natural Heritage Preservation Credit – For qualified contributions made on or
after January 1, 2015, the credit carryover period has been extended to 15 years
or until exhausted, whichever occurs first. Any unused credits remaining before
January 1, 2015, will remain subject to an eight-year carryover provision. In
addition, the period for when a qualified contribution is made, for which a tax
credit will be allowed, has been extended to June 30, 2020.
Disaster Losses – For taxable years beginning on or after January 1, 2014,
and before January 1, 2024, taxpayers may deduct a disaster loss for any loss
sustained in any city, county, or city and county in California that is proclaimed
by the Governor to be in a state of emergency. For these Governor-only declared
disasters, subsequent state legislation is not required to activate the disaster loss
provisions. Additional information can be found in the instructions for California
form FTB 3805V, Net Operating Loss (NOL) Computation and NOL Disaster Loss
Limitations – Individuals, Estates, and Trusts.
Head of Household – California requires taxpayers who use head of household
(HOH) filing status to file form FTB 3532, Head of Household Filing Status
Schedule, to report how the HOH filing status was determined.
New Employment Credit – For taxable years beginning on or after January1,
2014, and before January 1, 2021, the New Employment Credit (NEC) is
available to a qualified taxpayer that hires a qualified full-time employee on or
after January1, 2014, and pays or incurs qualified wages attributable to work
performed by the qualified full-time employee in a designated census tract or
economic development area, and receives a tentative credit reservation for that
qualified full-time employee. In addition, an annual certication of employment
is required with respect to each qualified full-time employee hired in a previous
taxable year. In order to be allowed a credit, the qualified taxpayer must have a
net increase in the total number of full-time employees in California. Any credits
not used in the taxable year may be carried forward up to five years. If a qualified
employee is terminated within the first 36 months after beginning employment,
the employer may be required to recapture previously taken credits. For more
information, go to ftb.ca.gov and search for nec or get form FTB 3554, New
Employment Credit.
Repeal of Geographically Targeted Economic Development Area Tax Incentives
The California legislature repealed and made changes to all of the Geographically
Targeted Economic Development Area (G-TEDA) Tax Incentives. Enterprise Zones
(EZ) and Local Agency Military Base Recovery Areas (LAMBRA) were repealed on
January 1, 2014. The Targeted Tax Areas (TTA) and Manufacturing Enhancement
Areas (MEA) both expired on December 31, 2012. For more information, get the
applicable EDA booklet.
California Competes Tax Credit – For taxable years beginning on and after
January1, 2014, and before January 1, 2030, the California Competes Tax Credit
is available to businesses that want to come to California or stay and grow in
California. Tax credit agreements will be negotiated by the Governor’s Office of
Business and Economic Development (GO-Biz) and approved by the California
Competes Tax Credit Committee. The California Competes Tax Credit only applies
to state income or franchise tax. Taxpayers who are awarded a contract by the
committee will claim the credit on their income or franchise tax returns using credit
code 233. The credit can reduce tax below the tentative minimum tax. Any credits
not used in the taxable year may be carried forward up to six years. For more
information, go to the GO-Biz website at business.ca.gov or ftb.ca.gov and search
for ca competes or get form FTB 3531, California Competes Tax Credit.
Like-Kind Exchanges – California requires taxpayers who exchange property
located in California for like-kind property located outside of California under
IRC Section 1031, to file an annual information return with the FTB. For more
information, get form FTB 3840, California Like-Kind Exchanges, or go to
ftb.ca.gov and search for like kind.
Mandatory Electronic Payments – You are required to remit all your payments
electronically once you make an estimate or extension payment exceeding $20,000
or you file an original tax return with a total tax liability over $80,000. Once you
meet this threshold, all subsequent payments regardless of amount, tax type,
or taxable year must be remitted electronically. The first payment that would
trigger the mandatory e-pay requirement does not have to be made electronically.
Individuals who do not send the payment electronically may be subject to a 1%
noncompliance penalty.
You can request a waiver from mandatory e-pay if one or more of the following is true:
You have not made an estimated tax or extension payment in excess of
$20,000 during the current or previous taxable year.
Your total tax liability reported for the previous taxable year did not exceed
$80,000.
The amount you paid is not representative of your total tax liability.
For more information or to obtain the waiver form, go to ftb.ca.gov/e-pay. Electronic
payments can be made using Web Pay on FTB’s website, EFW as part of the e-file tax
return, or your credit card.
Estimated Tax Payments – Taxpayers are required to pay 30% of the required annual
payment for the 1st required installment, 40% of the required annual payment for the
2nd required installment, no installment is due for the 3rd required installment, and
30% of the required annual payment for the 4th required installment.
Taxpayers with a tax liability less than $500 ($250 for married/RDP filing
separately) do not need to make estimated tax payments.
Backup Withholding – With certain limited exceptions, payers that are required
to withhold and remit backup withholding to the IRS are also required to
withhold and remit to the FTB on income sourced to California. If the payee has
backup withholding, the payee must contact the FTB to provide a valid taxpayer
identification number, before filing the tax return. Failure to provide a valid taxpayer
identification number may result in a denial of the backup withholding credit. For
more information, go to ftb.ca.gov and search for backup withholding.
Registered Domestic Partners (RDP) – Under California law, RDPs must file
their California income tax return using either the married/RDP filing jointly or
married/RDP filing separately filing status. RDPs have the same legal benefits,
protections, and responsibilities as married couples unless otherwise specified.
If you entered into a same sex legal union in another state, other than a marriage,
and that union has been determined to be substantially equivalent to a California
registered domestic partnership, you are required to file a California income tax
return using either the married/RDP filing jointly or married/RDP filing separately
filing status.
For purposes of California income tax, references to a spouse, husband, or wife
also refer to a California RDP, unless otherwise specified. When we use the initials
RDP they refer to both a California registered domestic “partner” and a California
registered domestic “partnership,” as applicable. For more information on RDPs,
get FTB Pub. 737, Tax Information for Registered Domestic Partners.
Direct Deposit Refund – You can request a direct deposit refund on your tax
return whether you e-file or file a paper tax return. Please be sure to fill in the
routing and account numbers carefully and double-check the numbers for
accuracy to avoid it being rejected by your bank.
Direct Deposit for ScholarShare 529 College Savings Plans – If you have a
ScholarShare 529 College Savings Plan account maintained by the ScholarShare
Investment Board, you may have your refund directly deposited to your
ScholarShare account. Please visit scholarshare529.com for instructions.
Group Nonresident Returns (also known as Composite Returns) – For taxable
years beginning on or after January 1, 2009:
Group nonresident returns may include less than two nonresident individuals.
Nonresident individuals with more than $1,000,000 of California taxable
income are eligible to be included in group nonresident returns. An additional
1% tax will be assessed on their entire California taxable income if they elect
to be part of the group return.
See FTB Pub. 1067, Guidelines for Filing a Group Form 540NR, for more
information.
California Disclosure Obligations – If the individual was involved in a reportable
transaction, including a listed transaction, the individual may have a disclosure
requirement. Attach federal Form 8886, Reportable Transaction Disclosure
Statement, to the back of the California tax return along with any other supporting
schedules. If this is the first time the reportable transaction is disclosed on the
tax return, send a duplicate copy of the federal Form 8886 to the address below.
The FTB may impose penalties if the individual fails to file federal Form 8886 or
fails to provide any other required information. A material advisor is required to
provide a reportable transaction number to all taxpayers and material advisors for
whom the material advisor acts as a material advisor.
TAX SHELTER FILING
ABS 389 MS F340
FRANCHISE TAX BOARD
PO BOX 1673
SACRAMENTO CA 95812-9900
For more information, go to ftb.ca.gov and search for disclosure obligation
.
How Nonresidents and Part-Year Residents Are Taxed
General Information
Nonresidents of California who received California sourced income in 2019, or
moved into or out of California in 2019, file Form 540NR, California Nonresident
or Part-Year Resident Income Tax Return. California taxes all income received
while you resided in California and the income you received from California
sources while a nonresident.
If you file Form 540NR, use Schedule CA (540NR), California Adjustments —
Nonresidents or Part-Year Residents, column A through column D to compute
your total adjusted gross income as if you were a resident of California for the
entire year. Use column E to compute all items of total adjusted gross income
you received while a resident of California and those you received from California
sources while a nonresident. You determine your California tax by multiplying
your California taxable income by an effective tax rate. The effective tax rate is
the tax on total taxable income, taken from the tax table, divided by total taxable
income. You may also qualify for California tax credits, which reduces the amount
of California tax you owe.
If you were a resident of California for all of 2019 get a California Resident
Personal Income Tax Booklet and file Form 540, California Resident Income Tax
Return; or Form 540 2EZ, California Resident Income Tax Return.
For more information on the taxation of nonresidents and part-year residents,
get FTB Pub. 1100, Taxation of Nonresidents and Individuals Who Change
Residency. Go to ftb.ca.gov/forms or see “Where To Get Income Tax Forms and
Publications.”
Pension Income of Retirees Who Move to
AnotherState
Nonresidents of California Receiving a California Pension
California does not impose tax on retirement income attributable to services
performed in California received by a nonresident after December 31, 1995.
California Residents Receiving an Out-of-State Pension
In general California residents are taxed on all income, including income
from sources outside California. Therefore, a pension attributable to services
performed outside California but received after you become a California resident
is taxable.
For more information about pensions, go to ftb.ca.gov/forms and get FTB
Pub.1005, Pension and Annuity Guidelines.
Temporary and Transitory Absences from
California
If you are domiciled in California and you worked outside of California for an
uninterrupted period of at least 546 consecutive days under an employment
contract, you are considered a nonresident. This provision also applies to
the spouse/RDP who accompanies the employed individual during those 546
consecutive days. However, you will not qualify under this provision if you are
present in California for a total of more than 45 days during any taxable year
covered by the contract, or if you have income from stocks, bonds, notes, or
other intangible property in excess of $200,000 for any taxable year covered
by the contract. For more information, go to ftb.ca.gov/forms and get FTB
Pub.1031.
Page 6 540NR Tax Booklet 2019
540NR Tax Booklet 2019 Page 7
Group Nonresident Return
Nonresident partners, nonresident members, and nonresident shareholders of
a partnership, limited liability company, or S corporation that does business
in California or has income from California sources may elect to file a group
nonresident return on Form 540NR. For more information, go to ftb.ca.gov/forms
and get FTB Pub. 1067, Guidelines for Filing a Group Form 540NR. This
publication includes form FTB 1067A, Nonresident Group Return Schedule, which
must be attached to the group Form 540NR.
Military Servicemembers
Active duty military servicemembers go to ftb.ca.gov/forms and get FTB Pub.
1032, Tax Information for Military Personnel.
Servicemembers domiciled outside of California, and their spouses/RDPs,
exclude the member’s military compensation from gross income when computing
the tax rate on nonmilitary income. Requirements for military servicemembers
domiciled in California remain unchanged. Military servicemembers domiciled in
California must include their military pay in total income. In addition, they must
include their military pay in California source income when stationed in California.
However, military pay is not California source income when a servicemember
is permanently stationed outside of California. Beginning 2009, the federal
Military Spouses Residency Relief Act may affect the California income tax filing
requirements for spouses of military personnel.
Page 8 540NR Tax Booklet 2019
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540NR Tax Booklet 2019 Page 9
2019 Instructions for Form 540NR
California Nonresident or Part-Year Resident Income Tax Return
References in these instructions are to the Internal Revenue Code (IRC) as of January 1, 2015, and the California Revenue and Taxation Code (R&TC).
Before You Begin
Complete your federal income tax return (Form 1040, U.S. Individual
Income Tax Return; Form 1040-SR, U.S. Tax Return for Seniors;
Form1040NR, U.S. Nonresident Alien Income Tax Return; or
Form1040NR-EZ, U.S. Income Tax Return for Certain Nonresident
Aliens With No Dependents) before you begin your Form 540NR,
California Nonresident or Part-Year Resident Income Tax Return. Use
information from your federal income tax return to complete your
Form 540NR. Complete and mail Form 540NR by April15,2020. If
unable to mail your return by this date see page 2.
To get forms and publications referred to in these instructions, go
to ftb.ca.gov/forms or see “Where To Get Income Tax Forms and
Publications.”
You may qualify for the federal earned income tax credit. See
page 2 for more information.
Note: The lines on Form 540NR are numbered with gaps in the line
number sequence. For example, lines 20 through 30 do not appear on
Form 540NR. So the line number that follows line 19 on Form 540NR is
line 31.
Caution: Form 540NR has five sides. If filing Form 540NR, you must
send all five sides to the Franchise Tax Board (FTB).
If you need to amend your Form 540NR, complete an amended
Form 540NR and check the box at the top of Form 540NR indicating
AMENDED return. Attach Schedule X, California Explanation of Amended
Return Changes, to the amended Form 540NR. For specific instructions,
see “Instructions for Filing a 2019 Amended Return” on page 27.
Filling in Your Return
Use black or blue ink on the tax return you send to the FTB.
Enter your Social Security Number(s) or Individual Taxpayer
Identification Number(s) at the top of Form 540NR, Side 1.
Print numbers and CAPITAL LETTERS in the space provided. Be sure
to line up dollar amounts.
If you do not have an entry for a line, leave it blank unless the
instructions for a line specifically tell you to enter zero. Do not enter a
dash or the word “NONE.”
Name(s) and Address
Print your first name, middle initial, last name, and street address in the
spaces provided at the top of Form 540NR.
Sufx
Use the Suffix field for generational name suffixes such as “SR”, “JR”,
“III”, “IV”. Do not enter academic, professional, or honorary suffixes.
Additional Information
Use the Additional Information field for “In-Care-of” name and other
supplemental address information only.
Foreign Address
If you have a foreign address, follow the country’s practice for entering
the city, county, province, state, country, and postal code, as applicable,
in the appropriate boxes. Do not abbreviate the country name.
Principal Business Activity (PBA) Code
For federal Schedule C (Form 1040 or 1040-SR), Profit or Loss From
Business (Sole Proprietorship) business filers, enter the numeric
PBA code from federal Schedule C (Form 1040 or 1040-SR), line B.
Date of Birth (DOB)
Enter your DOBs (mm/dd/yyyy) in the spaces provided. If your filing
status is married/RDP filing jointly or married/RDP filing separately,
enter the DOBs in the same order as the names.
Prior Name
If you or your spouse/RDP filed your 2018 tax return under a different
last name, write the last name only from the 2018 tax return.
Social Security Number (SSN) or Individual
Taxpayer Identication Number (ITIN)
Enter your SSNs in the spaces provided. If you file a joint tax return,
enter the SSNs in the same order as the names.
If you do not have an SSN because you are a nonresident or a resident
alien for federal tax purposes, and the Internal Revenue Service (IRS)
issued you an ITIN, enter the ITIN in the space provided for the SSN.
An ITIN is a tax processing number issued by the IRS to foreign
nationals and others who have a federal tax filing requirement and do
not qualify for an SSN. It is a nine-digit number that always starts with
the number 9.
Filing Status
Check only one box for line 1 through line 5. Enter the required
additional information if you checked the box on line 3 or line 5. For
filing status requirements, see page 3.
Usually, your California filing status must be the same as the filing status
you used on your federal income tax return.
Exception for Married Taxpayers Who File a Joint Federal Income Tax
Return
– You may file separate California returns if either spouse was
either of the following:
An active member of the United States Armed Forces or any auxiliary
military branch during 2019.
A nonresident for the entire year and had no income from California
sources during 2019.
Caution - Community Property States: If either spouse earned
California source income while domiciled in a community property
state, the community income will be split equally between the
spouses. Both spouses will have California source income and they
will not qualify for the nonresident spouse exception. For more
information, get FTB Pub. 1031, Guidelines for Determining Resident
Status.
If you did not file a federal tax return because you did not have a federal
filing requirement, use the filing status you would have used had you
been required to file.
Registered domestic partners (RDPs) who file single for federal must
le married/RDP filing jointly or married/RDP filing separately for
California. If you are an RDP and file head of household for federal
purposes, you may file head of household for California purposes only
if you meet the requirements to be considered unmarried or considered
not in a domestic partnership.
Nonresident Alien – A joint tax return may be filed if, in the case of a
nonresident alien married to a United States citizen or resident, both
spouses/RDPs elect to treat the nonresident alien spouse/RDP as a
resident for tax purposes.
If You Filed Federal Form 1040NR or Form 1040NR-EZ, you do not
qualify to use the head of household or married/RDP filing jointly filing
statuses. Instead, use single, married/RDP filing separately, or qualifying
widow(er) filing status, whichever applies to you.
If You File as Head of Household, do not claim yourself or a nonrelative
as the qualifying individual for head of household. Get FTB Pub. 1540,
California Head of Household Filing Status, for more information. See
“Where To Get Income Tax Forms and Publications.”
Instructions: Form 540NR e-file at ftb.ca.gov
Page 10 540NR Tax Booklet 2019
Exemptions
Line 6 – Can be Claimed as a Dependent
Check the box on line 6 if someone else can claim you or your
spouse/RDP as a dependent on their tax return, even if they chose not to.
Line 7 – Personal Exemptions
Did you check the box on line 6?
No
Follow the instructions on Form 540NR, line 7.
Yes Ignore the instructions on Form 540NR, line 7. Instead, enter the
amount shown below for your filing status:
Single or married/RDP filing separately, enter -0-.
Head of household, enter -0-.
Married/RDP filing jointly and both you and your spouse/RDP
can be claimed as dependents, enter -0-.
Married/RDP filing jointly and only one spouse/RDP can be
claimed as a dependent, enter 1.
Do not claim this credit if someone else can claim you as a dependent
on their tax return.
Line 8 – Blind Exemptions
The first year you claim this exemption credit, attach a doctor’s
statement to the back of Form 540NR indicating that you or your
spouse/RDP is visually impaired. If you e-file, attach any requested
forms, schedules and documents according to your software’s
instructions. Visually impaired means not capable of seeing better than
20/200 while wearing glasses or contact lenses, or if your field of vision
is not more than 20 degrees.
Do not claim this credit if someone else can claim you as a dependent
on their tax return.
Line 9 – Senior Exemptions
If you were 65 years of age or older by December 31, 2019*, you should
claim an additional exemption credit on line 9. If you are married/or
an RDP, each spouse/RDP 65 years of age or older should claim an
additional credit. You may contribute all or part of this credit to the
California Seniors Special Fund. See “Voluntary Contribution Fund
Descriptions” for more information.
*If your 65th birthday is on January 1, 2020, you are considered to be
age 65 on December 31, 2019.
Do not claim this credit if someone else can claim you as a dependent
on their tax return.
Line 10 – Dependent Exemptions
To claim an exemption credit for each of your dependents, you must
write each dependent’s first and last name, SSN and relationship to you
in the space provided. If you are claiming more than three dependents,
attach a statement with the required dependent information to your tax
return. The persons you list as dependents must be the same persons
you listed as dependents on your federal income tax return. Count the
number of dependents listed and enter the total in the box on line 10.
Multiply the number you entered by the pre-printed dollar amount and
enter the result.
If your dependent child was born and died in 2019 and you do not have
an SSN for the child, enter “Died” in the space provided for the SSN and
include a copy of the child’s birth certificate, death certificate, or hospital
records. The document must show the child was born alive. If you e-file,
attach any requested forms, schedules and documents according to
your software’s instructions.
Line 11 – Exemption Amount
Add line 7 through line 10 and enter the total dollar amount of all
exemptions for personal, blind, senior, and dependent.
Total Taxable Income
Refer to your completed federal income tax return to complete this
section.
Line 12 – California Wages
Enter the total amount of your California wages from your federal
Form(s) W-2, Wage and Tax Statement. This amount appears on Form
W-2, box 16.
Line 13 – Federal Adjusted Gross Income (AGI) from
federal Form1040 or 1040-SR, line 8b; 1040NR, line 35; or
1040NR-EZ, line 10
RDPs who file a California tax return as married/RDP filing jointly and
have no RDP adjustments between federal and California, combine their
individual AGIs from their federal tax returns filed with the IRS. Enter the
combined AGI on Form 540NR, line 13.
RDP adjustments include but are not limited to the following:
Transfer of property between spouses/RDPs
Capital loss
Transactions between spouses/RDPs
Sale of residence
Dependent care assistance
Investment interest
Qualified residence interest acquisition loan & equity loan
Expense depreciation property limits
Individual Retirement Account
Interest education loan
Rental real estate passive loss
Rollover of publicly traded securities gain into specialized small
business investment companies
RDPs filing as married/RDP filing separately, former RDPs filing single,
and RDPs with RDP adjustments will use the California RDP Adjustments
Worksheet in FTB Pub. 737, Tax Information for Registered Domestic
Partners, or complete a federal pro forma Form 1040 or 1040-SR.
Transfer the amount from the California RDP Adjustments Worksheet,
line23, column D, or federal pro forma Form 1040 or 1040-SR, line 8b, to
Form 540NR, line 13.
Line 14 – California Adjustments — Subtractions
(from Schedule CA (540NR), Part II, line 23, column B)
If there are differences between your federal and California income, i.e
social security, complete Schedule CA (540NR). Follow the instructions
for Schedule CA (540NR). Enter the amount from Schedule CA (540NR),
Part II, line 23, column B on Form 540NR, line 14.
If the amount on Schedule CA (540NR), Part II, line 23, column B
is a negative number, do not transfer it to Form 540NR, line 14 as a
negative number. Instead, transfer the number as a positive number to
Form 540NR, line 16.
Line 15 – Subtotal
Subtract the amount on line 14 from the amount on line 13. Enter the
result on line 15. If the amount on line 13 is less than zero, combine the
amounts on line 13 and line 14 and enter the amount in parentheses.
Forexample:“(12,325).”
Line 16 – California Adjustments — Additions
(from Schedule CA (540NR), Part II, line 23, column C)
If there are differences between your federal and California deductions,
complete Schedule CA (540NR). Follow the instructions for Schedule CA
(540NR). Enter the amount from Schedule CA (540NR), Part II, line 23,
column C on Form 540NR, line 16.
If the amount on Schedule CA (540NR), Part II, line 23, column C
is a negative number, do not transfer it to Form 540NR, line 16 as a
negative number. Instead, transfer the number as a positive number to
Form540NR, line 14.
Line 17 – Adjusted Gross Income From All Sources
Combine line 15 and line 16. This amount should match the amount on
Schedule CA (540NR), Part II, line 23, column D.
e-file is fast, easy, and secure! Instructions: Form 540NR
540NR Tax Booklet 2019 Page 11
Line 18 – California Itemized Deductions or California
Standard Deduction
Decide whether to itemize your deductions, such as charitable
contributions, medical expenses, etc., or take the standard deduction.
Your California income tax will be less if you take the larger of your
California:
Itemized deductions (total itemized deductions allowed under
California law).
Standard deduction.
On federal tax returns, individual taxpayers who claim the standard
deduction are allowed an additional deduction for net disaster losses.
For California, deductions for disaster losses are only allowed for those
individual taxpayers who itemized their deductions.
If married/or an RDP and filing separate Form 540NR, you and your
spouse/RDP must either both itemize your deductions (even if the
itemized deductions of one spouse/RDP are less than the standard
deduction) or both take the standard deduction.
Also, if someone else can claim you as a dependent, you may claim
the greater of the standard deduction or your itemized deductions. To
figure your standard deduction, see the California Standard Deduction
Worksheet for Dependents.
Itemized Deductions.
Figure your California itemized deductions by
completing Schedule CA (540NR), Part III, lines 1 through 30. Enter the
result on Form 540NR, line 18.
If you did not itemize deductions on your federal income tax return but
will itemize deductions for your Form 540NR, first complete federal
Schedule A (Form 1040 or 1040-SR), Itemized Deductions. Then check
the box on Side 3, Part III of the Schedule CA (540NR), and complete
Part III. Attach both the federal Schedule A (Form 1040 or 1040-SR) and
California Schedule CA (540NR) to the back of your tax return.
Standard Deduction.
Find your standard deduction on the California
Standard Deduction Chart for Most People. If you checked the box on
Form 540NR, line 6, use the California Standard Deduction Worksheet
for Dependents, instead.
California Standard Deduction Chart for Most People
Do not use this chart if your parent, or someone else, can claim you
(or your spouse/RDP) as a dependent on their tax return.
Your Filing Status Enter On Line 18
1 – Single....................................... $4,537
2 – Married/RDP filing jointly
........................ $9,074
3 – Married/RDP filing separately
..................... $4,537
4 – Head of household
............................. $9,074
5 – Qualifying widow(er)
........................... $9,074
The California standard deduction amounts are less than the federal
standard deduction amounts.
California Standard Deduction Worksheet for Dependents
Use this worksheet only if your parent, or someone else, can claim you
(or your spouse/RDP) as a dependent on their tax return. Use whole
dollars only.
1.
Enter your earned income from: line 2 of the
“Standard Deduction Worksheet for Dependents” in
the instructions for federal Form 1040 or 1040-SR
.. 1
2. Minimum standard deduction ................. 2
$1,100.00
3. Enter the larger of line 1 or line 2 here .......... 3
4. Enter the amount shown for your filing status:
Single or married/RDP filing separately,
enter $4,537 4
Married/RDP filing jointly, head of household,
or qualifying widow(er), enter $9,074
5. Standard deduction. Enter the smaller of
line 3 or line 4 here and on the Form 540NR,
line 18
................................... 5
}
Line 19 – Taxable Income
Capital Construction Fund (CCF). If you claim a deduction on your
federal Form 1040 or 1040-SR, line 11b for a contribution made to a
CCF set up under the Merchant Marine Act of 1936, reduce the amount
you would otherwise enter on line 19 by the amount of the deduction.
Next to line 19, enter “CCF” and the amount of the deduction. For details,
see federal Publication 595, Capital Construction Fund for Commercial
Fishermen.
California Taxable Income
When you figure your tax, use the correct filing status and taxable
income amount.
Line 31 – Tax
e-file and you won’t have to do the math. Go to ftb.ca.gov
and search for ele.
To figure your tax on the amount on line 19, use one of the following
methods and check the matching box on line 31:
Tax Table. If your taxable income on line 19 is $100,000 or less,
use the tax table beginning on page 87. Use the correct filing status
column in the tax table.
Tax Rate Schedules. If your taxable income on line 19 is over
$100,000, use the tax rate schedules on page 92.
FTB 3800. Generally, you use form FTB 3800, Tax Computation
for Certain Children with Unearned Income, to figure the tax on a
separate Form 540NR for your child who was 18 and under or a
student under age24 on January 1, 2020, and who had more than
$2,200 of investment income. Attach form FTB 3800 to the child’s
Form 540NR.
FTB 3803. If, as a parent, you elect to report your child’s interest
and dividend income of $11,000 or less (but not less than $1,100)
on your return, complete form FTB 3803, Parents’ Election to Report
Child’s Interest and Dividends. File a separate form FTB 3803 for
each child whose income you elect to include on your Form 540NR.
Add the amount of tax, if any, from each form FTB 3803, line 9, to the
amount of your tax from the tax table or tax rate schedules and enter
the result on Form 540NR, line 31. Attach form(s) FTB 3803 to your
return.
To prevent possible delays in processing your tax return or refund,
enter the correct tax amount on this line. To automatically figure your
tax or to verify your tax calculation, use our online tax calculator. Go to
ftb.ca.gov/tax-rates.
Line 32 – CA Adjusted Gross Income
Complete Schedule CA (540NR), Part IV, line 1 to determine your
California adjusted gross income. Follow the instructions for
Schedule CA (540NR). Enter on Form 540NR, line 32 the amount from
Schedule CA (540NR), Part IV, line 1.
Line 36 – CA Tax Rate
In this computation, the FTB rounds the tax rate to four digits after the
decimal. If your computation is different, you may receive a notice due
to the difference in rounding. Contact us at 800.852.5711 if you disagree
with this notice.
Line 38 – CA Exemption Credit Percentage
Divide the California Taxable Income (line 35) by Total Taxable Income
(line 19). This percentage does not apply to the Nonrefundable Renter’s
Credit, Nonrefundable Child and Dependent Care Expenses Credit,
Other State Tax Credit, or credits that are conditional upon a transaction
occurring wholly within California. If more than 1, enter 1.0000.
Line 39 – CA Prorated Exemption Credits
Use your exemption credits to reduce your tax. If your federal adjusted
gross income (AGI) on line 13 is more than the amount listed on the
next page for your filing status, your credits will be limited.
Instructions: Form 540NR e-file at ftb.ca.gov
Page 12 540NR Tax Booklet 2019
Is Form 540NR,
If your filing status is: line 13 more than:
Single or married/RDP filing separately .................. $200,534
Married/RDP filing jointly or qualifying widow(er)
.......... $401,072
Head of household
.................................. $300,805
Yes
Complete the AGI Limitation Worksheet below.
No Multiply line 11 by line 38.
AGI Limitation Worksheet
Use whole dollars only
a Enter the amount from Form 540NR, line 13 ..........a_________
b
Enter the amount for your filing status on line b:
Single or married/RDP filing separately $200,534
Married/RDP filing jointly or
qualifying widow(er) ..............$401,072
b_________
Head of household ................$300,805
c
Subtract line b from line a ........................c_________
d
Divide line c by $2,500 ($1,250 if married/RDP filing
separately). If the result is not a whole number, round it
to the next higher whole number
...................d_________
e
Multiply line d by $6.............................e_________
f
Add the numbers from the boxes on Form 540NR,
line 7, line 8, and line 9 (not the dollar amounts)
.......f_________
g
Multiply line e by line f ...........................g_________
h
Add the total dollar amounts from Form 540NR,
line 7, line 8, and line 9
...........................h_________
i
Subtract line g from line h. If zero or less enter -0- . . . . . i_________
j
Enter the number from the box on Form 540NR,
line 10 (not the dollar amount)
.....................j_________
k
Multiply line e by line j ...........................k_________
l
Enter the dollar amount from
Form 540NR, line 10
............................l_________
m
Subtract line k from line l. If zero or less, enter -0- ....m_________
n
Add line i and line m. Enter the result here............n_________
o
Multiply the amount on line n by the CA Exemption
Credit Percentage on Form 540NR, line 38. Enter
the result here and on Form 540NR, line 39
...........o_________
Line 41 – Tax from Schedule G-1 and Form FTB 5870A
If you received a qualified lump-sum distribution in 2019 and you were
born before January 2, 1936, get Schedule G-1, Tax on Lump-Sum
Distributions, to figure your tax by special methods that may result in
less tax. Attach Schedule G-1 to your tax return.
If you received accumulation distributions from foreign trusts or from
certain domestic trusts, get form FTB 5870A, Tax on Accumulation
Distribution of Trusts, to figure the additional tax. Attach form
FTB 5870A to your tax return.
To get these forms, see “Order Forms and Publications.”
Special Credits and Nonrefundable Credits
A variety of California tax credits are available to reduce your tax if you
qualify. To figure and claim most special credits, you must complete a
separate form or schedule and attach it to your Form 540NR. The Credit
Chart on page 24 describes the credits and provides the name, credit
code, and number of the required form or schedule. Many credits are
limited to a certain percentage or a certain dollar amount. In addition,
the total amount you may claim for all credits is limited by tentative
minimum tax (TMT); go to Box A to see if your credits are limited.
If you are not claiming any other special credits go to line 50 and line 61
to see if you qualify for the nonrefundable child and dependent care
expenses credit or the nonrefundable renter’s credit.
Box A – Did you complete federal Schedule C, D, E, or F and claim
or receive any of the following (Note: If your business
gross receipts are less than $1,000,000 from all trades
or businesses, you do not have to report AMT. For more
information, see line 71 instructions.):
Accelerated depreciation in excess of straight-line
Intangible drilling costs
Depletion
Circulation expenditures
Research and experimental expenditures
Mining exploration/development costs
Amortization of pollution control facilities
Income/loss from tax shelter farm activities
Income/loss from passive activities
Income from long-term contracts using the percentage of
completion method
Pass-through AMT adjustment from an estate or trust
reported on Schedule K-1 (541)
Yes Get and complete Schedule P (540NR). See “Order Forms
and Publications.”
No Go to Box B.
Box B – Did you claim or receive any of the following:
Investment interest expense
Income from incentive stock options in excess of the amount
reported on your return
Income from installment sales of certain property
Yes Get and complete Schedule P (540NR). See “Order Forms
and Publications.”
No Go to Box C.
Is Form 540NR,
Box C – If your filing status is: line 17 more than:
Single or head of household ...................$276,552
Married/RDP filing jointly or qualifying widow(er) ..$368,737
Married/RDP filing separately ..................$184,365
Yes Get and complete Schedule P (540NR). See “Order Forms
and Publications.”
No Your credits are not limited.
Line 50 – Nonrefundable Child and Dependent Care
ExpensesCredit
Claim this credit if you paid someone to care for your child under the
age of 13, other dependent who is physically or mentally incapable
of caring for him or herself, or spouse/RDP if physically or mentally
incapable of caring for him or herself. To claim this credit, your federal
adjusted gross income must be $100,000 or less. Complete and attach
form FTB 3506, Child and Dependent Care Expenses Credit. See “Where
To Get Income Tax Forms and Publications.”
The care must have been provided in California. You must have
California-sourced income (wages earned working in California or
self-employment income from California business activities).
A servicemember’s active duty military pay is considered earned income,
regardless of whether the servicemember is domiciled in California.
Get FTB Pub. 1032, Tax Information for Military Personnel, for more
information.
Schedule P (540NR) – If you need to complete Schedule P (540NR)
and you claim any of the credits on line 51 through line 53, do not enter
an amount on line 51 through line 53. Instead, enter the total amount
of these credits from Schedule P (540NR), Part III, Section B1, line 12
through line 14, on Form 540NR, line 55. Do not follow the instructions
for line 55. Write “Schedule P (540NR)” to the left of the amount entered
on line 55.
}
e-file is fast, easy, and secure! Instructions: Form 540NR
540NR Tax Booklet 2019 Page 13
Line 51 – Credit for Joint Custody Head of Household —
Code 170
You may not claim this credit if you used the head of household,
married/RDP filing jointly, or the qualifying widow(er) filing status.
Claim the credit if unmarried and not an RDP at the end of 2019 (or
if married or an RDP, you lived apart from your spouse/RDP for all of
2019 and you used the married/RDP filing separately filing status); and
if you furnished more than one-half the household expenses for your
home that also served as the main home of your child, step-child, or
grandchild for at least 146 days but not more than 219 days of your
taxable year. If the child is married/or an RDP, you must be entitled to
claim a dependent exemption for the child.
Also, the custody arrangement for the child must be part of a decree of
dissolution or legal separation or part of a written agreement between
the parents where the proceedings have been initiated, but a decree of
dissolution or legal separation has not yet been issued.
If your Federal AGI is more than $200,534, subtract line n from the
AGI Limitation Worksheet on page 12 from line 31 of the Form 540NR
and enter this amount on line 1 of the worksheet below to calculate
your credit.
Use the worksheet below to figure this credit using whole dollars only:
1. Subtract line 11 from line 31 on Form 540NR
and enter the result here
....................... 1
2. Enter the amount from Form 540NR, line 41........ 2
3. Add line 1 and line 2 .......................... 3
4. Credit percentage — 30% ...................... 4 x .30
5. Credit amount. Multiply line 3 by line 4. Enter on this
line the result or $484, whichever is less. Enter this
amount on Form 540NR, line 51
................. 5
If you qualify for both the Credit for Joint Custody Head of Household
and the Credit for Dependent Parent, you are only allowed to claim one
or the other, not both. Select the credit that will allow the maximum
benefit.
Line 52 – Credit for Dependent Parent — Code 173
You may not claim this credit if you used the single, head of household,
qualifying widow(er), or married/RDP filing jointly filing status.
Claim this credit only if all of the following apply:
You were married or an RDP at the end of 2019 and you used the
married/RDP filing separately filing status.
Your spouse/RDP was not a member of your household during the
last six months of the year.
You furnished over one-half the household expenses for your
dependent mother’s or father’s home, whether or not she or he lived
in your home.
To figure the amount of this credit, use the worksheet for the Credit for
Joint Custody Head of Household, on this page.
On the last line of the worksheet, enter the result or $484, whichever is
less. Enter this amount on Form 540NR, line 52.
If you qualify for both the Credit for Joint Custody Head of Household
and the Credit for Dependent Parent, you are only allowed to claim one
or the other, not both. Select the credit that will allow the maximum
benefit.
Line 53 – Credit for Senior Head of Household — Code 163
Claim this credit if you:
Were 65 years of age or older on December 31, 2019*.
Qualified as a head of household in 2017 or 2018 by providing a
household for a qualifying individual who died during 2017 or 2018.
Did not have adjusted gross income over $78,441 for 2019.
*If your 65th birthday is on January 1, 2020, you are considered to be
age 65 on December 31, 2019.
If you meet all the conditions listed, you do not need to qualify to use the
head of household filing status for 2019 in order to claim this credit.
Use the worksheet below to figure this credit using whole dollars only:
1. Enter the amount from Form 540NR, line 19........ 1
2. Credit percentage — 2% ....................... 2 x .02
3. Credit amount. Multiply line 1 by line 2.
Enter on this line the result or $1,478, whichever is less.
Enter this amount on Form 540NR, line 53
......... 3
Line 54 and Line 55 – Credit Percentage and Credit Amount
If you claimed credits on line 51, line 52, or line 53, complete the
worksheet below to compute your credit percentage and the allowable
prorated credit to enter on line 55 using whole dollars only. If you
completed Schedule P (540NR), see the instructions above the line 51
instructions.
Part I – Credit Percentage
1. Enter the percentage amount from line 38 here and on Form 540NR,
line 54. If more than 1, enter 1.0000 ............. 1 _ . _ _ _ _
Part II – Credit Amount
Credit for Joint Custody Head of Household
1. Enter the amount from Form 540NR, line 51 ...... 1
2. Credit Percentage from Part I, line 1. ............ 2 x
3. Multiply line 1 by line 2. ...................... 3
4. Enter the lesser of the amount from line 3 or $484 ......4
Credit for Dependent Parent
5. Enter the amount from Form 540NR, line 52 ...... 5
6. Credit Percentage from Part I, line 1. ............ 6 x
7. Multiply line 5 by line 6. ...................... 7
8. Enter the lesser of the amount on line 7 or $484 ........8
Credit for Senior Head of Household
9. Enter the amount from Form 540NR, line 53 ......9
10. Credit Percentage from Part I, line 1. ...........10 x
11. Multiply line 9 by line 10. ....................11
12. Enter the lesser of the amount on line 11 or $1,478 ....12
Total Prorated Credits
13. Add line 4, line 8, and line 12. Enter the
result here and on Form 540NR, line 55.
..............13
Line 58 through Line 60 – Additional Special Credits
A code identifies each credit. To claim only one or two credits, enter the
credit name, code, and amount of the credit on line 58 and line 59.
To claim more than two credits, use Schedule P (540NR), Part III. See
Schedule P (540NR) instructions, “How to Claim Your Credits.”
Important: Attach Schedule P (540NR) and any required supporting
schedules or statements to your Form 540NR.
Carryovers: If you claim a credit with carryover provisions and the
amount of the credit available this year exceeds your tax, carry over any
excess credit to future years until the credit is used (unless the carryover
period is a fixed number of years). If you claim a credit carryover for
an expired credit, use form FTB 3540, Credit Carryover and Recapture
Summary, to figure the amount of the credit.
Credit for Child Adoption Costs — Code 197
For the year in which an adoption decree or an order of adoption is
entered (e.g. adoption is final), claim a credit for 50% of the cost of
adopting a child who was both:
A citizen or legal resident of the United States
In the custody of a California public agency or a California political
subdivision
Instructions: Form 540NR e-file at ftb.ca.gov
Page 14 540NR Tax Booklet 2019
Treat a prior unsuccessful attempt to adopt a child (even when the
costs were incurred in a prior year) and a later successful adoption
of a different child as one effort when computing the cost of adopting
the child. Include the following costs if directly related to the adoption
process:
Fees for Department of Social Services or a licensed adoption agency
Medical expenses not reimbursed by insurance
Travel expenses for the adoptive family
Note:
This credit does not apply when a child is adopted from another
country or another state, or who was not in the custody of a
California public agency or a California political subdivision.
Any deduction for the expenses used to claim this credit must be
reduced by the amount of the child adoption costs credit claimed.
Use the following worksheet to figure this credit using whole dollars
only. If more than one adoption qualifies for this credit, complete a
separate worksheet for each adoption. The maximum credit is limited to
$2,500 per minor child.
1. Enter qualifying costs for the child ............... 1
2. Credit percentage — 50% ...................... 2 x .50
3. Credit amount. Multiply line 1 by line 2.
Do not enter more than $2,500
.................. 3
Your allowable credit is limited to $2,500 for 2019. You may carryover
the excess credit to future years until the credit is used.
Line 61 – Nonrefundable Renter’s Credit
If you paid rent for at least six months in 2019 on your principal
residence located in California you may qualify to claim the
nonrefundable renter’s credit which may reduce your tax. Complete the
qualification record on page 21.
Line 63
Subtract the amount on line 62 from the amount on line 42. Enter the
result on line 63. If the amount on line 62 is more than the amount on
line 42, enter -0-.
Other Taxes
Attach the specific form or statement required for each item below.
Line 71 – Alternative Minimum Tax (AMT)
If you claim certain types of deductions, exclusions, and credits, you
may owe AMT if your total income is more than:
$98,330 married/RDP filing jointly or qualifying widow(er)
$73,748 single or head of household
$49,163 married/RDP filing separately
A child under age 19 or a student under age 24 may owe AMT if the sum
of the amount on line 19 (taxable income) and any preference items
listed on Schedule P (540NR) and included on the return is more than
the sum of $7,750 plus the child’s earned income.
AMT income does not include income, adjustments, and items of tax
preference related to any trade or business of a qualified taxpayer who
has gross receipts, less returns and allowances, during the taxable year
of less than $1,000,000 from all trades or businesses.
Get Schedule P (540NR) for more information. See “Where To Get
Income Tax Forms and Publications.”
Line 72 – Mental Health Services Tax
If your taxable income or nonresident CA source taxable income is more
than $1,000,000, compute the Mental Health Services tax below using
whole dollars only:
1. CA Taxable income from Form 540NR,
line 35
...................................1 __________
2. Less.....................................2 $(1,000,000)
3. Subtotal ..................................3 __________
4. Tax rate – 1%..............................4 x _.01
5. Mental Health Services Tax – Multiply line 3 by line 4.
Enter this amount here and on Form 540NR,
line 72
...................................5 __________
Line 73 – Other Taxes and Credit Recapture
If you received an early distribution of a qualified retirement plan and
were required to report additional tax on your federal tax return, you may
also be required to report additional tax on your California tax return. Get
form FTB 3805P, Additional Taxes on Qualified Plans (Including IRAs)
and Other Tax-Favored Accounts. If required to report additional tax,
report it on line 73 and write “FTB 3805P” to the left of the amount.
In general, California conforms to federal law for income received under
IRC Section 409A on a nonqualified deferred compensation (NQDC) plan
and discounted stock options and stock appreciation rights. Income
received under IRC Section 409A is subject to an additional 5% tax plus
interest. Include the additional tax, if any, on line 73. Write “NQDC” on
the dotted line to the left of the amount.
If you owe interest on deferred tax from installment obligations, include
the additional tax, if any, in the amount you enter on line 73. Write “IRC
Section 453A interest” and the amount on the dotted line to the left of
the amount on line 73.
If you used form(s):
FTB 3540, Credit Carryover and Recapture Summary
FTB 3554, New Employment Credit
Include the additional tax for credit recapture, if any, on line 73. Write
the form number on the dotted line to the left of the amount on line 73.
Payments
Have your federal Form(s) W-2, Wage and Tax Statement, W-2G, Certain
Gambling Winnings, 1099-DIV, Dividends and Distributions, 1099-INT,
Interest Income, 1099-MISC, Miscellaneous Income, 1099-OID, Original
Issue Discount, 1099-R, Distributions from Pensions, Annuities,
Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.,
California Form(s) 592-B, Resident and Nonresident Withholding Tax
Statement, and 593, Real Estate Withholding Tax Statement, before you
begin this section.
If you received wages and do not have a Form W-2, see page 25,
Question 2.
e-file is fast, easy, and secure! Instructions: Form 540NR
540NR Tax Booklet 2019 Page 15
Line 81 – California Income Tax Withheld
Enter the total California income tax withheld from your federal Form(s):
W-2, box 17
W-2G, box 15
1099-DIV, box 15
1099-INT, box 17
1099-MISC, box 16
1099-OID, box 14
1099-R, box 12
Do not include city, local, or county tax withheld, tax withheld by other
states, or nonconsenting nonresident (NCNR) member’s tax from
ScheduleK-1 (568), line 15e. Do not include nonresident or real estate
withholding from Form(s) 592-B or 593, on this line as withholding. See
line 83. If you had California tax withheld and did not receive Form(s)
W-2 or 1099, contact the entity that paid the income.
If you received Form(s) 1099-DIV, 1099-INT, 1099-MISC, 1099-OID, or
1099-R showing California income tax withheld, include in the total on
line81 the amount(s) withheld and attach a copy of the Form(s) 1099 to
the lower front of your tax return.
Generally, tax should not be withheld on Form 1099-MISC. If you
want to pre-pay tax on income reported on Form 1099-MISC, use
Form 540-ES, Estimated Tax for Individuals.
Line 82 – 2019 CA Estimated Tax and Other Payments
Enter the total of any:
California estimated tax payments you made using 2019
Form 540-ES, electronic funds withdrawal, Web Pay, or credit card.
Overpayment from your 2018 California income tax return that you
applied to your 2019 estimated tax.
Payment you sent with form FTB 3519, Payment for Automatic
Extension for Individuals.
California estimated tax payments made on your behalf by an
estate or trust on Schedule K-1 (541) or an S corporation on
Schedule K-1(100S).
If you are including NCNR tax, write “LLC” on the dotted line to the
left of the amount on line 82, and attach Schedule K-1 (568) with the
amount of the NCNR tax claimed. The LLC’s return must be filed before
an individual member’s account can be credited. If you e-file, attach any
requested forms, schedules and documents according to your software’s
instructions.
If you and your spouse/RDP paid joint estimated taxes but are now filing
separate income tax returns, either of you may claim the entire amount
paid, or each may claim part of the joint estimated tax payments. If you
want the estimated tax payments to be divided, notify the FTB before
you file the tax returns so the payments can be applied to the proper
account. The FTB will accept in writing, any divorce agreement (or
court-ordered settlement) or a statement showing the allocation of the
payments along with a notarized signature of both taxpayers.
Send statements to:
JOINT ESTIMATED CREDIT ALLOCATION MS F283
TAXPAYER SERVICES CENTER
FRANCHISE TAX BOARD
PO BOX 942840
SACRAMENTO CA 94240-0040
To view payments made or get your current account balance, go to
ftb.ca.gov and login or register for MyFTB.
If you or your spouse/RDP made separate estimated tax payments,
but are now filing a joint income tax return, add the amounts you each
paid. Attach a statement to the front of your Form 540NR explaining
that payments were made under both SSNs. If you e-file, attach any
requested forms, schedules and documents according to your software’s
instructions.
You do not have to make estimated tax payments if you are a
nonresident or new resident of California in 2020 and did not have a
California tax liability in2019.
Line 83 – Withholding (Form 592-B and/or 593)
If you were a nonresident who received California source income or sold
California real estate, enter the total California tax withheld from your
Form(s) 592-B and 593. Attach a copy of Form(s) 592-B and 593 to the
lower front of Form 540NR, Side 1.
If your filing status changed after escrow closed and before filing
your California tax return, please contact us at 888.792.4900, prior to
filing your California tax return, for instructions on how to claim your
withholding credit.
Do not include withholding from other forms on this line. Do not include
NCNR member’s tax from Schedule K-1 (568), line 15e as withholding,
see line 82.
Line 84 – Excess California SDI (or VPDI) Withheld
You may be entitled to claim a credit for excess State Disability
Insurance (SDI) or Voluntary Plan Disability Insurance (VPDI) if you
meet all of the following conditions:
You had two or more California employers during 2019.
You received more than $118,371 in gross wages from California
sources.
The amounts of SDI (or VPDI) withheld appear on your Form(s) W-2.
Be sure to attach your Form(s) W-2 to your Form 540NR.
If SDI (or VPDI) was withheld from your wages by a single employer,
at a rate of more than 1.00% of your gross wages, you may not claim
excess SDI (or VPDI) on your Form 540NR. Contact the employer for a
refund.
To determine the amount to enter on line 84, complete the Excess SDI
(or VPDI) Worksheet below. If married/RDP filing jointly, figure the
amount of excess SDI (or VPDI) separately for each spouse/RDP.
Excess SDI (or VPDI) Worksheet
Use whole dollars only
Follow the instructions below to figure the amount of excess SDI to
enter on Form 540NR, line 84. If you are married or an RDP and file a
joint tax return, you must figure the amount of excess SDI (or VPDI)
separately for each spouse/RDP.
You
Your
Spouse/
RDP
1. Add amounts of SDI (or VPDI) withheld
shown on your Forms W-2.
Enter the total here
................... 1
2. 2019 SDI (or VPDI) limit............... 2
$1,183.71 $1,183.71
3. Excess SDI (or VPDI) withheld. Subtract
line 2 from line 1. Enter the results here.
Combine the amounts on line 3 and enter
the total, in whole dollars only, on
Form 540NR, line 84
.................. 3
If zero or less, enter -0- on line 84.
Line 85 – Earned Income Tax Credit (EITC)
Enter your Earned Income Tax Credit from form FTB 3514, California
Earned Income Tax Credit, line 22.
Line 86 - Young Child Tax Credit (YCTC)
Enter your Young Child Tax Credit from form FTB 3514, line 30.
Line 87
For the Claim of Right credit, follow the reporting instructions in
Schedule CA (540NR), Part III, line 16 under the Claim of Right.
Claim of Right: If you are claiming the tax credit on your California tax
return, include the amount of the credit in the total for this line. Write
in “IRC1341” and the amount of the credit to the left of the amount
column.
Instructions: Form 540NR e-file at ftb.ca.gov
Page 16 540NR Tax Booklet 2019
To determine if you are entitled to this credit, refer to your prior year
California Form 540, Form 540NR (Long or Short), Schedule CA (540),
or Schedule CA (540NR), column E, to verify the amount was included
in your CA taxable income. If the amount repaid under a “Claim of Right”
was not originally taxed by California, you are not entitled to claim the
credit.
Overpaid Tax or Tax Due
To avoid a delay in the processing of your tax return, enter the correct
amounts on line 101 through line 104.
Line 101 – Overpaid Tax
If the amount on line 87 is more than the amount on line 74, subtract
the amount on line 74 from the amount on line 87. Enter the result on
line 101. Your payments and credits are more than your tax.
Line 102 – Amount You Want Applied to Your
2020 Estimated Tax
Apply all or part of the amount on line 101 to your estimated tax for
2020. Enter on line 102 the amount of line 101 you want applied to
2020.
An election to apply an overpayment against estimated tax is binding.
Once the election is made, the overpayment cannot be applied to a
deficiency after the due date of the tax return.
Line 103 – Overpaid Tax Available This Year
If you entered an amount on line 102, subtract it from the amount on
line 101. Enter the result on line 103. You may have this entire amount
refunded to you or make contributions to the California Seniors Special
Fund or make other voluntary contributions from this amount. If
you make a contribution, skip line 104 and go to the instructions for
contributions.
Line 104 – Tax Due
If the amount on line 87 is less than the amount on line 74, subtract
the amount on line 87 from the amount on line 74. Enter the result on
line 104. Your tax is more than your payments and credits.
There is a penalty for not paying enough tax during the year. You may
have to pay a penalty if:
The tax due on line 104 is $500 or more ($250 or more if
married/RDP filing separately).
The amount of state income tax withheld on line 81 is less than 90%
of the amount of your total tax on line 74.
If you owe a penalty, the FTB will figure the penalty and send you a bill.
Contributions
You can make voluntary contributions to the funds listed on
Form 540NR, Side 4. See “Voluntary Contributions Fund Descriptions”
for more information.
You may also contribute any amount to the State Parks
ProtectionFund/Parks Pass Purchase. To receive a single annual park
pass, your contribution must equal or exceed $195. When applicable,
FTB will forward your name and address from your tax return to the
Department of Parks and Recreation (DPR) who will issue a single
Vehicle Day Use Annual Pass to you. Only one pass will be provided
per tax return. You may contact DPR directly to purchase additional
passes. If there is an error on your tax return in the computation of total
contributions or if we disallow the contribution you requested because
there is no credit available for the tax year, your name and address
will not be forwarded to DPR. Any contribution less than $195 will be
treated as a voluntary contribution and may be deducted as a charitable
contribution. For more information, go to parks.ca.gov/annualpass/ or
email info@parks.ca.gov.
Code 400 – Contribution to California Seniors Special Fund
If you and/or your spouse/RDP are 65 years of age or older and claim
the Senior Exemption Credit on line 9, you may make a combined total
contribution of up to $244 or $122 per spouse/RDP. Contributions
entered on code 400 will be distributed to The Area Agency on Aging
Council of California (TACC) to provide advice on and sponsorship of
Senior Citizen issues. Any excess contributions not required by TACC
will be distributed to senior citizen service organizations throughout
California for meals, adult day care, and transportation.
Use the worksheet below to figure your contribution:
1. If you contribute, enter $122; if you and
your spouse/RDP contribute, enter $244
.........1 ____________
2. Enter the ratio from Form 540NR, line 38 ........2 ____________
3. Contribution amount. Multiply line 1
by line 2. Enter the result (rounded to the
nearest whole dollar) here
....................3 ____________
You may contribute any amount up to the amount on line 3. Enter your
contribution on the line for code 400.
Line 120 – Total Contributions
Add code 400 through code 444. Enter the result on line 120.
Amount You Owe
Add or subtract correctly to figure the amount you owe.
Line 121 – Amount You Owe
If you did not enter an amount on line 120, enter the amount from
line 104 on line 121. This is the amount you owe with your Form 540NR.
If you entered an amount on line 120, add that amount to the amount on
line 104. Enter the result on line 121. This is the amount you owe with
your Form 540NR.
If you have an amount on line 103 and line 120, subtract line 120
from line 103. If line 120 is more than line 103 enter the difference on
line 121.
To avoid a late filing penalty, file your Form 540NR by the extended due
date even if unable to pay the amount you owe.
Mandatory Electronic Payments. You are required to remit all your
payments electronically once you make an estimate or extension
payment exceeding $20,000 or you file an original return with a total
tax liability over $80,000. Once you meet this threshold, all subsequent
payments regardless of amount, tax type, or taxable year must be
remitted electronically. The first payment that would trigger the
mandatory e-pay requirement does not have to be made electronically.
Individuals that do not send the payment electronically will be subject to
a 1% noncompliance penalty.
You can request a waiver from mandatory e-pay if one or more of the
following is true:
You have not made an estimated tax or extension payment in excess
of $20,000 during the current or previous taxable year.
Your total tax liability reported for the previous taxable year did not
exceed $80,000.
The amount you paid is not representative of your total tax liability.
For more information or to obtain the waiver form, go to ftb.ca.gov/e-pay.
Electronic payments can be made using Web Pay on FTB’s website,
electronic funds withdrawal (EFW) as part of the e-file tax return, or your
credit card.
Payment Options
Electronic Funds Withdrawal – Instead of paying by check or money
order, you may use this convenient option if you e-file. Provide your
bank information, amount you want to pay, and the date you want the
balance due to be withdrawn from your account. Your tax preparation
software will offer this option.
Web Pay – Pay the amount you owe using our secure online
payment service. Go to ftb.ca.gov/pay for more information.
e-file is fast, easy, and secure! Instructions: Form 540NR
540NR Tax Booklet 2019 Page 17
Credit Card – Whether you e-file or file by mail, you can use
your Discover, MasterCard, Visa, or American Express card to
pay your personal income taxes. If you pay by credit card, do not
mail form FTB3519 to us. Call 800.272.9829 or go to the Official
Payments Corporation website at ofcialpayments.com, and use
the jurisdiction code 1555. Official Payments Corporation charges a
convenience fee for using this service.
Check or Money Order – Using black or blue ink, make your check or
money order payable to the “Franchise Tax Board.” Do not send cash or
other items of value (such as stamps, lottery tickets, foreign currency,
and gift cards). Write your SSN or ITIN and “2019 Form 540NR” on the
check or money order. Enclose, but do not staple, your payment with
your return.
Make all checks or money orders payable in U.S. dollars and drawn
against a U.S. financial institution. Do not combine your 2019 tax
payment and any 2020 estimated tax payment in the same check.
Prepare two separate checks and mail each in a separate envelope.
If you e-filed your tax return, mail your check or money order with
form FTB 3582, Payment Voucher for Individual e-filed Returns.
Do not mail a copy of your e-filed tax return.
A penalty may be imposed if your check is returned by your bank for
insufficient funds.
If you enter an amount on line 122 or line 123, see the instructions
for line 124 for information about how to prepare your check or
money order.
Paying by Credit Card – Whether you e-file or file by mail, use your
Discover, MasterCard, Visa, or American Express card to pay your
personal income taxes (tax return balance due, extension payment,
estimated tax payment, or tax due with bill notice). There is a
convenience fee for this service. This fee is paid directly to Official
Payments Corporation based on the amount of your tax payment.
Convenience Fee
2.30% of the tax amount charged (rounded to the nearest cent)
Minimum fee: $1
Example: Tax Payment = $753.56 Convenience Fee = $17.33
When will my payments be effective?
Your payment is effective on the date you charge it.
What if I change my mind?
If you pay your tax liability by credit card and later reverse the credit card
transaction, you may be subject to penalties, interest, and other fees
imposed by the FTB for nonpayment or late payment of your tax liability.
How do I use my credit card to pay my income tax bill?
Once you have determined the type of payment and how much you owe,
the following information is needed:
Your Discover, MasterCard, Visa, or American Express card
Credit card number
Expiration date
Amount you are paying
Your and your spouse’s/RDP’s SSN (or ITIN)
First 4 letters of your and your spouse’s/RDP’s last name
Taxable year
Home phone number (including area code)
ZIP Code for address where your monthly credit card bill is sent
FTB Jurisdiction Code: 1555
Go to the Official Payments Corporation website at ofcialpayments.com
and select Payment Center, or call 800.2PAY.TAX or 800.272.9829 and
follow the recorded instructions. Official Payments Corporation provides
customer assistance at 877.297.7457 Monday through Friday, 5:00
a.m. to 5:00 p.m. PST. Official Payments Corporation will tell you the
convenience fee before you complete your transaction. Decide whether
to complete the transaction at that time.
Payment Date : ___________ Confirmation Number: _______________
If you cannot pay the full amount shown on Form 540NR, line 121, see
the information regarding monthly payments on page 25, question 4.
Interest and Penalties
If you file your tax return or pay your tax after the original due date, you
may owe interest and penalties on the tax due.
Do not reduce the amount on line 101 or increase the amount on
line 104 by any penalty or interest amounts. Enter on Form 540NR, line
122 the amount of interest and penalties.
Line 122 – Interest and Penalties
Interest. Interest will be charged on any late filing or late payment
penalty from the original due date of the return to the date paid. In
addition, if other penalties are not paid within 15 days, interest will be
charged from the date of the billing notice until the date of payment.
Interest compounds daily and the interest rate is adjusted twice a year.
The FTB website has a chart of interest rates in effect since 1976. Go to
ftb.ca.gov and search for interest rates.
Late Filing of Tax Return. If you do not file your tax return by
October15,2020, you will incur a late filing penalty plus interest from
the original due date of the tax return. The maximum total penalty is
25% of the tax not paid if the tax return is filed after October 15, 2020.
The minimum penalty for filing a tax return more than 60 days late is
$135 or 100% of the balance of tax due, whichever is less.
Late Payment of Tax. If you fail to pay your total tax liability
byApril15,2020, you will incur a late payment penalty plus interest. The
penalty is 5% of the tax not paid when due plus 1/2% for each month, or
part of a month, the tax remains unpaid. We may waive the late payment
penalty based on reasonable cause. Reasonable cause is presumed
when 90% of the tax shown on the return is paid by the original due
date of the return. However, the imposition of interest is mandatory. If,
after April 15, 2020, you find that your estimate of tax due was too low,
pay the additional tax as soon as possible to avoid or minimize further
accumulation of penalties and interest.
Other Penalties. We may impose other penalties if a payment is
returned for insufficient funds. We may also impose penalties for
negligence, substantial understatement of tax, and fraud.
Line 123 – Underpayment of Estimated Tax
You may be subject to an estimated tax penalty if any of the following is
true:
Your withholding and credits are less than 90% of your current tax
year liability.
Your withholding and credits are less than 100% of your prior
year tax liability (110% if AGI is more than $150,000 or $75,000 if
married/RDP filing separately).
You did not pay enough through withholding to keep the amount
you owe with your tax return under $500 ($250 if married/RDP filing
separately).
You did not make the required estimate payments, if you pay an
installment after the date it is due, or if you underpay any installment,
a penalty may be assessed on the portion of estimated tax that was
underpaid from the due date of the installment to the date of payment
or the due date of your return, whichever is earlier. Get the 2019 form
FTB 5805 for more information.
The FTB can figure the penalty for you when you file your tax return and
send you a bill.
Is line 104 less than $500 ($250 if married/RDP filing separately)?
Yes
Stop. You may not be subject to an estimated payment penalty.
No
Continue. You may be subject to an estimated payment penalty.
Is line 104 less than 10% of the amount on line 63 (excluding the tax on
lump-sum distributions on line 41)?
Yes
Stop. You may not be subject to an estimated payment penalty.
No
You may be subject to an estimated payment penalty, see form
FTB 5805, Underpayment of Estimated Tax by Individuals and
Fiduciaries (or form FTB 5805F, Underpayment of Estimated Tax
by Farmers and Fishermen).
Instructions: Form 540NR e-file at ftb.ca.gov
Page 18 540NR Tax Booklet 2019
The underpayment of estimated tax penalty shall not apply to the extent
the underpayment of an installment was created or increased by any
provision of law that is chaptered during and operative for the taxable
year of the underpayment. To request a waiver of underpayment of
estimated tax penalty, get form FTB 5805 or form FTB 5805F. See
“Where To Get Income Tax Forms and Publications.”
If you complete one of these forms, enter the amount of the penalty on
line 123 and check the correct box on line 123. Complete and attach
the form if you claim a waiver, use the annualized income installment
method, or pay tax according to the schedule for farmers and fishermen,
even if no penalty is owed.
See “Important Dates” for more information on estimated tax payments
and how to avoid the underpayment penalty.
Line 124 – Total Amount Due
Is there an amount on line 121?
Yes
Add line 121, line 122, and line 123. Enter the result on line 124.
For payment options, see line 121 instructions.
No
Go to line 125.
Refund and Direct Deposit
Line 125 – Refund or No Amount Due
Did you report amounts on line 120, line 122, or line 123?
No Enter the amount from line 103 on line 125. This is your refund
amount. If it is less than $1, attach a written statement to your Form
540NR requesting the refund.
Yes
Combine the amounts from line 120, line 122, and line 123. If the
result is:
More than line 103, subtract line 103 from the sum of line 120,
line 122, and line 123 and enter the result on line 124. This
is your total amount due. For payment options, see line 121
instructions.
Less than line 103, subtract the sum of line 120, line 122, and
line 123 from line 103 and enter on line 125. This is your refund
amount.
Line 126 and Line 127 – Direct Deposit of Refund
Direct deposit is safe and convenient. To have your refund directly
deposited into your bank account, fill in the account information on
Form 540NR, Side 5, line 126 and line 127. Fill in the routing and
account numbers and indicate the account type. Verify routing and
account numbers with your financial institution. Do not attach a voided
check or deposit slip. See the illustration on this page.
Individual taxpayers may request that their refund be electronically
deposited into more than one checking or savings account. This allows
more options for managing your refund. For example, you can request
part of your refund go to your checking account to use now and the rest
to your savings account to save for later.
The routing number must be nine digits. The first two digits must be 01
through 12 or 21 through 32. On the sample check, the routing number
is 250250025. The account number can be up to 17 characters and
can include numbers and letters. Include hyphens but omit spaces and
special symbols. On the sample check, the account number is 202020.
Check the appropriate box for the type of account. Do not check more
than one box for each line.
Enter the portion of your refund you want directly deposited into each
account. Each deposit must be at least $1. When filing an original return,
the total of line 126 and line 127 must equal the total amount of your
refund on line 125. If line 126 and line 127 do not equal line 125, the
FTB will issue a paper check.
When filing an amended return, only complete the amended Form
540NR through line 125. Next complete the California Schedule X. The
amount from Schedule X, line 11 is your additional refund amount. This
amount will be carried over to your amended Form 540NR and will be
entered on line 126 and line 127. The total of the amended Form 540NR,
line 126 and line 127 must equal the total amount of your refund on
Schedule X, line 11. If the total of the amended Form 540NR, line126
and line 127 do not equal Schedule X, line 11, the FTB will issue a
papercheck.
Adjusted Refunds – If there is a change made to your refund, you will
still receive your refund via direct deposit. For more information on
direct deposit of adjusted refunds, go to ftb.ca.gov and search for direct
deposit.
Caution: Check with your financial institution to make sure your deposit
will be accepted and to get the correct routing and account numbers.
The FTB is not responsible for a lost refund due to incorrect account
information entered by you or your representative.
Prior to depositing the refund, FTB may first verify with your financial
institution that the name on the account you designated to receive the
direct deposit refund matches the name provided on the tax return.
Some financial institutions will not allow a joint refund to be deposited to
an individual account. If the direct deposit is rejected, the FTB will issue
a papercheck.
Direct Deposit for ScholarShare 529 College Savings Plans – If you
have a ScholarShare 529 College Savings Plan account maintained
by the ScholarShare Investment Board, you may have your refund
directly deposited to your ScholarShare account. Please visit
scholarshare529.com for instructions.
Sign Your Tax Return
Sign your tax return in the designated space on Side 5. If you file a joint
tax return, your spouse/RDP must also sign it.
Include your preferred phone number and email address in case the
FTB needs to contact you regarding your tax return. By providing this
information the FTB will be able to provide you better customer service.
Joint Tax Return. If you file a joint tax return, both you and your
spouse/RDP are generally responsible for the tax and any interest or
penalties due on the tax return. This means that if one spouse/RDP does
not pay the tax due, the other spouse/RDP may have to pay the tax due.
See “Innocent Joint Filer Relief” under Additional Information section for
more information.
Paid Preparer’s Information. If you pay a person to prepare your
Form 540NR, that person signs and completes the area at the bottom
of Side 5 including an identification number. The IRS requires a paid
tax preparer to get and use a preparer tax identification number (PTIN).
If the preparer has a federal employer identification number (FEIN), it
should be entered only in the space provided. A paid preparer must give
you a copy of your tax return to keep for your records.
Third Party Designee. If you want to allow your preparer, a friend,
family member, or any other person you choose to discuss your 2019
tax return with the FTB, check the “Yes” box in the signature area of your
tax return. Also print the designee’s name and telephone number.
John Doe
Mary Doe
1234 Main Street
Anytown, CA 99999
1234
15-0000/0000
PAY TO THE
ORDER OF
ANYTOWN BANK
Anytown, CA 99999
I:250250025 I:202020•1234
DOLLARS
20
For
$
Do not include
the check number
Routing
number
Account
number
e-file is fast, easy, and secure! Instructions: Form 540NR
If you check the “Yes” box, you, and your spouse/RDP if filing a joint
tax return, are authorizing the FTB to call the designee to answer any
questions that may arise during the processing of your tax return. You
are also authorizing the designee to:
Give the FTB any information that is missing from your tax return.
Call the FTB for information about the processing of your tax return
or the status of your refund or payments.
Receive copies of notices or transcripts related to your tax return,
upon request.
Respond to certain FTB notices about math errors, offsets, and tax
return preparation.
You are not authorizing the designee to receive any refund check, bind
you to anything (including any additional tax liability), or otherwise
represent you before the FTB. If you want to expand or change the
designee’
s authorization, go to ftb.ca.gov/poa.
The authorization will automatically end no later than the due date
(without regard to extensions) for filing your 2020 tax return. This is
April 15, 2021, for most people. If you wish to revoke the authorization
before it ends, notify us by telephone at 800.852.5711 or by writing to
Franchise Tax Board, PO Box 942840, Sacramento, CA 94240-0040,
include your name, SSN, and the designee’s name.
Power of Attorney.
If another person prepared your tax return, he or she is
not automatically granted access to your tax information in future dealings
with us. At some point, you may wish to designate someone to act on
your behalf in matters related or unrelated to your 2019 tax return (e.g., an
audit examination). To protect your privacy, you must submit to us a legal
document called a “Power of Attorney” (POA) authorizing another person
to discuss or receive personal information about your income tax records.
For more information, go to ftb.ca.gov/poa.
Check Your Social Security Number (or ITIN). Verify that you have
written your social security number (or ITIN) in the spaces provided at
the top of Form 540NR. If you file a joint tax return, verify that you and
your spouse’s/RDP’s numbers are entered in the same order as your
names.
Filing Your Tax Return
Important: Attach a copy of your federal income tax return, and all
supporting federal forms and schedules to the back of Form 540NR.
Federal Form(s) W-2, W-2G, and 1099, and CA Form(s) 592-B, and
593.
Attach all the Form(s) W-2 and W-2G you received to the lower
front of your tax return. Also, attach any Form(s) 1099, 592-B, and 593
showing California income tax withheld.
If you do not receive your Form(s) W-2 by January 31, 2020, contact
your employer or go to ftb.ca.gov and login or register for MyFTB. Only
your employer can issue or correct a Form W-2. If you cannot get a copy
of your Form W-2, complete form FTB 3525, Substitute for Form W-2,
Wage and Tax Statement, or Form 1099-R,
Distributions from Pensions,
Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance
Contracts, etc. See “Where To Get Income Tax Forms and Publications.”
If you forget to send your Form(s) W-2 or any other withholding form(s)
with your income tax return, do not send it separately, or with another
copy of your tax return. Wait until the FTB requests it from you.
540NR Tax Booklet 2019 Page 19
Assembling Your Tax Return
Assemble your tax return in the order shown below.
Caution: Form 540NR has five sides. If filing Form 540NR, you must file
all five sides with the FTB.
Mailing Your Tax Return
If you owe, mail your tax return to:
FRANCHISE TAX BOARD
PO BOX 942867
SACRAMENTO CA 94267-0001
If you have a refund, or if no amount due, mail your tax return to:
FRANCHISE TAX BOARD
PO BOX 942840
SACRAMENTO CA 94240-0001
Copy of other state tax return
Copy of federal tax return
Supporting California Schedules
Side
5
Form 540NR
Side
4
Form 540NR
Side
3
Form 540NR
Side
2
Form 540NR
Side
1
Form 540NR
W-2
W-2G
1099
592-B
593
Enclose, but do not
staple, any payment.
Page 20 540NR Tax Booklet 2019
THIS PAGE INTENTIONALLY LEFT BLANK
Visit our website:
ftb.ca.gov
Nonrefundable Renter’s Credit Qualication Record
e-file and skip this page! The tax software product you use to e-file will help you find out if you qualify for this credit and will figure the correct
amount of the credit automatically. Go to ftb.ca.gov to check your e-file options.
If you were a resident of California for at least six months in 2019 and paid rent on property in California, which was your principal residence, you may qualify
for a credit that you can use to reduce your tax. Answer the questions below to see if you qualify. For purposes of California income tax, references to a spouse,
husband, or wife also refer to a California registered domestic partner (RDP), unless otherwise specified. When we use the initials RDP they refer to both a
California registered domestic “partner” and a California registered domestic “partnership,” as applicable. For more information on RDPs, get FTB Pub. 737.
Donot mail this record. Keep with your tax records.
540NR Tax Booklet 2019 Page 21
1. Were you a resident of California for at least six full months of the tax year in 2019?
Military personnel. If you are not a legal resident of California, you do not qualify for this credit. Your spouse/RDP may claim up to a maximum of $60 if he or she was a
resident during 2019, and is otherwise qualified.
YES. Go to question 2. NO. Stop. You do not qualify for this credit.
2. Is your adjusted gross income from all sources on your Form 540NR, line 17:
$42,932 or less if single or married/RDP filing separately
$85,864 or less if married/RDP filing jointly, head of household, or qualifying widow(er)?
YES. Go to question 3. NO. Stop here. You do not qualify for this credit.
3. Did you pay rent, for at least half of 2019, on property (including a mobile home that you owned on rented land) in California, which was your
principal residence?
YES. Go to question 4. NO. Stop here. You do not qualify for this credit.
4. Can you be claimed as a dependent by a parent, foster parent, legal guardian, or any other person in 2019?
NO. Go to question 6. YES. Go to question 5.
5. For more than half the year in 2019, did you live in the home of the person who can claim you as a dependent?
NO. Go to question 6. YES. Stop here. You do not qualify for this credit.
6. Was the property you rented exempt from property tax in 2019?
You do not qualify for this credit if, for more than half of the year, you rented property that was exempt from property taxes. Exempt property includes most
government-owned buildings, church-owned parsonages, college dormitories, and military barracks. However, if you or your landlord paid possessory interest taxes for
the property you rented, then you may claim this credit.
NO. Go to question 7. YES. Stop here. You do not qualify for this credit.
7. Did you claim the homeowner’s property tax exemption anytime during 2019?
You do not qualify for this credit if you or your spouse/RDP received a homeowner’s property tax exemption at any time during the year. However, if you lived apart from
your spouse/RDP for the entire year and your spouse/RDP received a homeowner’s property tax exemption for a separate residence, then you may claim this credit if
you are otherwise qualified.
NO. Go to question 8. YES. If your filing status is single or married/RDP filing separately, stop here, you do not qualify for
this credit. If your filing status is married/RDP filing jointly, go to question 9.
8. Were you single in 2019?
YES. Go to question 11. NO. Go to question 9.
9. Did your spouse/RDP claim the homeowner’s property tax exemption anytime during 2019?
You do not qualify for this credit if you or your spouse/RDP received a homeowner’s property tax exemption at any time during the year. However, if you lived apart from
your spouse/RDP for the entire year and your spouse/RDP received a homeowner’s property tax exemption for a separate residence, then you may claim this credit if
you are otherwise qualified.
NO. Go to question 11. YES. If both you and your spouse/RDP claimed the homeowner’s property tax exemption,
stop here, you do not qualify for this credit. Otherwise, go to question 10.
10. Did you and your spouse/RDP maintain separate residences for the entire year in 2019?
YES. Go to question 11. NO. Stop here. You do not qualify for this credit.
11. Use the following chart to nd the amount of your credit based on the number of full months you were a resident of and rented property in California
in 2019. Enter the amount on the line below. If married/RDP filing jointly where one spouse/RDP claimed the homeowner’s property tax exemption and both
spouses/RDPs lived apart for the entire year, enter half of the amount listed on the chart for married/RDP filing jointly on the line below. Follow the instructions
next to the chart.
$ ___ ___ ___
If this credit is the only special credit you are claiming, enter the amount on
your Form 540NR, line 61.
If you are a Form 540NR ler and are claiming additional special credits in ad-
dition to this credit, go to the instructions on page 12 for Form 540NR.
Number of months
Filing status 6 7 8 9 10 11 12
Single or married/RDP
filing separately
$30 $35 $40 $45 $50 $55 $60
Married/RDP filing
jointly, head of
household or qualifying
widow(er)
$60 $70 $80 $90 $100 $110
File
Form
540
Street Address City, State, and ZIP Code Dates Rented in 2019 (From______to______)
a_________________________________________________________________________________________________________
b_________________________________________________________________________________________________________
Enter the name, address, and telephone number of your landlord(s) or the person(s) to whom you paid rent for the residence(s) listed above.
Name Street Address City, State, ZIP Code, and Telephone Number
a_________________________________________________________________________________________________________
b_________________________________________________________________________________________________________
Page 22 540NR Tax Booklet 2019
Voluntary Contribution Fund Descriptions
Make voluntary contributions of $1 or more in whole dollar amounts to the funds listed below. To contribute to the California Seniors Special Fund, use
the instructions for code 400 below. The amount you contribute either reduces your overpaid tax or increases your tax due. You may contribute only
to the funds listed and cannot change the amount you contribute after you file your tax return. For more information, go to ftb.ca.gov and search for
voluntary contributions.
Code 400, California Seniors Special Fund – If you and/or your
spouse/RDP are 65 years of age or older as of January 1, 2020, and
claim the Senior Exemption Credit, you may make a combined total
contribution of up to $244 or $122 per spouse/RDP. Contributions made
to this fund will be distributed to the Area Agency on Aging Councils
(TACC) to provide advice on and sponsorship of Senior Citizens issues.
Any excess contributions not required by TACC will be distributed to
senior citizen service organizations throughout California for meals,
adult day care, and transportation.
Code 401, Alzheimer’s Disease and Related Dementia Voluntary Tax
Contribution Fund
Contributions will be used to provide grants to
California scientists to study Alzheimer’s disease and related disorders.
This research includes basic science, diagnosis, treatment, prevention,
behavioral problems, and caregiving. With almost 600,000 Californians
living with the disease and another 2million providing care to a loved
one with Alzheimer’s, our state is in the early stages of a major public
health crisis. Your contribution will ensure that Alzheimer’s disease
receives the attention, research, and resources it deserves. For more
information, go to cdph.ca.gov and search for Alzheimer.
Code 403, Rare and Endangered Species Preservation Voluntary Tax
Contribution Program
Contributions will be used to help protect and
conserve California’s many threatened and endangered species and the
wild lands that they need to survive, for the enjoyment and benefit of you
and future generations of Californians.
Code 405, California Breast Cancer Research Voluntary Tax
Contribution Fund Contributions will fund research toward preventing
and curing breast cancer. Breast cancer is the most common cancer to
strike women in California. It kills 4,000 California women each year.
Contributions also fund research on prevention and better treatment,
and keep doctors up-to-date on research progress. For more information
about the research your contributions support, go to cbcrp.org. Your
contribution can help make breast cancer a disease of the past.
Code 406, California Fireghters’ Memorial Fund Contributions will
be used for the repair and maintenance of the California Firefighters’
Memorial on the grounds of the State Capitol, ceremonies to honor
the memory of fallen firefighters and to assist surviving loved ones,
and for an informational guide detailing survivor benefits to assist the
spouses/RDPs and children of fallen firefighters.
Code 407, Emergency Food for Families Voluntary Tax Contribution
Fund Contributions will be used to help local food banks feed
California’s hungry. Your contribution will fund the purchase of
much-needed food for delivery to food banks, pantries, and soup
kitchens throughout the state. The State Department of Social Services
will monitor its distribution to ensure the food is given to those most in
need.
Code 408, California Peace Ofcer Memorial Foundation Fund
Contributions will be used to preserve the memory of California’s fallen
peace officers and assist the families they left behind. Since statehood,
over 1,300 courageous California peace officers have made the ultimate
sacrifice while protecting law-abiding citizens. The non-profit charitable
organization, California Peace Officers’ Memorial Foundation, has
accepted the privilege and responsibility of maintaining a memorial for
fallen officers on the State Capitol grounds. Each May, the Memorial
Foundation conducts a dignified ceremony honoring fallen officers and
their surviving families by offering moral support, crisis counseling, and
financial support that includes academic scholarships for the children of
those officers who have made the supreme sacrifice. On behalf of all of us
and the law-abiding citizens of California, thank you for your participation.
Code 410, California Sea Otter Fund – The California Coastal
Conservancy and the Department of Fish and Wildlife will each be
allocated 50% of the contributions. Contributions allocated to the
California Coastal Conservancy will be used for research, science,
protection, projects, or programs related to the Federal Sea Otter
Recovery Plan or improving the nearshore ocean ecosystem, including,
program activities to reduce sea otter mortality. Contributions allocated
to the Department of Fish and Wildlife will be used to establish a sea
otter fund within the department’s index coding system for increased
investigation, prevention, and enforcement action.
Code 413, California Cancer Research Voluntary Tax Contribution
Fund – Contributions will be used to conduct research relating
to the causes, detection, and prevention of cancer and to expand
community-based education on cancer, and to provide prevention and
awareness activities for communities that are disproportionately at risk
or afflicted by cancer.
Code 422, School Supplies for Homeless Children Fund –
Contributions will be used to provide school supplies and health-related
products to homeless children.
Code 423, State Parks Protection Fund/Parks Pass Purchase –
Contributions will be used for the protection and preservation of
California’s state parks and for the cost of a Vehicle Day Use Annual
Pass valid at most park units where day use fees are collected. The
pass is not valid at off-highway vehicle units, or for camping, oversized
vehicle, extra vehicle, per-person, or supplemental fees. If a taxpayer’s
contribution equals or exceeds $195 the taxpayer will receive a single
Vehicle Day Use Annual Pass. Amounts contributed in excess of the
parks pass cost may be deducted as a charitable contribution for the
year in which the voluntary contribution is made. Any contribution
less than $195 will be treated as a voluntary contribution and may be
deducted as a charitable contribution. For more information, go to
parks.ca.gov/annualpass/ or email info@parks.ca.gov.
Code 424, Protect Our Coast and Oceans Voluntary Tax Contribution
Fund – Contributions will be used to provide grants to community
organizations working to protect, restore, and enhance the California
coast and ocean. Contributions will support shoreline cleanups, habitat
restoration, coastal access improvements, and ocean education
programs.
Code 425, Keep Arts in Schools Voluntary Tax Contribution Fund –
Contributions will be used by the Arts Council for the allocation of grants
to individuals or organizations administering arts programs for children in
preschool through 12th grade.
Code 431, Prevention of Animal Homelessness and Cruelty Voluntary
Tax Contribution Fund – Contributions will be used to provide funding
to programs designed to prevent and eliminate animal homelessness
and cruelty, research that explores novel approaches to preventing and
eliminating pet homelessness and the prevention, investigation, and
prosecution of animal cruelty and neglect.
Code 438, California Senior Citizen Advocacy Voluntary Tax
Contribution Fund – Contributions will be used to conduct the sessions
of the California Senior Legislature and to support its ongoing activities
on behalf of older persons.
Code 439, Native California Wildlife Rehabilitation Voluntary Tax
Contribution Fund – Contributions will be used to support the recovery
and rehabilitation of injured, sick, or orphaned native wildlife, and
conservation education.
Code 440, Rape Kit Backlog Voluntary Tax Contribution Fund –
Contributions will be used for DNA testing in the processing of rape kits.
540NR Tax Booklet 2019 Page 23
Code 441, Organ and Tissue Donor Registry Voluntary Tax
Contribution Fund – Contributions will be used for the distribution of
funds to the Donate Life California Organ and Tissue Registrar, for its
ongoing activities to maintain the Donate Life California Organ and
Tissue Donor Registry.
Code 442, National Alliance on Mental Illness California Voluntary
Tax Contribution Fund – Contributions will be used to fund the Crisis
Intervention Team Program that trains peace officers to assist, and
engage safely with persons living with mental illness.
Code 443, Schools Not Prisons Voluntary Tax Contribution Fund–
Contributions will be used to fund academic and career readiness
programs that seek to break the school-to-prison pipeline.
Code 444, Suicide Prevention Voluntary Tax Contribution Fund–
Contributions will be used to fund crisis center programs designed to
provide suicide prevention services.
Page 24 540NR Tax Booklet 2019
CREDIT CHART
Credit Name Code Description
California Competes Tax – FTB 3531 233 The credit, which is allocated and certified by the California Competes Tax Credit Committee,
is available for businesses that want to come to California or to stay and grow in California.
Website:business.ca.gov
Child Adoption Costs – Worksheet on page 14 197 50% of qualified costs in the year an adoption is ordered
Child and Dependent Care Expenses – FTB 3506
See the instructions on page 12
232 Similar to the federal credit except that the California credit amount is based on a
specified percentage of the federal credit.
College Access Tax – FTB 3592 235 The credit, which is allocated and certified by the California Educational Facilities Authority, is
available for taxpayers who contribute to the College Access Tax Credit Fund.
Website: treasurer.ca.gov/cefa
Dependent Parent – See page 13 173 Must use married/RDP filing separately status and have a dependent parent
Disabled Access for Eligible Small Business –
FTB 3548
205 Similar to the federal credit but limited to $125 based on 50% of qualified expenditures
that do not exceed $250
Donated Agricultural Products Transportation –
FTB 3547
204 50% of the costs paid or incurred for the transportation of agricultural products donated
to nonprofit charitable organizations
Earned Income Tax – FTB 3514 None This refundable credit is similar to the federal Earned Income Credit (EIC) but with different income
limitations.
Young Child Tax – FTB 3514 None This refundable credit is available to taxpayers who also qualify for the CA Earned Income Tax Credit
(EITC) and who have at least one qualifying child who is younger than six years old as of the last day
of the taxable year.
Enhanced Oil Recovery – FTB 3546 203 One third of the similar federal credit and limited to qualified enhanced oil recovery projects located
within California.
Joint Custody Head of Household –
Worksheet on page 13
170 30% of tax up to $484 for taxpayers who are single or married/RDP filing separately, who have a
child and meet the support test
Low-Income Housing – FTB 3521 172
Similar to the federal credit but limited to low-income housing in California
Natural Heritage Preservation – FTB 3503 213 55% of the fair market value of any qualified contribution of property donated to the state, any local
government, or any nonprofit organization designated by a local government
New California Motion Picture and Television Production –
FTB 3541
237 For taxable years beginning on or after January 1, 2016, the new credit is allocated and certified by
the California Film Commission, and is available for qualified production expenditures attributable to
a qualified motion picture, an independent film, or a TV series that relocates to California.
Website: lm.ca.gov
New Donated Fresh Fruits or Vegetables – FTB 3814 238 15% of the qualified value of the donated fresh fruits or vegetables made to California food banks,
based on weighted average wholesale price
New Employment – FTB 3554 234 The credit is available for a taxpayer that hires a full-time employee and pays or incurs wages in a
designated census tract or economic development area, and receives a tentative credit reservation
for that full-time employee.
Nonrefundable Renter’s – See page 21 None For California residents who paid rent for their principal residence for at least 6 months in 2019 and
whose AGI does not exceed a certain limit
Other State Tax – Schedule S 187 Net income tax paid to another state or a U.S. possession on income also taxed by California
Prior Year Alternative Minimum Tax – FTB 3510 188 Must have paid alternative minimum tax in a prior year and have no alternative minimum tax liability
in 2019
Prison Inmate Labor – FTB 3507 162 10% of wages paid to prison inmates
Research – FTB 3523 183
Similar to the federal credit but limited to costs for research activities in California
Senior Head of Household –
Worksheet on page 13
163 2% of taxable income up to $1,478 for seniors who qualified for head of household in 2017 or 2018
and whose qualifying individual died during 2017 or 2018
Repealed Credits: The expiration dates for the credits listed below have passed. However, these credits had carryover provisions. You may claim these credits only
if you have an unused carryover available from prior years. If you are not required to complete Schedule P (540NR), Alternative Minimum Tax
and Credit Limitations– Nonresidents or Part-Year Residents, get form FTB 3540, Credit Carryover and Recapture Summary, to figure your credit
carryover to future years. For EZ, LAMBRA, MEA or TTA credit carryovers, get form FTB 3805Z, form FTB 3807, form FTB 3808, or form FTB 3809.
See “Where To Get Income Tax Forms and Publications”.
Agricultural Products ......................175
California Motion Picture and Television
Production ............................223
Commercial Solar Electric System ............196
Commercial Solar Energy ...................181
Community Development Financial Institutions
Investment ..............................209
Donated Fresh Fruits or Vegetables............224
Employer Childcare Contribution .............190
Employer Childcare Program ................189
Employee Ridesharing .....................194
Employer Ridesharing: Large employer ......191
Small employer......192
Transit passes .......193
Energy Conservation.......................182
Enterprise Zone Hiring .....................176
Enterprise Zone Sales or Use Tax .............176
Environmental Tax.........................218
Farmworker Housing.......................207
Local Agency Military Base Recovery
Area Hiring ............................198
Local Agency Military Base Recovery
Area Sales or Use Tax ....................198
Low-Emission Vehicles.....................160
Manufacturing Enhancement Area Hiring .......211
New Jobs ...............................220
Orphan Drug .............................185
Political Contributions......................184
Recycling Equipment ......................174
Residential Rental & Farm Sales ..............186
Rice Straw...............................206
Ridesharing..............................171
Salmon & Steelhead Trout Habitat
Restoration ............................200
Solar Energy .............................180
Solar Pump..............................179
Targeted Tax Area Hiring ....................210
Targeted Tax Area Sales or Use Tax............210
Water Conservation........................178
Young Infant .............................161
540NR Tax Booklet 2019 Page 25
Frequently Asked Questions
(Go to ftb.ca.gov for more frequently asked questions.)
1. What if I can’t le by April 15, 2020, and I think I
owe tax?
You must pay 100% of the amount you owe by April 15, 2020, to avoid
interest and penalties. If you cannot file because you have not received
all your federal Form(s) W-2, estimate the amount of tax you owe
by completing form FTB 3519, Payment for Automatic Extension for
Individuals. Mail it to the FTB with your payment by April 15, 2020, or
pay online at ftb.ca.gov/pay. Then, when you receive all your federal
Form(s) W-2, complete and mail your tax return by October 15, 2020,
(you must use Form 540NR).
2. I never received a federal Form W-2. What should
I do?
If not all your Forms W-2 were received by January 31, 2020,
contact your employer. Only an employer issues or corrects a
Form W-2. For more information, call 800.338.0505, follow the
recorded instructions and enter code 204 when instructed.
If you cannot get a copy of your Form(s) W-2, complete form
FTB 3525, Substitute for Form W-2, Wage and Tax Statement,
or federal Form 1099-R, Distributions from Pensions, Annuities,
Retirement, or Profit Sharing Plans, IRAs, Insurance Contracts, etc.
Go to ftb.ca.gov/forms or see “Where To Get Income Tax Forms and
Publications.” For online wage and withholding information, go to
ftb.ca.gov and login or register for MyFTB.
3. How can I get help?
Throughout California more than 1,200 sites provide trained volunteers
offering free help during the tax filing season to persons who need to
file simple federal and state income tax returns. Many military bases
also provide this service for members of the U.S. Armed Forces. Go to
ftb.ca.gov and search for vita to find a list of participating locations or
call the FTB at 800.852.5711 to find a location near you.
4. What do I do if I can’t pay what I owe with my 2019
tax return?
Pay as much as possible when you file your tax return. If unable to
pay your tax in full with your tax return, make a request for monthly
payments. However, interest accrues and an underpayment penalty may
be charged on the tax not paid by April 15, 2020, even if your request
for monthly payments is approved. To make monthly payments,
complete form FTB 3567, Installment Agreement Request, online or
mail it to the address on the form. Do not mail it with your tax return.
The Installment Agreement Request might not be processed
and approved until after your tax return is processed, and you
may receive a bill before you receive approval of your request.
To order this form, go to ftb.ca.gov/forms or call
800.338.0505, follow the recorded instructions and enter code
949 when instructed.
For information on how to pay by credit card, go to
ftb.ca.gov/pay, or call 800.338.0505, follow the recorded
instructions and enter code 610 when instructed.
5. Is direct deposit safe?
Direct deposit is safe and convenient. To have your refund directly
deposited into your bank account, fill in the account information on
Form 540NR, Side 5, line 126 and line 127. Fill in the routing and
account numbers and indicate the account type.
6. How can I check on the status of my refund?
Go to ftb.ca.gov and search for refund status. You will need your social
security number (SSN) or individual taxpayer identification number
(ITIN) and the refund amount from your tax return.
You can also call our automated phone service.
7. I discovered an error on my tax return. What should
Ido?
If you discover an error on your California income tax return,
after you filed it (paper or e-file), file an amended Form 540NR
and attach Schedule X, California Explanation of Amended
Return Changes, to correct your previously filed tax return. Get
Schedule X at ftb.ca.gov/forms or call 800.338.0505, follow
the recorded instructions and enter code 908 when instructed.
8. The IRS made changes to my federal tax return.
What should I do?
If your federal income tax return is examined and changed by the IRS
and you owe additional tax, report these changes to the FTB within
six months of the date of the final federal determination. If the changes
the IRS made result in a refund due for California, claim a refund within
two years of the date of the final federal determination. File an amended
Form 540NR and Schedule X to correct your previously filed income tax
return, or send a copy of the federal changes to:
ATTN RAR/VOL MS F310
FRANCHISE TAX BOARD
PO BOX 1998
RANCHO CORDOVA CA 95741-1998
or Fax the information to 916.843.2269.
If you have any questions relating to the IRS audit adjustments,
call 916.845.4028.
For general tax information or questions, call 800.852.5711.
Regardless of which method you use to notify the FTB, you must include
a copy of the final federal determination along with all data and schedules
on which the federal adjustment was based. Get FTB Pub. 1008, Federal
Tax Adjustments and Your Notification Responsibilities to California,
for more information. Go to ftb.ca.gov/forms or see “Order Forms and
Publications.”
File an amended Form 540NR and Schedule X only if the change
affected your California tax liability.
9. How long should I keep my tax information?
Requests for information from you regarding your California income tax
return usually occurs within the California statute of limitations period,
which is usually the later of four years from the due date of the tax
return or four years from the file date of the tax return. (Exception: An
extended statute of limitations period may apply for California or federal
tax returns that are related to or subject to a federal audit.)
Keep a copy of your tax return and the records that verify the income,
deductions, adjustments, or credits reported on your return. Some
records should be kept longer. For example, keep property records as
long as needed to figure the basis of the property or records needed
to verify carryover losses (e.g., net operating losses, capital losses,
passive losses, casualty losses, etc.).
10. I will be moving after I le my tax return. How do I
notify the FTB of my new address?
Go to ftb.ca.gov and login or register for MyFTB or call 800.852.5711
and follow the recorded instructions to report a change of address.
You may also use form FTB 3533, Change of Address for Individuals.
This form is available at ftb.ca.gov/forms. If you change your address
online or by phone, you do not need to file form FTB 3533.
After filing your tax return, report a change of address to us for up
to four years, especially if you leave the state and no longer have a
requirement to file a California tax return.
11. Are all domestic partners required to le joint or
separate tax returns?
No, only domestic partners who are registered with the California
Secretary of State are required to file using the married/RDP filing
jointly or married/RDP filing separately filing status.
949
204
610
Owe Money? Web Pay lets you pay online, so you can schedule it and forget it! Go to ftb.ca.gov/pay for more information.
908
Page 26 540NR Tax Booklet 2019
Additional Information
California Sales and Use Tax
In general, the purchase of goods outside California that are brought into the state
for storage, use, or other consumption may be subject to use tax. The use tax rate
is the same as the sales tax rate in effect where the goods will be stored, used,
or consumed; usually your residence address. The tax is based on the purchase
price of the goods.
If you purchased goods from an out-of-state retailer (such as a mail order
firm) and sales tax would have been charged if you purchased the goods
in California, you may owe the use tax on your purchase if the out-of-state
retailer did not collect the California tax.
If you traveled to a foreign country and brought goods home with you,
the use tax will be based on the purchase price of the goods you listed on
your U.S. Customs Declaration after deduction of the $800 per individual
exemption allowable by law within any 30-day period. This deduction does
not apply to goods sent or shipped to California by common carrier.
You should report and pay your use tax directly to the California Department of
Tax and Fee Administration by going to their website at cdtfa.ca.gov, selecting
“Register”, and choosing the option to “Pay use tax, lumber assessment and/or
Prepaid MTS Surcharge on one-time purchase.”
If you file a federal Schedule C (Form 1040 or 1040-SR), Profit or Loss From
Business, with your federal income tax return and are in the business of selling
tangible personal property, you may be required to obtain a seller’s permit with
the California Department of Tax and Fee Administration. If you do not sell
tangible personal property, but you have at least $100,000 in business gross
receipts, you may be required to register with the California Department of Tax
and Fee Administration to report use tax.
If you have any questions concerning the taxability of a purchase, or want
information about obtaining a seller’s permit, or registering to report use
tax, go to the California Department of Tax and Fee Administration’s website
at cdtfa.ca.gov or call their Customer Service Center at 1.800.400.7115 or
(TTY)711 (for hearing and speech disabilities). Income tax information is not
available at these numbers.
Collection Fees
The FTB is required to assess collection and filing enforcement cost recovery fees
on delinquent accounts.
Deceased Taxpayers
A final tax return must be filed for a person who died in 2019 if a tax return
normally would be required. The administrator or executor, if one is appointed, or
beneficiary must file the tax return. Please print “deceased” and the date of death
next to the taxpayer’s name at the top of the tax return.
If you are a surviving spouse/RDP and no administrator or executor has been
appointed, file a joint tax return if you did not remarry or entered into another
registered domestic partnership during 2019. Indicate next to your signature that
you are the surviving spouse/RDP.
You may also file a joint tax return with an administrator or executor acting on
behalf of the deceased taxpayer.
If you file a tax return and claim a refund due to a deceased taxpayer, you are
certifying under penalty of perjury either that you are the legal representative of
the deceased taxpayer’s estate (in this case, attach certified copies of the letters
of administration or letters testamentary) or that you are entitled to the refund
as the deceased’s surviving relative or sole beneficiary under the provisions of
the California Probate Code. You must also attach a copy of federal Form 1310,
Statement of Person Claiming Refund Due a Deceased Taxpayer, or a copy of the
death certificate when you file a tax return and claim a refund due.
Innocent Joint Filer Relief
If you file a joint tax return, both you and your spouse/RDP are generally
responsible for paying the tax and any interest or penalties due on the tax return.
However, you may qualify for relief of payment on all or part of the balance as
an innocent joint filer. For more information, get form FTB 705, Innocent Joint
Filer Relief Request, at ftb.ca.gov/forms or call 916.845.7072, Monday - Friday
between 8 a.m. to 5 p.m., except holidays.
Requesting a Copy of Your Tax Return
The FTB keeps personal income tax returns for three and one-half years from the
original due date. To obtain a copy of your tax return, write a letter or complete
form FTB 3516, Request for Copy of Personal Income Tax or Fiduciary Return.
In most cases, a $20 fee is charged for each taxable year you request. However,
no charge applies for victims of a designated California or federal disaster, or you
request copies from a field office that assisted you in completing your tax return.
See “Order Forms and Publications.”
Local Benets
You cannot deduct the amounts you pay for local benefits that apply to property
in a limited area (construction of streets, sidewalks, or water and sewer systems).
You must look at your real estate tax bill to determine if any nondeductible
itemized charges are included in your bill. For more information, go to ftb.ca.gov
and search for real estate tax or get federal Publication 17, Your Federal Income
Taxes-For Individuals, Chapter 23.
Vehicle License Fees for Federal Schedule A
On your federal Schedule A (Form 1040 or 1040-SR), you may deduct the
California motor vehicle license fee listed on your Vehicle Registration Billing
Notice from the Department of Motor Vehicles. The other fees listed on your
billing notice such as registration fee, weight fee, and county fees are not
deductible.
Voting Is Everybody’s Business
To register to vote in California, you must be:
A United States citizen and a resident of California,
18 years old or older on Election Day,
Not currently in state or federal prison or on parole for the conviction of a
felony, and
Not currently found mentally incompetent to vote by a court.
Pre-register at 16. Vote at 18. Voter pre-registration is now available for 16 and
17 year olds who otherwise meet the voter registration eligibility requirements.
California youth who pre-register to vote will have their registration become active
once they turn 18 years old.
If you wish to receive a paper Voter Registration or Pre-Registration Application,
call the California Secretary of State’s Voter Hotline at 800-345-VOTE or simply
register online at RegisterToVote.ca.gov. For more information about how and
when to register to vote, visit sos.ca.gov/elections.
It’s Your Right . . . Register and Vote
If You File Electronically
If you e-file your tax return, make sure all the amounts entered on the paper copy
of your California tax return are correct before you sign form FTB 8453, California
e-file Return Authorization for Individuals, or form FTB 8879, California e-file
Signature Authorization for Individuals. If you are requesting direct deposit of
a refund, make sure that your account and routing information is correct. Your
tax return can be transmitted to the FTB by your preparer or e-file service only
after you sign forms FTB 8453 or FTB 8879. The preparer or e-file service must
provide you with:
A copy of forms FTB 8453 or FTB 8879.
Any original CA Forms 592-B, 593, and federal Forms W-2, 1099-G, and other
Form(s) 1099.
A paper copy of your California tax return showing the data transmitted
to the FTB.
You cannot retransmit an e-filed tax return once we’ve accepted the original. You
can correct an error by filing an amended Form 540NR and Schedule X to correct
your previously filed tax return.
540NR Tax Booklet 2019 Page 27
Instructions for Filing a 2019 Amended Return
Important Information
Protective Claim – If you are filing a claim for refund for a taxable year
where an audit is being conducted by another state’s taxing agency,
litigation is pending or where a final determination by the IRS is pending,
check box a for “Protective claim for refund” on ScheduleX, Part II, line
1. Specify the pending litigation or reference to the federal determination
on Part II, line 2 so we can properly process your claim.
Military Compensation – If you are filing an amended return to exclude
military compensation as a result of the Servicemembers Civil Relief
Act (P.L. 108-189), check box k for “Military HR 100” on Schedule X,
PartII, line 1. In addition, attach a copy of your military Form W-2,
Wage and Tax Statement, revised Schedule CA (540NR), California
Adjustments– Nonresidents or Part-Year Residents, and any other
affected forms or schedules to your amended Form 540NR, California
Nonresident or Part-Year Resident Income Tax Return. If you are
amending a taxable year for which the normal statute of limitations
(SOL) has expired, attach a statement explaining why the SOL is still
open. If the SOL is open because of military service in a combat zone
or outside the United States, attach copies of any documents that show
when you served in a combat zone or overseas. Beginning in 2009, the
Military Spouses Residency Relief Act may affect the California income
tax filing requirements for spouses of military personnel. For additional
information, get FTB Pub. 1032, Tax Information for Military Personnel.
Do not attach your previously filed return to your amended return.
Do not file an amended return to correct your SSN, name, or address,
instead, call or write us. See “Contacting the Franchise Tax Board” for
more information.
Use Tax – Do not amend your return to correct a “use tax” error
reported on your original tax return. Enter the amount from your original
return. The California Department of Tax and Fee Administration (CDTFA)
administers this tax. Refer all questions or requests relating to use tax to
the CDTFA at cdtfa.ca.gov or call 800.400.7115.
Amount You Want Applied To Your 2020 Estimated Tax – Enter zero on
amended Form 540NR, line 102 and get the instructions for Schedule X
for the actual amount you want applied to your 2020 estimated tax.
Voluntary Contributions – You cannot amend voluntary contributions.
Enter the amount from your original return.
Direct Deposit – You can now use direct deposit on your amended
return.
When filing an amended return, only complete the amended Form540NR
through line 125. Next complete the California Schedule X. The amount
from Schedule X, line 11 is your additional refund amount. This amount
will be carried over to your amended Form 540NR and will be entered on
line 126 and line 127. The total of the amended Form 540NR, line 126
and line 127 must equal the total amount of your refund on Schedule X,
line 11. If the total of the amended Form 540NR, line 126 and line 127
do not equal Schedule X, line 11, the FTB will issue a paper check.
Purpose
Use Form 540NR to amend your original or previously filed California
nonresident or part-year resident income tax return. If the FTB adjusted
your return, you should use the amounts as adjusted by the FTB. Check
the box at the top of Form 540NR indicating AMENDED return and follow
the instructions. Submit the completed amended Form 540NR and
Schedule X along with all required schedules and supporting forms.
When to File
Generally, if you filed federal Form 1040X, Amended U.S. Individual
Income Tax Return, file an amended California tax return within six
months unless the changes do not affect your California tax liability. File
an amended return only after you have filed your original or previously
filed California tax return.
California Statute of Limitations
Original tax return was led on or before April 15th: If you are making
a claim for refund, file an amended tax return within four years from the
original due date of the tax return or within one year from the date of
overpayment, whichever period expires later.
Original tax return was led within the extension period (April 15th –
October 15th): If you are making a claim for refund, file an amended tax
return within four years from the date the original tax return was filed or
within one year from the date of overpayment, whichever period expires
later.
Original tax return was led after October 15th: If you are making a
claim for refund, file an amended tax return within four years from the
original due date of the tax return (April 15th) or within one year from
the date of overpayment, whichever period expires later.
If you are ling your amended tax return after the normal statute
of limitation period (four years after the due date of the original
tax return), attach a statement explaining why the normal statute of
limitations does not apply.
If you are ling your amended return in response to a billing notice
you received, you will continue to receive billing notices until your
amended tax return is accepted. You may file an informal claim for
refund even though the full amount due including tax, penalty, and
interest has not yet been paid. After the full amount due has been paid,
you have the right to appeal to the Office of Tax Appeals at ota.ca.gov or
to file suit in court if your claim for refund is disallowed.
To file an informal claim for refund, check box l for “Informal claim” on
Schedule X, Part II, line 1 and mail the claim to:
FRANCHISE TAX BOARD
PO BOX 942840
SACRAMENTO CA 94240-0040
Financially Disabled Taxpayers
The statute of limitations for filing claims for refunds is suspended
during periods when a taxpayer is “financially disabled.” You are
considered “financially disabled” when you are unable to manage your
financial affairs due to a medically determinable physical or mental
impairment that is deemed to be either a terminal impairment or is
expected to last for a continuous period of not less than 12 months. You
are not considered “financially disabled” during any period that your
spouse/RDP or any other person is legally authorized to act on your
behalf on financial matters. For more information, get form FTB 1564,
Financially Disabled – Suspension of the Statute of Limitations.
Federal Notices
If you were notified of an error on your federal income tax return that
changed your AGI, you may need to amend your California income tax
return for that year.
If the IRS examines and changes your federal income tax return, and you
owe additional tax, report these changes to the FTB within six months.
You do not need to inform the FTB if the changes do not increase your
California tax liability. If the changes made by the IRS result in a refund
due, you must file a claim for refund within two years. Use an amended
Form 540NR and Schedule X to make any changes to your California
income tax returns previously filed.
Include a copy of the final federal determination, along with all
underlying data and schedules that explain or support the federal
adjustment. Note: Most penalties assessed by the IRS also apply under
California law. If you are including penalties in a payment with your
amended tax return, see Schedule X, line 8a instructions.
Page 28 540NR Tax Booklet 2019
Children With Investment Income
If your child was required to file form FTB 3800, Tax Computation for
Certain Children with Unearned Income, and your taxable income has
changed, review your child’s tax return to see if you need to file an
amended tax return. Get form FTB 3800 for more information.
Contacting the Franchise Tax Board
If you have not received a refund within six months of filing your
amended return, do not file a duplicate amended return for the same
year. For information on the status of your refund, you may write to:
FRANCHISE TAX BOARD
PO BOX 942840
SACRAMENTO CA 94240-0040
For telephone assistance see General Phone Service on page 95.
Filing Status
Your filing status for California must be the same as the filing status you
used on your federal income tax return, unless you are in a RDP. If you
are an RDP and file single for federal, you must file married/RDP filing
jointly or married/RDP filing separately for California. If you entered into
a same-sex marriage, your filing status for California would generally
be the same as the filing status that was used for federal. If you are a
same-sex married individual or an RDP and file head of household for
federal, you may file head of household for California only if you meet
the requirements to be considered unmarried or considered not in a
registered domestic partnership.
Exception for Filing a Separate Tax Return – A married couple who
filed a joint federal tax return may file separate state tax returns if either
spouse was either of the following:
An active member of the United States armed forces (or any auxiliary
military branch) during the year being amended.
A nonresident for the entire year and had no income from California
sources during the year being amended.
Changing Your Filing Status – If you changed your filing status on your
federal amended tax return, also change your filing status for California
unless you meet one of the exceptions listed above.
Married/RDP Filing Jointly to Married/RDP Filing Separately – You
cannot change from married/RDP filing jointly to married/RDP filing
separately after the due date of the tax return.
Exception: A married couple who meets the “Exception for filing a
separate tax return” shown above may change from joint to separate tax
returns after the due date of the tax return.
Filing Separate Tax Returns to Married/RDP Filing Jointly – If you
or your spouse/RDP (or both of you) filed a separate tax return, you
generally can change to a joint tax return any time within four years from
the original due date of the separate tax return(s). To change to a joint
tax return, you and your spouse/RDP must have been legally married or
an RDP on the last day of the taxable year.
To amend from separate tax returns to a joint tax return, follow Form
540NR instructions to complete only one amended tax return. Both you
and your spouse/RDP must sign the amended joint tax return.
540NR Tax Booklet 2019 Page 29
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ftb.ca.gov
Page 30 540NR Tax Booklet 2019
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ftb.ca.gov
TAXABLE YEAR
2019
California Nonresident or Part-Year
Resident Income Tax Return
CALIFORNIA FORM
540NR
Check here if this is an AMENDED return.
Fiscal year filers only: Enter month of year end: month________ year 2020.
Your first name Initial Last name Suffix Your SSN or ITIN
If joint tax return, spouses/RDP’s first name Initial Last name Suffix Spouses/RDP’s SSN or ITIN
Additional information (see instructions)
PBA code
Street address (number and street) or PO box Apt. no/ste. no. PMB/private mailbox
City (If you have a foreign address, see instructions) State ZIP code
Foreign country name Foreign province/state/county Foreign postal code
Date of
Birth
Your DOB (mm/dd/yyyy)
Spouse's/RDP's DOB (mm/dd/yyyy)
Prior
Name
Your prior name (see instructions)
Spouse’s/RDP’s prior name (see instructions)
Filing
Status
If your California filing status is different from your federal filing status, check the box here
1 Single
2 Married/RDP filing jointly. See inst.
3 Married/RDP filing separately.
Enter spouse’s/RDP’s SSN or ITIN above and full name here
4 Head of household (with qualifying person). See instructions.
5 Qualifying widow(er).
Enter year spouse/RDP died.
See instructions.
6
If someone can claim you (or your spouse/RDP) as a dependent, check the box here. See inst
.......
6
Exemptions
For line 7, line 8, line 9, and line 10: Multiply the number you enter in the box by the pre-printed dollar amount for that line.
Whole dollars only
7 Personal: If you checked box 1, 3, or 4 above, enter 1 in the box. If you
checked box 2 or 5, enter 2. If you checked the box on line 6, see instructions.
7
X $122 =
$
8 Blind: If you (or your spouse/RDP) are visually impaired, enter 1;
if both are visually impaired, enter 2
.................................. 8
X $122 =
$
9 Senior: If you (or your spouse/RDP) are 65 or older, enter 1;
if both are 65 or older, enter 2
....................................... 9
X $122 =
$
10 Dependents: Do not include yourself or your spouse/RDP.
Dependent 1 Dependent 2 Dependent 3
First Name
Last Name
SSN
Dependent's
relationship
to you
Total dependent exemptions ...................................... 10 X $378 =
$
333
A
R
RP
..............
Form 540NR 2019 Side 1
3131193
Side 2 Form 540NR 2019
3132193
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00
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00
00
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Your name: Your SSN or ITIN:
11 Exemption amount: Add line 7 through line 10
.......................................
11
$
Total Taxable Income
12
Total California wages from your federal
Form(s) W-2, box 16
........................
12
13 Enter federal AGI from federal Form 1040 or 1040-SR, line 8b; 1040NR, line 35;
or 1040NR-EZ, line 10
......................................................
13
14 California adjustments – subtractions. Enter the amount from Schedule CA (540NR),
Part II, line23, column B
...................................................
14
15 Subtract line 14 from line 13. If less than zero, enter the result in parentheses.
Seeinstructions
..........................................................
15
16
California adjustments – additions. Enter the amount from Schedule CA (540NR), Part II,
line23, column C
.........................................................
16
17
Adjusted gross income from all sources. Combine line 15 and line 16
.................
17
18
Enter the larger of: Your California itemized deductions from Schedule CA (540NR),
Part III, line 30; OR Your California standard deduction. See instructions
..............
18
19
Subtract line 18 from line 17. This is your total taxable income. If less than zero,
enter-0-
...............................................................
19
CA Taxable Income
31 Tax. Check the box if from:
Tax Table Tax Rate Schedule
FTB 3800 FTB 3803
................ 31
32
CA adjusted gross income from Schedule CA
(540NR), Part IV, line 1.
...................
32
35
CA Taxable Income from Schedule CA (540NR), Part IV, line 5.......................
35
36
CA Tax Rate. Divide line 31 by line 19 ....................... 36
37
CA Tax Before Exemption Credits. Multiply line 35 by line 36 ........................
37
38
CA Exemption Credit Percentage. Divide line 35 by line 19.
If more than 1, enter 1.0000
...............................
38
39
CA Prorated Exemption Credits. Multiply line 11 by line 38.
If the amount on line 13 is more than $200,534, see instructions
....................
39
40
CA Regular Tax Before Credits. Subtract line 39 from line 37. If less than zero, enter -0-...
40
41
Tax. See instructions. Check the box if from:
Schedule G-1 FTB 5870A
41
42
Add line 40 and line 41 .....................................................
42
Special Credits
50
Nonrefundable Child and Dependent Care Expenses Credit. See instructions.
Attach form FTB 3506
......................................................
50
51
Credit for joint custody head of household.
See instructions
..........................
51
52
Credit for dependent parent. See instructions....
52
53
Credit for senior head of household.
See instructions.
..........................
53
54
Credit percentage. Enter the amount from line 38 here.
If more than 1, enter 1.0000. Seeinstructions
................
54
55 Credit amount. See instructions
.............................................. 55
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00
Form 540NR 2019 Side 3
3133193
333
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00
00
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Your name: Your SSN or ITIN:
Special Credits continued
58
Enter credit name code and amount...
58
59
Enter credit name code and amount...
59
60
To claim more than two credits. See instructions.................................. 60
61
Nonrefundable renter’s credit. See instructions ...................................
61
62 Add line 50 and line 55 through 61. These are your total credits ......................
62
63 Subtract line 62 from line 42. If less than zero, enter 0
63
- - ............................
Other Taxes
.
.
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.
00
00
00
00
71
Alternative minimum tax. Attach Schedule P (540NR) .............................. 71
72
Mental Health Services Tax. See instructions .....................................
72
73
Other taxes and credit recapture. See instructions .................................
73
74 Add line 63, line 71, line 72, and line 73. This is your total tax........................
74
Payments
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00
00
00
00
00
00
00
81
California income tax withheld. See instructions .................................. 81
82
2019 CA estimated tax and other payments. See instructions ........................
82
83
Withholding (Form 592-B and/or 593). See instructions ............................
83
84 Excess SDI (or VPDI) withheld. See instructions ..................................
84
85
Earned Income Tax Credit (EITC) ..............................................
85
86 Young Child Tax Credit (YCTC). See instructions
..................................
86
87
Add lines 81 through 86. These are your total payments. See instructions ..............
87
Overpaid Tax/Tax Due
.
.
.
.
00
00
00
00
101
Overpaid tax. If line 87 is more than line 74, subtract line 74 from line 87............... 101
102 Amount of line 101 you want applied to your 2020 estimated tax
..................... 102
103 Overpaid tax available this year. Subtract line 102 from line 101
......................
103
104 Tax due. If line 87 is less than line 74, subtract line 87 from line 74
104
...................
Side 4 Form 540NR 2019
3134193
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00
00
00
00
00
00
00
00
00
00
00
Your name: Your SSN or ITIN:
Contributions
Code Amount
California Seniors Special Fund. See instructions
................................. 400
Alzheimer’s Disease and Related Dementia Voluntary Tax Contribution Fund
............
401
Rare and Endangered Species Preservation Voluntary Tax Contribution Program
........
403
California Breast Cancer Research Voluntary Tax Contribution Fund
...................
405
California Firefighters’ Memorial Fund
.........................................
406
Emergency Food for Families Voluntary Tax Contribution Fund
......................
407
California Peace Officer Memorial Foundation Fund
...............................
408
California Sea Otter Fund
...................................................
410
California Cancer Research Voluntary Tax Contribution Fund . . . . . . . . . . . . . . . . . . . . . . . .
413
School Supplies for Homeless Children Fund
....................................
422
State Parks Protection Fund/Parks Pass Purchase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
423
Protect Our Coast and Oceans Voluntary Tax Contribution Fund
......................
424
Keep Arts in Schools Voluntary Tax Contribution Fund
.............................
425
Prevention of Animal Homelessness and Cruelty Voluntary Tax Contribution Fund
.......
431
California Senior Citizen Advocacy Voluntary Tax Contribution Fund
..................
438
Native California Wildlife Rehabilitation Voluntary Tax Contribution Fund...............
439
Rape Kit Backlog Voluntary Tax Contribution Fund
................................
440
Organ and Tissue Donor Registry Voluntary Tax Contribution Fund ................... 441
National Alliance on Mental Illness California Voluntary Tax Contribution Fund
..........
442
Schools Not Prisons Voluntary Tax Contribution Fund
.............................
443
Suicide Prevention Voluntary Tax Contribution Fund
..............................
444
120
Add code 400 through code 444. This is your total contribution
.....................
120
.
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00
00
00
Form 540NR 2019 Side 5
3135193
333
Your name: Your SSN or ITIN:
.
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00
00
00
00
Amount
You Owe
121
AMOUNT YOU OWE. Add line 104 and line 120. See instructions. Do not send cash.
Mail to: FRANCHISE TAX BOARD, PO BOX 942867, SACRAMENTO CA 94267-0001
Pay Online – Go to ftb.ca.gov/pay for more information.
....
121
Interest and
Penalties
.
122 Interest, late return penalties, and late payment penalties
...........................
122
123
Underpayment of estimated tax.
Check the box:
FTB 5805 attached FTB 5805F attached
...........
123
124 Total amount due. See instructions. Enclose, but do not staple, any payment
...........
124
Refund and Direct Deposit
.
.
.
00
00
00
125 REFUND OR NO AMOUNT DUE. Subtract line 120 from line 103.
Mail to: FRANCHISE TAX BOARD, PO BOX 942840, SACRAMENTO CA 94240-0001.
.....
125
Fill in the information to authorize direct deposit of your refund into one or two accounts. Do not attach a voided check or a deposit slip.
See instructions. Have you veried the routing and account numbers? Use whole dollars only.
All or the following amount of my refund (line 125) is authorized for direct deposit into the account shown below:
126 Direct deposit amount
Routing number
Type
Checking
Savings
Account number
The remaining amount of my refund (line 125) is authorized for direct deposit into the account shown below:
127 Direct deposit amount
Routing number
Type
Checking
Savings
Account number
IMPORTANT: Attach a copy of your complete federal return.
To learn about your privacy rights, how we may use your information, and the consequences for not providing the requested information, go to
ftb.ca.gov/forms and search for 1131. To request this notice by mail, call 800.852.5711.
Under penalties of perjury, I declare that I have examined this tax return, including accompanying schedules and statements, and to the best of my
knowledge and belief, it is true, correct, and complete.
Your signature Date Spouses/RDP’s signature (if a joint tax return, both must sign)
Sign
Here
It is unlawful
to forge a
spouses/
RDP’s
signature.
Joint tax
return?
(See
instructions)
Your email address. Enter only one email address.
Preferred phone number
Paid preparer’s signature (declaration of preparer is based on all information of which preparer has any knowledge)
Firm’s name (or yours, if self-employed)
PTIN
Firm’s address
Firm’s FEIN
Do you want to allow another person to discuss this tax return with us? See instructions ......
Yes No
Print Third Party Designee’s Name
Telephone Number
Page 36 540NR Tax Booklet 2019
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ftb.ca.gov
7741193
Schedule CA (540NR) 2019 Side 1
TAXABLE YEAR
2019
California Adjustments —
Nonresidents or Part-Year Residents
SCHEDULE
CA (540NR)
Important: Attach this schedule behind Form 540NR, Side 5 as a supporting California schedule.
Name(s) as shown on tax return
SSN or I
T I N
Part I Residency Information. Complete all lines that apply to you and your spouse/RDP for taxable year 2019.
During 2019:
1 My California (CA) Residency (Check one)
a Myself: Nonresident Part-Year Resident Resident b Spouse: Nonresident Part-Year Resident Resident
Yourself Spouse/RDP
2 a I was domiciled in (enter two letter code, see instructions) ........................
b I was in the military and stationed in (enter two letter code) ........................
3 I became a CA resident (enter state of prior residence and date (mm/dd/yyyy) of move) ... / / / /
4 I became a CA nonresident (enter new state of residence and date (mm/dd/yyyy) of move) . / / / /
5 I was a CA nonresident the entire year (enter state of residence) ......................
6 The number of days I spent in CA for any purpose was: ............................
7 I owned a home/property in CA (enter Y for Yes, N for No) ..........................
8 Before 2019: I was a CA resident for the period of ................................ / / / /
/ / / /
Part II Income Adjustment Schedule
Section A — Income
from federal Form 1040 or 1040-SR
A
B C D E
Federal Amounts
(taxable amounts from
your federal tax return)
Subtractions
See instructions
(difference between
CA & federal law)
Additions
See instructions
(difference between
CA & federal law)
Total Amounts
Using CA Law
As If You Were a
CA Resident
(subtract col. B from
col. A; add col. C
to the result)
CA Amounts
(income earned or
received as a CA
resident and income
earned or received
from CA sources
as a nonresident)
1 Wages, salaries, tips, etc. See instructions
before making an entry in col. B or C ..... 1
2 Taxable interest. a .. 2b
3 Ordinary dividends. See instructions.
a
............ 3b
4 IRA distributions. See instructions.
a
............ 4b
c Pensions and annuities. See
instructions. c
... 4d
5 Social security benefits.
a
............ 5b
6
Capital gain or (loss). See instructions ... 6
Section B — Additional Income
from federal Schedule 1 (Form 1040
or 1040-SR)
1 Taxable refunds, credits, or offsets of state
and local income taxes 1................
2a Alimony received. See instructions 2a. ......
3 Business income or (loss) 3.............
4 Other gains or (losses) 4 ...............
5 Rental real estate, royalties, partnerships,
S corporations, trusts, etc ............. 5
For Privacy Notice, get FTB 1131 ENG/SP.
A
B C D E
Federal Amounts
(taxable amounts from
your federal tax return)
Subtractions
See instructions
(difference between
CA & federal law)
Additions
See instructions
(difference between
CA & federal law)
Total Amounts
Using CA Law
As If You Were a
CA Resident
(subtract col. B from
col. A; add col. C
to the result)
CA Amounts
(income earned or
received as a CA
resident and income
earned or received
from CA sources
as a nonresident)
Side 2 Schedule CA (540NR) 2019
7742193
Section B — Additional Income
Continued
A
B C
D
E
Federal Amounts
(taxable amounts from
your federal tax return)
Subtractions
See instructions
(difference between
CA & federal law)
Additions
See instructions
(difference between
CA & federal law)
Total Amounts
Using CA Law
As If You Were a
CA Resident
(subtract col. B from
col. A; add col. C
to the result)
CA Amounts
(income earned or
received as a CA
resident and income
earned or received
from CA sources
as a nonresident)
6 Farm income or (loss) ................ 6
7 Unemployment compensation .......... 7
8 Other income.
a California lottery winnings
a
a
b Disaster loss deduction from FTB 3805V
b
b
c Federal NOL (Schedule 1 (Form 1040 or
1040-SR), line8)
c c
d NOL deduction from FTB 3805V ....... 8
d d 8 8
e NOL from FTB 3805Z, FTB 3806, FTB 3807,
or FTB 3809
e
e
f Other (describe):
f f
g Student loan discharged due to closure
of a for-profit school
g
g
9 Total. Combine Section A, line 1 through
line 6, and Section B, line 1 through line 8,
in each column. Go to Section C ........ 9
Section C — Adjustments to Income
from federal Schedule 1
(Form 1040 or 1040-SR)
A
B C
D
E
Federal Amounts
(taxable amounts from
your federal tax return)
Subtractions
See instructions
(difference between
CA & federal law)
Additions
See instructions
(difference between
CA & federal law)
Total Amounts
Using CA Law
As If You Were a
CA Resident
(subtract col. B from
col. A; add col. C
to the result)
CA Amounts
(income earned or
received as a CA
resident and income
earned or received
from CA sources
as a nonresident)
10 Educator expenses ...................10
11 Certain business expenses of reservists,
performing artists, and fee-basis
government officials .................11
12 Health savings account deduction .......12
13
Moving expenses. Attach federal
Form 3903. See instructions ...........13
14 Deductible part of self-employment tax ...14
15
Self-employed SEP, SIMPLE, and
qualified plans ......................15
16 Self-employed health insurance deduction 16
17 Penalty on early withdrawal of savings ...17
18a
Alimony paid. b Enter recipient’s:
SSN
Last name 18a
19 IRA deduction ......................19
20 Student loan interest deduction .........20
21 Tuition and fees .....................21
22
Add line 10 through line 21 in each column,
A through E ........................22
23 Total. Subtract line 22 from line 9 in each
column, A through E. See instructions ....23
7743193
Schedule CA (540NR) 2019 Side 3
Part III Adjustments to Federal Itemized Deductions
Check the box if you did NOT itemize for federal but will itemize for California .........
A
Federal Amounts
(from federal Schedule A
(Form 1040 or 1040-SR))
B
Subtractions
See instructions C
Additions
See instructions
Medical and Dental Expenses See instructions.
1 Medical and dental expenses .........................
1
2 Enter amount from federal Form 1040 or 1040-SR, line 8b . .
2
3 Multiply line 2 by 7.5% (0.075) .......................
3
4
Subtract line 3 from line 1. If line 3 is more than line 1, enter 0.....................
4
Taxes You Paid
5a
5a
5b State and local real estate taxes
State and local income tax or general sales taxes
. ..............................
............................................
5b
5c State and local personal property taxes ......................................
5c
5d Add lines 5a through 5c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5d
5e Enter the smaller of line 5d or $10,000 ($5,000 if married filing separately) in column A . .
5e
Enter the amount from line 5a, column B in line 5e, column B ......................
Enter the difference from line 5d and line 5e, column A in line 5e, column C ...........
6 Other taxes. List type ........................
6
7 Add lines 5e and 6 ......................................................
7
Interest You Paid
8a Home mortgage interest and points reported to you on Form 1098.................
8a
8b Home mortgage interest not reported to you on Form 1098 ......................
8b
8c Points not reported to you on Form 1098.....................................
8c
8d Mortgage insurance premiums.............................................
8d
8e Add lines 8a through 8d ..................................................
8e
9 Investment interest......................................................
9
10 Add lines 8e and 9 ......................................................
10
Gifts to Charity
11 Gifts by cash or check ...................................................
11
12 Other than by cash or check...............................................
12
13 Carryover from prior year.................................................
13
14 Add lines 11 through 13 ..................................................
14
Casualty and Theft Losses
15 Casualty or theft loss(es) (other than net qualified disaster losses).
Attach federal Form 4684. See instructions ...................................
15
Other Itemized Deductions
16 Other—from list in federal instructions ......................................
16
17
Add lines 4, 7, 10, 14, 15, and 16 in columns A, B, and C ........................
17
18 Total. Combine line 17 column A less column B plus column C ..................................................
18
Side 4 Schedule CA (540NR) 2019
7744193
Job Expenses and Certain Miscellaneous Deductions
19
Unreimbursed employee expenses - job travel, union dues, job education, etc.
Attach federal Form 2106 if required. See instructions........................
19
20
Tax preparation fees. .................................................
20
21 Other expenses- investment, safe deposit box, etc. List type
21
22
Add lines 19 through 21 ...............................................
22
23
Enter amount from federal Form 1040 or 1040-SR, line 8b
24 Multiply line 23 by 2% (0.02). If less than zero, enter 0 .......................
24
25
Subtract line 24 from line 22. If line 24 is more than line 22, enter 0. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
25
26
Total Itemized Deductions. Add line 18 and line 25. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
26
27 Other adjustments. See instructions. Specify.
.......
27
28
Combine line 26 and line 27. .............................................................................
28
29 Is your federal AGI (Form 540NR, line 13) more than the amount shown below for your ling status?
Single or married/RDP filing separately
........................... $200,534
Head of household
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $300,805
Married/RDP filing jointly or qualifying widow(er)
................... $401,072
No. Transfer the amount on line 28 to line 29
.
Yes. Complete the Itemized Deductions Worksheet in the instructions for Schedule CA (540NR), line 29 .................. 29
30
Enter the larger of the amount on line 29 or your standard deduction listed below
Single or married/RDP filing separately
. See instructions................$4,537
Married/RDP filing jointly, head of household, or qualifying widow(er)
.....$9,074 .................
30
Part IV
California Taxable Income
1 California AGI. Enter your California AGI from Part II, line 23, column E .............................................
1
2 Enter your deductions from line 30 .......................................................
2
3 Deduction Percentage. Divide Part II, line 23, column E by Part II, line 23, column D. Carry the decimal
to four places. If the result is greater than 1.0000, enter 1.0000. If less than zero, enter -0- ...........
3
4 California Itemized/Standard Deductions. Multiply line 2 by the percentage on line 3 ..................................
4
5 California Taxable Income. Subtract line 4 from line 1. Transfer this amount to Form 540NR, line 35. If less than
zero, enter -0- ..........................................................................................
5
Schedule CA (540NR) Instructions 2019 Page 41
2019 Instructions for Schedule CA (540NR)
References in these instructions are to the Internal Revenue Code (IRC) as of January 1, 2015, and the California Revenue and Taxation Code (R&TC).
What’s New
Loophole Closure and Small Business and Working Families Tax Relief
Act of 2019 – The Tax Cuts and Jobs Act (TCJA) signed into law on
December 22, 2017, made changes to the Internal Revenue Code (IRC).
California Revenue and Taxation Code (R&TC) does not conform to all of the
changes. In general, for taxable years beginning on or after January 1, 2019,
California conforms to the following TCJA provisions:
California Achieving a Better Life Experience (ABLE) Program
Student loan discharged on account of death or disability
Federal Deposit Insurance Corporation (FDIC) Premiums
Excess employee compensation
Excess business loss
Alimony – California law does not conform to changes made by the TCJA
to federal law regarding alimony and separate maintenance payments
that are not deductible by the payor spouse, and are not includable in the
income of the receiving spouse, if made under any divorce or separation
agreement executed after December 31, 2018, or executed on or before
December31,2018, and modified after that date (if the modification
expressly provides that the amendments apply). For more information, see
specific line instructions in Part II, Section B, line 2a and Section C, line 18a.
Student Loan Discharged Due to Closure of a For-Prot School – California
law allows an income exclusion for an eligible individual who is granted
a discharge of any student loan under specified conditions. This income
exclusion has now been expanded to include a discharge of student loans
occurring on or after January 1, 2019, and before January 1, 2024, for
individuals who attended a Brightwood College school or a location of The
Art Institute of California. For more information, see specific line instructions
in PartII, Section B, line 8g.
Charitable Contribution and Business Expense Deduction Disallowance –
For taxable years beginning on or after January 1, 2014, California law
disallows a charitable contribution deduction to an educational organization
that is a postsecondary institution or to the Key Worldwide Foundation, and
a deduction for a business expense related to a payment to the Edge College
and Career Network, LLC, to a taxpayer who meets specific conditions,
including that they are named in any of several specified criminal complaints.
For more information, see specific line instructions in Part III, lines 11 or 12
and Part II, Section B, line 3, respectively.
General Information
In general, for taxable years beginning on or after January 1, 2015,
California law conforms to the IRC as of January 1, 2015. However, there are
continuing differences between California and federal law. When California
conforms to federal tax law changes, we do not always adopt all of the
changes made at the federal level. For more information, go to ftb.ca.gov
and search for conformity
. Additional information can be found in FTB Pub.
1001, Supplemental Guidelines to California Adjustments, and the Business
Entity tax booklets.
The instructions provided with California tax forms are a summary of
California tax law and are only intended to aid taxpayers in preparing their
state income tax returns. We include information that is most useful to the
greatest number of taxpayers in the limited space available. It is not possible
to include all requirements of the California R&TC in the instructions.
Taxpayers should not consider the instructions as authoritative law.
Conformity
For updates regarding federal acts, go to ftb.ca.gov and search for
conformity.
Federal Tax Reform - In general, California R&TC does not conform to all
of the changes under the TCJA. For adjustments due to the TCJA, see the
specific line instructions for the following items:
Combat zone extended to Egypt’s Sinai Peninsula
Moving expenses and reimbursements
Limitation on deduction of business interest
Limitation on employer’s deduction for fringe benefit expenses
Limitation on wagering losses
Sexual harassment settlements
IRC Section 965 deferred foreign income
Global intangible low-taxed income (GILTI) under IRC Section 951A
Qualified equity grants
Expanded use of 529 account funds
Living expenses for members of Congress
Limitation on state and local tax deduction
Mortgage & home equity indebtedness interest deduction
Limitation on charitable contribution deduction
College athletic seating rights
Casualty or theft loss(es)
Miscellaneous itemized deductions
Registered Domestic Partners (RDP) – RDPs will compute their limitations
based on the combined federal adjusted gross income (AGI) of each
partner’s individual tax return filed with the Internal Revenue Service
(IRS). For columnA, Part II and Part III, combine each line item of your
federal amounts from each partner’s individual federal tax return. For more
information on RDPs, get FTB Pub. 737, Tax Information for Registered
Domestic Partners.
The combined federal AGI used to compute limitations is different from the
recalculated federal AGI used on Form 540NR, California Nonresident or
Part-Year Resident Income Tax Return, line 13. In situations where RDPs
have no RDP adjustments, these amounts may be the same.
Military Personnel – Servicemembers domiciled outside of California and
their spouses may exclude the servicemember’s military compensation
from gross income when computing the tax rate on nonmilitary income.
Requirements for military servicemembers domiciled in California remain
unchanged. Military servicemembers domiciled in California must include
their military pay in total income. In addition, they must include their military
pay as California source income when stationed in California. However,
military pay is not California source income when a servicemember is
permanently stationed outside of California. Beginning 2009, the federal
Military Spouses Residency Relief Act may affect the California income tax
filing requirements for spouses of military personnel. For more information,
get FTB Pub. 1032, Tax Information for Military Personnel.
Single Member Limited Liability Company (SMLLC) – If you are a single
member limited liability company, that is organized or doing business in
California, or registered with the California Secretary of State (SOS), you are
required to file Form 568, Limited Liability Company Return of Income, pay
the annual tax and LLC Fee (if applicable), in addition to filing your tax return.
Get Form 568 Limited Liability Company Tax Booklet for more information.
Amended Tax Returns – If you are an active duty military servicemember
domiciled outside California and you included your military compensation in
income from all sources, you may file an amended tax return for tax years
with an open statute of limitations. For more information, get FTB Pub. 1032
and see instructions for amended returns in the 540NR booklet.
Part-Year Residents – Complete the Part-Year Resident Worksheet on
page 52 to determine the amounts to enter on Part II, Section A, line 1
through line 6 and Section B, line 1 through line 9, column E.
Avoid Common Mistakes on this Schedule.
Column A – Copy the amounts from your federal tax return. Use the
(b) amounts on line 2, line 3, line 4, line 5, and the (d) amount on line 4,
from your federal tax return. Form 1040, U.S. Individual Income Tax Return,
line 8b, or Form 1040-SR, U.S. Tax Return for Seniors, line 8b, should equal
Schedule CA (540NR), Part II, line 23, column A.
Column B (Part II, Section A, Line 1 through Line 6, and Section B, Line 1
through Line 8) – Subtract income that is not taxable to a California resident
such as California lottery winnings and social security benefits. Do not use
column B to deduct income that was earned while a nonresident of California
or from sources outside of California. There must be a difference in state and
federal tax law. Generally, if a full-year California resident cannot subtract
income in column B, a nonresident or part-year resident may not subtract
income in column B.
Column C (Part II, Section A, Line 1 through Line 6, and Section B, Line 1
through Line 8) – Add income that was not taxed on your federal tax return
but is taxable to a California resident such as foreign income or interest/
dividends from non-California municipal bonds.
Column D –
Combine the columns (column A - column B + column C).
PartII, line 23, column D, should equal Form 540NR, line 17. The amounts
in this column represent income earned from all sources as if you were
a full-year California resident, after applying California and federal law
differences.
Column E –
Enter all income from all sources while a resident of California
and income from California sources while a nonresident.
Page 42 Schedule CA (540NR) Instructions 2019
Purpose
Use Schedule CA (540NR), California Adjustments - Nonresidents or Part-
Year Residents, to determine California taxable income by doing the following:
Identify the domiciles and current and past residency information.
Enter the amounts of income and deductions reported on your federal tax
return.
Adjust the income and deductions reported on your federal tax return for
differences in California and federal law.
Determine the portion of income reported on your federal tax return that
was earned or received while you were a California resident.
Determine the portion of income reported on your federal tax return
that was earned or received from California sources while you were a
nonresident.
Determine your allowable standard deduction or itemized deductions.
Specific Line Instructions
Part I Residency Information
Answer all the questions in this part for you and your spouse/RDP. If a
question does not apply, then leave the line blank. For more information get:
FTB Pub. 1031, Guidelines for Determining Resident Status
FTB Pub. 1032, Tax Information for Military Personnel
Use the two letter state abbreviations to complete this section. If you do not
know your state abbreviation, visit the United States Postal Service website at
usps.com for assistance. If you did not reside in the United States or a U.S.
Possession, use the code “FC.” The code “FC” is the abbreviation for foreign
country.
Line 2 – Domicile and Military
If you served in the military, your state of domicile is generally the state where
you were living when you first entered military service. If you were not in the
military, your domicile is the place you consider your permanent home, the
place to which you, whenever absent, intend to return.
Line 6 – The number of days I spent in California
The total number of days in California should include all days in California for
any purpose including residency, business, and vacation.
Line 7 – I owned a home/property in California
This includes property owned directly or indirectly through a trust or other
entity.
Line 8 – Before 2019: I was a California resident for the period of
Enter your most recent period of California residency. If you became a
nonresident during taxable year 2019, use December 31, 2018 as your end
date.
Part II Income Adjustment Schedule
Column A – Federal Amounts
Enter all the amounts shown on your federal tax return on the corresponding
lines in column A.
If married/RDP filing separately under either exception described in the
instructions for Form 540NR, enter in column A the amounts you would have
reported on a separate federal tax return. Attach a statement to the tax return
showing how the income and expenses were split between you and your
spouse/RDP.
Section A, Line 1 through Line 6, and Section B, Line 1 through Line 8
Enter in Section A, line 1 through line 6, and Section B, line 1 through line8
the same amounts you entered on federal Form 1040 or 1040-SR, line 1
through line 6; and federal Schedule 1 (Form 1040 or 1040-SR), Additional
Income and Adjustments to Income, line 1 through line 8; or Form 1040NR,
U.S. Nonresident Alien Income Tax Return, line 8 through line 21 for the same
types of income.
Line 9 – Total
Combine the amounts in Section A, line 1 through line 6, and Section B, line1
through line 8. Enter the total on line 9. This number should be the same
as the amount on federal Form 1040 or 1040-SR, line 7b; or Form 1040NR,
line 23.
Line 10 through Line 17 and Line 19 through Line 21
Enter the same amounts you entered on federal Schedule 1 (Form 1040
or 1040-SR), line 10 through line 17 and line 19 through line 21; or
Form 1040NR, line 24 through line 33.
Line 18a and Line 18b
Enter on line 18a the same amount entered on federal Schedule 1
(Form 1040 or 1040-SR), line 18a. Enter on line 18b the social security
number (SSN) or individual taxpayer identification number (ITIN) and last
name of the person to whom you paid alimony.
Line 22
Add line 10 through line 18a and line 19 through line 21. This amount
should be the same as the amount on federal Schedule 1 (Form 1040 or
1040-SR), line 22; or Form 1040NR, line 34. However, if you made any
of the adjustments described in the instructions for federal Schedule 1
(Form 1040 or 1040-SR), line 22, or if you claimed the foreign housing
deduction from federal Form 2555, Foreign Earned Income, enter the amount
from federal Schedule 1 (Form 1040 or 1040-SR), line 22 on this line.
If you used Form 1040NR and reported an amount on Form 1040NR, line 31
for excluded scholarship and fellowship grants, enter the amount from
Form 1040NR, line 34 on this line.
Line 23 – Total
Subtract line 22 from line 9. This amount should be the same as the amount
on federal Form 1040 or 1040-SR, line 8b; or Form 1040NR, line 35.
Column B and Column C – Subtractions and
Additions
Use these columns to enter subtractions and additions to federal amounts in
column A that are necessary because of the differences between California
and federal law. Enter all amounts in Section A, line 1 through line 6 and
Section B and Section C, line 1 through line 22 as positive numbers.
Do not deduct income that was earned while a nonresident of California or
from sources outside of California. There must be a difference in tax law.
Generally, if a California resident cannot subtract the income in column B, a
nonresident or part-year resident may not subtract income from column B.
If you are a nonresident alien, use column B and column C to adjust federal
AGI to include income from all sources, even if you were not required to
report it on your federal tax return. California does not have special rules
limiting total AGI from all sources to U.S. source or effectively connected
income of nonresident aliens.
You may need one of the following FTB publications to complete column B
and column C:
1001, Supplemental Guidelines to California Adjustments
1005, Pension and Annuity Guidelines
1031, Guidelines for Determining Resident Status
1032, Tax Information for Military Personnel
1100, Taxation of Nonresidents and Individuals Who Change Residency
To get forms and publications, go to ftb.ca.gov/forms.
Section A – Income
Line 1 – Wages, Salaries, Tips, etc.
Generally, no adjustments are made on this line. If you did not receive any of
the following types of income, make no entry on this line in either column B
or column C.
Military pay adjustment. Compensation for military service of a
servicemember domiciled outside of California is exempt from California tax.
It is excluded from AGI from all sources. For more information, get FTB Pub.
1032.
Active duty military servicemembers domiciled outside of California, may
claim an adjustment for active duty military pay.
To claim the adjustment, write “MPA” to the left of column A or include it
according to your software’s instructions and enter only the amount of your
active duty military pay in column B. Exclude this amount from column E.
Combat zone foreign earned income exclusion. For taxable years beginning
on and after January 1, 2018, California does not conform to the federal
foreign earned income exclusion for amounts received by certain U.S.
citizens or resident aliens with an abode in the U.S., specifically contractors
or employees of contractors supporting the U.S. Armed Forces in designated
combat zones. Enter the amount excluded from federal income on line 8f,
column C.
Combat zone extended to Egypt’s Sinai Peninsula. Federal law extended
combat zone tax benefits to the Sinai Peninsula of Egypt. California does not
conform. Enter the amount of combat pay excluded from federal income on
line 1, column C. Get FTB Pub. 1032 for more information.
Schedule CA (540NR) Instructions 2019 Page 43
Sick pay received under the Federal Insurance Contributions Act and
Railroad Retirement Act. California excludes these items from income. Enter
in column B the amount of these benefits included in the amount in column A.
Ride-sharing fringe benet differences. Under federal law, certain qualified
transportation benefits are excluded from gross income. Under the California
R&TC, there are no monthly limits for the exclusion of these benefits and
California’s definitions are more expansive. Enter the amount of ridesharing
benefits received and included in federal income on line 1, column B.
Foreign income. If you excluded income exempted by U.S. tax treaties on
your federal Form 1040 or 1040-SR (unless specifically exempt for state
purposes), enter the excluded amount in column C. If you claimed foreign
earned income or housing cost exclusion on your federal Form 1040 or
1040-SR (under IRC Section 911), see the instructions for line 8.
Exclusion for compensation from exercising a California Qualied Stock
Option (CQSO). To claim this exclusion:
Your earned income is $40,000 or less from the corporation granting the
CQSO.
The market value of the options granted to you must be less than
$100,000.
The total number of shares must be 1,000 or less.
The corporation issuing the stock must designate that the stock issued is
a CQSO at the time the option is granted.
If you included in federal income an amount qualifying for this exclusion,
enter that amount on line 1, column B.
Nonresident compensation of merchant seamen and employees of rail
carriers, motor carriers, and air carriers. Exclude the following from gross
income: compensation for the performance of duties of certain merchant
seamen, rail carriers, motor carriers, and air carriers. Enter the amount
included in federal income on line 1, column B. For more information, get FTB
Pub. 1031.
Employer health savings account (HSA) contribution. Enter the amount
of any employer HSA contribution from federal Form W-2, Wage and Tax
Statement, box 12, code W on line 1, column C.
Income exclusion for In-Home Supportive Services (IHSS) supplementary
payments. If you are an IHSS provider who received IHSS supplementary
payments that were included in federal wages, enter the IHSS supplementary
payments on line 1, column B. IHSS providers only receive a supplementary
payment if they paid a sales tax on the IHSS services they provide. The
supplementary payment is equal to the sales tax paid plus any increase in the
federal payroll withholding paid due to the supplementary payment.
Native American earned income exemption. California does not tax federally
recognized tribal members living in California Indian country who earn
income from any federally recognized California Indian country. Military
compensation is considered income from reservation sources. Enrolled
members who receive reservation source per capita income must reside in
their affiliated tribe’s Indian country to qualify for tax exempt status. Enter
on line 1, column B the earnings included in federal income that are exempt
for California. Attach form FTB 3504, Enrolled Tribal Member Certification, to
Form 540NR. For more information, get form FTB 3504.
Line 2 – Taxable Interest
If you did not receive any of the kinds of income listed below, make no entry
on this line in either column B or column C.
Enter in column B, the interest that you received from:
U.S. saving bonds (except for interest from series EE U.S. savings bonds
issued after 1989 that qualified for the Education Savings Bond Program
exclusion).
U.S. Treasury Bills, notes, and bonds.
Any other bonds or obligations of the United States and its territories.
Interest from Ottoman Turkish Empire settlement payments.
Interest income from children under age 19 or students under age 24
included on the child’s federal tax return and reported on the California tax
return by the parent. For more information, get form FTB 3803, Parents’
Election to Report Child’s Interest and Dividends.
Certain mutual funds pay “exempt-interest dividends.” If the mutual fund has
at least 50% of its assets invested in tax-exempt U.S. obligations and/or in
California or its municipal obligations, that amount of dividend is exempt from
California tax. The proportion of dividends tax-exempt will be shown on your
annual statement or statement issued with Form 1099-DIV, Dividends and
Distributions. For more information, get FTB Pub. 1001.
Enter in column C, the interest you identified as tax-exempt interest on your
federal Form 1040 or 1040-SR, line 2a or Form 1040NR, line 9b; and which
you received from:
The federally exempt interest dividends from other states, or their
municipal obligations and/or from mutual funds that do not meet the 50%
rule above.
Non-California state bonds.
Non-California municipal bonds issued by a county, city, town, or other
local government unit.
Obligations of the District of Columbia issued after December 27, 1973.
Non-California bonds if the interest was passed through to you from
S corporations, trusts, partnerships, or Limited Liability Companies
(LLCs).
Interest or other earnings from a Health Savings Account (HSA) are not
treated as tax deferred. Interest or earnings in an HSA are taxable in the
year earned.
Interest on any bond or other obligation issued by the Government of
American Samoa.
Interest income from children under the age of 19 or students under
age 24 included on the parent’s federal tax return and reported on the
California tax return by the child.
Make no entries in either column B or column C for interest earned on Federal
National Mortgage Association (Fannie Mae) Bonds, Government National
Mortgage Association (Ginnie Mae) Bonds, and Federal Home Loan Mortgage
Corporations (FHLMC) securities, or grants paid to low-income individuals.
Get FTB Pub. 1001, if you received interest income from the items listed above
passed through to you from S corporations, trusts, partnerships, or LLCs.
Line 3 – Ordinary Dividends
Generally, no difference exists between the amount of dividends reported in
column A and the amount reported using California law. However, California
taxes dividends derived from other states and their municipal obligations.
Enter in column B dividend income from children under age 19 and students
under age 24, included on the parent’s or child’s federal tax return and
reported on the California tax return by the opposite taxpayer.
Enter in column C dividend income from children under age 19 and students
under age 24, excluded on the parent’s or child’s federal tax return and
reported on the California tax return by the opposite taxpayer.
Get FTB Pub. 1001, if you received dividend income from:
Noncash patronage dividends from farmers’ cooperatives or mutual
associations.
A controlled foreign corporation (CFC).
Distribution of pre-1987 earnings from S corporations.
Undistributed capital gains for regulated investment company (RIC)
shareholders.
Line 4a and b – IRA Distributions
Beginning with tax year 2002, calculate your IRA basis as if you were a
California resident for all prior years. Generally, no adjustments are made on
this line. However, there may be significant differences in the taxable amount
of a distribution (including a distribution from conversion of a traditional
IRA to a Roth IRA) depending on when you made your IRA contributions.
California did not conform to the $2,000 or 100% of compensation annual
contribution limit permitted under federal law from 1982 through 1986.
During these years, California limited the deduction to the lesser of 15% of
compensation or $1,500 and disallowed a deduction altogether to individuals
who were active participants in qualified government plans. Any amount an
individual contributed in excess of California deduction limits during these
years creates a basis in the IRA.
Differences also occur if your California IRA deductions were different from
your federal deductions because of differences between California and federal
self-employment income.
If the taxable amount using California law is:
Less than the amount taxable under federal law, enter the difference in
column B.
More than the amount taxable under federal law, enter the difference in
column C.
Get FTB Pub. 1005, for more information and worksheets for figuring the
adjustment to enter on this line, if any.
Coverdell Education Savings Account (ESA) formerly known as Education
(ED) IRA – If column A includes a taxable distribution from an ED IRA, you
may owe additional tax on that amount. Get form FTB 3805P, Additional Taxes
on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts.
Line 4c and d – Pensions and Annuities
Generally, no adjustments are made on this line. However, if you received Tier
2 railroad retirement benefits or partially taxable distributions from a pension
plan, you may need to make the adjustments.
Page 44 Schedule CA (540NR) Instructions 2019
If you received a federal Form RRB-1099-R, Annuities or Pensions by the
Railroad Retirement Board, for railroad retirement benefits and included all or
part of these benefits in taxable income in column A, enter the taxable benefit
amount in column B.
If you began receiving a retirement annuity between July 1, 1986, and
January 1, 1987, and elected to use the three-year rule for California purposes
and the annuity rules for federal purposes, enter in column C the amount of
the annuity payments you excluded for federal purposes.
You may have to pay an additional tax if you received a taxable distribution
from a qualified retirement plan before reaching age 59½ and the distribution
was not rolled over into another qualified plan. Get form FTB 3805P for more
information.
Line 5 - Social Security Benets
California excludes U.S. social security benefits or equivalent Tier 1 railroad
retirement benefits from taxable income. Enter in column B the amount of
taxable U.S. social security benefits or equivalent Tier 1 railroad retirement
benefits shown in column A, line 5(b).
Line 6 – Capital Gain or (Loss)
Generally, no adjustments are made on this line. California taxes long and
short term capital gains as regular income. No special rate for long term
capital gains exists. However, the California basis of the assets listed below
may be different from the federal basis due to differences between California
and federal laws. If there are differences, use Schedule D (540NR), California
Capital Gain or Loss Adjustment, to calculate the amount to enter on line 6:
Gain on the sale of qualified small business stock under IRC Section 1045
and IRC Section 1202.
Basis amounts resulting from differences between California and federal
law in prior years.
Gain or loss on stock and bond transactions.
Installment sale gain reported on form FTB 3805E, Installment Sale
Income.
Gain on the sale of personal residence where depreciation was allowable.
Pass-through gain or loss from partnerships, fiduciaries, S corporations,
orLLCs.
Capital loss carryover from your 2018 California Schedule D (540NR).
Capital gain from children under age 19 or students under age 24 included
on the parent’s or child’s federal tax return and reported on the California
tax return by the opposite taxpayer. For more information, get form
FTB 3803.
Get FTB Pub. 1001 for more information about:
Disposition of S corporation stock acquired before 1987.
Capital gain exclusion for sale of principal residence by a surviving
spouse.
Gain on the sale or disposition of a qualified assisted housing
development to low-income residents or to specified entities maintaining
housing for low-income residents.
Undistributed capital gain for RIC shareholders.
Gain or loss on the sale of property inherited before January 1, 1987.
Capital loss carrybacks.
Section B – Additional Income
Line 1 – Taxable Refunds, Credits, or Offsets of State and Local Income
Taxes
California does not tax the state income tax refund. Enter in column B, the
amount of state tax refund entered in column A.
Line 2a – Alimony Received
Under federal law (TCJA), alimony and separate maintenance payments
are not includable in the income of the receiving spouse, if made under
any divorce or separation agreement executed after December 31, 2018, or
executed on or before December 31, 2018 and modified after that date (if the
modification expressly provides that the amendments apply). California does
not conform. If you received alimony not included in your federal income,
enter the alimony received in column C.
If you are a nonresident alien and received alimony not included in your
federal income, enter the alimony on this line in column C.
Line 3 – Business Income or (Loss)
Adjustments to federal business income or loss you reported in column A
generally are necessary because of the difference between California and
federal law relating to depreciation methods, special credits, and accelerated
write-offs. As a result, the recovery period or basis used to figure California
depreciation may be different from the amount used for federal purposes.
Adjustments are figured on form FTB 3885A, Depreciation and Amortization
Adjustments, and are most commonly necessary because of the following:
Before January 1, 1987, California did not allow depreciation under the
federal accelerated cost recovery system. Continue to figure California
depreciation for those assets in the same manner as prior years.
On or after January 1, 1987, California provides special credits and
accelerated write-offs that affect the California basis of qualifying assets.
Refer to the bulleted list below.
Use form FTB 3801, Passive Activity Loss Limitations, to figure the total
adjustment for line 3 if you have:
One or more passive activities that produce a loss.
One or more passive activities that produce a loss and any nonpassive
activity reported on federal Schedule C (Form 1040 or 1040-SR), Profit or
Loss From Business.
Use form FTB 3885A to figure the total adjustment for line 3 if you have:
Only nonpassive activities which produce either gains or losses (or a
combination of gains and losses).
Passive activities that produce gains.
Limitation on deduction of business interest. Under federal law, every
business, regardless of its form, is generally subject to a disallowance of
a deduction for net interest expense in excess of 30% of the business’s
adjustable taxable income. California does not conform. Figure the difference
between the amounts allowed using federal law and California law. Enter the
difference on line 3, column B.
Limitation on employer’s deduction for fringe benet expenses. Under
federal law, deductions for entertainment expenses are disallowed; the
current 50% limit on the deductibility of business meals is expanded to
meals provided through an in-house cafeteria or otherwise on the premises
of the employer; deductions for employee transportation fringe benefits
(e.g., parking and mass transit) are denied; and no deduction is allowed for
transportation expenses that are the equivalent of commuting for employees
(e.g., between the employee’s home and the workplace), except as provided
for the safety of the employee. California does not conform. Figure the
difference between the amounts allowed using federal law and California law.
Enter the difference on line 3, column B or column C.
Limitation on wagering losses. Under federal law, all deductions for
expenses incurred in carrying out wagering transactions, and not just
gambling losses, are limited to the extent of gambling winnings. California
does not conform. Figure the difference between the amounts allowed using
federal law and California law. Enter the difference on line 3, column B.
Sexual harassment settlements. Under federal law, no deduction is allowed
for any settlement, payout, or attorney fees related to sexual harassment or
sexual abuse if such payments are subject to a nondisclosure agreement.
California does not conform. Enter the amount received and included in
federal income on line 3, column B.
Penalty Assessed by Professional Sports League. California does not
allow a business expense deduction for any fine or penalty paid or incurred
by an owner of a professional sports franchise assessed or imposed by the
professional sports league that includes that franchise. If the fine or penalty
was deducted for federal purposes, enter this amount on line 3, column C.
Business Expense Deduction Disallowance – California disallows a
deduction for a business expense related to a payment to the Edge College
and Career Network, LLC, to a taxpayer who meets all of the following:
They are charged as a defendant in any of several specified criminal
complaints as listed in R&TC Section 17275.4.
There is a final determination of their guilt with regard to a violation of any
offense arising out of that criminal complaint.
There is a finding that they took the deduction unlawfully.
For more information, see R&TC 17275.4. Enter the amount of this deduction
on line 3, column C.
Get FTB Pub. 1001 for more information about:
Income related to:
Business, trade, or profession carried on within California that is an integral
part of a unitary business carried on both within and outside California.
Pro-rata share of income received from a CFC by a U.S. shareholder.
Basis adjustments related to:
Property acquired prior to becoming a California resident.
Sales or use tax credit for property used in a former Enterprise Zone
(EZ), Local Agency Military Base Recovery Area (LAMBRA), Targeted Tax
Area (TTA), or Los Angeles Revitalization Zone (LARZ).
Reduced recovery periods for fruit-bearing grapevines replaced in a
California vineyard on or after January 1, 1992, as a result of phylloxera
infestation; or on or after January 1, 1997, as a result of Pierce’s disease.
Schedule CA (540NR) Instructions 2019 Page 45
Expenditures for tertiary injectants.
Property placed in service on an Indian reservation after
December 31, 2017, and before January 1, 2021.
Amortization of pollution control facilities.
Discharge of real property business indebtedness.
Vehicles used in an employer-sponsored ridesharing program.
An enhanced oil recovery system.
Joint Strike Fighter property costs.
The cost of making a business accessible to disabled individuals.
Property for which you received an energy conservation subsidy from a
public utility on or after January 1, 1995, and before January 1, 1997.
Research and experimental expenditures.
Reduction of capitalized costs attributable to the Work Opportunity Credit.
Business deductions related to:
Wages paid in a former EZ, LAMBRA, Manufacturing Enhancement Area
(MEA), or TTA.
Certain employer costs for employees who are also enrolled members of
Indian tribes.
Abandonment or tax recoupment fees for open-space easements and
timberland preserves.
Research expense.
Employer wage expense for the Work Opportunity Credit.
Pro-rata share of deductions received from a CFC by a U.S. shareholder.
Interest paid on indebtedness in connection with company-owned life
insurance policies.
Premiums paid on life insurance policies, annuities or endowment
contracts issued after June 8, 1997, where the owner of the business is
directly or indirectly a policy beneficiary.
Commercial Revitalization Deductions for Renewal Communities.
Small Employer Health Insurance Credit
Line 4 – Other Gains or (Losses)
Generally, no adjustments are made on this line. However, the California basis
of your other assets may differ from your federal basis due to differences
between California and federal law. Therefore, you may have to adjust the
amount of other gains or losses. Get Schedule D-1, Sales of Business
Property, for more information.
Line 5 – Rental Real Estate, Royalties, Partnerships, S Corporations, Trusts,
etc.
Adjustments to federal income or loss you reported in column A generally
are necessary because of the difference between California and federal
law relating to depreciation methods, special credits, and accelerated
write-offs. As a result, the recovery period or basis used to figure California
depreciation may be different from the recovery period or amount used for
federal purposes. For more information, see the instructions for Schedule CA
(540NR), column B and column C, line 3.
California law does not conform to federal law for material participation in
rental real estate activities. Beginning in 1994, and for federal purposes only,
rental real estate activities conducted by persons in real property businesses
are not automatically treated as passive activities. Get form FTB 3801, for
more information.
Use form FTB 3801, to figure the total adjustment for line 5 if you have:
One or more passive activities that produce a loss.
One or more passive activities that produce a loss and any nonpassive
activity reported on federal Schedule E (Form 1040 or 1040-SR),
Supplemental Income and Loss.
Use form FTB 3885A, to figure the total adjustment for line 5 if you have:
Only nonpassive activities which produce either gains or losses (or a
combination of gains and losses).
Passive activities that produce gains.
LLCs that are classified as partnerships for California purposes and
limited liability partnerships (LLPs) are subject to the same rules as other
partnerships. LLCs report distributive items to members on Schedule K-1
(568), Member’s Share of Income, Deductions, Credits, etc. LLPs report to
partners on Schedule K-1 (565), Partner’s Share of Income, Deductions,
Credits, etc.
Get FTB Pub. 1001, for more information about accumulation distributions
to beneficiaries for which the trust was not required to pay California tax
because the beneficiary’s interest was contingent.
Line 6 – Farm Income or (Loss)
Adjustments to federal income or loss you report in column A generally
are necessary because of the difference between California and federal law
relating to depreciation methods, special credits, NOLs, and accelerated
write-offs. As a result, the recovery period or the basis you should use
to figure California depreciation may be different from the amount used
for federal purposes. For more information about the types of income
and adjustments that often require adjustments, see the instructions for
ScheduleCA (540NR), column B and column C, line 3.
Use form FTB 3801, to figure the total adjustment for line 18 if you have:
One or more passive activities that produce a loss.
One or more passive activities that produce a loss and any nonpassive
activity reported on federal Schedule F (Form 1040 or 1040-SR), Profit or
Loss From Farming.
Use form FTB 3885A, to figure the total adjustment for line 6 if you have:
Only nonpassive activities which produce either gains or losses (or a
combination of gains and losses).
Passive activities that produce gains.
Line 7 – Unemployment Compensation
California excludes unemployment compensation from taxable income. Enter
on line 7, column B, the amount of unemployment compensation shown in
column A.
Paid Family Leave Insurance (PFL) benets, also known as, Family
Temporary Disability Insurance. California excludes payments received from
the PFL program from taxable income. Enter on line 7, column B, the amount
of PFL program payments shown in column A. For more information, get FTB
Pub. 1001.
Line 8 – Other Income
a. California Lottery Winnings
California excludes California lottery winnings from taxable income. Enter
in column B the amount of California lottery winnings included in the
federal amount on line 8, column A.
Make no adjustment for lottery winnings from other states. They are
taxable by California. If you reduced gambling income for California
lottery income, you may need to reduce the losses included in the federal
itemized deductions on Part III, line 16, column A. Enter these losses on
Part III, line 16, column B.
b. Disaster Loss Deduction
If you have a California disaster loss carryover deduction and there is
income in the current taxable year, enter the total amount from your 2018
form FTB 3805V, Net Operating Loss (NOL) Computation and NOL and
Disaster Loss Limitations – Individuals, Estates, and Trusts, Part III, line 6
as a positive number in column B.
NOL Attributable to a Qualied Disaster – If you deduct a 2019 disaster
loss in the 2019 taxable year that results in an NOL, the NOL can be
carried forward. Get FTB 3805V for more information.
c. Federal NOL from federal Schedule 1 (Form 1040 or 1040-SR), line 8
If the amount on line 8 in column A includes a federal NOL, enter the
amount of the federal NOL as a positive number in column C. Get form
FTB 3805V to figure the allowable California NOL.
d. NOL Carryover from Form FTB 3805V, Part III, line 5
The allowable NOL carryover under California law is different from the
allowable NOL carryover under federal law. If you have a California NOL
carryover from your 2018 form FTB 3805V, enter it as a positive number
in column B.
e. NOL from Forms FTB 3805Z, FTB 3806, FTB 3807, or FTB 3809
Enter in column B the total NOL figured on the following forms.
FTB 3805Z, Enterprise Zone Deduction and Credit Summary, line 3b.
FTB 3806, Los Angeles Revitalization Zone Net Operating Loss (NOL)
Carryover Deduction, line 2b.
FTB 3807, Local Agency Military Base Recovery Area Deduction and
Credit Summary, line 3b.
FTB 3809, Targeted Tax Area Deduction and Credit Summary, line 3b.
f. Other (describe)
Identify the type of income reported in the space provided. If there is
more than one item to report on line 8f, attach a statement that lists each
item and enter the total of all individual items in column B or column C as
instructed below.
IRC Section 965 deferred foreign income. If you included IRC 965
deferred foreign income on your federal Schedule 1 (Form 1040 or
1040-SR), enter the amount on line 8f, column B and write “IRC 965” on
line 8f and at the top of Form 540NR.
Global intangible low-taxed income (GILTI) under IRC Section 951A. If
you included GILTI on your federal Schedule 1 (Form 1040 or 1040-SR),
enter the amount on line 8f, column B and write “IRC 951A” on line 8f.
Excess business loss. For taxable years beginning after December31,2018,
California law generally conforms to the changes under the Tax Cuts and
Page 46 Schedule CA (540NR) Instructions 2019
Jobs Act (TCJA) in regard to the disallowance of excess business loss
deductions of non-corporate taxpayers. For California purposes, any
disallowed loss will be treated as a carryover excess business loss for the
subsequent taxable year. If you completed federal Form 461, Limitation
on Business Losses, prepare a second set of forms reflecting your
excess business loss using California amounts (i.e., following California
law). Compare federal Form 461, line 16 and the form completed using
California amounts. Enter the difference between the federal and California
amount on line 8f, column B or column C. Attach federal Form 461, using
California amounts, to the tax return.
Qualied equity grants. California does not conform to federal law
regarding the election to defer the recognition of income attributable to
qualified stock. If you elected to defer income for federal purposes, make
an adjustment on line 8f, column C.
Expanded use of 529 account funds. California does not conform to
federal law regarding the IRC Section 529 account funding for elementary
and secondary education or to the maximum distribution amount. If the
amount was excluded for federal purposes, make an adjustment on line
8f, column C.
Olympic Medals and Prize Money. If you excluded the value of any
award, medal, or prize money on your federal Form 1040 or 1040-SR,
enter the excluded amount on line 8f, column C. For more information, get
FTB Pub. 1001.
Native American earned income exemption. California does not tax
federally recognized tribal members living in California Indian country
who earn income from any federally recognized California Indian country.
Military compensation is considered income from reservation sources.
Enrolled members who receive reservation sourced per capita income
must reside in their affiliated tribe’s Indian country to qualify for tax
exempt status. For more information, see form FTB 3504. Enter on line
8f, column B the income included in federal income that is exempt for
California and write “FTB 3504” on line 8f. Attach form FTB 3504 to the
Form 540NR.
Parents’ Election to Report Child’s Interest and Dividends. California
conforms to federal law for elections made by parents reporting
their child’s interest and dividends. Parents may elect to report their
child’s income on their California income tax return by completing
form FTB 3803, Parents’ Election to Report Child’s Interest and Dividends.
If you make this election, the child will not have to file a tax return. You
may report your child’s income on your California income tax return even
if you do not do so on your federal income tax return.
If the amount of your child’s income you are reporting on your California
income tax return is different than the amount you reported on your
federal income tax return, enter the difference on line 8f, column B or
column C and write “FTB 3803” on line 8f. Get form FTB 3803 for more
information.
Reward from a crime hotline. Enter in column B the amount of a reward
authorized by a government agency received from a crime hotline
established by a government agency or nonprofit organization that is
included in the amount on line 8, column A.
You may not make this adjustment if you are an employee of the hotline or
someone who sponsors rewards for the hotline.
Federal foreign income or housing exclusion. Enter in column C the
amount deducted from federal income on federal Schedule 1 (Form 1040
or 1040-SR), line 8.
Combat zone foreign earned income exclusion. Enter the amount
excluded from federal income on line 8f, column C.
Beverage container recycling income. Enter in column B the amount of
recycling income included in the amount on line 8, column A.
Rebates or vouchers from a local water agency, energy agency, or
energy supplier. California law allows an income exclusion for rebates
or vouchers from a local water agency, energy agency, or energy supplier
for the purchase and installation of water conservation appliances and
devices. Enter in column B the amount of this type of income included in
the amount on line 8, column A.
Financial Incentive for Seismic Improvement. California law allows an
income exclusion for loan forgiveness, grant, credit, rebate, voucher, or
other financial incentive issued by the California Residential Mitigation
Program or California Earthquake Authority to assist a residential
property owner or occupant with expenses paid, or obligation incurred for
earthquake loss mitigation. Enter in column B the amount of this type of
income included in the amount on line 8, column A.
Original issue discount (OID) for debt instruments issued in 1985 and
1986. In the year of sale or other disposition, you must recognize the
difference between the amount reported on your federal tax return and
the amount reported for California purposes. Issuers: Enter the difference
between the federal deductible amount and the California deductible
amount on line 8f in column B. Holders: Enter the difference between the
amount included in federal gross income and the amount included for
California purposes on line 8f in column C.
Foreign income of nonresident aliens. Adjust federal income to reflect
worldwide income computed under California law. Enter losses from
foreign sources in column B. Enter foreign source income in column C.
Cost-share payments received by forest landowners. Enter in column B
the cost-share payments received from the Department of Forestry and
Fire Protection under the California Forest Improvement Act of 1978 or
from the United States Department of Agriculture, Forest Service, under
the Forest Stewardship Program and the Stewardship Incentives Program,
pursuant to the Cooperative Forestry Assistance Act.
Coverdell ESA distributions. If you received a distribution from a
Coverdell ESA, report the difference between the federal taxable amount
and the California taxable amount in column B or column C.
Grants paid to low-income individuals. California excludes grants paid
to low-income individuals to construct or retrofit buildings to make them
more energy efficient. Federal has no similar exclusion. Enter on line 8f,
column B the amount of this type of income.
Health Savings Account (HSA) distributions for unqualied medical
expense. Distributions from an HSA not used for qualified medical
expenses and included in federal income, are not taxable for California
purposes. Enter the distribution not used for qualified medical expenses
on line 8f, column B.
California National Guard Surviving Spouse & Children Relief Act of
2004.
Death benefits received from the State of California by a surviving
spouse/RDP or member-designated beneficiary of certain military
personnel killed in the performance of duty is excluded from gross
income. Military personnel include the California National Guard, State
Military Reserve, or the Naval Militia. If you reported a death benefit on
line 8, column A, enter the death benefit amount in column B.
Ottoman Turkish Empire settlement payments. If you received settlement
payments as a person persecuted by the regime that was in control of the
Ottoman Turkish Empire from 1915 until 1923 your gross income does
not include those excludable settlement payments, or interest, received
by you, your heirs, or your estate for payments received on or after
January 1, 2005. If you reported settlement payments on line 8, column A,
enter the amount of settlement payments in column B.
Mortgage forgiveness debt relief. California law does not conform
to federal law regarding the exclusion of income from discharge of
indebtedness from the disposition of your principal residence occurring
after December 31, 2017. Enter the amount of discharge on line 8f,
column C.
g. Student Loan Discharged Due to Closure of a For-Prot School.
California law allows an income exclusion for income that would result
from the discharge of any student loan of an eligible individual. An
individual is eligible for the exclusion if any of the following apply during
the taxable year.
1. The individual is granted a discharge of any student loan because:
a. The individual successfully asserts that the school did something
wrong or failed to do something that it should have done.
b. The individual could not complete a program of study due to the
school closing.
2. The individual attended a Brightwood College school on or before
December 5, 2018, and is granted a discharge of any student loan made in
connection with attending that school, and that discharge is not covered
under item 1 above.
3. The individual attended a location of The Art Institute of California and is
granted a discharge of any student loan made in connection with attending
that school, and that discharge is not covered under item 1 above.
4. The individual is granted a discharge of any student loan pursuant to the
discharge agreement. For definition of “discharge agreement”, refer to
R&TC Section 17144.7 for more information.
5. The individual attended a Corinthian Colleges, Inc. school on or before May
1, 2015, is granted a discharge of any student loan made in connection
with attending that school, and that discharge is not covered under item 1
or 4 above.
Enter in column B the amount of this type of income included in the amount
on line 8g, column A.
Schedule CA (540NR) Instructions 2019 Page 47
Line 9 – Total
Add Section A, line 1 through line 6, and Section B, line 1 through line 8g in
column B and column C. Enter the totals on line 9.
Section C - Adjustments to Income
Line 10 through Line 18a and Line 19 through Line 21
California law is the same as federal with the exception of the following:
Line 10 (Educator Expenses) – California does not conform to federal law
regarding educator expenses. Enter the amount from column A, line 10 to
column B, line 10.
Line 11 (Certain Business Expense of Reservists, Performing Artists, and
Fee Basis Government Officials) – If claiming a depreciation deduction
as an unreimbursed employee business expense on federal Form 2106,
Employee Business Expenses, you may have an adjustment in column B
or column C. For more information, get Pub. 1001.
Federal law eliminated the $3,000 deduction for living expenses for
members of Congress while away from home. California does not
conform. Enter the amount of living expenses on line 11, column C.
Line 12 (Health Savings Account (HSA) Deduction) – Federal law allows
the taxpayer a deduction for contributions to an HSA account. California
does not conform. Transfer the amount from column A, line 12, to
column B, line 12.
Line 13 (Moving Expenses) – California does not conform to federal law
regarding the suspension of the deduction for moving expenses, except
for members of the Armed Forces on active duty. Non-military taxpayers
prepare federal Form 3903, Moving Expenses, using California amounts.
If you have excess moving expense reimbursements, enter the amount
of moving expenses from line 3 of federal Form 3903 on Schedule CA
(540NR), line 13, column C. If your reimbursements are less than your
moving expenses, enter the amount of moving expenses from line 5 of
federal Form 3903 on Schedule CA (540NR), line 13, column C.
Line 18a (Alimony Paid) – Under federal law (TCJA), alimony and separate
maintenance payments are not deductible by the payor spouse, if made
under any divorce or separation agreement executed after December 31,
2018, or executed on or before December 31, 2018, and modified after
that date (if the modification expressly provides that the amendments
apply). California does not conform. If you paid alimony and did not
deduct it on your federal tax return, enter the alimony in column C.
If you are a nonresident alien and did not deduct alimony on your federal
tax return, enter the amount you paid in column C.
Line 18b (Recipient’s SSN/Last Name) - Enter the SSN or ITIN and last
name of the person to whom you paid alimony.
Line 19 (IRA Deduction) – If you are an active duty military
servicemember domiciled outside of California, you may have an
adjustment. See line 22 instructions.
Line 20 (Student Loan Interest Deduction) – California conforms to federal
law regarding student loan interest deduction except for non-California
domiciled military taxpayers. Military taxpayers use the Student Loan
Interest Deduction Worksheet in the next column to compute the amount
to enter on line 20. For more information, get FTB Pub. 1032.
Line 21 (Tuition and Fees) – California does not conform to federal
law regarding the tuition and fees deduction. Enter the amount from
columnA, line 21 on column B, line 21.
Line 22 – Add line 10 through line 18a and line 19 through line 21 in column B
and column C. Enter the totals on this line in the appropriate columns.
If you claimed the foreign housing deduction, include that amount in the total
you enter in column B, line 22. Enter the amount and “Form 2555” on the
dotted line next to line 22.
If you are active duty military and not domiciled in California and your
IRA deduction was limited because of a federal AGI limitation, recalculate
your deduction excluding your active duty military pay. If the recalculated
amount is larger than the amount on line 19, column A, enter the difference
between the two amounts in column C, line22. Enter the amount and “MPA
Adjustment” on the dotted line next to line 22.
Line 23 – Total
Subtract line 22 from line 9 in column B and column C. Enter the totals on
this line in the appropriate column. These amounts should be the same as
Form 540NR, line 14 and line 16, respectively.
In some cases the total on line 23 in column B or column C will be a negative
number. Read the caution note when you get to line 23, column E.
Student Loan Interest Deduction Worksheet
1 Enter the total amount from Schedule CA (540NR),
line 20, column A. If the amount on line 1 is zero,
STOP. You are not allowed a deduction for California . . . . . . . . 1_________
2
Enter the total interest you paid in 2019
on qualified student loans but not more than $2,500 here
.....2_________
3 Add federal Schedule 1 (Form 1040 or 1040-SR), line 20
(student loan interest deduction) to federal Form 1040 or
1040-SR, line 8b (AGI). Enter the result here
..3 _________
4 Enter the total military income
included in federal adjusted gross
income (get FTB Pub. 1032)
..............4 _________
5 Subtract line 4 from line 3................5 _________
6 Enter the amount shown below for
your filing status.
Single, head of household, or
qualifying widow(er) – $60,000
Married/RDP filing jointly – $120,000.....6 _________
7 Is the amount on line 5 more than the amount on line 6?
m No. Skip lines 7 and 8, enter -0- on
line 9, and go to line 10.
m Yes. Subtract line 6 from line 5
.........7 _________
8 Divide line 7 by $15,000 ($30,000 if married/RDP filing jointly).
Enter the result as a decimal (rounded to at least three
places). If the result is 1.000 or more, enter 1.000
..........8 _ . _ _ _ _
9 Multiply line 2 by line 8............................... 9_________
10 Student loan interest deduction. Subtract line 9
from line 2. Enter the result here and on,
Schedule CA (540NR), line 20, column D
................10_________
11
Student loan interest adjustment. Enter the result here.
If line 1 is less than line 10, enter the difference on
Schedule CA (540NR), line 20, column C.
................11_________
Column D — Total Amounts Using California Law
Use this column to show the amount remaining after adjustments
(subtractions or additions).
For each line, Section A, line 1 through line 6, and Sections B and C, line 1
through line 23:
1. Subtract the amounts in column B from the amounts in column A.
2. Add the amounts in column C to the result of the calculation made in
1 above.
3. Enter the total in column D.
Line 8 – Other Income
If you made any adjustments on line 8 in column B or column C:
Step 1 Add the adjustments in column B, lines a, b, d, e, f, and g.
Step 2 Subtract that total from line 8, column A.
Step 3 Add the adjustments in column C, lines c and f.
Step 4 Add that total to the result of Step 2; then continue as instructed
above for all other lines.
The total on line 23, column D should be the same as the amount on
Form 540NR, line 17.
Page 48 Schedule CA (540NR) Instructions 2019
Column E — California Amounts
Column E is used to show how much of the amount of income reported on
Schedule CA (540NR), column D is taxable by California. The taxable amount
depends on your residency status.
Full-year California resident: A resident is taxed on all income from all
sources, including income from sources outside California. Follow the
“California Resident Amounts” instructions for each line below. Full-year
residents use Form 540NR if filing jointly with a spouse/RDP who is a
nonresident or a part-year resident.
Full-year nonresident: A nonresident is only taxed on income derived
from California sources. Follow the “California Nonresident Amounts”
instructions for each line below.
Part-year resident: A part-year resident is taxed on all income from all
sources while a resident and only on income derived from California
sources while a nonresident. Follow the instructions as stated in the
Part-Year Resident Worksheet instructions.
Refer to instructions for each line below to be sure you are including the
correct amounts.
Section A – Income
Line 1 – Wages, Salaries, Tips, Etc.
California resident amounts – Enter the wages, salaries, tips, or other
compensation that you received while a California resident. Active duty
military personnel, who are domiciled in California and stationed in California,
report their military income here. Get FTB Pub. 1032 for more information.
California nonresident amounts – If you worked in California while a
nonresident, enter the wages, salaries, tips, or other compensation received
for those California services.
Line 2 – Taxable Interest
California resident amounts – Enter the interest income received while a
California resident.
California nonresident amounts – Enter the interest income received while a
nonresident from an account or security that was used in a trade or business
or was pledged as security for a loan, the proceeds of which were used in a
trade or business located in California.
Line 3 – Ordinary Dividends
California resident amounts – Enter the ordinary dividends received while a
California resident.
California nonresident amounts – Enter the ordinary dividends received
while a nonresident from an account or security that was used in a trade or
business or was pledged as security for a loan, the proceeds of which were
used in a trade or business located in California.
Line 4a and b – IRA Distributions
California resident amounts Enter the taxable portion of the IRA
distributions received while a California resident. Include regular distributions,
premature distributions, and any other money or property received from your
IRA account or annuity.
For more information on traditional, Coverdell ESA, and Roth IRAs, get
FTB Pub. 1005.
If this amount is a premature distribution and you owed the early distribution
tax on your federal tax return, you generally owe this tax to California. Get
form FTB 3805P, to figure any additional tax due on this amount.
California nonresident amounts – IRA distributions received by a
nonresident are not taxable.
Line 4c and d – Pensions and Annuities (Taxable Amount)
California resident amounts – Enter the portion of taxable pension and
annuity income received while a resident of California.
If this amount is a premature distribution and you owed the early distribution
tax on your federal tax return, you generally owe this tax to California. Get
form FTB 3805P to figure any additional tax due on this amount.
California nonresident amounts – Qualified retirement distributions received
by a nonresident are not taxable.
For more information, get FTB Pub. 1005.
Line 6 – Capital Gain or (Loss)
California resident amounts – Enter capital gains and losses from all sources
while a California resident.
California nonresident amounts – Enter capital gains and losses from
sources within California while a nonresident. Complete Schedule D (540NR)
Worksheet for Nonresidents and Part-Year Residents, to compute this amount.
Part-year resident amounts – Complete Schedule D (540NR) Worksheet
for Nonresidents and Part-Year Residents. Enter the amount from column E,
line4 (if there is an overall gain) or line 5 (if there is a loss) of that worksheet
on the Part-Year Resident Worksheet, line 6, column C, that is located at the
end of the Schedule CA (540NR) instructions.
Section B – Additional Income
Line 2a – Alimony Received
California resident amounts – Enter the alimony received while a California
resident.
California nonresident amounts – Alimony received by a nonresident is not
taxable.
Line 3 – Business Income or (Loss)
California resident amounts – Enter the total profits or losses (including
losses allowed from passive activities) from all businesses conducted while a
California resident.
California nonresident amounts – Enter the total amount of profits or losses
(including losses allowed from passive activities) from all businesses sourced
to California while a nonresident of California. California uses a mandatory
market assignment method and single-sales factor apportionment to
apportion business income to California. A nonresident may have California
sourced income or apportionable business income if receiving income from
intangibles or services from California sources.
If, as a nonresident, you derived income from a business, trade, or profession
conducted partly within California and partly outside California, only income
from the part conducted within California is considered California source
income that you must report in column E. If there is any business relationship
between the parts within and outside California (flow of goods, etc.),
apportion the gross income or loss from the entire business. To determine
the portion of income or loss from businesses engaged in multistate
activities that you must report, use the apportionment formula described in
Schedule R, Apportionment and Allocation of Income.
Line 4 – Other Gains or (Losses)
California resident amounts – Enter gains and losses (including losses
allowed from passive activities) from all sources while a resident.
California nonresident amounts – Enter gains and losses from sources
within California while a nonresident.
Line 5 – Rental Real Estate, Royalties, Partnerships, S Corporations,
Trusts, Etc.
California resident amounts – Enter your profit or loss (including losses
allowed from passive activities) from all rents, royalties, partnerships,
S corporations, LLCs, estates, and trusts that accrued while a California
resident.
California nonresident amounts – Enter your profit or loss related to
property or business located in California while a nonresident of California.
Your Schedule K-1 (100S, 541, 565, or 568) will indicate the amount of
S corporation, estate, trust, partnership, or LLC profit or loss derived from
California sources.
Part-year resident amounts – Allocate income between the period of
residency and the period of non residency in a manner that reflects the actual
date of realization of partnership, S corporation, and certain trust income.
In the absence of information that reflects the actual date of realization, the
taxpayer allocates an annual amount on a proportional basis between the two
periods, using a daily pro-rata methodology. For more information, get FTB
Pub. 1100.
Line 6 – Farm Income or (Loss)
California resident amounts – Enter profit or loss (including losses allowed
from passive activities) from all farming activity while a California resident.
California nonresident amounts – Enter profit or loss (including losses
allowed from passive activities) for farming activity conducted in California
while a nonresident of California.
Line 8 – Other Income
Identify the type of income reported in the space provided. If there is more
than one item to report on line 8f, attach a statement that lists each item and
enter the total of all individual items in column E.
Schedule CA (540NR) Instructions 2019 Page 49
Line 9 – Total
Add Section A, line 1 through line 6, and Section B, line 1 through line 8, in
column E. Enter the result on this line.
Section C – Adjustments to Income
Line 13 – Moving Expenses
California law and federal law are no longer the same for moving expenses. If
you moved:
Into California in connection with your new job, enter the amount from
line 13, column D, in line 13, column E.
Out of California in connection with your new job, enter -0- on line 13,
column E.
If you moved out of California in connection with your new job and received
compensation from that job attributable to a California source, your
moving expense adjustment will be limited by the ratio of California source
compensation from the new job to total compensation from the new job.
Line 14 – Deductible part of Self-Employment Tax
If you claimed a deduction in column A for self-employment tax paid,
your California deduction is limited to a percentage of the total California
deduction, line14, column D. That percentage is the ratio of:
Self-employment income Self-employment
reported income reported
in column A in column A
from all sources + from CA sources
while a CA resident while a nonresident = California ratio
Total self-employment income
reported in column A
Multiply your total California deduction, line 14, column D by the California
ratio described above and enter the result on line 14, column E. If the
California ratio is greater than 1.00, enter the amount from line 14,
column D on line 14, column E. If the California ratio is less than zero,
enter -0- on line 14, column E.
Line 15 and Line 19 – IRA, Keogh, SEP, and SIMPLE Deduction
The amount of the California deduction for IRA, Keogh, SEP, and SIMPLE
contributions is the same as the federal deduction. However, the California
deduction may be limited by California compensation or by California
self-employment income.
Example: Susan moved into California on December 1. She made contributions
to her IRA and claimed a deduction of $2,000 on her federal tax return. Her
California wages were $500. Her allowable deduction is the lesser of:
The federal deduction of $2,000.
The California compensation of $500.
Therefore, she enters $500 on line 15, column E. She will make no entry in
column B or column C.
Keogh, SEP, and SIMPLE deductions are limited to a percentage of the federal
deduction.
Self-employment income
reported in column E
___________________ = California ratio
Total self-employment
income reported
in column D
Multiply federal deductions by the California ratio described above and enter
the result on line 15, column E. If the California ratio is greater than 1.00,
enter the amount from line 15, column D on line 15, column E. If the
California ratio is less than zero, enter -0- on line 15, column E. Get FTB
Pub. 1005 for more information.
Line 16 – Self-Employed Health Insurance Deduction
If you claimed a deduction in column A for payments you made to a health
insurance plan while you were self-employed, your California deduction is
limited to a percentage of the federal deduction. That percentage is the ratio of:
Total self-employment income
reported in column E
__________________________ = California ratio
Total self-employment income
reported in column D
Multiply your federal deduction on line 16, by the California ratio described
above and enter the result on line 16, column E. If the California ratio is greater
than 1.00, enter the amount from line 16, column D on line 16, column E . If
the California ratio is less than zero, enter -0- on line 16, column E.
Line 17 – Penalty on Early Withdrawal of Savings
Enter the interest penalties charged while a California resident.
Line 18a – Alimony Paid
If you claimed a deduction in column D for alimony payments, first compute
your California ratio:
California AGI (line 23, column E)
(without the alimony deduction) = California ratio
Total AGI (line 23, column D)
(without the alimony deduction)
California nonresident amounts – Multiply the deduction (line 18a,
column D) by the California ratio (see above) and enter the amount in
line 18a, column E. If the California ratio is greater than 1.00, enter the
amount from line 18a, column D on line 18a, column E . If the California ratio
is less than zero, enter -0- on line 18a, column E.
Part-year resident amounts – Multiply the alimony paid while a nonresident
by the California ratio (see above) to determine the nonresident portion. If
the California ratio is greater than 1.00, use 1.00 for the California ratio. If the
California ratio is less than zero, your nonresident portion of alimony paid is
zero. Add the nonresident portion of alimony paid to the alimony paid while a
resident. Enter the total in line 18a, column E.
Line 22
Add line 10 through line 18a and line 19 through line 21 in column E. Enter
the result on this line.
Line 23 – Total
Subtract line 22 from Section B, line 9 in column E. This is your California
AGI. Enter the result on this line. Also enter this amount on Part IV, line 1.
Also, transfer the amount from:
Line 23, column B to Form 540NR, line 14.
If column B is a negative number, transfer the amount as a positive
number to Form 540NR, line 16.
Line 23, column C to Form 540NR, line 16.
If column C is a negative number, transfer the amount as a positive
number to Form 540NR, line 14.
Line 23, column E to Form 540NR, line 32.
If you plan to itemize deductions, go to Part III.
PartIII Adjustments to Federal Itemized
Deductions
Important: If you did not itemize deductions on your federal tax return but
will itemize deductions on your California tax return, first complete federal
Schedule A (Form 1040 or 1040-SR), Itemized Deductions. Then check the
box at the top of Schedule CA (540NR), Part III and complete lines 1 through
30. Attach a copy of federal Schedule A (Form 1040 or 1040-SR) to your
Form 540NR.
Column A - Federal Amounts
Line 1 through Line 16
Enter on line 1 through line 16 the same amounts you entered on your federal
Schedule A (Form 1040 or 1040-SR), line 1 through line 16.
Column B and Column C – Subtractions and
Additions
Use these columns to enter subtractions and additions to the federal amounts
in column A that are necessary because of differences between California
and federal law. Enter all amounts as positive numbers unless instructed
otherwise.
Line 4 – Health Savings Account (HSA) Distributions
If you received a tax-free HSA distribution for qualified medical expenses,
enter the qualified expenses paid that exceed 7.5% of federal AGI on line 4,
column C.
Line 5a – State and Local Taxes
California does not allow a deduction for state and local income tax (including
limited partnership tax and income or franchise tax paid by corporations) and
State Disability Insurance (SDI) or state and local general sales tax. Enter that
amount on line 5a, column B.
Line 5e – The federal deduction for state and local tax is limited to $10,000
($5,000 for married filing separate) for the aggregate of state and local
income taxes and property taxes. California does not conform. If your
deduction was limited under federal law, enter an adjustment on line 5e,
column C for the amount over the federal limit.
Page 50 Schedule CA (540NR) Instructions 2019
Line 6 – Other Taxes
California does not allow a deduction for foreign income taxes. Enter that
amount on line 6, column B.
Federal law suspended the deduction for foreign property taxes. California
does not conform. Enter the amount on line 6, column C.
Generation Skipping Transfer Tax – Tax paid on generation skipping transfers
is not deductible under California law. Enter the amount of generation
skipping tax included in line 6, column A on line 6, column B.
Line 8 – Home Mortgage Interest
Federal law limited the mortgage interest deduction acquisition debt
maximum from $1,000,000 ($500,000 for married filing separately) to
$750,000 ($375,000 for married filing separately). California does not
conform. If your deduction was limited under federal law, enter an adjustment
on line 8, column C for the amount over the federal limit.
Federal law suspended the deduction on up to $100,000 ($50,000 for married
filing separately) for interest on home equity indebtedness, unless the loan is
used to buy, build, or substantially improve the taxpayer’s home that secures
the loan. California does not conform. If your deduction was limited under the
federal law, enter an adjustment on line 8, column C for the amount over the
federal limit.
Mortgage Interest Credit – If you reduced your federal mortgage interest
deduction by the amount of your mortgage interest credit (from federal Form
8396, Mortgage Interest Credit), increase your California itemized deductions
by the same amount. Enter the amount of your federal mortgage interest
credit on line 8, column C.
Line 8d – Mortgage Insurance Premiums
California does not allow a deduction for mortgage insurance premiums. Enter
the amount from column A, line 8d on column B, line 8d.
Line 9 – Investment Interest Expense
Your California deduction for investment interest expense may be different
from your federal deduction. Use form FTB 3526, Investment Interest Expense
Deduction, to figure the amount to enter on line 9, column B or column C.
Line 11 – Gifts By Cash Or Check
Qualied charitable contributions Your California deduction may be
different from your federal deduction. California limits the amount of your
deduction to 50% of your federal AGI. Figure the difference between the
amount allowed using federal law and the amount allowed using California
law. Enter the difference on line 11, column B.
College athletic seating rights – Federal law no longer allows for a charitable
deduction for amounts paid to an institution of higher education in exchange
for college athletic seating rights. California does not conform. Enter the
amount on line 11, column C.
College access tax credit – If you deducted a charitable contribution amount
for the College Access Tax Credit Fund on your federal Schedule A (Form
1040 or 1040-SR) and are claiming the College Access Tax Credit on your
Form 540NR, enter the amount used to calculate the College Access Tax
Credit on line 11, column B.
Charitable Contribution Deduction Disallowance - California disallows a
charitable contribution deduction to an educational organization that is a
postsecondary institution or to the Key Worldwide Foundation to a taxpayer
who meets all of the following:
They are charged as a defendant in any of several specified criminal
complaints as listed in R&TC Section 17275.4.
There is a final determination of their guilt with regard to a violation
of any offense arising out of that criminal complaint.
There is a finding that they took the deduction unlawfully.
For more information, see R&TC 17275.4. Enter the amount of this deduction
on line 11, column B.
Line 12 - Other Than By Cash Or Check
Qualied Charitable Contributions – Your California deduction may be
different from your federal deduction. California limits the amount of your
deduction to 50% of your federal AGI. Figure the difference between the
amount allowed using federal law and the amount allowed using California
law. Enter the difference on line 12, column B.
Charitable Contribution Deduction Disallowance - California disallows a
charitable contribution deduction to an educational organization that is a
postsecondary institution or to the Key Worldwide Foundation to a taxpayer
who meets all of the following:
They are charged as a defendant in any of several specified criminal
complaints as listed in R&TC Section 17275.4.
There is a final determination of their guilt with regard to a violation
of any offense arising out of that criminal complaint.
There is a finding that they took the deduction unlawfully.
For more information, see R&TC 17275.4. Enter the amount of this deduction
on line 12, column B.
Line 13 - Carryover From Prior Year
Charitable contribution carryover deduction If deducting a prior year
charitable contribution carryover, and the California carryover is larger than
the federal carryover, enter the additional amount on line 13, column C.
Carryover deduction of appreciated stock contributed to a private
foundation prior to January 1, 2002 If deducting a charitable contribution
carryover of appreciated stock donated to a private operating foundation prior
to January 1, 2002, and the fair market value allowed for federal purposes is
larger than the basis allowed for California purposes, enter the difference on
line 13, column B.
Line 15 – Casualty or Theft Loss(es)
Under federal law, the personal casualty and theft loss deduction is
suspended, with exception for personal casualty gains. Federal allows a
deduction for personal casualty and theft loss incurred in a federally declared
disaster. California does not conform.
California allows personal casualty and theft loss and disaster loss
deductions. If you have personal casualty and theft loss and/or disaster loss,
complete another federal Form 4684, Casualties and Thefts, using California
amounts. Enter the difference between the federal and California amount in
column B or columnC.
Line 16 - Other Itemized Deductions
Unreimbursed Impairment-Related Work Expenses If you completed
federal Form 2106, prepare a second set of forms reflecting your employee
business expense using California amounts (i.e., following California law).
Include your entertainment expenses, if any, on line 5 of federal Form 2106
for California purposes.
Generally, California law conforms with federal law and no adjustment is
needed. However, differences occur when:
Assets (requiring depreciation) were placed in service before
January 1, 1987. Figure the depreciation based on California law.
Federal employees who were on temporary duty status. California does
not conform to the federal provision that expanded temporary duties to
include prosecution duties, in addition to investigative duties. Therefore,
travel expenses paid or incurred in connection with temporary duty
status (exceeding one year), involving the prosecution (or support of the
prosecution) of a federal crime, should not be included in the California
amount.
Compare federal Form 2106, line 10 and the form completed using California
amounts. Enter the difference between the federal and California amount in
column B or column C.
Gambling Losses – California lottery losses are not deductible for California.
Enter the amount of California lottery losses included in line 16, column A on
line 16, column B.
Federal Estate Tax – Federal estate tax paid on income in respect of a
decedent is not deductible for California. Enter the amount of federal estate
tax included in line 16, column A on line 16, column B.
Claim of Right – If you had to repay an amount that you included in your
income in an earlier year, because at the time you thought you had an
unrestricted right to it, you may be able to deduct the amount repaid from
your income for the year in which you repaid it. Or, if the amount you repaid
is more than $3,000, you may take a credit against your tax for the year in
which you repaid it, whichever results in the least tax.
If the amount repaid was not taxed by California, no deduction or credit is
allowed.
Social security benefits are not taxable by California and the repayment
would not qualify for claim of right deduction or credit. If you deducted the
repayment of Social Security benefits on your federal tax return, enter the
amount of the federal deduction on line 16, column B.
If you claimed a credit for the repayment on your federal tax return and are
deducting the repayment for California, enter the allowable deduction on
line16, column C.
If you deducted the repayment on your federal tax return and are taking a
credit for California, enter the amount of the federal deduction on line 16,
column B. To help you determine whether to take a credit or deduction, see
the Repayment section of federal Publication 525, Taxable and Nontaxable
Income. Remember to use the California tax rate in your computations. If you
Schedule CA (540NR) Instructions 2019 Page 51
choose to take the credit instead of the deduction for California, add the credit
amount on line 87, the total payment line, of the Form 540NR. To the left of
the total, write “IRC 1341” and the amount of the credit.
Line 19 through Line 22 – Job Expenses and Certain Miscellaneous
Deductions
Under federal law, the federal deduction for miscellaneous itemized
deductions subject to the 2% floor is suspended. California does not conform.
Line 19 - Unreimbursed Employee Expenses
Prepare federal Form 2106 reflecting your employee business expense using
California amounts (i.e., following California law). Include your entertainment
expenses, if any, on line 5 of federal Form 2106 for California purposes.
Enter the amount from line 10 of federal Form 2106 on line 19.
Line 20 - Tax Preparation Fees
Enter the fees you paid for preparation of your tax return, including fees paid
for filing your return electronically. If you paid your tax by credit or debit card,
include the convenience fee you were charged on line 21 instead of this line.
Line 21 - Other Expenses
Enter the total amount you paid to produce or collect taxable income and
manage or protect property held for earning income.
List the type of each expense next to line 21 and enter the total of these
expenses on line 21. If you are filing a paper return and you can’t fit all your
expenses on the dotted lines next to line 21, attach a statement showing the
type and amount of each expense.
Examples of expenses to include on line 21 are:
Certain legal and accounting fees.
Custodial fees (for example, trust account).
Casualty and theft losses of property used in performing services as an
employee from federal Form 4684, lines 32 and 38b, or Form 4797, line 18a.
Deduction for repayment of amounts under a claim of right if $3,000 or less.
Claim of Right – If you had to repay an amount that you included in your
income in an earlier year, because at the time you thought you had an
unrestricted right to it, you may be able to deduct the amount repaid from
your income for the year in which you repaid it. If the amount you repaid is
less than $3,000, the deduction is subject to the 2% AGI limit for California
purposes. If you are deducting the repayment for California, enter the
allowable deduction on line 21.
If the amount repaid was not taxed by California, no deduction is allowed.
Line 27 – Other Adjustments
Adoption-related expenses – If you deducted adoption-related expenses
on your federal Schedule A (Form 1040 or 1040-SR) and are claiming the
adoption cost credit on your Form 540NR, enter the amount of the adoption
cost credit claimed as a negative number on line 27.
Nontaxable income expenses – If, on federal Schedule A (Form 1040 or
1040-SR), you claim expenses related to producing income taxed under
federal law but not taxed by California, enter the amount as a negative number
on line 27.
You may claim expenses related to producing income taxed by California law
but not taxed under federal law by entering the amount as a positive number
on line 27.
State legislator’s travel expenses –
Under California law, deductible travel
expenses for state legislators include only those incurred while away from
their places of residence overnight. Figure the difference between the amount
allowed using federal law and the amount allowed using California law. Enter
the difference as a negative number on line 27.
Interest on loans from utility companies – Taxpayers are allowed a tax
deduction for interest paid or incurred on a public utility company financed
loan that is used to purchase and install energy efficient equipment or
products, including zone-heating products for a qualified residence located in
California. Federal law has no equivalent deduction. Enter the difference as a
positive number on line 27.
Line 29 – California Itemized Deductions
Is the amount on Form 540NR, line 13 more than the amount shown below
for your filing status?
Single or married/RDP filing separately
......................$200,534
Head of household
......................................$300,805
Married/RDP filing jointly or qualifying widow(er)
..............$401,072
NO Transfer the amount from line 28 to line 29. Do not complete the
Itemized Deductions Worksheet on the following page.
YES Complete the Itemized Deductions Worksheet on the following page.
Note:
If you are married/RDP and file a separate tax return, you and your
spouse/RDP must either both itemize your deductions or both take the
standard deduction.
Also, if someone else can claim you as a dependent, claim the greater of
the standard deduction or your itemized deductions. See the “ California
Standard Deduction Worksheet for Dependents” in your California 540NR
Booklet to figure your standard deduction.
Military pay of a servicemember domiciled outside of California cannot
be used to reduce the amount of this deduction. Modify your federal AGI
used to compute this limitation by subtracting your military pay from
federal AGI. Get FTB Pub. 1032 for more information.
Line 30 – Amount from Line 29 or Standard Deduction
If your filing status is Married/RDP filing separately and your spouse itemizes,
enter the amount from line 29 (even if the standard deduction is larger).
Part IV California Taxable Income
Line 1 – California AGI
Enter your California AGI from Part II, line 23, column E.
Line 3 – Deduction Percentage
Divide Part II, line 23, column E by Part II, line 23, column D. Carry the
decimal to four places. This number may not be greater than 1.0000. If the
result is greater than 1.0000, enter 1.0000.
Line 5 – California Taxable Income
Subtract line 4 from line 1. If less than zero, enter -0-. Enter this amount on
Form 540NR, line 35.
Page 52 Schedule CA (540NR) Instructions 2019
Itemized Deductions Worksheet
1. Amount from Schedule CA (540NR), Part III, line 28................ 1
2. Add the amounts on federal Schedule A (Form 1040 or
1040-SR), line 4, line 9, and line 15 plus any gambling
losses included on line 16 (or on Schedule A (Form 1040NR),
line 6 plus any investment interest expense and gambling
losses included on line 7)
.................................... 2
3. Subtract line 2 from line 1. If the result is -0-, stop. Enter the
amount from line 1 above on Schedule CA (540NR), Part III, line 29
... 3
4. Multiply line 3 by 80% (.80)................................... 4
5. Enter the amount from Form 540NR, line 13 ...................... 5
6. Enter the amount from line 29 instructions on the previous
page for your filing status
.................................... 6
7. Subtract line 6 from line 5. ...................................
If the result is -0- or less stop. Enter the amount from line 1
above on Schedule CA (540NR), Part III, line 29
7
8. Multiply line 7 by 6% (.06).................................... 8
9. Compare the amounts on line 4 and line 8.
Enter the smaller amount here
..................................9
10.
Total itemized deductions. Subtract line 9 from line 1.
Enter the result here and on Schedule CA (540NR), Part III, line 29
....10
Part-Year Resident Worksheet
A B C
Important: Part-year residents use this worksheet to determine the amounts to enter
on Schedule CA (540NR), column E, Part II, Section A, line 1 through line 6, and
Section B, line 1 through line 9.
California
Resident
Amounts
California
Nonresident
Amounts
Total
Combine column A
and column B
Section A – Income
Amounts reported on
Schedule CA (540NR)
column D earned or
received while you
were a CA resident
Amounts reported on
Schedule CA (540NR)
column D earned or
received from CA
sources while you
were a nonresident
Transfer amounts
to Schedule CA
(540NR), column E
1
Wages, salaries, tips, etc ......................................... 1
2 b Taxable interest ............................................. 2b
3
b Ordinary dividends. See instructions ............................. 3b
4 b IRA distributions. See instructions............................... 4b
d Pensions and annuities. See instructions.......................... 4d
5 b Social security benefits ....................................... 5b
6 Capital gain or (loss). See instructions .............................. 6
Section B – Additional Income
1 Taxable refunds, credits, or offsets of state and local income taxes..........1
2
a Alimony received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2a
3 Business income or (loss) .........................................3
4 Other gains or (losses)
...........................................4
5 Rental real estate, royalties, partnerships, S corporations, trusts, etc.
See instructions .................................................5
6 Farm income or (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
7 Unemployment compensation ......................................7
8 Other income. Identify __________________________________________ . 8
9
Totals: Combine Section A, line 1 through line 6, and Section B, line 1 through
line 8, in column C. Transfer the amounts from column C, Section A, line 1
through line 6, and Section B, line 1 through line 9, to Schedule CA (540NR),
column E, Section A, line 1 through line 6, and Section B, line 1 through line 9.
. 9
Part-Year Resident Worksheet – Part-year residents use this worksheet to determine the amounts to enter on Schedule CA (540NR), column E, Section A, line 1
through line 6, and Section B, line 1 through line 9.
Column A: For the part of the year you were a resident, follow the “California Resident Amounts” instructions. Enter the result in column A of the worksheet.
Column B: For the part of the year you were a nonresident, follow the “California Nonresident Amounts” instructions. Enter the result in column B of the
worksheet.
Column C: For each line, combine column A and column B of the worksheet. Transfer the amounts in column C of the worksheet to Schedule CA (540NR),
column E, Part II, Section A, line 1 through line 6, and Section B, line 1 through line 9.
Important: If completing Section A, line 6 or Section B, line 5, see the column E, part-year resident instructions for those lines.
540NR Tax Booklet 2019 Page 53
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Page 54 540NR Tax Booklet 2019
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7771193
Schedule D (540NR) 2019
TAXABLE YEAR
2019
California Capital Gain or Loss Adjustment
SCHEDULE
D (540NR)
Name(s) as shown on return
SSN or ITIN
1
(a)
Description of property
Example: 100 shares of “Z” Co.
(b)
Sales price
(c)
Cost or other basis
(d)
Loss
If (c) is more than (b),
subtract (b) from (c)
(e)
Gain
If (b) is more than (c),
subtract (c) from (b)
a
b
c
d
e
f
g
h
i
j
k
l
m
n
o
p
q
r
s
t
u
v
2 Net gain or (loss) shown on California Schedule(s) K-1 (100S, 541, 565, and 568).......... 2
3 Capital gain distributions (federal Form 1099-DIV, box 2a) 3..............................................
4 Total 2019 gain from all sources. Add column (e) amounts of line 1, line 2, and line 3 4
5 2019 loss. Add column (d) amounts of line 1 and line 2. 5 ............................. ( )
6 California capital loss carryover from 2018, if any. See instructions. .................... 6 ( )
7 Total 2019 loss. Add line 5 and line 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 ( )
8 Combine line 4 and line 7. If a loss, go to line 9. If a gain, go to line 10 ................................... 8
9 If line 8 is a loss, enter the smaller of: a the loss on line 8.
b $3,000 ($1,500 if married/RDP filing separate). See instructions
.... 9
( )
10 Enter the gain or (loss) from federal Form 1040 or 1040-SR, line 6....................................... 10
11 Enter the California gain from line 8 or (loss) from line 9 ............................................... 11
12a If line 10 is more than line 11, enter the difference here and on Sch. CA (540NR), Part II, Section A, line 6, col. B ..... 12a
b If line 10 is less than line 11, enter the difference here and on Sch. CA (540NR), Part II, Section A, line 6, col. C .... 12b
.........................
For Privacy Notice, get FTB 1131 ENG/SP.