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CALIFORNIA
540
Forms & Instructions
2020
Personal Income Tax Booklet
Members of the Franchise Tax Board
Betty T. Yee, Chair
Antonio Vazquez, Member
Keely Bosler, Member
COVER GRAPHICS OMITTED FOR DOWNLOADING SPEED
Page 2 Personal Income Tax Booklet 2020
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Table of Contents
Important Dates
2
Do I Have to File?
3
What’s New and Other Important Information for 2020
4
Which Form Should I Use?
8
Instructions for Form 540
9
Nonrefundable Renter’s Credit Qualification Record 21
Voluntary Contribution Fund Descriptions
22
Credit Chart
23
Frequently Asked Questions
24
Additional Information
25
Instructions for Filing a 2020 Amended Return
27
Form 540, California Resident Income Tax Return
29
Schedule CA (540), California Adjustments — Residents
35
Instructions for Schedule CA (540)
39
Schedule D (540), California Capital Gain or Loss Adjustment
49
Instructions for Schedule D (540)
51
FTB 3519, Payment for Automatic Extension for Individuals
53
Form 540-ES, Estimated Tax for Individuals
56
Instructions for Form 540-ES
59
FTB 3506, Child and Dependent Care Expenses Credit
63
Instructions for Form FTB 3506
65
FTB 3514, California Earned Income Tax Credit
69
Instructions for Form FTB 3514
73
2020 California Tax Table
87
2020 California Tax Rate Schedules
93
How To Get California Tax Information
94
Franchise Tax Board Privacy Notice on Collection
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, 2021*
*If you are living or traveling outside the United States on April 15, 2021, the dates for filing your tax return and paying
your tax are different. See form FTB 3519 for more information.
Last day to file and pay the 2020 amount you owe to avoid penalties and interest.*See form FTB 3519 for more information.
October 15, 2021 Last day to file or e-file your 2020 tax return to avoid a late filing penalty and interest computed from the original due date
of April 15, 2021.
April 15, 2021
June 15, 2021
September 15, 2021
January 18, 2022
The dates for 2021 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 penalty. See Form 540-ES instructions for more
information.
$$$ 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 $50,954 ($56,844 if married filing
jointly) and have qualifying children or you have no qualifying
children and you earned less than $15,820 ($21,710 if married
filing jointly). Go to the Internal Revenue Service (IRS) website at
irs.gov/taxtopics and choose topic 601, get 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
TaxCredit.
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 Form 540, line 76, and get form FTB 3514.
Refund of Excess State Disability Insurance (SDI) – If you worked for
at least two employers during 2020 who together paid you more than
$122,909 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 federal Form W-2, Wage and Tax
Statement.
• 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 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 2019 tax return you
requested to be applied to your 2020 estimated tax.
Claiming state disability insurance:
• Verify the amount of SDI used to figure the amount of excess SDI
claimed on Form 540, line 74, matches amounts from your W-2’s.
Claiming standard deduction or itemized deductions:
• See Form 540, 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 71 of Form 540. Confirm only
California income tax withheld is claimed.
• Verify real estate or other withholding amount from Form 592-B,
Resident and Nonresident Withholding Statement, and Form593,
Real Estate Withholding Statement. See instructions for line 73 of
Form 540.
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 Form 540, line 115 and
include any adjustment by FTB.
Use e-le:
• By using e-file, you can eliminate many common errors. Go to
ftb.ca.gov and search for ele options.
Personal Income Tax Booklet 2020 Page 3
Do I Have to File?
Steps to Determine Filing Requirement
Step 1: Is your gross income (all income received from all sources in the
form of money, goods, property, and services that are 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 (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.
On 12/31/20,
my filing status was:
and on 12/31/20,
my age was:
(If your 65th birthday is on January 1,
2021, you are considered to be age 65 on
December 31, 2020)
California Gross Income
Dependents
0
California Gross Income
Dependents
1
California Gross Income
Dependents
2
or more
California Adjusted Gross Income
Dependents
0
California Adjusted Gross Income
Dependents
1
California Adjusted Gross Income
Dependents
2
or more
Single or
Head of household
Under 65 18,496 31,263 40,838 14,797 27,564 37,139
65 or older 24,696 34,271 41,931 20,997 30,572 38,232
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) 36,996 49,763 59,338 29,599 42,366 51,941
65 or older (one spouse/RDP) 43,196 52,771 60,431 35,799 45,374 53,034
65 or older (both spouses/RDPs) 49,396 58,971 66,631 41,999 51,574 59,234
Qualifying widow(er) Under 65
31,263 40,838
27,564 37,139
65 or older
34,271 41,931
30,572 38,232
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 or student under age 24 who received more than $2,200 of
investment income in 2020, complete Form 540 and form FTB 3800, Tax
Computation for Certain Children with Unearned Income, to figure the
tax on a separate Form 540 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 tax 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. To get forms FTB 3800 or FTB 3803, 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 2020 or owe any of the following taxes for
2020, you must file Form 540.
• Tax on a lump-sum distribution.
• Tax on a qualified retirement plan including an Individual Retirement
Arrangement (IRA) or an Archer Medical Savings Account (MSA).
• Tax for children under age 19 or 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 a registered domestic partnership
(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 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.
Exception: If you file a joint tax return for federal purposes, 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 2020.
• A nonresident for the entire year and had no income from California
sources during 2020.
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 that you would have used to file a federal income tax return.
If you filed a joint tax return and either you or your spouse/RDP was
a nonresident for 2020, file Form 540NR, California Nonresident or
Part-Year Resident Income Tax Return.
Single
Y
ou are single if any of the following was true on December 31, 2020:
• You were not 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, 2020, and did not remarry or
enter into another registered domestic partnership in 2020.
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, 2020, even if you
did not live with your spouse/RDP at the end of 2020.
• Your spouse/RDP died in 2020 and you did not remarry or enter into
another registered domestic partnership in 2020.
• Your spouse/RDP died in 2021 before you filed a 2020 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. To get forms
see “Order Forms and Publications” or go to ftb.ca.gov/forms.
• Y
ou 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 your child lived with
you and you lived apart from your spouse/RDP during the entire last
six months of 2020.
Page 4 Personal Income Tax Booklet 2020 (REV 01-21)
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, HOH 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 HOH
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, 2020.
• You paid more than one-half the cost of keeping up your home for
the year in 2020.
• 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 HOH
filing status.
• You were not a nonresident alien at any time during the year.
For a child to qualify as your foster child for HOH 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 HOH 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 HOH filing status. For
more information about the HOH filing requirements, go to ftb.ca.gov
and sear
ch for hoh. To get form FTB 3532, see “Order Forms and
Publications” or go to ftb.ca.gov/forms.
Qualifying Widow(er)
Check the box on Form 540, line 5 and use the joint return tax rates for
2020 if all five of the following apply:
• Your spouse/RDP died in 2018 or 2019 and you did not remarry or
enter into another registered domestic partnership in 2020.
• 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 2020:
> The child had gross income of $4,300 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 2020. 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.
• Y
ou 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.
What’s New and Other Important Information for 2020
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 (540), California Adjustments – 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
sear
ch for conformity.
2020 Tax Law Changes/What’s New
Resident State Tax Filers List – For taxable years beginning on or after
January 1, 2020, taxpayers will include on their Form 540 the address
and county of their principal residence as part of the FTB’s annual
reporting requirements to the jury commissioner. Taxpayers that are
required to provide this information include persons who are 18 years of
age or older and have filed a California resident income tax return for the
preceding taxable year. The list of resident state tax filers will be used
as one of the source lists for jury selection by the jury commissioner’s
office. For more information, see specific line instructions or California
R&TC Sections 19548.4 and 19585.
Dependent Exemption Credit with No ID – For taxable years beginning
on or after January 1, 2018, taxpayers claiming a dependent exemption
credit for a dependent who is ineligible for a Social Security Number
(SSN) and a federal Individual Taxpayer Identification Number (ITIN)
may provide alternative information to the Franchise Tax Board
(FTB) to identify the dependent. To claim the dependent exemption
credit, taxpayers complete form FTB 3568, Alternative Identifying
Information for the Dependent Exemption Credit, attach the form and
required documentation to their tax return, and write “no id” in the
SSN field of line 10, Dependents, on Form 540, California Resident
Income Tax Return. For each dependent being claimed that does not
have an SSN and an ITIN, a form FTB 3568 must be provided along with
supporting documentation.
Taxpayers may amend their 2018 and 2019 tax returns to claim the
dependent exemption credit. For more information on how to amend
your tax returns, see “Instructions for Filing a 2020 Amended Return”
on page 27.
Federal Acts – The federal Coronavirus Aid, Relief, and Economic
Security (CARES) Act was enacted on Mar
ch 27, 2020, and the Setting
Every Community Up for Retirement Enhancement (SECURE) Act was
enacted on December 20, 2019. In general, R&TC does not conform
to the changes under these federal acts. California taxpayers continue
to follow the IRC as of the specified date of January 1, 2015, with
modifications. For specific adjustments due to the CARES Act and
SECURE Act, see the Schedule CA (540) instructions.
Paycheck Protection Program (PPP) Loan Forgiveness – For taxable
years beginning on or after January 1, 2020, California provides an
exclusion from gross income for covered loan amounts forgiven under
the federal CARES Act, Paycheck Protection Program and Health Care
Enhancement Act, or the Paycheck Protection Program Flexibility
Act of 2020. For more information, see R&TC Section 17131.8.
The Consolidated Appropriations Act, 2021 was signed into federal law
on December 27, 2020, allowing deductions for eligible expenses paid
for with covered loan amounts that would be or would reasonably be
expected to be forgiven under the PPP. California law does not conform
to this federal provision. For California purposes, any credit or deduction
allowed for any amount paid or incurred should be reduced by the
amount of the exclusion allowed under the PPP. For more information,
see Schedule CA (540) specific line instructions.
CARES Act Qualied Employer Plan Loans – For taxable years beginning
on or after January 1, 2020, California conforms to the qualified
employer plan loans provision under the federal CARES Act which
temporarily increases the amount of loans allowable from a qualified
employer plan to $100,000 for coronavirus-related relief and delays by
one year the due date for any repayment for an outstanding loan from a
qualified employer plan if requirements are met.
Main Street Small Business Tax Credit – For the taxable year
beginning on or after January 1, 2020, and before January 1, 2021, a
Main Street Small Business Tax Credit is available to a qualified small
business employer that received a tentative credit reservation from the
California Department of Tax and Fee Administration (CDTFA). For more
information, get form FTB 3866, Main Street Small Business Tax Credit.
Expansion for Credits Eligibility – For taxable years beginning on or
after January 1, 2020, California expanded EITC and YCTC eligibility
to allow either the federal ITIN or the SSN to be used by all eligible
individuals, their spouses, and qualifying children. If an ITIN is used,
eligible individuals should provide identifying documents upon request
of the FTB. Any valid SSN can be used, not only those that are valid for
work. Additionally, upon receiving a valid SSN, the individual should
notify the FTB in the time and manner prescribed by the FTB. The YCTC
is available if the eligible individual or spouse has a qualifying child
younger than six years old. For more information, go to ftb.ca.gov and
search for eitc, or get form FTB 3514.
Personal Income Tax Booklet 2020 (REV 01-21) Page 5
Worker Status: Employees and Independent Contractors – Some
individuals may be classified as independent contractors for federal
purposes and employees for California purposes, which may also cause
changes in how their income and deductions are classified. For more
information, see the instructions for Schedule CA (540).
Minimum Essential Coverage Individual Mandate – For taxable years
beginning on or after January 1, 2020, California requires residents and
their dependents to obtain and maintain minimum essential coverage
(MEC), also referred to as qualifying health care coverage. Individuals
who fail to maintain qualifying health care coverage for any month
during taxable year 2020 will be subject to a penalty unless they qualify
for an exemption. For more information, see specific line instructions
for Form 540, lines 64, 77, and 92, or get the following new health care
forms, instructions, and publications:
• Form FTB 3849, Premium Assistance Subsidy
• Form FTB 3853, Health Coverage Exemptions and Individual Shared
Responsibility Penalty
• Form FTB 3895, California Health Insurance Marketplace Statement
• Publication 3849A, Premium Assistance Subsidy (PAS)
• Publication 3895B, California Instructions for Filing Federal Forms
1094-B and 1095-B
• Publication 3895C, California Instructions for Filing Federal Forms
1094-C and 1095-C
Rental Real Estate Activities – For taxable years beginning on or after
January 1, 2020, the dollar limitation for the offset for rental real estate
activities shall not apply to the low income housing credit program.
For more information, see R&TC Section 17561(d)(1). Get form
FTB 3801-CR, Passive Activity Credit Limitations, for more information.
R&TC Section 41 Reporting Requirements – Beginning in taxable
year 2020, California allows individuals and other taxpayers operating
under the personal income tax law to claim credits and deductions
of business expenses paid or incurred during the taxable year in
conducting commercial cannabis activity. Sole proprietors conducting
a commercial cannabis activity that is licensed under California
Medicinal and Adult-Use Cannabis Regulation and Safety Act should file
form FTB 4197, Information on Tax Expenditure Items. The FTB uses
information from form FTB 4197 for reports required by the California
Legislature. Get form FTB 4197 for more information.
Net Operating Loss Suspension – For taxable years beginning on
or after January 1, 2020, and before January 1, 2023, California has
suspended the net operating loss (NOL) carryover deduction. Taxpayers
may continue to compute and carryover an NOL during the suspension
period. However, taxpayers with net business income or modified
adjusted gross income of less than $1,000,000 or with disaster loss
carryovers are not affected by the NOL suspension rules.
The carryover period for suspended losses is extended by:
• Three years for losses incurred in taxable years beginning before
January 1, 2020.
• Two years for losses incurred in taxable years beginning on or
after January 1, 2020, and before January 1, 2021.
• One year for losses incurred in taxable years beginning on or
after January 1, 2021, and before January 1, 2022.
For more information, see R&TC Section 17276.23, and get form
FTB 3805V, Net Operating Loss (NOL) Computation and NOL and
Disaster Loss Limitations – Individuals, Estates, and Trusts.
Excess Business Loss Limitation – The federal CARES Act made
amendments to IRC Section 461(l) by eliminating the excess business
loss limitation of noncorporate taxpayers for taxable year 2020 and
retroactively removing the limitation for taxable years 2018 and 2019.
California does not conform to those amendments. For taxable year
2020, complete form FTB 3461, California Limitation on Business
Losses, if you are a noncorporate taxpayer and your net losses from
all of your trades or businesses are more than $259,000 ($518,000 for
married taxpayers filing a joint return). For more information, get form
FTB 3461 and the instructions for Schedule CA (540).
Program 3.0 California Motion Picture and Television Production
Credit –
For taxable years beginning on or after January 1, 2020,
California R&TC Section 17053.98 allows a third film credit,
program 3.0, against tax. 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.
Business Credit Limitation – For taxable years beginning on or after
January 1, 2020, and before January 1, 2023, there is a $5,000,000
limitation on the application of business credits for taxpayers. The total
of all business credits including the carryover of any business credit for
the taxable year may not reduce the “net tax” by more than $5,000,000.
Business credits should be applied against “net tax” before other credits.
Business credits disallowed due to the limitation may be carried over.
The carryover period for disallowed credits is extended by the number
of taxable years the credit was not allowed. For more information, get
Schedule P (540), Alternative Minimum Tax and Credit Limitations –
Residents.
Natural Heritage Preservation Credit – The Natural Heritage
Preservation Credit expired on June 30, 2020. All qualified contributions
must be made on or before that date. For more information, get form
FTB 3503, Natural Heritage Preservation Credit.
New Donated Fresh Fruits or Vegetables Credit – For taxable years
beginning on or after January 1, 2020, and before January 1, 2022,
the list of qualified donation items has been expanded to include raw
agricultural products and processed foods. For more information, get
form FTB 3814, New Donated Fresh Fruits or Vegetables Credit.
Other Important Information
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.
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
.
Young Child Tax Credit – For taxable years beginning on or after
January 1, 2019, the refundable YCTC is available to taxpayers who
also qualify for the California 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 76 of Form 540,
California Resident Income Tax Return and get form FTB 3514.
Net Operating Loss 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 (540) specific line instructions for more information.
Page 6 Personal Income Tax Booklet 2020 (REV 01-21)
Small Business Accounting/Percentage of Completion Method – For
taxable years beginning on or after January 1, 2019, California law
generally conforms to the TCJA’s 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-Prot 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 January1, 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
ScheduleCA(540).
Charitable Contribution and Business Expense Deductions
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 postsecondar
y 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
2019, file an amended Form 540 and Schedule X, California Explanation
of Amended Return Changes, to report the correct amount of charitable
contribution and business expense deductions, as applicable.
Additional information can be found in the instructions of California
Schedule CA (540).
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.
California Earned Income Tax Credit – 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.
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 Schedule CA (540) 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 (540)
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 (540)
instructions.
Wrongful Incarceration Exclusion – California law conforms to
federal law excluding from gross income certain amounts received by
wrongfully incar
cerated 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
January1, 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 2020 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.
Low-Income Housing Credit-Allocation to Partners – The sunset date
for the requirement that a partnership allocate the low-income housing
credits (LIHC) among partners based upon the partnership agreement
was removed.
Sale of Credit – The sunset date regarding the provision that a taxpayer
may make an election to sell all or any portion of the LIHC subject to
certain conditions was removed. A taxpayer may make a one-time
revocation of the election to sell all or any portion of the LIHC at any
time before the California T
ax Credit Allocation Committee (CTCAC)
allocates a final credit amount for a project, at which point, the election
would become irrevocable.
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.
Thisprogram 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, form FTB 3551, 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 Januar
y 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 – Taxpayers claiming an exemption
credit must write each dependent’s SSN in the spaces provided within
line 10 for the California Form 540. If you are claiming an exemption
credit for a dependent who is ineligible for an SSN and a federal ITIN,
you may complete and provide form FTB 3568 with required
documentation attached to the tax return and write “no id” in the SSN
field of line 10. For more information, see Form 540 specific instructions
for line 10 and get form FTB 3568.
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 (540).
Disaster Losses – For taxable years beginning on or after
January 1, 2014, and before Januar
y 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
Personal Income Tax Booklet 2020 (REV 01-21) Page 7
state legislation is not required to activate the disaster loss provisions.
Additional information can be found in the instructions for California
form FTB3805V.
Penalty Assessed by Professional Sports League – An owner of all or
part of a professional sports franchise will not be allowed a deduction for the
amount of any fine or penalty paid or incurred, that was assessed or imposed
by the professional sports league that includes that franchise. Additional
information can be found in the instructions for California Schedule CA (540).
New Employment Credit – For taxable years beginning on or after
January1, 2014, and before January 1, 2026, 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 certication 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 January1, 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.
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 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, EFW as part of the e-file 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 sour
ced 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.
Direct Deposit Refund – You can request a direct deposit refund on
your tax return whether you e-file or file a paper tax return. 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.
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.
Page 8 Personal Income Tax Booklet 2020
Which Form Should I Use?
Tip
e-file and you won’t have to
decide which form to use!
The software will select the
correct form for you.
Were you and your spouse/RDP residents during the entire year 2020?
Yes. Check the chart below to see which form to use.
No. Use Form 540NR. To download or order the California Nonresident or Part-Year Resident Income Tax
Booklet, go to ftb.ca.gov/forms or see, “Where to Get Income Tax Forms and Publications.”
Form 540 2EZ
Form not included in this booklet. If you qualify
to use Form 540 2EZ, see “Where To Get Income
Tax Forms and Publications” to download or
order this form.
Form 540
Filing Status
Single, married/RDP filing jointly, head of
household, qualifying widow(er)
Any filing status
Dependents
0-3 allowed All dependents you are entitled to claim
Amount of Income
Total income of:
• $100,000 or less if single or head of household
• $200,000 or less if married/RDP filing jointly or
qualifying widow(er)
You cannot use Form 540 2EZ if you (or your
spouse/RDP) can be claimed as a dependent
by another taxpayer, and your TOTAL income is
less than or equal to $15,251 if single; $30,552 if
married/RDP filing jointly or qualifying widow(er); or
$21,652 if head of household.
Any amount of income
Sources of Income
Only income from:
• Wages, salaries, and tips
• Taxable interest, dividends, and pensions
•
Taxable scholarship and fellowship grants (only if
reported on federal Form(s) W-2)
• Capital gains from mutual funds (reported on
federal Form1099-DIV, box 2a only)
• Unemployment compensation reported on federal
Form1099-G
• Paid Family Leave Insurance
• U.S. social security benefits
• Tier 1 and tier 2 railroad retirement payments
All sources of income
Adjustments to
Income
No adjustments to income All adjustments to income
Standard Deduction
Allowed Allowed
Itemized Deductions
No itemized deductions All itemized deductions
Payments
Only withholding shown on federal Form(s) W-2
and 1099-R
• Withholding from all sources
• Estimated tax payments
• Payments made with extension
• Excess State Disability Insurance (SDI) or
Voluntary Plan Disability Insurance (VPDI)
Tax Credits
• Refundable California earned income tax credit
• Refundable young child tax credit
• Personal exemption credit
• Senior exemption credit
• Up to three dependent exemption credits
• Nonrefundable renter’s credit
All tax credits
Other Taxes
Only tax computed using the 540 2EZ Table All taxes
Tip
If you qualify to use Form 540 2EZ, you may be eligible to use CalFile.
Visit ftb.ca.gov and search for calfile. It’s fast, easy, and free.
If you don’t qualify for CalFile, you qualify for e-file.
Go to ftb.ca.gov and search for efile options.
Personal Income Tax Booklet 2020 Page 9
2020 Instructions for Form 540 — California 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, or Form 1040-SR, U.S. Tax Return for Seniors,
before you begin your Form 540, California Resident Income Tax Return.
Use information from your federal income tax return to complete your
Form 540. Complete and mail Form 540 by April 15, 2021. If unable to
mail your tax return by this date, see page 2.
T
ip
You may qualify for the federal earned income credit. See
page 2 for more information.
Note: The lines on Form 540 are numbered with gaps in the line number
sequence. For example, lines 20 through 30 do not appear on Form 540,
so the line number that follows line 19 on Form 540 is line 31.
Caution:
Form 540 has five sides. When filing Form 540, you must send
all five sides to the Franchise Tax Board (FTB).
If you need to amend your California resident income tax return,
complete an amended Form 540 and check the box at the top of
Form 540 indicating AMENDED return. Attach Schedule X, California
Explanation of Amended Return Changes, to the amended Form 540.
For specific instructions, see “Instructions for Filing a 2020 Amended
Return” on page 27.
To use our automated phone service and codes, call
800.338.0505. For the complete code list, see Automated
Phone Service section.
Filling in Your Tax 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 540, 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 -0-. 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 the form.
Sufx
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), Profit or Loss From Business (Sole
Proprietorship) business filers, enter the numeric PBA code from federal
Schedule C (Form 1040), 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 2019 tax return under a different
last name, write the last name only from the 2019 tax return.
Social Security Number (SSN) or Individual
Taxpayer Identication Number (ITIN)
Enter your SSN in the spaces provided. If filing 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 resident
alien for federal tax purposes, and the Internal Revenue Service (IRS)
issued you an ITIN, enter the ITIN in the space 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.
Principal Residence
Only complete this section if you are 18 or older and you have filed a
California resident income tax return in the prior year.
• County – Enter the county where you have your principal/physical
residence on the date that you file your Form 540. If you reside in a
foreign country at the time of filing, leave the county field blank.
• If your principal/physical residence address at the time of filing is the
same as the address you provided at the top of this form, check the
box provided on this line.
• If your principal/physical residence address at the time of filing is
different from the address at the top of this form, provide the address
of your principal/physical residence in the spaces provided.
• If you reside in a foreign countr
y at the time of filing, enter the city,
province or state, and country in the city field. Follow the country’s
practice for entering the postal code. Do not abbreviate the country
name.
If you are under 18 years old or have not filed a California resident
income tax return in the prior year, then leave the county and
principal/physical address fields blank.
Filing Status
Line 1 through Line 5 – 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 2020.
• A nonresident for the entire year and had no income from California
sources during 2020.
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 had no federal filing requirement, use the same filing status for
California you would have used to file a federal income tax return.
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.
Page 10 Personal Income Tax Booklet 2020
Instructions: Form 540 e-file at ftb.ca.gov
If you filed a joint tax return and either you or your spouse/RDP was
a nonresident for 2020, you must le the Form 540NR, California
Nonresident or Part-Year Resident Income Tax Return.
Exemptions
Line 6 – Can be Claimed as Dependent
601
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 540, line 7.
Yes Ignore the instructions on Form 540, line 7. Instead, enter in the
box on line 7 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 540 indicating you or your spouse/RDP
are 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, 2020,*
*
If your 65th birthday is on January 1, 2021, you are considered to be
age 65 on December 31, 2020.
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.
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. If you
filed form FTB 3568 to qualify to claim your dependents for California
purposes, the dependents you claim on your California income tax return
may not match those claimed 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.
For taxable years beginning on or after January 1, 2018, taxpayers
claiming a dependent exemption credit for a dependent who is ineligible
for an SSN and a federal ITIN may provide alternative information to the
FTB to identify the dependent.
To claim the dependent exemption credit, taxpayers complete form
FTB 3568, Alternative Identifying Information for the Dependent Exemption
Credit, attach the form and required documentation to their tax return, and
write “no id” in the SSN field of line 10, Dependents, on Form 540. For
each dependent being claimed that does not have an SSN and an ITIN, a
form FTB 3568 must be provided along with supporting documentation.
Taxpayers may amend their 2018 and 2019 tax returns to claim the
dependent exemption credit. These taxpayers should complete an
amended Form 540, write “no id” in the SSN field on the Dependents line,
and attach Schedule X. To complete Schedule X, check box m for “Other”
on Part II, line 1, and write the explanation “Claim dependent exemption
credit with no id and form FTB 3568 is attached” on Part II, line 2. Make
sure to attach form FTB 3568 and the required supporting documents in
addition to the amended tax return and Schedule X. If taxpayers do not
claim the dependent exemption credit on their original 2020 tax return,
they may amend their 2020 tax return following the same procedure as for
2018 and 2019 amended tax returns.
If your dependent child was born and died in 2020 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.
Taxable Income
Refer to your completed federal income tax return to complete this
section.
Line 12 – State Wages
204
Enter the total amount of your state wages from all states
from each of your federal Form(s) W-2, Wage and Tax
Statement. This amount appears on Form W-2, box 16.
If you received wages and do not have a Form W-2, see “Attachments to
your tax return.”
Line 13 – Federal Adjusted Gross Income (AGI) from
federal Form 1040 or Form 1040-SR, line 11
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 line 13.
RDP adjustments include but are not limited to the following:
• T
ransfer 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 W
orksheet in FTB Pub. 737, T
ax 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 11, to Form 540, line 13.
Personal Income Tax Booklet 2020 Page 11
e-file is fast, easy, and secure! Instructions: Form 540
Line 14 – California Adjustments – Subtractions
[from Schedule CA (540), Part I, line 23, column B]
If there are no differences between your federal and California income or
deductions, do not file a Schedule CA (540), California Adjustments—
Residents.
If there are differences between your federal and California income,
i.e.social security, complete Schedule CA (540). Follow the
instructions for Schedule CA (540). Enter on line 14 the amount from
ScheduleCA(540), Part I, line 23, column B. If a negative amount, see
ScheduleCA(540), Part I, line 23 instructions.
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 result in parentheses.
Forexample:“(12,325).”
Line 16 – California Adjustments – Additions
[from Schedule CA (540), Part I, line 23, column C]
If there are differences between your federal and California
deductions, complete Schedule CA (540). Follow the instructions
for Schedule CA (540). Enter on line 16 the amount from
ScheduleCA(540), Part I, line 23, column C. If a negative amount, see
ScheduleCA(540), Part I, line 23 instructions.
Line 18 – California Itemized Deductions or California
Standard Deduction
Decide whether to itemize your charitable contributions, medical
expenses, mortgage interest paid, taxes, etc., or take the standard
deduction. Your California income tax will be less if you take the larger of:
• Your California itemized deductions.
• Your California standard deduction.
California itemized deductions may be limited based on federal AGI. To
compute limitations, use Schedule CA (540). RDPs use your recalculated
federal AGI to figure your itemized deductions.
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 tax returns, 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.
If someone else can claim you as a dependent, you may claim the
greater of the standard deduction or your itemized deductions. T
o
figure your standard deduction, use the Form 540 – California Standard
Deduction Worksheet for Dependents.
Itemized deductions.
Figure your California itemized deductions by
completing Schedule CA (540), Part II, lines 1 through 30. Enter the
result on Form 540, line 18.
If you did not itemize deductions on your federal income tax return
but will itemize deductions for your Form 540, first complete
federal Schedule A (Form 1040), Itemized Deductions. Then check
the box on Side 2, Part II of the Schedule CA (540) and complete
Part II. Attach both the federal Schedule A (Form1040) and
California Schedule CA (540) 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 540, line 6, use the California Standard Deduction Worksheet for
Dependents.
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 ........................................$4,601
2 – Married/RDP filing jointly .........................$9,202
3 – Married/RDP filing separately ......................$4,601
4 – Head of household ..............................$9,202
5 – Qualifying widow(er).............................$9,202
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 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 $4,601
.........................
• Married/RDP filing jointly, head of
household, or qualifying widow(er),
enter $9,202
4
.........................
5. Standard deduction. Enter the smaller of
line 3 or line 4 here and on Form 540, 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 15 for the contribution made to a
capital construction fund 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.
Tax
When figuring your tax, use the correct filing status and taxable income
amount.
Line 31 – Tax
To figure your tax, 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 schedule for your filing status on page 93.
• FTB 3800. Generally, use form FTB 3800, T
ax Computation for
Certain Children with Unearned Income, to figure the tax on a
separate Form 540 for your child who was 18 and under or a student
under age 24 on January 1, 2021, and who had more than $2,200 of
investment income. Attach form FTB 3800 to the child’s Form 540.
• 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 tax 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 540.
Add the amount of tax, if any, from each form FTB 3803, line 9, to the
}
Page 12 Personal Income Tax Booklet 2020
Instructions: Form 540 e-file at ftb.ca.gov
}
amount of your tax from the tax table or tax rate schedules and enter
the result on Form 540, line 31. Attach form(s) FTB 3803 to your tax
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.
Tip
CalFile or e-file and you won’t have to do the math. Go to
ftb.ca.gov and search for ele.
Line 32 – Exemption Credits
Exemption credits reduce your tax. If your federal adjusted gross income
(AGI) on line 13 is more than the amount shown below for your filing
status, your credits will be limited.
For purposes of computing limitations based upon AGI, RDPs,
recalculate their AGI using a federal pro forma or California RDP
Adjustments Worksheet (located in FTB Pub. 737). If your recalculated
federal AGI is more than the amount shown below for your filing status,
your credits will be limited.
If
your filing status is: Is line 13 more than:
Single or married/RDP filing separately ..................
..........
..................................
$203,341
Married/RDP filing jointly or qualifying widow(er) $406,687
Head of household $305,016
Yes Complete the AGI Limitation Worksheet below.
No Follow the instructions on Form 540, line 32.
AGI Limitation Worksheet
Use whole dollars only.
a Enter the amount from line 13
......................a______
b Enter the amount for your filing status on line b:
•
Single or married/RDP filing separately
...$203,341
•
Married/RDP filing jointly or
qualifying widow(er)
.................$406,687 b______
• Head of household
...................$305,016
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
lines 7, 8, and 9 (not the dollar amounts)
.............f______
g Multiply line e by line f
............................g______
h Add the total dollar amount from lines 7, 8, and 9
......h______
i Subtract line g from line h. If zero or less, enter 0- -
.....i______
j Enter the number from the box on
line 10 (not the dollar amount)
.....................j______
k Multiply line e by line j
............................k______
l
Enter the dollar amount from 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 and on line 32. n______
Line 34 – Tax from Schedule G-1 and Form FTB 5870A
If you received a qualified lump-sum distribution in 2020 and you were born
before January 2, 1936, get California 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 FTB5870A 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 540. The Credit
Chart on page 23 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 special credits go to line 40 and line 46
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 alternative minimum tax
(AMT). For more information, see line 61 instructions.):
• Accelerated depreciation in excess of straight-line
• Intangible drilling costs
• Depletion
• Cir
culation 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 Complete Schedule P (540). 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 tax return
• Income from installment sales of certain property
Yes Complete Schedule P (540). See “Order Forms and
Publications.”
No Go to Box C.
Box C – If your filing status is: Is Form 540, line 17 more than:
Single or head of household........................$280,424
Married/RDP filing jointly or qualifying widow(er)
.......$373,899
Married/RDP filing separately
.......................$186,946
Yes Complete Schedule P (540). See “Order Forms and
Publications.”
No Your credits are not limited. Go to the instructions for
line 40.
Line 40 – Nonrefundable Child and Dependent Care
Expenses Credit
Claim this credit if you paid someone to care for your qualifying 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. The care must be
provided in California. To claim this credit, your federal AGI must be
$100,000 or less and you must complete and attach form FTB 3506,
Child and Dependent Care Expenses Credit, included in this booklet.
Line 43 through Line 45 – 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 43 and line 44.
Personal Income Tax Booklet 2020 Page 13
e-file is fast, easy, and secure! Instructions: Form 540
To claim more than two credits, use Schedule P (540), Part III. See
Schedule P (540) instructions, “How to Claim Your Credits.”
Important: Attach Schedule P (540) and any supporting schedules or
statements to your Form 540.
Carryovers: If you claim a credit with carryover provisions and the
amount of the credit available this year exceeds your tax, carr
y 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. Otherwise, enter the
amount of the credit on Schedule P (540), Part III, and do not attach
form FTB 3540.
Credit for Joint Custody Head of Household — Code 170
You may not claim this credit if you used the married/RDP filing jointly,
head of household, or qualifying widow(er) filing status.
Claim the credit if unmarried and not an RDP at the end of 2020 (or
if married/or an RDP, you lived apart from your spouse/RDP for all
of 2020 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 the
taxable year. If the child is married/or an RDP, you must be entitled to
claim a dependent exemption credit 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.
Use the worksheet below to figure the Joint Custody Head of Household
credit using whole dollars only.
1. Enter the amount from Form 540, line 35 ........ 1
2. Credit percentage — 30% .................... 2 x .30
3. Credit amount. Multiply line 1 by line 2.
Enter the result or $491, whichever is less
....... 3
If you qualify for the Credit for Joint Custody Head of Household and the
Credit for Dependent Parent, claim only one credit. Select the credit that
allows the maximum benefit.
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 2020 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 above. If you qualify for the Credit for
Joint Custody Head of Household and the Credit for Dependent Parent,
claim only one. Select the credit that will allow the maximum benefit.
Credit for Senior Head of Household — Code 163
You may claim this credit if you:
• Were 65 years of age or older on December 31, 2020.*
* If your 65th birthday is on January 1, 2021, you are considered to be
age 65 on December 31, 2020
.
• Qualified as a head of household in 2018 or 2019 by providing a
household for a qualifying individual who died during 2018 or 2019.
• Did not have AGI over $79,539 for 2020.
If you meet all the conditions listed above, you do not need to qualify to use
the head of household filing status for 2020 in order to claim this credit.
Use this worksheet to figure this credit using whole dollars only.
1. Enter the amount from Form 540, line 19 .........1
2. Credit percentage — 2% ......................2 x .02
3. Credit amount. Multiply line 1 by line 2.
Enter the result or $1,499, whichever is less
.......3
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.
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 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 worksheet below 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 2020. Carry over the excess
credit to future years until the credit is used.
Line 46 – Nonrefundable Renter’s Credit
If you paid rent for at least six months in 2020 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 page21.
Line 48
Subtract the amount on line 47 from the amount on line 35. Enter the
result on line 48. If the amount on line 47 is more than the amount on
line 35, enter 0 . - -
Other Taxes
Attach the specific form or statement required for each item below.
Line 61 – 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:
• $99,707 married/RDP filing jointly or qualifying widow(er)
• $74,780 single or head of household
• $49,851 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 (540) and included on the return is more than the
sum of $7,950 and the child’s earned income.
Page 14 Personal Income Tax Booklet 2020
Instructions: Form 540 e-file at ftb.ca.gov
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 (540) for more information. See “Order Forms and
Publications.”
Line 62 – Mental Health Services Tax
If your taxable income is more than $1,000,000, compute the Mental
Health Services Tax using whole dollars only:
1. Taxable income from Form 540, line 19 ........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 line 62
....5
Line 63 – 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 63
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 of the amount
required to be included in income plus interest. Include the additional tax, if
any, on line 63. 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 63. Write “IRC
Section 453A interest” and the amount on the dotted line to the left of the
amount on line 63.
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 63. Write
the form number and the amount on the dotted line to the left of the
amount on line 63.
Line 64 – Excess Advance Premium Assistance Subsidy
(APAS) Repayment
Enter your excess APAS repayment amount from form FTB 3849,
line 29.
You may have to repay excess APAS even if someone else enrolled
you, your spouse, or your dependent in coverage purchased through
Covered California (Marketplace). In that case, another individual may
have received form FTB 3895, California Health Insurance Marketplace
Statement, for the coverage.
You also may have to repay excess APAS if you enrolled an individual
in coverage through the Marketplace, you don't claim the individual
as a dependent on your return, and no one else claims that individual
as a dependent. For more information, get the instructions for form
FTB 3849, Premium Assistance Subsidy, and FTB Pub 3849A, Premium
Assistance Subsidy (PAS).
Payments
To avoid a delay in the processing of your tax return, enter the correct
amounts on line 71 through line 74.
Line 71 – California Income Tax Withheld
Enter the total California income tax withheld from your federal Forms:
• W-2, Wage and Tax Statement, box 17
• W-2G, Certain Gambling Winnings, box 15
• 1099-DIV, Dividends and Distributions, box 15
• 1099-INT, Interest Income, box 17
• 1099-MISC, Miscellaneous Income, box 15
•
1099-NEC, Nonemployee Compensation, box 5
• 1099-OID, Original Issue Discount, box 14
• 1099-R, Distributions from Pensions, Annuities, Retirement, or Profit
Sharing Plans, IRAs, Insurance Contracts, etc., box 14
Do not include city, local, or county tax withheld, tax withheld by
other states, or nonconsenting nonresident (NCNR) member’s tax
from ScheduleK-1 (568), line 15e. Do not include withholding from
Forms592-B, Resident and Nonresident Withholding Tax Statement,
or Form 593, Real Estate Withholding Statement, on this line. For more
details, see instructions for line 73.
Generally, tax should not be withheld on federal Form 1099-MISC
or Form 1099-NEC. If you want to pre-pay tax on income reported
on federal Form 1099-MISC or Form 1099-NEC, use Form 540-ES,
Estimated Tax for Individuals.
Line 72 – 2020 CA Estimated Tax and Other Payments
Enter the total of any:
• California estimated tax payments you made using 2020
Form 540-ES, electronic funds withdrawal, Web Pay, or credit card.
• Overpayment from your 2019 California income tax return that you
applied to your 2020 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, trust, or S corporation on Schedule K-1 (541) or
ScheduleK-1(100S).
T
ip
To view payments made or get your current account
balance, go to ftb.ca.gov and login or register for MyFTB.
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
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 Form 540 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 2021 and did not have a
California tax liability in2020.
Line 73 – Withholding (Form 592-B and/or 593)
Enter the total of California withholding from Form 592-B and Form 593.
Attach a copy of Form(s) 592-B and 593 to the lower front of Form 540,
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.
Caution: Do not include withholding from federal Form(s) W-2, W-2G,
or 1099, or NCNR member’s tax from Schedule K-1 (568), line 15e on
this line.
Personal Income Tax Booklet 2020 Page 15
e-file is fast, easy, and secure! Instructions: Form 540
Line 74 – Excess California SDI (or VPDI) Withheld
You may 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 2020.
• You received more than $122,909 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 the lower front of your Form 540.
If SDI (or VPDI) was withheld from your wages by a single employer, at
more than 1.00% of your gross wages, you may not claim excess SDI
(or VPDI) on your Form 540. Contact the employer for a refund.
T
o determine the amount to enter on line 74, 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 540, line 74. If you are married/RDP and file a joint
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 federal Forms W-2.
Enter the total here
................. 1
2. 2020 SDI (or VPDI) limit ............. 2
$1,229.09
$1,229.09
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 line 74
........................ 3
If zero or less, enter -0- on line 74.
Line 75 – Earned Income Tax Credit (EITC)
Enter your Earned Income Tax Credit from form FTB 3514, California
Earned Income Tax Credit, line 20.
Line 76 – Young Child Tax Credit (YCTC)
Enter your Young Child Tax Credit from form FTB 3514, line 28.
Line 77 – Net Premium Assistance Subsidy (PAS)
Enter your net PAS amount from form FTB 3849, line 26.
Line 78
For the Claim of Right credit, follow the reporting instructions in
Schedule CA (540), Part II, 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.
To determine if you are entitled to this credit, refer to your prior year
California Form 540, or Schedule CA (540) 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.
Use Tax
Line 91 – Use Tax.
You are required to enter a number on this line. If the amount due is
zero, you must check the applicable box to indicate that you either owe
no use tax, or you paid your use tax obligation directly to the California
Department of Tax and Fee Administration.
You may owe use tax if you make purchases from out-of-state retailers
(for example, purchases made by telephone, online, by mail, or in
person) where California sales or use tax was not paid and you use
those items in California.
If you have questions about whether a purchase is taxable, go to the
California Department of Tax and Fee Administration’s website at
cdtfa.ca.gov, or call its Customer Service Center at 1.800.400.7115
(CRS:711) (for hearing and speech disabilities).
Some taxpayers are required to report business purchases subject
to use tax directly to the California Department of Tax and Fee
Administration. However, they may report certain personal purchases
subject to use tax on the FTB income tax return.
You may not report business purchases subject to use tax on your
income tax return if you:
• Have or are required to hold a California seller’s permit
• Receive $100,000 or more per year in gross receipts from business
operations.
• Are otherwise registered or required to be registered with the
California Department of Tax and Fee Administration to report use
tax.
Note: You may not report use tax on your income tax return for certain
types of transactions. These types of transactions are described in detail
below in the instructions.
The Use Tax Worksheet and Estimated Use Tax Lookup Table will help
you determine how much use tax to report. If you owe use tax but you
do not report it on your income tax return, you must report and pay
the tax to the California Department of Tax and Fee Administration.
For information on how to report use tax directly to the California
Department of T
ax and Fee Administration, go to their website at
cdtfa.ca.gov and type “Find Information About Use Tax” in the
searchbar.
Failure to report and pay timely may result in the assessment of interest,
penalties, and fees.
See page 25 for a general explanation of California use tax.
Use Tax Worksheet
You must use the Use Tax Worksheet to calculate your use tax liability, if
any of these apply:
• You prefer to calculate the amount of use tax due based upon
your actual purchases subject to use tax, rather than based on an
estimate.
• You owe use tax on any item purchased for use in a trade or business
and you are not registered or required to be registered with the
California Department of Tax and Fee Administration to report sales
or use tax.
• You owe use tax on purchases of individual items with a purchase
price of $1,000 or more each.
Example 1: You purchased a television for $2,000 from an out-of-state
retailer that did not collect tax. You must use the Use Tax Worksheet to
calculate the tax due on the price of the television, since the price of the
television is $1,000 or more.
Example 2: You purchased a computer monitor for $300, a rare coin
for $500, and designer clothing for $250 from out-of-state retailers that
did not collect tax. Although the total price of all the items is $1,050, the
price of each item is less than $1,000. Since none of these individual
items are $1,000 or more, you are not required to use the Use Tax
Worksheet and may choose to use the Estimated Use Tax Lookup Table.
If you have a combination of individual non-business items purchased
for $1,000 or more each, and/or items purchased for use in a trade or
business in addition to individual, non-business items purchased for
less than $1,000, you may either:
• Use the Use Tax Worksheet to compute use tax due on all purchases,
or
Page 16 Personal Income Tax Booklet 2020
Instructions: Form 540 e-file at ftb.ca.gov
• Use the Use Tax Worksheet to compute use tax due on all individual
items purchased for $1,000 or more plus all items purchased for use
in a trade or business.
• Use the Estimated Use Tax Lookup Table to estimate the use tax due
on individual, non-business items purchased for less than $1,000,
then add the amounts and report the total use tax on Line 91.
Example 3: The total price of the items you purchased from out-of-state
retailers that did not collect use tax is $2,300, which includes a $1,000
television, a $900 painting, and a $400 table for your living room.
• You may choose to calculate the use tax due on the total price of
$2,300 using the Use Tax Worksheet, or
• You may choose to calculate the use tax due on the $1,000 price of
the television using the Use Tax Worksheet and estimate your use tax
liability for the painting and table by using the Estimated Use Tax Lookup
Table, then add the amounts and report the total use tax on Line 91.
Use Tax Worksheet (See Instructions Below)
Use whole dollars only
1. Enter purchases from out-of-state sellers made
without payment of California sales/use tax. If you
choose to estimate the use tax due on individual,
non-business items purchased for less than $1,000
each, only enter purchases of items with a purchase
price of $1,000 or more plus items purchased for
use in a trade or business not registered with the
California Department of Tax and Fee Administration
$ . ________.00
2. Enter the applicable sales and use tax rate ......... ___________
3. Multiply Line 1 by the tax rate on Line 2.
Enter result here
............................. ________.00
4. If you choose to estimate the use tax due on
individual, non-business items purchased for less
than $1,000 each, enter the use tax amount due from
the Estimated Use Tax Lookup Table. If all of your
purchases are included in Line 1, enter 0- -
......... ________.00
5. Add Lines 3 and 4. This is your total use tax. ....... ________.00
6. Enter any sales or use tax you paid to another state
for purchases included on Line 1. See worksheet
instructions on this page
...................... ________.00
7. Subtract Line 6 from Line 5. This is the total use tax
due. Enter the amount due on Line 91. If the amount
is less than zero, enter 0- -
..................... ________.00
Worksheet, Line 1, Purchases Subject to Use Tax
Report purchases of items that would have been subject to sales tax
if purchased from a California retailer unless your receipt shows that
California tax was paid directly to the retailer. For example, generally, you
would include purchases of clothing, but not exempt purchases of food
products or prescription medicine. For more information on nontaxable
and exempt purchases, you may visit the California Department of Tax
and Fee Administration’s website at cdtfa.ca.gov.
• Include handling charges.
• Do not include any other state’s sales or use tax paid on the
purchases.
• Enter only purchases made during the year that corresponds with the
tax return you are filing.
• If you traveled to a foreign country and hand-carried items back
to California, generally use tax is due on the purchase price of the
goods you listed on your U.S. Customs Declaration less an $800 per
person exemption. For the hand carried items, you should report the
amount of purchases in excess of the $800 per-person exemption.
This $800 exemption does not apply to goods sent or shipped
to California by mail or other common carrier. For goods sent or
shipped, you should report the entire amount of the purchases.
• If your filing status is “married/RDP filing separately,” you may elect
to report one-half of the use tax due or the entire amount on your
income tax return. If you elect to report one-half, your spouse/RDP
may report the remaining half on his or her income tax return or on
the individual use tax return available from the California Department
of Tax and Fee Administration.
Note: You cannot report the following types of purchases on your
income tax return.
• Vehicles, vessels, and trailers that must be registered with the
Department of Motor Vehicles.
• Mobile homes or commercial coaches that must be registered
annually as required by the Health and Safety Code.
• Vessels documented with the U.S. Coast Guard.
• Aircraft.
• Rental receipts from leasing machinery, equipment, vehicles, and
other tangible personal property to your customers.
•
Cigarettes and tobacco products when the purchaser is registered
with the California Department of Tax and Fee Administration as a
cigarette and/or tobacco products consumer.
Worksheet, Line 2, Sales and Use Tax Rate
Enter the sales and use tax rate applicable to the place in California
where the property was used, stored, consumed, or given away. To find
your sales and use tax rate, please go to the California Department of
Tax and Fee Administration’s website at cdtfa.ca.gov and type “City and
County Sales and Use Tax Rates” in the search bar. You may also call
their Customer Service Center at 800.400.7115 (CRS:711) (for hearing
and speech disabilities).
Worksheet, Line 6, Credit for Tax Paid to Another State
This is a credit for tax paid to other states on purchases reported on Line
1. You cannot claim a credit for more than the amount of use tax that is
imposed on your use of property in this state. For example, if you paid
$8.00 sales tax to another state for a purchase, and would have paid $6.00
in California, you can claim a credit of only $6.00 for that purchase.
Estimated Use Tax Lookup Table
You may use the Estimated Use Tax Lookup Table to estimate and report
the use tax due on individual non-business items you purchased for
less than $1,000 each. This option is only available if you are permitted
to report use tax on your income tax return and you are not required
to use the Use Tax Worksheet to calculate the use tax owed on all your
purchases. Simply include the use tax liability that corresponds to your
California Adjusted Gross Income (found on Line 17) and enter it on
Line91. You will not be assessed additional use tax on the individual
non-business items you purchased for less than $1,000 each.
You may not use the Estimated Use Tax Lookup Table to estimate and
report the use tax due on purchases of items for use in your business
or on purchases of individual non-business items you purchased for
$1,000 or more each. See the instructions for the Use Tax Worksheet if
you have a combination of purchases of individual non-business items
for less than $1,000 each and purchases of individual non-business
items for $1,000 or more.
Adjusted Gross Income (AGI) Range Use Tax Liability
Less Than $10,000 $0
$10,000 to $19,999 $1
$20,000 to $29,999 $2
$30,000 to $39,999 $3
$40,000 to $49,999 $4
$50,000 to $59,999 $4
$60,000 to $69,999 $5
$70,000 to $79,999 $6
$80,000 to $89,999 $7
$90,000 to $99,999 $8
$100,000 to $124,999 $9
$125,000 to $149,999 $11
$150,000 to $174,999 $13
$175,000 to $199,999 $15
More than $199,999 – Multiply AGI by 0.008% (x 0.00008)
Personal Income Tax Booklet 2020 Page 17
e-file is fast, easy, and secure! Instructions: Form 540
Enter your use tax liability on Line 4 of the worksheet, or if you are not
required to use the worksheet, enter the amount on Line 91 of your
income tax return.
ISR Penalty
Line 92 – Individual Shared Responsibility (ISR) Penalty
Enter your Individual Shared Responsibility Penalty from form
FTB 3853, Health Coverage Exemptions and Individual Shared
Responsibility Penalty, Part IV, line 1.
If you, your spouse/RDP (if filing a joint return), and anyone you can or
do claim as a dependent had minimum essential coverage (also referred
to as qualifying health care coverage) that covered all of 2020, check the
“Full-year health care coverage” box on Form 540, line 92. If you check
the box on Form 540, line 92, you do not owe the individual shared
responsibility penalty and do not need to file form FTB 3853. For more
information, get form FTB 3853.
Overpaid Tax or Tax Due
To avoid delay in processing of your tax return, enter the correct
amounts on line 97 through line 100.
If you received a refund for 2019, you may receive a federal
Form1099-G. The refund amount reported on your federal Form1099-G
will be different from the amount shown on your tax return if you
claimed the refundable California Earned Income Tax Credit and/or the
Young Child Tax Credit. This is because the credit is not part of the
refund from withholding or estimated tax payments.
Line 97 – Overpaid Tax
If the amount on line 95 is more than the amount on line 65, your
payments and credits are more than your tax. Subtract the amount on
line 65 from the amount on line 95. Enter the result on line 97.
Refund Intercept – FTB administers the Interagency Intercept Collection
(IIC) program on behalf of the State Controller’s Office. The IIC program
intercepts (offsets) refunds when individuals and business entities
owe delinquent debts to government agencies including the IRS and
California colleges. All refunds are subject to interception. FTB only
intercepts the amount owed.
Refunds from joint tax returns may be applied to the debts of the
taxpayer or spouse/RDP. After all tax liabilities are paid, any remaining
credit will be applied to requested voluntary contributions, if any, and the
remainder will be refunded.
If the debt was previously paid to the requestor and FTB also intercepted
the refund, any overpayment will be refunded by the agency that
received the funds.
For more information, go to ftb.ca.gov and search for interagency
intercept collection.
Line 98 – Amount You Want Applied to Your 2021
Estimated Tax
Apply all or part of the amount on line 97 to your estimated tax for 2021.
Enter on line 98 the amount of line 97 that you want applied to your
2021 estimated tax.
An election to apply an overpayment to 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 99 – Overpaid Tax Available This Year
If you entered an amount on line 98, subtract it from the amount on
line 97. Enter the result on line 99. Choose to have this entire amount
refunded to you or make voluntary contributions from this amount. See
“Voluntary Contribution Fund Descriptions” for more information.
Line 100 – Tax Due
If the amount on line 95 is less than the amount on line 65, subtract
the amount on line 95 from the amount on line 65. Enter the result on
line 100. 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 100 is $500 or more ($250 or more if
married/RDP filing separately).
• The amount of state income tax withheld on line 71 is less than 90%
of the amount of your total tax on line 65.
If this applies to you, see instructions on line 113.
Increasing your withholding could eliminate the need to make a large
payment with your tax return. To increase your withholding, complete
EDD Form DE 4, Employee’s Withholding Allowance Certificate, and give
it to your employer’s appropriate payroll staff. Get this form from your
employer or by calling EDD at 888.745.3886
. Download the DE 4 at
edd.ca.gov or to use the online calculator, go to ftb.ca.gov and search
for de 4.
Form DE 4 specifically adjusts your California state withholding and
is not the same as the federal Form W
-4, Employee’
s Withholding
Certificate.
Contributions
You can make voluntary contributions to the funds listed on 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.
Line 110 – Total Contributions
Add code 400 through code 444. Enter the result on line 110.
Amount You Owe
Add or subtract correctly to figure the amount you owe.
Line 111 – Amount You Owe
If you do not have an amount on line 99, add the amount on line 94,
line 96, line100, and line 110, if any. Enter the result on line 111.
If you have an amount on line 99 and the amount on line 110 is more than
line 99, subtract line 99 from line 110 and enter the difference on line 111.
To avoid a late filing penalty, file your Form 540 by the extended due date
even if you cannot pay the amount you owe.
Mandator
y 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.
Page 18 Personal Income Tax Booklet 2020
Instructions: Form 540 e-file at ftb.ca.gov
Electronic payments can be made using Web Pay on FTB’s website,
electronic funds withdrawal (EFW) as part of the e-file return, or your
credit card. For more information or to obtain the waiver form, go to
ftb.ca.gov/e-pay.
Payment Options
• Electronic Funds Withdrawal – Instead of paying by check or money
order, use this convenient option if you e-file. Simply 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.
• Credit Card – Use your Discover, MasterCard, Visa, or American
Express card to pay your tax. 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 ofcialpayments.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 “2020
Form 540” as applicable on the check or money order. Enclose, but
do not
staple, your payment with your tax return.
Make all checks or money orders payable in U.S. dollars and drawn
against a U.S. financial institution. Do not combine your 2020 tax
payment and any 2021 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.
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?
Y
our 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,
have the following ready:
• 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 online payment center at
ofcialpayments.com 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.
Payment Date:
__________________
Confirmation Number: ___________________
If you cannot pay the full amount or can only make a partial payment for
the amount shown on Form 540, line 114, see the information regarding
installment payments in Question 4 of the “Frequently Asked Questions”
included in this booklet.
Interest and Penalties
If you file your tax return or pay your tax after the due date, you may
owe interest and penalties on the tax due.
Do not reduce the amount on line 97 or increase the amount on line 100
by any penalty or interest amounts. Enter on Form 540, line 112 the
amount of interest and penalties.
Line 112 – 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
October15,2021, 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, 2021.
The minimum penalty for filing a tax return more than 60 days late is
$135 or 100% of the balance due, whichever is less.
Late Payment of Tax. If you fail to pay your total tax liability by
April 15, 2021, 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, 2021, 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.
Late Payment of Use Tax. To avoid late payment penalties for use
tax, you must report and pay the use tax with a timely filed income tax
return, or California Individual Use Tax return.
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 113 – 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 2020
Personal Income Tax Booklet 2020 Page 19
e-file is fast, easy, and secure! Instructions: Form 540
form FTB 5805, Underpayment of Estimated Tax by Individuals and
Fiduciaries, for more information.
The FTB can figure the penalty for you when you file your tax return and
send you a bill.
Is line 100 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 100 less than 10% of the amount on line 48? Form 540 filers: this
excludes the tax on lump-sum distributions on Form 540, line 34.
Yes
Stop. You may not be subject to an estimated payment penalty.
No You may be subject to an estimated payment penalty; get form
FTB 5805 (or form FTB 5805F, Underpayment of Estimated Tax by
Farmers and Fishermen).
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 the 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, attach it to the back of your
Form 540. Enter the amount of the penalty on line 113 and check the
correct box on line 113. 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 you do not
owe a penalty.
See “Important Dates” for more information on estimated tax payments
and how to avoid the underpayment penalty.
See the instructions for Form 540, line 114 for information about
figuring your payment, if any.
Line 114 – Total Amount Due
Is there an amount on line 111?
Yes Add line 111, line 112, and line 113. Enter the result on line 114.
For payment options, see line 111 instructions.
No Go to line 115.
Make all checks or money orders payable in U.S. dollars and drawn
against a U.S. financial institution.
Refund or No Amount Due
Line 115 – Refund or No Amount Due
Did you report amounts on line 110, line 112, or line 113?
No Enter the amount from line 99 on line 115. This is your refund
amount. If it is less than $1, attach a written statement to your
Form 540 requesting the refund.
Yes Combine the amounts from line 110, line 112, and line 113.
If the result is:
• Less than line 99, subtract the sum of line 110, line 112, and
line 113 from line 99 and enter the result on line 115. This is your
refund amount.
• More than line 99, subtract line 99 from the sum of line 110,
line 112, and line 113 and enter the result on line 114. This
is your total amount due. For payment options, see line 111
instructions.
Direct Deposit (Refund Only)
Line 116 and Line 117 – 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
line116 and line 117. 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 in the next column.
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 116 and line 117 must equal the total amount of your
refund on line 115. If line 116 and line 117 do not equal line 115, the
FTB will issue a paper check.
When filing an amended return, only complete the amended Form 540
through line 115. 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 540 and will be entered on
line 116 and line 117. The total of the amended Form 540, line 116 and
line 117 must equal the total amount of your refund on Schedule X,
line11. If the total of the amended Form 540, line 116 and line 117 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.
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
Direct Deposit for ScholarShare 529 College Savings Plans – If you
have a ScholarShare 529 College Savings Plan account maintained
bythe ScholarShare Investment Board, you may have your refund
directly deposited to your ScholarShare account. Please visit
scholarshare529.com for instructions.
Sign Your Tax Return
You must sign your tax return in the space provided on Form 540,
Side5. 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.
Page 20 Personal Income Tax Booklet 2020
Instructions: Form 540 e-file at ftb.ca.gov
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 may be liable. 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 540, that person must sign and complete 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 2020
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.
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.
Y
ou 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 2021 tax return. This is
April 15, 2022, 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 this 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.
Filing Your Tax Return
Attachments to your tax return.
Do I need to attach a copy of federal Form 1040 or 1040-SR?
Other than Schedule A (Form 1040) or Schedule B (Form1040), did
you attach any federal forms or schedules to your federal Form 1040
or 1040-SR?
If No, do not attach a copy of your federal Form 1040 or 1040-SR
return to Form540.
If Yes, attach a copy of your federal Form 1040 or 1040-SR return and
all supporting federal forms and schedules to Form 540.
Exception: If you did not itemize deductions on your federal tax return
but will itemize deductions on your California tax return, complete and
attach a copy of the federal Schedule A (Form 1040) to Form 540.
Do not attach any documents to your tax return unless specifically
instructed. This will help us reduce government processing and storage
costs.
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 Forms(s) 1099, 592-B, and 593
showing California income tax withheld.
If you do not receive your Form(s) W-2 by January 31, 2021, 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, you must 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 “Order Forms and Publications” or go to
ftb.ca.gov/forms.
If you forget to send your Form(s) W-2 or other withholding forms with
your income tax return, do not send them separately, or with another
copy of your tax return. Wait until the FTB requests them from you.
Assembling Your Tax Return
Assemble your tax return in the order shown below.
Copy of other state tax return (if required)
Copy of federal tax return (if required)
Supporting California Schedules
Side
5
Form 540
Side
4
Side
3
Form 540
Form 540
Form 540
Side
2
Form 540
Side
1
Enclose, but do not
staple, any payment.
W-2
W-2G
1099
592-B
593
Caution: Form 540 has five sides. When filing Form 540, you must send
all five sides to the FTB.
Mailing Your Tax Return
If your tax return has an amount due, mail your tax return to the
following address:
FRANCHISE TAX BOARD
PO BOX 942867
SACRAMENTO CA 94267-0001
If your tax return shows a refund or no amount due, mail your tax return
to the following address:
FRANCHISE TAX BOARD
PO BOX 942840
SACRAMENTO CA 94240-0001
Personal Income Tax Booklet 2020 Page 21
______ ______
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
Nonrefundable Renter’s Credit Qualication Record
T
ip
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. You can claim the nonrefundable renter’s credit using CalFile.
If you were a resident of California 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.
1. Were you a resident of California for the entire year in 2020?
Military personnel. If you are not a legal resident of California, you do not qualify for this credit. However, your spouse/RDP may claim this credit if he or she was a
resident during 2020, and is otherwise qualified.
YES. Go to question 2. NO. Stop here. File Form 540NR. See “Order Forms and Publications.”
2. Is your California adjusted gross income the amount on line 17:
• $43,533 or less if single or married/RDP filing separately; or
• $87,066 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 2020, 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 2020?
NO. Go to question 6. YES. Go to question 5.
5. For more than half the year in 2020, 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 2020?
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 2020?
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 2020?
YES. Go to question 11. NO. Go to question 9.
9. Did your spouse/RDP claim the homeowner’s property tax exemption anytime during 2020?
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 2020?
YES. Go to question 11. NO. Stop here. You do not qualify for this credit.
11. If you are:
• Single, enter $60 on Form 540, line 46.
• Head of household or qualifying widow(er), enter $120 on Form 540, line 46.
• Married/RDP filing separately: if you and your spouse/RDP lived in the same rental property and both qualify for this credit, one spouse/RDP may claim the full
amount of the credit ($120), or each spouse/RDP may claim half the amount ($60 each). If you and your spouse/RDP lived apart for the entire year and you
qualify for this credit, you may claim half the amount of the credit ($60). Enter your credit amount on Form 540, line 46.
• Married/RDP filing jointly, enter $120 on line 46. (Exception: If one spouse/RDP claimed the homeowner’s tax exemption and you lived apart from your
spouse/RDP for the entire year, enter $60 on Form 540, line 46.)
Fill in the street address(es) and landlord information below for the residence(s) you rented in California during 2020, which qualified you for this credit.
Street Address City, State, and ZIP Code Dates Rented in 2020 (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 Personal Income Tax Booklet 2020
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, 2021, and
claim the Senior Exemption Credit, you may make a combined total
contribution of up to $248 or $124 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 forAlzheimer.
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 Fireghters’ Memorial Voluntary Tax Contribution
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 Ofcer Memorial Foundation Voluntary
Tax Contribution 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 yourparticipation.
Code 410, California Sea Otter Voluntary Tax Contribution 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.
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.
Personal Income Tax Booklet 2020
Page 23
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 13 197 50% of qualified costs in the year an adoption is ordered
Child and Dependent Care Expenses – FTB 3506
See the instructions on page 65
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 –
W
orksheet on page 13
170 30% of tax up to $491 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. This credit expired on
June 30, 2020. All qualified contributions must be made on or before that date.
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, vegetables, or other qualified donated items
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 2020 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 2020
Prison Inmate Labor – FTB 3507 162 10% of wages paid to prison inmates
Program 3.0 California Motion Picture and Television
Production – FTB 3541
239 For taxable years beginning on or after January 1, 2020, the newest 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
Research – FTB 3523 183 Similar to the federal credit but limited to costs for research activities in California
Senior Head of Household –
W
orksheet on page 13
163 2% of taxable income up to $1,499 for seniors who qualified for head of household in 2018 or 2019
and whose qualifying individual died during 2018 or 2019
Main Street Small Business Tax – FTB 3866 240 The credit is available to qualified small business employers that received a tentative credit
reservation from the California Department of Tax and Fee Administration (CDTFA).
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 (540), Alternative Minimum Tax and
Credit Limitations– Residents, get form FTB 3540, Credit Carryover and Recapture Summary to figure your credit carr
yover 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..............
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.............................
Page 24 Personal Income Tax Booklet 2020
Frequently Asked Questions
(Go to ftb.ca.gov for more frequently asked questions.)
1. What if I can’t le by April 15, 2021, and I think I owe tax?
You must pay 100% of the amount you owe by April 15, 2021, 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, 2021 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, 2021
(youmust use Form 540).
2. I never received a federal Form W-2. What should I do?
204
If all of your federal Form(s) W-2 were not received by
January 31, 2021, 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 federal Form(s) 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.” For online wage and withhold 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 2020
taxreturn?
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, 2021, 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.
949
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.
610
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 540, Side 5, line 116 and line 117. Fill in the routing and account
numbers and indicate the account type.
6. How can I check on thestatus 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. See page 95 for more
information.
7. I discovered an error on my tax return. What should I do?
908
If you discover that you made an error on your California income tax
return after you filed it (paper or e-filed), file an amended Form 540
and attach Schedule X, California Explanation of Amended Return
Changes, to correct your previously filed tax return. Get ScheduleX
at ftb.ca.gov/forms or call 800.338.0505, follow the recorded
instructions and enter code 908 when instructed.
8. The Internal Revenue Service (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 540 and Schedule X to
correct your previously filed income tax return and mail them to the following
address, as applicable:
Without payment
FRANCHISE TAX BOARD
PO BOX 942840
SACRAMENTO CA 94240-0001
With payment
FRANCHISE TAX BOARD
PO BOX 942867
SACRAMENTO
CA
92467-0001
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 a question relating to the IRS audit adjustment
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. See “Order Forms and Publications.”
File an amended Form 540 and Schedule X only if the change affected your
California tax liability.
9. How long should I keep my tax information?
Requests for information 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 applies for California or federal tax returns related 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 items (i.e., net operating losses) or records needed to track
deferred gains on a 1031 exchange.
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.
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.
Personal Income Tax Booklet 2020 Page 25
Additional Information
California Use Tax General Information
The use tax has been in effect in California since July 1, 1935. It applies
to purchases of merchandise for use in California from out-of-state
sellers and is similar to the sales tax paid on purchases you make in
California. If you have not already paid all use tax due to the California
Department of Tax and Fee Administration, you may be able to report
and pay the use tax due on your state income tax return. See the
information below and the instructions for Line 91 of your income
tax return.
In general, you must pay California use tax on purchases of merchandise
for use in California made from out-of-state sellers, for example, by
telephone, over the Internet, by mail, or in person.
You must pay California use tax on taxable items if:
• The seller does not collect California sales or use tax, and
• You use, gift, store, or consume the item in this state.
Example: You live in California and purchase a dining table from a
company in North Carolina. The company ships the table from North
Carolina to your home for your use and does not charge California sales
or use tax. You owe use tax on the purchase.
However, not all purchases require you to pay use tax. For example, you
would include purchases of clothing, but not exempt purchases of food
products or prescription medicine.
For more information on nontaxable and exempt purchases, you
may refer to Publication 61, Sales and Use Taxes: Exemptions and
Exclusions, on the California Department of Tax and Fee Administration’s
website at cdtfa.ca.gov.
For information about California use tax, please refer to the California
Department of Tax and Fee Administration’s website at cdtfa.ca.gov and
type “Find Information About Use Tax” in the search bar.
Complete the Use Tax Worksheet or use the Use Tax Lookup Table on
page 16, to calculate the amount due.
Extensions to File. If you request an extension to file your income
tax return, wait until you file your tax return to report your purchases
subject to use tax and make your use tax payment.
Interest, Penalties and Fees. Failure to timely report and pay the use
tax due may result in the assessment of interest, penalties, and fees.
Application of Payments. For purchases made during taxable years
starting on or after January 1, 2015, payments and credits reported on
an income tax return will be applied first to the use tax liability, instead
of income tax liabilities, penalties, and interest.
Changes in Use Tax Reported. Do not file an Amended Income Tax
Return to revise the use tax previously reported. If you have changes to
the amount of use tax previously reported on the original return, contact
the California Department of Tax and Fee Administration.
For assistance with your use tax questions, go to the California
Department of Tax and Fee Administration’s website at cdtfa.ca.gov
or call their Customer Service Center at 800.400.7115 (CRS:711) (for
hearing and speech disabilities). For California income tax information,
contact the Franchise Tax Board at ftb.ca.gov.
Collection Fees
The FTB is required to assess collection and filing enforcement cost
recovery fees on delinquent accounts.
Deceased Taxpayers
A final return must be filed for a person who died in 2020 if a tax return
normally would be required. The administrator or executor, if one is
appointed, or beneficiary must file the tax return. 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 enter into
another registered domestic partnership during 2020. 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.
Military Personnel
If you are a member of the military and need additional information
on how to file your tax return, get FTB Pub. 1032, Tax Information for
Military Personnel. See “Order Forms and Publications.”
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 get a copy of your tax return, write a letter
or complete form FTB 3516, Request for Copy of Personal Income or
Fiduciary Tax 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
“Where To Get Tax Forms and Publications” to download or order
form FTB 3516.
Local Benefits
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 Tax-For
Individuals, Chapter 11.
Vehicle License Fees for Federal Schedule A
On your federal Schedule A (Form 1040), 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.
Page 26 Personal Income Tax Booklet 2020
Voting Is Everybody’s Business
You may register to vote if you meet these requirements:
• You are a United States citizen.
•
You are a resident of California.
• You will be 18 years old by the date of the next election.
• You are not in prison or on parole for the conviction of a felony.
You need to re-register every time you move, change your name, or wish
to change political parties. In order to vote in an election, you must be
registered to vote at least 15 days before that election. If you need to get
a Voter Registration Card, call the California Secretary of State’s voter
hotline at 800.345.VOTE or go to sos.ca.gov.
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 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 your account and
routing information is correct. Your tax return can be transmitted to FTB
by your preparer or electronic e-file service only after you sign form
FTB 8453 or form FTB 8879. The preparer or electronic 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 that you provided.
• A paper copy of your California tax return showing the data
transmitted to the FTB.
Y
ou cannot retransmit an e-filed tax return once we’ve accepted the
original. You can correct an error by filing an amended Form 540 and
Schedule X to correct your previously filed tax return.
Personal Income Tax Booklet 2020 Page 27
Instructions for Filing a 2020 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 ScheduleX,
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.
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 2021 Estimated Tax – Enter zero on
amended Form 540, line 98 and get the instructions for Schedule X for
the actual amount you want applied to your 2021 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 540
through line 115. Next complete the Schedule X. The amount from
Schedule X, line 11 is your additional refund amount. This amount
will be carried over to your amended Form 540 and will be entered on
line 116 and line 117. The total of the amended Form 540, line 116 and
line 117 must equal the total amount of your refund on Schedule X,
line11. If the total of the amended Form 540, line 116 and line 117 do
not equal Schedule X, line 11, the FTB will issue a paper check.
Dependent Exemption Credit with No ID – For taxable years beginning
on or after January 1, 2018, taxpayers claiming a dependent exemption
credit for a dependent who is ineligible for an SSN and a federal ITIN
may provide alternative information to the FTB to identify the dependent.
To claim the dependent exemption credit, taxpayers complete form
FTB 3568, attach the form and required documentation to their tax
return, and write “no id” in the SSN field of line 10, Dependents, on
Form 540. For each dependent being claimed that does not have an SSN
and an ITIN, a form FTB 3568 must be provided along with supporting
documentation.
If you are amending a return to claim dependent exemption credit for
tax years 2018 and 2019, complete an amended Form 540, and write
“no id” in the SSN field on the Dependents line, and attach Schedule X.
To complete Schedule X, check box m for “Other” on Part II, line 1, and
write the explanation “Claim dependent exemption credit with no id
and form FTB 3568 is attached” on Part II, line 2. Make sure to attach
form FTB 3568 and the required supporting documents in addition to
the amended return and Schedule X. If you do not claim the dependent
exemption credit on the original 2020 tax return, you may amend the
2020 tax return following the same procedure as for 2018 and 2019
amended tax returns.
Purpose
Use Form 540 to amend your original or previously filed California
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 540 indicating AMENDED return and follow the instructions.
Submit the completed amended Form 540 and Schedule X along with all
required schedules and supporting forms.
When to File
Generally, if you filed federal Form 1040-X, 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 –
October15th): 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
ScheduleX, 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 12months. 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 540 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 Personal Income Tax Booklet 2020
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 –
Y
ou
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 the
Form540 instructions to complete only one amended tax return. Both
you and your spouse/RDP must sign the amended joint tax return.
310120
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RP
3
Form 540 2020 Side 1
333
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6
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7
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8
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9
TAXABLE YEAR
2020
California Resident Income Tax Return
FORM
540
Check here if this is an AMENDED return.
Fiscal year filers only: Enter month of year end: month
year 2021.
Your first name Initial Last name Suffix Your SSN or ITIN
If joint tax return, spouse’s/RDP’s first name Initial Last name Suffix Spouse’s/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)
Principal Residence
Enter your county at time of filing (see instructions)
If your address above is the same as your principal/physical residence address at the time of filing, check this box
If not, enter below your principal/physical residence address at the time of filing.
Street address (number and street) (If foreign address, see instructions.)
Apt. no/ste. no.
City
State ZIP code
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
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 in the box. If you checked the box on line 6, see instructions.
X $124 =
$
8 Blind: If you (or your spouse/RDP) are visually impaired, enter 1;
if both are visually impaired, enter 2
X $124 =
$
9 Senior: If you (or your spouse/RDP) are 65 or older, enter 1;
if both are 65 or older, enter 2
X $124 =
$
3102203
333
Side 2 Form 540 2020
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15
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16
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17
32
33
35
34
18
19
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31
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00
00
43
44
{
{
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00
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............ 40
•
•
•
•
•
• •
•
• • •
•
•
•
•
•
...
...
10•
•••
Exemptions
.......................................
Your name: Your SSN or ITIN:
10 Dependents: Do not include yourself or your spouse/RDP.
Dependent 1 Dependent 2 Dependent 3
First Name
Last Name
SSN. See
instructions.
Dependent’s
relationship
to you
Total dependent exemptions X $383 =
$
11 Exemption amount: Add line 7 through line 10. Transfer this amount to line 32
$
Taxable Income
12
State wages from your federal
Form(s) W-2, box 16
13
Enter federal adjusted gross income from federal Form 1040 or 1040-SR, line 11
14 California adjustments – subtractions. Enter the amount from Schedule CA (540),
Part I, line 23, column B
15 Subtract line 14 from line 13. If less than zero, enter the result in parentheses.
Seeinstructions
16
California adjustments – additions. Enter the amount from Schedule CA (540),
Part I, line 23, column C
17
California adjusted gross income. Combine line 15 and line 16
18
Enter the
larger of
Your California itemized deductions from Schedule CA (540), Part II, line 30; OR
Your California standard deduction shown below for your filing status:
• Single or Married/RDP filing separately
$4,601
• Married/RDP filing jointly, Head of household, or Qualifying widow(er)
$9,202
If Married/RDP filing separately or the box on line 6 is checked, STOP. See instructions
19 Subtract line 18 from line 17. This is your taxable income.
If less than zero, enter
0
Tax
31 Tax. Check the box if from:
Tax Table
Tax Rate Schedule
FTB 3800
FTB 3803
32 Exemption credits. Enter the amount from line 11. If your federal AGI is more than
$203,341, see instructions
33 Subtract line 32 from line 31. If less than zero, enter 0
34 Tax. See instructions. Check the box if from:
Schedule G-1
FTB 5870A
35 Add line 33 and line 34
Special Credits
40 Nonrefundable Child and Dependent Care Expenses Credit. See instructions
43
Enter credit name code and amount
44
Enter credit name code and amount
3103203
Form 540 2020 Side 3
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00
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94
92
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47
48
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61
62
63
64
65
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Special Credits
.
.
00
00
. .................................................
. .................................................
95
96
Your name: Your SSN or ITIN:
45 To claim more than two credits. See instructions. Attach Schedule P (540)
46
Nonrefundable Renter’s Credit. See instructions
47 Add line 40 through line 46. These are your total credits
48 Subtract line 47 from line 35. If less than zero, enter 0
Other Taxes
61 Alternative Minimum Tax. Attach Schedule P (540)
62 Mental Health Services Tax. See instructions
63 Other taxes and credit recapture. See instructions
64 Excess Advance Premium Assistance Subsidy (APAS) repayment. See instructions
65 Add line 48, line 61, line 62, line 63, and line 64. This is your total tax
Payments
71
California income tax withheld. See instructions
72 2020 CA estimated tax and other payments. See instructions
73 Withholding (Form 592-B and/or 593). See instructions
74 Excess SDI (or VPDI) withheld. See instructions
75 Earned Income Tax Credit (EITC)
76 Young Child Tax Credit (YCTC). See instructions
77 Net Premium Assistance Subsidy (PAS). See instructions
78 Add line 71 through line 77. These are your total payments.
See instructions
Use Tax
91
Use Tax. Do not leave blank. See instructions
If line 91 is zero, check if:
No use tax is owed.
You paid your use tax obligation directly to CDTFA.
ISR
Penalty
92 Individual Shared Responsibility (ISR) Penalty. See instructions
Full-year health care coverage.
Overpaid Tax/Tax Due
93
Payments balance. If line 78 is more than line 91, subtract line 91 from line 78
94 Use Tax balance. If line 91 is more than line 78, subtract line 78 from line 91
95 Payments after Individual Shared Responsibility Penalty. If line 93 is more than line 92,
subtract line 92 from line 93
96 Individual Shared Responsibility Penalty Balance. If line 92 is more than line 93, then
subtract line 93 from line 92
3104203
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97
98
99
100
•
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Overpaid Tax/Tax Due
Your name: Your SSN or ITIN:
97 Overpaid tax. If line 95 is more than line 65, subtract line 65 from line 95
98 Amount of line 97 you want applied to your 2021 estimated tax
99 Overpaid tax available this year. Subtract line 98 from line 97
100 Tax due. If line 95 is less than line 65, subtract line 95 from line 65
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 Voluntary Tax Contribution Fund 406
Emergency Food for Families Voluntary Tax Contribution Fund
407
California Peace Officer Memorial Foundation Voluntary Tax Contribution Fund
408
California Sea Otter Voluntar
y Tax Contribution 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 T
ax Contribution Fund 439
Rape Kit Backlog Voluntary Tax Contribution Fund
440
Schools Not Prisons Voluntary Tax Contribution Fund 443
Suicide Prevention Voluntary Tax Contribution Fund 444
110 Add code 400 through code 444. This is your total contribution
110
3105203
Form 540 2020 Side 5
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Your name: Your SSN or ITIN:
Amount
You Owe
111 AMOUNT YOU OWE. If you do not have an amount on line 99, add line 94, line 96, line 100, and line 110. 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.
Interest and
Penalties
112
Interest, late return penalties, and late payment penalties
113 Underpayment of estimated tax.
Check the box:
FTB 5805 attached
FTB 5805F attached
114 Total amount due. See instructions. Enclose, but do not staple, any payment
Refund and Direct Deposit
115 REFUND OR NO AMOUNT DUE. Subtract the sum of line 110, line 112 and line 113 from line 99. See instructions.
Mail to: FRANCHISE TAX BOARD, PO BOX 942840, SACRAMENTO CA 94240-0001
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 veried the routing and account numbers? Use whole dollars only.
All or the following amount of my refund (line 115) is authorized for direct deposit into the account shown below:
Routing number
Type
Checking
Savings
Account number 116
Direct deposit amount
The remaining amount of my refund (line 115) is authorized for direct deposit into the account shown below:
Routing number
Type
Checking
Savings
Account number 117
Direct deposit amount
IMPORTANT: See the instructions to find out if you should attach a copy of your complete federal tax 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.
Sign
Here
It is unlawful
to forge a
spouse’s/
RDP’s
signature.
Joint tax
return?
(See
instructions)
Your signature Date Spouse’s/RDP’s signature (if a joint tax return, both must sign)
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 34 Personal Income Tax Booklet 2020
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ftb.ca.gov
Schedule CA (540) 2020
Side 1
7731203
1
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{
7
1
2a
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18a
19
20
21
22
23
TAXABLE YEAR
2020
California Adjustments — Residents
SCHEDULE
CA (540)
Important: Attach this schedule behind Form 540, Side 5 as a supporting California schedule.
Name(s) as shown on tax return
SSN or ITIN
Part I Income Adjustment Schedule
A
Federal Amounts
(taxable amounts from
your federal tax return)
B
Subtractions
See instructions C
Additions
See instructions
Section A – Income from federal Form 1040 or 1040-SR
1 Wages, salaries, tips, etc. See instructions before making an entry in column B or C
2 Taxable interest. a
2b
3 Ordinary dividends. See instructions. a
3b
4 IRA distributions. See instructions. a
4b
5 Pensions and annuities. See instructions. a
5b
6 Social security benefits. a
6b
7 Capital gain or (loss). See instructions
Section B – Additional Income
from federal Schedule 1 (Form 1040)
A
Federal Amounts
(taxable amounts from
your federal tax return)
B
Subtractions
See instructions C
Additions
See instructions
1 Taxable refunds, credits, or offsets of state and local income taxes
2a Alimony received. See instructions
3 Business income or (loss). See instructions
4 Other gains or (losses)
5 Rental real estate, royalties, partnerships, S corporations, trusts, etc
6 Farm income or (loss)
7 Unemployment compensation
8 Other income.
a California lotter
y winnings
b Disaster loss deduction from FTB 3805V
c Federal NOL (federal Schedule 1
(Form 1040), line 8)
d NOL deduction from FTB 3805V
e NOL from FTB 3805Z,
3807, or 3809
f Other (describe):
g Student loan discharged due to
closure of a for
-profit school
a
b
c
d
e
f
g
a
b
c
d
e
f
g
9 T
otal. Combine Section A, line 1 through line 7, and Section B, line 1 through line 8 in
column A. Add Section A, line 1 through line 7, and Section B, line 1 through line 8g in
column B and column C. Go to Section C
Section C – Adjustments to Income from federal Schedule 1 (Form 1040)
A
Federal Amounts
(taxable amounts from
your federal tax return)
B
Subtractions
See instructions C
Additions
See instructions
10 Educator expenses
11 Certain business expenses of reservists, performing artists, and fee-basis
government officials
12 Health savings account deduction
13 Moving expenses. Attach federal Form 3903. See instructions
14 Deductible part of self-employment tax. See instructions
15 Self-employed SEP, SIMPLE, and qualified plans
16 Self-employed health insurance deduction. See instructions
17 Penalty on early withdrawal of savings
18a Alimony paid. b Recipient’s: SSN
Last name
19 IRA deduction
20 Student loan interest deduction
21 Tuition and fees
22 Add line 10 through line 18a and line 19 through line 21 in columns A, B, and C.
See instructions
23 Total. Subtract line 22 from line 9 in columns A, B, and C. See instructions
For Privacy Notice, get FTB 1131 ENG/SP.
Side 2 Schedule CA (540) 2020
7732203
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18
16
5a
5b
5c
5d
5e
6
7
8a
8b
8c
8d
8e
9
10
11
12
13
14
15
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Part II 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)
B
Subtractions
See instructions C
Additions
See instructions
Medical and Dental Expenses See instructions.
1 Medical and dental expenses
2 Enter amount from federal Form 1040 or 1040-SR, line 11
3 Multiply line 2 by 7.5% (0.075)
4 Subtract line 3 from line 1. If line 3 is more than line 1, enter 0
Taxes You Paid
5a State and local income tax or general sales taxes
5b State and local real estate taxes
5c State and local personal property taxes
5d Add line 5a through line 5c
5e Enter the smaller of line 5d or $10,000 ($5,000 if married filing separately) in column A
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
7 Add line 5e and line 6
Interest You Paid
8a Home mortgage interest and points reported to you on federal Form 1098
8b Home mortgage interest not reported to you on federal Form 1098
8c Points not reported to you on federal Form 1098
8d Mortgage insurance premiums
8e Add line 8a through line 8d
9 Investment interest
10 Add line 8e and line 9
Gifts to Charity
11 Gifts by cash or check
12 Other than by cash or check
13 Carryover from prior year
14 Add line 11 through line 13
Casualty and Theft Losses
15 Casualty or theft loss(es) (other than net qualified disaster losses). Attach federal
Form 4684. See instructions.
Other Itemized Deductions
16 Other—from list in federal instructions
17 Add lines 4, 7, 10, 14, 15, and 16 in columns A, B, and C
18 Total. Combine line 17 column A less column B plus column C
17
Schedule CA (540) 2020
Side 3
7733203
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29
30
19
20
21
22
24
25
26
27
28
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
20 Tax preparation fees
21 Other expenses - investment, safe deposit box, etc. List type
22 Add line 19 through line 21
23 Enter amount from federal Form 1040 or 1040-SR, line 11
24 Multiply line 23 by 2% (0.02). If less than zero, enter 0
25 Subtract line 24 from line 22. If line 24 is more than line 22, enter 0
26 Total Itemized Deductions. Add line 18 and line 25
27 Other adjustments. See instructions. Specify
.
28 Combine line 26 and line 27
29 Is your federal AGI (Form 540, line 13) more than the amount shown below for your ling status?
Single or married/RDP filing separately
$203,341
Head of household
$305,016
Married/RDP filing jointly or qualifying widow(er)
$406,687
No. Transfer the amount on line 28 to line 29.
Yes.
Complete the Itemized Deductions Worksheet in the instructions for Schedule CA (540), line 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
$4,601
Married/RDP filing jointly, head of household, or qualifying widow(er)
$9,202
Transfer the amount on line 30 to Form 540, line 18
This space reserved for 2D barcode
This space reserved for 2D barcode
Page 38 Personal Income Tax Booklet 2020
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Visit our website:
ftb.ca.gov
Schedule CA (540) Instructions 2020 (REV 01-21) Page 39
2020 Instructions for Schedule CA (540)
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
Setting Every Community Up for Retirement Enhancement (SECURE)
Act – The SECURE Act was enacted on December 20, 2019. In general,
California Revenue and Taxation Code (R&TC) does not conform
to the changes. California taxpayers continue to follow the Internal
Revenue Code (IRC) as of the specified date of January 1, 2015, with
modifications. California law does not conform to the federal provision
under the SECURE Act for the expansion of IRC Section 529 qualified
tuition program accounts to cover costs associated with registered
apprenticeship and qualified education loan repayments. See specific line
instructions for more information.
Coronavirus Aid, Relief, and Economic Security (CARES) Act – The
federal CARES Act was enacted on March 27, 2020. In general, California
R&TC does not conform to the changes. California taxpayers continue
to follow the IRC as of the specified date of January 1, 2015, with
modifications. California law does not conform to the following federal
provisions under the CARES Act:
• Charitable contributions changes
• Exclusion for certain employer payment of student loans
• Business interest limitations
• Health-savings account changes
California law conforms to the following federal provision under the
CARES Act:
• Temporarily increases the amount of loans allowable from a qualified
employer plan to $100,000 for coronavirus-related relief and delays by
one year the due date for any repayment for an outstanding loan from
a qualified employer plan if requirements are met.
The above lists are not intended to be all-inclusive of the federal and stat
e
conformities and differences. For more information, see specific line
instructions or refer to the R&TC.
Paycheck Protection Program (PPP) Loan Forgiveness – For taxable
years beginning on or after January 1, 2020, California provides an
exclusion from gross income for covered loan amounts forgiven under
the federal CARES Act, Paycheck Protection Program and Health Care
Enhancement Act, or the Paycheck Protection Program Flexibility
Act of 2020. For more information, see R&TC Section 17131.8.
The Consolidated Appropriations Act, 2021 was signed into federal law
on December 27, 2020, allowing deductions for eligible expenses paid
for with covered loan amounts that would be or would reasonably be
expected to be forgiven under the PPP. California law does not conform
to this federal provision. For California purposes, any credit or deduction
allowed for any amount paid or incurred should be reduced by the
amount of the exclusion allowed under the PPP. For more information,
see specific line instructions in Part I, Section B, line 3.
Worker Status: Employees and Independent Contractors – Some
individuals may be classified as independent contractors for federal
purposes and employees for California purposes, which may also cause
changes in how their income and deductions are classified. For more
information, see Schedule CA (540) specific line instructions in Part I,
Section A, line 1; Part I, Section B, line 3; Part I, Section C, line 14 and
line 16; and Part II, line 4.
Rental Real Estate Activities – For taxable years beginning on or after
January 1, 2020, the dollar limitation for the offset for rental real estate
activities shall not apply to the low income housing credit program.
For more information, see R&TC Section 17561(d)(1). Get form
FTB 3801-CR, Passive Activity Credit Limitations, for more information.
R&TC Section 41 Reporting Requirements – Beginning in taxable
year 2020, California allows individuals and other taxpayers operating
under the personal income tax law to claim credits and deductions of
business expenses paid or incurred during the taxable year in conducting
commercial cannabis activity. Sole proprietors conducting a commercial
cannabis activity that is licensed under California Medicinal and
Adult-Use Cannabis Regulation and Safety Act should file form FTB 4197,
Information on Tax Expenditure Items. The Franchise Tax Board (FTB)
uses information from form FTB 4197 for reports required by the
California Legislature. For more information, see Schedule CA (540)
specific line instructions in Part I, Section B, line 3, and get form
FTB 4197 for more information.
Net Operating Loss Suspension – For taxable years beginning on or after
January 1, 2020, and before January 1, 2023, California has suspended
the net operating loss (NOL) carryover deduction. Taxpayers may
continue to compute and carryover an NOL during the suspension period.
However, taxpayers with net business income or modified adjusted gross
income of less than $1,000,000 or with disaster loss carryovers are not
affected by the NOL suspension rules.
The carryover period for suspended losses is extended by:
• Three years for losses incurred in taxable years beginning before
January 1, 2020.
• Two years for losses incurred in taxable years beginning on or after
January 1, 2020, and before January 1, 2021.
• One year for losses incurred in taxable years beginning on or after
January 1, 2021, and before January 1, 2022.
For more information, see R&TC Section 17276.23, and get form
FTB 3805V, Net Operating Loss (NOL) Computation and NOL and
Disaster Loss Limitations – Individuals, Estates, and Trusts.
Excess Business Loss Limitation – The federal CARES Act made
amendments to IRC Section 461(l) by eliminating the excess business
loss limitation of noncorporate taxpayers for taxable year 2020 and
retroactively removing the limitation for taxable years 2018 and
2019. California does not conform to those amendments. For taxable
year 2020, complete form FTB 3461, California Limitation on Business
Losses, if you are a noncorporate taxpayer and your net losses from
all of your trades or businesses are more than $259,000 ($518,000
for married taxpayers filing a joint return). For more information, see
Schedule CA (540) specific line instructions in Part I, Section B, line 8f,
and get form FTB 3461.
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 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.
Loophole Closure and Small Business and Working Families Tax
Relief Act of 2019 – The Tax Cuts and Jobs Act (TCJA) signed into law
on December22,2017, 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 January1, 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
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
Page 40 Schedule CA (540) Instructions 2020 (REV 01-21)
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 harrasment 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 I and Part II, 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 540, California 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/RDPs, 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 Form 540NR,
California Nonresident or Part-Year Resident Income Tax Return, and 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.
Purpose
Use Schedule CA (540), California Adjustments – Residents, to make
adjustments to your federal adjusted gross income and to your federal
itemized deductions using California law.
Specic Line Instructions
Part I Income Adjustment Schedule
Column A — Federal Amounts
Section A, Line 1 through Line 7, and Section B, Line 1 through Line 8
Enter in Section A, line 1 through line 7, and Section B, line 1 through
line 8 the same amounts you entered on your federal Form 1040, U.S.
Individual Income Tax Return or Form 1040-SR, U.S. Tax Return for
Seniors, line 1 through 7; and federal Schedule 1 (Form 1040), Additional
Income and Adjustments to Income, line 1 through line 8.
Line 9 – Total
Combine the amounts in Section A, line 1 through line 7, and Section B,
line 1 through line 8.
Section C, Line 10 through Line 17 and Line 19 through Line 21
Enter the same amounts entered on your federal Schedule 1
(Form 1040), line10 through line 17 and line 19 through line 21.
Line 18a and Line 18b
Enter on line 18a the same amount entered on your federal Schedule 1
(Form 1040), 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. However, if you
claimed any of the following deductions below or if you made any of the
adjustments described in the instructions for federal Schedule 1 (Form
1040), line 22, include that amount in the total you enter in column A,
line 22.
• Charitable contribution with your standard deduction (CCSD) on
federal Form 1040 or 1040-SR, line 10b
• Foreign housing deduction from federal Form 2555, Foreign Earned
Income from Schedule 1 (Form 1040), line 22
Line 23 – Total
Subtract line 22 from line 9. This amount should match the amount
entered on federal Form 1040 or 1040-SR, line 11.
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.
You may need one or more 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, you will not make any adjustments 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.
Employees and independent contractors. Some taxpayers may be
classified as independent contractors for federal purposes and as
employees for California purposes. If the taxpayer is classified as an
employee for California purposes, enter the amount reported as gross
income of the business from federal Schedule C (Form 1040), line 7, as
wages on line 1, column C.
Active duty military pay. Special rules apply to active duty military
taxpayers. Get FTB Pub. 1032 for more information.
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.
Sick pay received under the Federal Insurance Contributions Act and
Railroad Retirement Act. California excludes this item from income. Enter in
column B the amount of these benefits included in the amount in column A.
Schedule CA (540) Instructions 2020 (REV 01-21) Page 41
Ridesharing fringe benet 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 Schedule 1 (Form 1040) (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
Schedule 1 (Form 1040) (under IRC Section 911), see the instructions for
line 8.
Exclusion for compensation from exercising a California Qualied
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 an amount qualifying for this exclusion in federal income,
enter that amount on line 1, column B.
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)
supplementar
y 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 supplementar
y 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 sourced per capita income
must reside in their affiliated tribe’s Indian country to qualify for tax
exempt status. Enter on line 1, columnB the earnings included in federal
income that are exempt for California. Attach form FTB 3504, Enrolled
Tribal Member Certification, to Form540. 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 you received from:
• U.S. savings bonds (except for interest from series EE U.S. savings
bonds issued after 1989 that qualified for the Education Savings Bond
Programexclusion).
• 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 that are
tax-exempt will be shown on your annual statement or statement issued
with federal Form 1099-DIV, Dividends and Distributions.
Enter in column C the interest you identified as tax-exempt interest on
your federal Form 1040 or 1040-SR, line 2a, 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 earned from a Health Savings Account (HSA)
are not treated as taxed deferred. Interest or earnings in a 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 age 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 you
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 incomeindividuals.
Get FTB Pub. 1001 if you received interest income from the items listed
above passed through to you from S corporations, trusts, estates,
partnerships, or LLCs.
Line 3 – Ordinar
y 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.
Add dividends received from the following and enter in column B:
• Dividend income from children under age 19 or students under age24
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.
Add dividends received from the following and enter in column C:
• Controlled foreign corporation (CFC) dividends in the year distributed.
• Regulated investment company (RIC) capital gains in the year
distributed.
• Distributions of pre-1987 earnings from an S corporation.
• Dividend income from children under age 19 or students under age24
excluded
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 if you received dividends from:
• Non-cash patronage dividends from farmers’ cooperatives or
mutualassociations.
• A CFC.
• Distributions of pre-1987 earnings from S corporations.
• Undistributed capital gains for RIC shareholders.
Line 4a and b – IRA Distributions
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 contributions to 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.
Page 42 Schedule CA (540) Instructions 2020 (REV 01-21)
If you have an IRA basis and were a nonresident in prior years, you may
need to restate your California IRA basis. Get FTB Pub. 1100 for more
information.
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 5a and b – 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 following adjustments.
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 6 – Social Security Benets
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 6(b).
Line 7 – 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 (540),
California Capital Gain or Loss Adjustment, to calculate the amount to
enter on line 7.
• Gain on 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, orLLCs.
• Capital loss carryover from your 2019 California Schedule D (540).
• 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 sale or disposition of 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 T
axes
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), Profit or Loss
FromBusiness.
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
combination of gains and losses).
• Passive activities that produce gains.
Paycheck Protection Program loan forgiveness. Under federal law, the
Consolidated Appropriations Act, 2021 allows deductions for eligible
expenses paid for with covered loan amounts that would be or would
reasonably be expected to be forgiven under the PPP. California law does
not conform to this federal provision. If eligible expenses were deducted
for federal purposes, enter the total amount of those expenses deducted
on line 3, column C.
Employees and independent contractors. Some taxpayers may be
classified as independent contractors for federal purposes and as
employees for California purposes. If the taxpayer is classified as an
employee for California purposes, enter the amount of federal business
income from line 3, column A, on line 3, column B.
Commercial cannabis activity. Under federal law, deductions for
business expenses of a trade or business paid or incurred during the
taxable year in conducting commercial cannabis activity are disallowed.
California does not conform. California allows cannabis business licensed
under California Medicinal and Adult-Use Cannabis Regulation and Safety
Act (CA MAUCRSA) to claim these expenses. Enter the amount of these
expenses on line 3, column B.
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 50% 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 benet expenses. Under
federal law, deductions for entertainment expenses are disallowed; the
current 50% limit on the deductibility of business meals is expanded
Schedule CA (540) Instructions 2020 (REV 01-21) Page 43
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
line3, 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 Section 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
outsideCalifornia.
• 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 Recover
y Area (LAMBRA), or
Targeted Tax Area (TT
A).
• 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
Pier
ce’s disease.
• Expenditures for tertiary injectants.
• Property placed in service on an Indian reser
vation 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 Januar
y 1, 1995, and before January 1, 1997.
• Resear
ch 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 TT
A.
• 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.
• Commer
cial 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.
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 recover
y period or basis used to
figure California depreciation may be different from the recovery period
or amount used for federal. For more information, see the instructions for
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
business are not automatically treated as passive activities. Get form
FTB3801 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), 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
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 basis you use to
figure California depreciation may be different from the amount used for
federal purposes, and you may need to make an adjustment to your farm
income or loss. For more information, see the instructions for column B
and column C, line 3.
Page 44 Schedule CA (540) Instructions 2020 (REV 01-21)
Use form FTB 3801 to figure the total adjustment for line 6 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), 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
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) benets, also known as Family
T
emporary Disability Insurance. Payments received from the PFL
Program are reported on federal Form 1099-G, Certain Government
Payments. California excludes payments received from the PFL program
from taxable income. Enter on line 7, column B the amount of PFL
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 II, line 16, column A. Enter these losses on
Part II, 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 2020 form FTB 3805V, Part III, line 2 and/or
line 3, column (f), as a positive number in column B.
NOL Attributable to a Qualied Disaster – If you deduct a 2020 disaster
loss in the 2020 taxable year and have remaining disaster loss 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), line8. If the
amount on line 8 in columnA 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. 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 prior years, enter
the total allowable California NOL carryover deduction for the current year
from form FTB 3805V, Part III, line 2, column (f), as a positive number in
column B.
e. NOL from Forms FTB 3805Z, 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 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), enter
the amount on line 8f, column B and write “IRC 965” on line 8f and at the
top of Form 540.
Global intangible low-taxed income (GILTI) under IRC Section 951A.
If you included GILTI on your federal Schedule 1 (Form 1040), enter the
amount on line 8f, column B and write “IRC 951A” on line 8f.
Excess business loss. For taxable years beginning after
December31,2018, California law generally conforms to the changes
under the Tax Cuts and Jobs Act 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 instead of an NOL carryover for the subsequent taxable
year.
The federal CARES Act made amendments to IRC Section 461(l) by
eliminating the excess business loss limitation of noncorporate taxpayers
for taxable year 2020 and retroactively removing the limitation for
taxable years 2018 and 2019. California does not conform to those
amendments. For taxable year 2020, complete form FTB 3461, if you
are a noncorporate taxpayer and your net losses from all of your trades
or businesses are more than $259,000 ($518,000 for married taxpayers
filing a joint return). Enter the amount from form FTB 3461, line 16, on
line 8f, column C. Attach form FTB 3461 to the tax return.
Qualied 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 secondar
y education or to the maximum distribution amount. If
the amount was excluded for federal purposes, make an adjustment on
line8f, columnC.
California does not conform to federal law under the SECURE Act
regarding tax free distributions from an IRC Section 529 plan to cover
costs associated with registered apprenticeship and qualified education
loan repayments. 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 Schedule 1 (Form 1040),
enter the excluded amount on line 8f, column C. For more information,
get FTBPub.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
in column B the income included in federal income that is exempt for
California and write “FTB 3504” on line 8f. Attach form FTB3504 to
Form540.
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
FTB3803. 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 earned income or housing exclusion.
Enter in column C
the amount deducted from federal income on federal Schedule 1
(Form1040), line 8.
Schedule CA (540) Instructions 2020 (REV 01-21) Page 45
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 line8, 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, 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 Forestr
y 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 unqualied 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, columnB.
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.
Certain employer payments of student loans. California does not
conform to the federal CARES Act regarding the exclusion of student
loan payments made on behalf of an employee by an employer. Enter the
amount of loan payment on line 8f, column C.
g. Student Loan Discharged Due to Closure of a For-Prot 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.
Enter in column B the amount of this type of income included in the
amount on line 8g, column A.
Line 9 – Total
Add Section A, line 1 through line 7, 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 law 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 Ofcials – 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 FTB 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 a deduction for contributions to an HSA account. California
does not conform. Transfer the amount from column A, line 12, to
column B, line12.
• 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 (540), 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 (540), line 13, column C.
• Line 14 Deductible Part of Self-employment Tax – A taxpayer may
be classified as an independent contractor for federal purposes and as
an employee for California purposes. This deduction is not allowed to
an employee. If for California purposes, the taxpayer is classified as
an employee, an adjustment is needed in column B. Enter the amount
from column A, line 14, on column B, line 14.
• Line 16 Self-employed Health Insurance Deduction – A taxpayer may
be classified as an independent contractor for federal purposes and as
an employee for California purposes. This deduction is not allowed to
an employee. If for California purposes, the taxpayer is classified as
Page 46 Schedule CA (540) Instructions 2020 (REV 01-21)
an employee, an adjustment is needed in column B. Enter the amount
from column A, line 16, on column B, line 16.
Note: A taxpayer classified as an employee for California purposes who
makes an adjustment on this line may be able to claim this amount as
a deduction for medical and dental expenses. For more information,
see instructions for Part II, line 4.
• 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 20 Student Loan Interest Deduction –
California conforms to
federal law regarding student loan interest deduction except for a
spouse/RDP of a non-California domiciled military taxpayer residing in
a community property state. Use the Student Loan Interest Deduction
Worksheet below to compute the amount to enter on line 20. For more
information, get FTB Pub. 1032.
Student Loan Interest Deduction Worksheet
1 Enter the total amount from Schedule CA (540),
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 2020
on qualified student loans but not more than $2,500 here
..2_________
3 Add federal Schedule 1 (Form 1040), line 20
(student loan interest deduction) to
federal Form 1040 or 1040-SR, line 11 (AGI).
Enter the result here
.................3 _________
4 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
}
4 _________
5 Is the amount on line 3 more than the
amount on line 4?
m No.
Skip lines 5 and 6, enter 0 on
line 7, and go to line 8.
- -
m Yes. Subtract line 4 from line 3
......5 _________
6 Divide line 5 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
..6 _ . _ _ _ _
7 Multiply line 2 by line 6
............................7_________
8 Student loan interest deduction. Subtract line 7
from line 2
......................................8_________
9 Student loan interest adjustment. If line 1 is less than
line 8, enter the difference here and
on Schedule CA (540), line 20, column C.
..............9_________
• 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.
If you claimed a charitable contribution with your standard deduction
(CCSD) from federal Form 1040 or 1040-SR, line 10b, include that
amount in the total you enter on column B, line 22. Enter the amount
and “1040, CCSD” on the dotted line next to line 22. This amount may
only be claimed for California purposes as an itemized deduction. See
instructions for Part II, line 11, for more information.
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 claimed the excess deduction on termination of an estate or
trust for federal purposes, include that amount in the total you enter in
column B, line 22. Enter the amount and “ED67(e)” on the dotted line
next to line 22. For California purposes, this amount is claimed as a
miscellaneous itemized deduction. For more information, see instructions
in Part II for line 21.
Line 23 – Total
Subtract line 22 from line 9 in column B and column C.
Also, transfer the amount from:
• Line 23, column B to Form 540, line 14
If column B is a negative number, transfer the amount as a positive
number to Form 540, line 16.
• Line 23, column C to Form 540, line 16
If column C is a negative number, transfer the amount as a positive
number to Form 540, line 14.
Part II 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), Itemized Deductions. Then check
the box at the top of Schedule CA (540), Part II and complete line 1
through line 30. Attach a copy of federal Schedule A (Form 1040) to your
Form 540.
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).
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 1 through Line 4
Employees and independent contractors – Taxpayers classified as
independent contractors for federal purposes and classified as employees
for California purposes may claim the amount of self-employed health
insurance deduction for federal purposes as a medical and dental
expense deduction for California purposes. Combine the amount paid for
self-employed health insurance with other medical and dental expenses
(as applicable). The total amount of the medical and dental expenses is
subject to the 7.5% of federal AGI threshold. Enter the difference between
the medical and dental expense deduction allowed for California and
federal on line 4, column C
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.
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.
Schedule CA (540) Instructions 2020 (REV 01-21) Page 47
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
Qualied Charitable Contributions – Your California deduction may be
different from your federal deduction. California limits the amount of
your deduction to 50% of your federal adjusted gross income. 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.
Cash Charitable Contributions With Your Standard Deduction – If you
claimed a charitable contribution with your standard deduction (CCSD)
from federal Form 1040 or 1040-SR, line 10b, this amount may only
be claimed for California purposes as an itemized deduction. Enter the
amount allowed using California law on line 11, column C.
College Athletic Seating Rights – Federal law no longer allows 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
ScheduleA (Form1040) and are claiming the College Access Tax Credit
on your Form540, 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 Section 17275.4. Enter the amount of
this deduction on line 11, column B.
Line 12 – Other Than By Cash or Check
Qualied Charitable Contributions –
Your California deduction may be
different from your federal deduction. California limits the amount of
your deduction to 50% of your federal adjusted gross income. 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 Section 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,
columnC.
Carryover Deduction of Appreciated Stock Contributed to a Private
Foundation prior to Januar
y 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
line16, 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.
Page 48 Schedule CA (540) Instructions 2020 (REV 01-21)
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 choose to take the credit instead of the deduction
for California, add the credit amount on line 78, the total payment line, of
the Form 540. 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 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
Californiapurposes.
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, line 32 and 38b, or federal
Form 4797, line 18a.
• Deduction for repayment of amounts under a claim of right if $3,000
or less.
• Excess deduction on termination of an estate or trust.
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) and are claiming the adoption
cost credit for the same amounts on your Form 540, enter the amount of
the adoption cost credit claimed as a negative number on line27.
Nontaxable Income Expenses – If, on federal Schedule A (Form 1040),
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 place 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 amount as a positive number on line 27.
Line 29 – California Itemized Deductions
Is the amount on Form 540, line 13 more than the amount shown below
for your filing status?
Single or married/RDP filing separately
.................. $203,341
Head of household
.................................. $305,016
Married/RDP filing jointly or qualifying widow(er)
.......... $406,687
NO Transfer the amount from line 28 to line 29. Do not complete the
Itemized Deductions Worksheet.
YES Complete the Itemized Deductions Worksheet below.
Note:
• If married or an RDP and filing a separate tax return, 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, claim the
greater of the standard deduction or your itemized deductions. See
the instructions for “California Standard Deduction W
orksheet for
Dependents” within the Form 540 Personal Income Tax Booklet to
figure your standard deduction.
Itemized Deductions Worksheet
1. Amount from Schedule CA (540), Part II, line 28 ..... 1 _______
2. Add the amounts on federal Schedule A
(Form 1040), line 4, line 9, and line 15
plus any gambling losses included on line 16
....... 2 _______
3. Subtract line 2 from line 1 ...................... 3 _______
If zero, STOP. Enter the amount from line 1 on
Schedule CA (540), Part II, line 29.
4. Multiply line 3 by 80% (.80)..................... 4 _______
5. Amount from Form 540, line 13 .................. 5 _______
6. Enter the amount shown above for your filing status .. 6 _______
7. Subtract line 6 from line 5 ...................... 7 _______
Note: If zero or less, STOP. Enter the amount from
line 1 on Schedule CA (540), Part II, line 29.
8. Multiply line 7 by 6% (.06)...................... 8 _______
9. Compare line 4 and line 8. Enter the smaller
amount here
..................................9 _______
10. Total itemized deductions. Subtract line 9 from line 1.
Enter here and on Schedule CA (540), Part II, line 29
. 10 _______
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).
7761203 Schedule D (540) 2020 Side 1
TAXABLE YEAR
2020
California Capital Gain or Loss Adjustment
SCHEDULE
D (540)
Do not complete this schedule if all of your California gains (losses) are the same as your federal gains (losses).
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 2020 gains from all sources. Add column (e) amounts of line 1, line 2, and line 3 ...................... 4
5 2020 loss. Add column (d) amounts of line 1 and line 2. ............................ 5 (
)
6 California capital loss carryover from 2019, if any. See instructions. ................... 6 ( )
7 Total 2020 loss. Add line 5 and line 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 ( )
For Privacy Notice, get FTB 1131 ENG/SP.For Privacy Notice, get FTB 1131 ENG/SP.
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 7....................................... 10
11 Enter the California gain from line 8 or (loss) from line 9
............................................... 11
12 a If line 10 is more than line 11, enter the difference here and on Schedule CA (540), Part I,
Section A, line 7, column B
................................................................... 12a
b If line 10 is less than line 11, enter the difference here and on Schedule CA (540), Part I,
Section A, line 7, column C
................................................................... 12b
This space reserved for 2D barcode
This space reserved for 2D barcode
7762203Side 2 Schedule D (540) 2020
Schedule D (540) Instructions 2020 Page 51
2020 Instructions for California Schedule D (540)
California Capital Gain or Loss Adjustment
References in these instructions are to the Internal Revenue Code (IRC) as of January 1, 2015, and to the California Revenue and Taxation Code (R&TC).
General Information
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 (540), California Adjustments - Residents, or 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.
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, Tax Information for Registered Domestic Partners.
Purpose
Use California Schedule D (540), California Capital Gain or Loss
Adjustment, only if there is a difference between your California and
federal capital gains and losses.
Get FTB Pub. 1001, for more information about the following:
• Disposition of property inherited before 1987.
• Gain on the sale or disposition of a qualified assisted housing
development to low-income residents or to specific entities
maintaining housing for low-income residents.
• Capital loss carr
yback.
Important Information
Installment Sales.
If you sold property at a gain (other than publicly traded stocks or
securities) and you will receive a payment in a tax year after the year of
sale, report the sale on the installment method unless you elect not to do
so. Get form FTB 3805E, Installment Sale Income. Also, use that form if
you received a payment in 2020, for an installment sale made in an earlier
year.
You may elect not to use the installment sale method for California by
reporting the entire gain on Schedule D (540) (or Schedule D-1, Sales of
Business Property, for business assets) in the year of the sale and filing
your return on or before the due date.
At-Risk Rules and Passive Activity Limitations.
If you dispose of (1) an asset used in an activity to which the at-risk rules
apply, or (2) any part of your interest in an activity to which the at-risk
rules apply, and the amounts in the activity for which you are not at risk,
get and complete federal Form 6198, At-Risk Limitations, using California
amounts to figure your California deductible loss under the at-risk rules.
Once a loss becomes allowable under the at-risk rules, it becomes
subject to the passive activity rules. Get form FTB 3801, Passive Activity
Loss Limitations.
Capital Assets.
The Tax Cuts and Jobs Act (TCJA) amended IRC Section 1221 excluding
a patent, invention, model or design (whether or not patented), and
a secret formula or process held by the taxpayer who created the
property (and certain other taxpayers) from the definition of a capital
asset. California does not conform. Report your capital assets on
ScheduleD(540).
Specic Line Instructions
Line 1 – List each capital asset transaction.
Column (a) – Description of Property. Describe the asset you sold or
exchanged.
Column (b) – Sales Price. Enter in this column either the gross sales
price or the net sales price. If you received federal Form 1099-B,
Proceeds From Broker and Barter Exchange Transactions; federal Form
1099-S, Proceeds From Real Estate Transactions; or similar statement
showing the gross sales price, enter that amount in column (b).
However, if box 6 of federal Form 1099-B indicates that net proceeds
were reported to the Internal Revenue Service, enter that net amount in
column (b). If you entered the net amount in column(b), do not include
the commissions and option premiums in column (c).
Column (c) – Cost or Other Basis. In general, the cost or other basis
represents the cost of the property plus purchase commissions and
improvements, minus depreciation, amortization, and depletion. Enter
the cost or adjusted basis of the asset for California purposes. Use your
records and California tax returns for years before 1987 to determine the
California amount to enter in column (c). If you used an amount other
than cost as the original basis, your federal basis may be different from
your California basis. Other reasons for differences include:
• Depreciation Methods and Property Expensing – Before 1987,
California law disallowed the use of accelerated cost recovery system
and disallowed the use of an asset depreciation range 20% above
or below the standard rate. California has different limits on the
expensing of property under IRC Section 179. California law permits
rapid write-off of certain property such as solar energy systems,
pollution control devices, and property used in an Enterprise Zone,
Local Agency Military Base Recover
y Area, Targeted Tax Area,
or Los Angeles Revitalization Zone.
• Inherited Property – The California basis of property inherited from a
decedent is generally the fair market value at the time of death.
• S Corporation Stock – Prior to 1987, California law did not recognize
S corporations; therefore, your California basis in S corporation stock
may differ from your federal basis. In general, your California basis
will be cost-adjusted for income, loss, and distributions received
after 1986, while your stock was California S corporation stock. Your
federal basis will be cost-adjusted for income, loss, and distributions
received during the time your stock qualified for federal S corporation
treatment. Effective for taxable years beginning on or after
January1, 2002, any corporation with a valid federal S corporation
election is considered an S corporation for California purposes.
Existing law already requires federal C corporations to be treated as
C corporations for California purposes.
• Special Credits –
California law authorizes special tax credits not
allowed under federal law or computed differently under federal law. In
many instances if you claimed special credits related to capital assets,
you must reduce your basis in the assets by the amount of credit.
Other adjustments may apply differently to the federal and California
basis of your capital assets. Figure the original basis of your asset using
the California law in effect when the asset was acquired, and adjust it
according to provisions of California law in effect during the period of
your ownership.
Page 52 Schedule D (540) Instructions 2020
Column (e) – Gain.
• Qualied Small Business Stock – California does not conform to the
qualified small business stock deferral and gain exclusion under IRC
Section 1045 and IRC Section 1202. Enter the entire gain realized in
column (e).
• Qualied Opportunity Zone Funds – California does not conform to
the deferral and exclusion of capital gains reinvested or invested in
qualified opportunity zone funds under IRC Sections 1400Z-1 and
1400Z-2. Enter the entire gain amount in column (e). If, for California
purposes, gains from investment in qualified opportunity zone
property had been included in income during previous taxable years,
do not include the gain in the current year income.
Line 2 – Net Gain or (Loss) Shown on California
Schedule(s) K-1 (100S, 541, 565, and 568).
Combine gain(s) and loss(es) from all California Schedule(s) K-1 (100S,
541, 565, and 568), Share of Income, Deductions, Credits, etc. See
California Schedule K-1 (100S, 541, 565, and 568) instructions for more
information on capital gains and losses. Enter the net loss on line 2,
column (d), or the net gain on line 2, column(e).
Line 3 – Capital Gain Distributions.
If you receive federal Form 2439, Notice to Shareholder of Undistributed
Long-Term Capital Gains, from a mutual fund, do not include the
undistributed capital gain dividends on Schedule D (540). If you receive
federal Form 1099-DIV, Dividends and Distributions, enter the amount of
distributed capital gain dividends.
Line 6 – 2019 California Capital Loss Carryover.
If you were a resident of California for all prior years, enter your California
capital loss carryover from 2019. However, if you were a nonresident of
California during any taxable year that generated a portion of your 2019
capital loss carryover, recalculate your 2019 capital loss carryover
as if you resided in California for all prior years. Get FTB Pub. 1100,
Taxation of Nonresidents and Individuals Who Change Residency, for
more information. Enter your California capital loss carr
yover amount
from 2019 on line 6.
Line 8 – Net Gain or Loss.
If the amount on line 4 is more than the amount on line 7, subtract line 7
from line 4. Enter the difference as a gain on line 8.
If the amount on line 7 is more than the amount on line 4, subtract line 4
from line 7 and enter the difference as a negative amount on line 8.
Use the worksheet on this page to figure your capital loss carryover to
2021.
Line 9
If line 8 is a net capital loss, enter the smaller of the loss on line 8 or
$3,000 ($1,500 if you are married or an RDP filing a separate return).
Line 12a
Compare the amounts entered on line 10 and line 11 to figure the
adjustment to enter on Schedule CA (540), Part I, Section A, line 7,
column B.
For example:
Loss on line 10 is less than loss on line 11.
Federal loss on line 10 is
.............................($1,000)
California loss on line 11 is
...........................($2,000)
Difference between line 10 and line 11
.................. $1,000
Gain on line 10 and loss on line 11.
Federal gain on line 10 is
.............................$3,000
California loss on line 11 is
........................... ($3,000)
Difference between line 10 and line 11
...................$6,000
Line 12b
Compare the amounts on line 10 and line 11 to figure the adjustment to
enter on Schedule CA (540), Part I, Section A, line 7, column C.
For example:
Loss on line 10 is more than loss on line 11.
Federal loss on line 10 is
............................($2,000)
California loss on line 11 is
........................... ($1,000)
Difference between line 11 and line 10
...................$1,000
Loss on line 10 and gain on line 11.
Federal loss on line 10 is
............................($2,000)
California gain on line 11 is
...........................$5,000
Difference between line 10 and line 11
...................$7,000
California Capital Loss Carryover Worksheet
1. Loss from Schedule D (540), line 11, stated as a
positive number
..............................1 _________
2. Amount from Form 540, line 17 .................2 _________
3. Amount from Form 540, line 18 .................3 _________
4. Subtract line 3 from line 2. If less than zero, enter
as a negative amount
..........................4 _________
5. Combine line 1 and line 4. If less than zero,
enter 0- -
....................................5 _________
6. Loss from Schedule D (540), line 8 ...............6 _________
7. Enter the smaller of line 1 or line 5 ...............7 _________
8. Subtract line 7 from line 6. This is your capital loss
carryover to 2021
............................8 _________
1221203
FTB 3519 2020
2020 Instructions for Form FTB 3519
Payment for Automatic Extension for Individuals
General Information
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 will
be subject to a 1% noncompliance penalty. 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 the Franchise Tax Board’s (FTB’s) website,
electronic funds withdrawal (EFW) as part of the e-file tax return, or your
credit card.
Use form FTB 3519, Payment for Automatic Extension for Individuals,
only if both of the following apply:
• You cannot file your 2020 tax return by April 15, 2021.
Note: Fiscal Year Filers, your tax return is due the 15th day of the 4th
month following the close of your fiscal year.
• You owe tax for 2020.
When you file your 2020 tax return, you can e-le or CalFile. Go to
ftb.ca.gov and search for e-le options. If you use form FTB 3519, you
may not
file Form 540 2EZ, California Resident Income Tax Return.
Use the worksheet on the next page to determine if you owe tax. If you
do not owe tax, donot complete or mail form FTB 3519. However, file
your tax return by October15,2021. If you owe tax, choose one of the
following payment options:
• Web Pay: Individuals can make payments online using Web Pay for
Individuals. Taxpayers can make an immediate payment or schedule
payments up to a year in advance. Go to ftb.ca.gov/pay for more
information. Do not mail form FTB 3519 to the FTB.
• EFW: Individuals can make an extension or estimated tax payment
using tax preparation software. Check with your software provider
to determine if they support EFW for extension and estimated tax
payments. Do not mail form FTB 3519 to the FTB.
• Credit Card: Use your major credit card. Call 800.272.9829 or go to
ofcialpayments.com, use code 1555. Official Payments Corporation
charges a convenience fee for using this service. Do not mail form
FTB 3519 to the FTB.
• Check or Money Order: Using black or blue ink, complete your check
or money order and the payment form below and mail both to the
“Franchise Tax Board.” Make all checks or money orders payable in
U.S. dollars and drawn against a U.S. financial institution.
Penalties and Interest
If you fail to pay your total tax liability by April 15, 2021, you will incur
a late payment penalty plus interest. We may waive the late payment
penalty based on reasonable cause. Reasonable cause is presumed when
90% of the tax is paid by the original due date of the tax return. However,
the imposition of interest is mandatory. If, after April 15, 2021, 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. Pay your additional tax with another form FTB 3519. If you do
not file your tax return by October 15, 2021, you will incur a late filing
penalty plus interest from the original due date of the tax return. For
Fiscal Y
ear Filers, your tax return is due the 15th day of the 10th month
following the close of your fiscal year.
Taxpayers Residing or Traveling Outside the USA
If you are residing or traveling outside the USA on April 15, 2021, the
deadline to file your tax return and pay the tax is June 15, 2021. Interest
will accrue from the original due date until the date of payment. If you
need additional time to file, you will be allowed a six-month extension
without filing a request. To qualify for the extension, file your tax return
by December 15, 2021. To avoid any late-payment penalties, pay your
tax liability by June 15, 2021. When filing your tax return, write “Outside
the USA on April 15, 2021”
at the top of your tax return in BLUE INK, or
include it according to your software’s instructions.
Save the stamp – pay online with Web Pay!
IF NO PAYMENT IS DUE, DO NOT MAIL THIS FORM
DETACH HEREDETACH HERE
(Calendar year filers – File and Pay by April 15, 2021) (Fiscal year filers – see instructions)
CAUTION: You may be required to pay electronically. See instructions.
TAXABLE YEAR
2020
Payment for Automatic Extension for Individuals
CALIFORNIA FORM
3519 (PIT)
For calendar year 2020 or fiscal year beginning (mm/dd/yyyy)
, and ending (mm/dd/yyyy)
.
Your first name Initial Last name Your SSN or ITIN
If joint payment, spouse’s/RDP’s first name Initial Last name
Spouse’s/RDP’s SSN or ITIN
Address (number and street, PO box, or PMB no.)
Apt. no./ste. no.
City State ZIP code
IF PAYMENT IS DUE, MAIL TO:
FRANCHISE TAX BOARD
PO BOX 942867
SACRAMENTO CA 94267-0008
If amount of payment is
zero, do not mail this form
}
▶
Amount of payment
For Privacy Notice, get FTB 1131 ENG/SP.
00
.