Fillable Form 540: CALIFORNIA Forms & Instructions (California)

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Form 540: CALIFORNIA Forms & Instructions (California)

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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
TaxCredit.
Young Child Tax Credit
• Young Child Tax Credit (YCTC) – YCTC reduces your California tax
obligation, or allows a refund if no California tax is due. You may
qualify for the credit if you qualified for the CA EITC and you have
at least one qualifying child who is younger than six years old as
of the last day of the taxable year. For more information, see the
instructions for 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 Form593,
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 ele 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 Qualied 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-Prot School –
California law allows an income exclusion for an eligible individual
who is granted a discharge of any student loan under specified
conditions. This income exclusion has now been expanded to include
a discharge of student loans occurring on or after January 1, 2019,
and before January1, 2024, for individuals who attended a Brightwood
College school or a location of The Art Institute of California.
Additional information can be found in the instructions for California
ScheduleCA(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
January1, 2017, and before January 1, 2023, the College Access
Tax Credit (CATC) is available to entities awarded the credit from the
California Educational Facilities Authority (CEFA). The credit is 50%
of the amount contributed by the taxpayer for the taxable year to the
College Access Tax Credit Fund. The amount of the credit is allocated
and certified by the CEFA. For more information, go to the CEFA website
at treasurer.ca.gov and search for catc.
Schedule X, California Explanation of Amended Return Changes – For
taxable years beginning on or after January 1, 2017, use Schedule X to
determine any additional amount you owe or refund due to you, and to
provide reason(s) for amending your previously filed income tax return.
For additional information, see “Instructions for Filing a 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.
Thisprogram was established to help blind or disabled U.S. residents
save money in a tax-favored ABLE account to maintain health,
independence, and quality of life. Additional information can be found in
the instructions of form FTB 3805P, Additional Taxes on Qualified Plans
(Including IRAs) and Other Tax-Favored Accounts.
New California Motion Picture and Television Production Credit – For
taxable years beginning on or after January 1, 2016, a new California
motion picture and television production credit will be allowed to a
qualified taxpayer. The credit is allocated and certified by the California
Film Commission (CFC). The qualified taxpayer can:
• Offset the credit against income tax liability.
• Sell the credit to an unrelated party (independent films only).
• Assign the credit to an affiliated corporation.
• Apply the credit against qualified sales and use taxes.
For more information, get form FTB 3541, 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 FTB3805V.
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
January1, 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 certication of employment
is required with respect to each qualified full-time employee hired in
a previous taxable year. In order to be allowed a credit, the qualified
taxpayer must have a net increase in the total number of full-time
employees in California. Any credits not used in the taxable year may be
carried forward up to five years. If a qualified employee is terminated
within the first 36 months after beginning employment, the employer
may be required to recapture previously taken credits. For more
information, go to ftb.ca.gov and search for nec or get form FTB 3554,
New Employment Credit.
Repeal of Geographically Targeted Economic Development Area Tax
Incentives –
The California legislature repealed and made changes to all
of the Geographically Targeted Economic Development Area (G-TEDA)
Tax Incentives. Enterprise Zones (EZ) and Local Agency Military Base
Recovery Areas (LAMBRA) were repealed on January 1, 2014. The
Targeted Tax Areas (TTA) and Manufacturing Enhancement Areas (MEA)
both expired on December 31, 2012. For more information, get the
applicable EDA booklet.
California Competes Tax Credit – For taxable years beginning on
and after January1, 2014, and before January 1, 2030, the California
Competes Tax Credit is available to businesses that want to come to
California or stay and grow in California. Tax credit agreements will
be negotiated by the Governor’s Office of Business and Economic
Development (GO-Biz) and approved by the California Competes Tax
Credit Committee. The California Competes Tax Credit only applies to
state income or franchise tax. Taxpayers who are awarded a contract
by the committee will claim the credit on their income or franchise
tax returns using credit code 233. The credit can reduce tax below the
tentative minimum tax. Any credits not used in the taxable year may be
carried forward up to six years. For more information, go to the GO-Biz
website at business.ca.gov or ftb.ca.gov and search for ca competes
or get form FTB 3531, California Competes Tax Credit.
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 Form1099-DIV, box 2a only)
• Unemployment compensation reported on federal
Form1099-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.
Sufx
Use the Suffix field for generational name suffixes such as “SR”, “JR”,
“III”,“IV”. Do not enter academic, professional, or honorary suffixes.
Additional Information
Use the Additional Information field for “In-Care-Of” name and other
supplemental address information only.
Foreign Address
If you have a foreign address, follow the country’s practice for entering
the city, county, province, state, country, and postal code, as applicable,
in the appropriate boxes. Do not abbreviate the country name.
Principal Business Activity (PBA) Code
For federal Schedule C (Form 1040), 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 Identication 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
ScheduleCA(540), Part I, line 23, column B. If a negative amount, see
ScheduleCA(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.
Forexample:“(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
ScheduleCA(540), Part I, line 23, column C. If a negative amount, see
ScheduleCA(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 (Form1040) 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 ele.
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 FTB5870A to
your tax return.
To get these forms, see “Order Forms and Publications.”
Special Credits and Nonrefundable Credits
A variety of California tax credits are available to reduce your tax if you
qualify. To figure and claim most special credits, you must complete a
separate form or schedule and attach it to your Form 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 page21.
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 ScheduleK-1 (568), line 15e. Do not include withholding from
Forms592-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
ScheduleK-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 in2020.
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
searchbar.
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
Line91. 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
Form1099-G. The refund amount reported on your federal Form1099-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, line100, 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 ofcialpayments.com, and use
the jurisdiction code 1555. Official Payments Corporation charges a
convenience fee for using this service.
• Check or Money Order –
Using black or blue ink, make your check
or money order payable to the “Franchise Tax Board.” Do not send
cash or other items of value (such as stamps, lottery tickets,
foreign currency, and gift cards). Write your SSN or ITIN and “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
ofcialpayments.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
October15,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
line116 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,
line11. 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
bythe ScholarShare Investment Board, you may have your refund
directly deposited to your ScholarShare account. Please visit
scholarshare529.com for instructions.
Sign Your Tax Return
You must sign your tax return in the space provided on Form 540,
Side5. If you file a joint tax return, your spouse/RDP must also sign it.
Include your preferred phone number and email address in case the
FTB needs to contact you regarding your tax return. By providing this
information the FTB will be able to provide you better customer service.
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 (Form1040), 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 Form540.
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 Qualication 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 forAlzheimer.
Code 403, Rare and Endangered Species Preservation Voluntary Tax
Contribution Program –
Contributions will be used to help protect and
conserve California’s many threatened and endangered species and the
wild lands that they need to survive, for the enjoyment and benefit of you
and future generations of Californians.
Code 405, California Breast Cancer Research Voluntary Tax
Contribution Fund –
Contributions will fund research toward preventing
and curing breast cancer. Breast cancer is the most common cancer to
strike women in California. It kills 4,000 California women each year.
Contributions also fund research on prevention and better treatment,
and keep doctors up-to-date on research progress. For more information
about the research your contributions support, go to cbcrp.org. Your
contribution can help make breast cancer a disease of the past.
Code 406, California Fireghters’ Memorial 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 Ofcer 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 yourparticipation.
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
(youmust 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
taxreturn?
Pay as much as possible when you file your tax return. If unable to pay
your tax in full with your tax return, make a request for monthly payments.
However, interest accrues and an underpayment penalty may be charged
on the tax not paid by April 15, 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 thestatus of my refund?
Go to ftb.ca.gov and search for refund status. You will need your social
security number (SSN) or individual taxpayer identification number (ITIN)
and the refund amount from your tax return.
You can also call our automated phone service. 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 ScheduleX
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 ScheduleX,
Part II, line 1. Specify the pending litigation or reference to the federal
determination on Part II, line 2 so we can properly process your claim.
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,
line11. 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 –
October15th): If you are making a claim for refund, file an amended tax
return within four years from the date the original tax return was filed or
within one year from the date of overpayment, whichever period expires
later.
Original tax return was led after October 15th: If you are making a
claim for refund, file an amended tax return within four years from the
original due date of the tax return (April 15th) or within one year from
the date of overpayment, whichever period expires later.
If you are ling your amended tax return after the normal statute
of limitation period (four years after the due date of the original
tax return), attach a statement explaining why the normal statute of
limitations does not apply.
If you are ling your amended return in response to a billing notice
you received, you will continue to receive billing notices until your
amended tax return is accepted. You may file an informal claim for
refund even though the full amount due including tax, penalty, and
interest has not yet been paid. After the full amount due has been paid,
you have the right to appeal to the Office of Tax Appeals at ota.ca.gov or
to file suit in court if your claim for refund is disallowed.
To file an informal claim for refund, check box l for “Informal claim” on
ScheduleX, Part II, line 1 and mail the claim to:
FRANCHISE TAX BOARD
PO BOX 942840
SACRAMENTO CA 94240-0040
Financially Disabled Taxpayers
The statute of limitations for filing claims for refunds is suspended
during periods when a taxpayer is “financially disabled.” You are
considered “financially disabled” when you are unable to manage your
financial affairs due to a medically determinable physical or mental
impairment that is deemed to be either a terminal impairment or is
expected to last for a continuous period of not less than 12months. You
are not considered “financially disabled” during any period that your
spouse/RDP or any other person is legally authorized to act on your
behalf on financial matters. For more information, get form FTB 1564,
Financially Disabled – Suspension of the Statute of Limitations.
Federal Notices
If you were notified of an error on your federal income tax return that
changed your AGI, you may need to amend your California income tax
return for that year.
If the IRS examines and changes your federal income tax return, and you
owe additional tax, report these changes to the FTB within six months.
You do not need to inform the FTB if the changes do not increase your
California tax liability. If the changes made by the IRS result in a refund
due, you must file a claim for refund within two years. Use an amended
Form 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
Form540 instructions to complete only one amended tax return. Both
you and your spouse/RDP must sign the amended joint tax return.
310120
..............
...
•
•
•
• •
•
________
A
R
RP
3
Form 540 2020 Side 1
333
.......
6
▶
7
...................................
8
.......................................
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
.............
11
.
.
.
.
.
.
.
.
.
.
.
.
.
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......................
12
........ 13
..................................................... 14
...........................................................
15
.....................................................
16
.......................
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- - ............................
......................................................
- - ...................................................
17
32
33
35
34
18
19
................
31
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.
.
00
00
43
44
{
{
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•
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•
•
•
• •
•
• • •
•
•
•
•
•
...
...
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.
Seeinstructions
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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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
333
Side 4 Form 540 2020
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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 veried 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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Visit our website:
ftb.ca.gov
Schedule CA (540) 2020
Side 1
7731203
1
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– –
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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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2
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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
.........
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
THIS PAGE INTENTIONALLY LEFT BLANK
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 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
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.
Specic 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), line10 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 benet differences. Under federal law, certain
qualified transportation benefits are excluded from gross income. Under
the California R&TC, there are no monthly limits for the exclusion of
these benefits and California’s definitions are more expansive. Enter the
amount of ridesharing benefits received and included in federal income
on line 1, column B.
Foreign income. If you excluded income exempted by U.S. tax treaties
on your federal 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 Qualied
Stock Option (CQSO). To claim this exclusion:
• Your earned income is $40,000 or less from the corporation granting
the CQSO.
• The market value of the options granted to you must be less than
$100,000.
• The total number of shares must be 1,000 or less.
• The corporation issuing the stock must designate that the stock issued
is a CQSO at the time the option is granted.
If you included 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, columnB the earnings included in federal
income that are exempt for California. Attach form FTB 3504, Enrolled
Tribal Member Certification, to Form540. 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
Programexclusion).
• U.S. Treasury bills, notes, and bonds.
• Any other bonds or obligations of the United States and its territories.
• Interest from Ottoman Turkish Empire Settlement Payments.
• Interest income from children under age 19 or students under age 24
included on the child’s federal tax return and reported on the California
tax return by the parent. For more information, get form FTB 3803,
Parents’ Election to Report Child’s Interest and Dividends.
Certain mutual funds pay “exempt-interest dividends.” If the mutual fund
has at least 50% of its assets invested in tax-exempt U.S. obligations
and/or in California or its municipal obligations, that amount of dividend
is exempt from California tax. The proportion of dividends 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 incomeindividuals.
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 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.
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 age24
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
mutualassociations.
• 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 Benets
California excludes U.S. social security benefits or equivalent Tier 1
railroad retirement benefits from taxable income. Enter in column B
the amount of taxable U.S. social security benefits or equivalent Tier 1
railroad retirement benefits shown in column A, line 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, orLLCs.
• 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
FromBusiness.
Use form FTB 3885A to figure the total adjustment for line 3 if you have:
• Only nonpassive activities which produce either gains or losses (or
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 benet 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
line3, column B.
Sexual harassment settlements. Under federal law, no deduction
is allowed for any settlement, payout, or attorney fees related to
sexual harassment or sexual abuse if such payments are subject to a
nondisclosure agreement. California does not conform. Enter the amount
received and included in federal income on line 3, column B.
Penalty Assessed by Professional Sports League. California does
not allow a business expense deduction for any fine or penalty paid or
incurred by an owner of a professional sports franchise assessed or
imposed by the professional sports league that includes that franchise. If
the fine or penalty was deducted for federal purposes, enter this amount
on line 3, column C.
Business Expense Deduction Disallowance – California disallows a
deduction for a business expense related to a payment to the Edge College
and Career Network, LLC, to a taxpayer who meets all of the following:
• They are charged as a defendant in any of several specified criminal
complaints as listed in R&TC Section 17275.4.
• There is a final determination of their guilt with regard to a violation of
any offense arising out of that criminal complaint.
• There is a finding that they took the deduction unlawfully.
For more information, see R&TC 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
outsideCalifornia.
• Pro-rata share of income received from a CFC by a U.S. shareholder.
Basis adjustments related to:
• Property acquired prior to becoming a California resident.
• Sales or use tax credit for property used in a former Enterprise
Zone (EZ), Local Agency Military Base 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
FTB3801 for more information.
Use form FTB 3801 to figure the total adjustment for line 5 if you have:
• One or more passive activities that produce a loss.
• One or more passive activities that produce a loss and any nonpassive
activity reported on federal Schedule E (Form 1040), 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) benets, 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 Qualied 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), line8. If the
amount on line 8 in columnA includes a federal NOL, enter the amount of
the federal NOL as a positive number in column C. Get form FTB 3805V,
to figure the allowable California NOL.
d. NOL Carryover from Form FTB 3805V. 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
December31,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.
Qualied equity grants. California does not conform to federal law
regarding the election to defer the recognition of income attributable to
qualified stock. If you elected to defer income for federal purposes, make
an adjustment on line 8f, column C.
Expanded use of 529 account funds. California does not conform to
federal law regarding the IRC Section 529 account funding for elementary
and secondar
y education or to the maximum distribution amount. If
the amount was excluded for federal purposes, make an adjustment on
line8f, columnC.
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 FTBPub.1001.
Native American Earned Income Exemption. California does not tax
federally recognized tribal members living in California Indian country
who earn income from any federally recognized California Indian
country. Military compensation is considered income from reservation
sources. Enrolled members who receive reservation sourced per capita
income must reside in their affiliated tribe’s Indian country to qualify
for tax exempt status. For more information, see form FTB 3504. Enter
in column B the income included in federal income that is exempt for
California and write “FTB 3504” on line 8f. Attach form FTB3504 to
Form540.
Parents’ Election to Report Child’s Interest and Dividends. California
conforms to federal law for elections made by parents reporting their
child’s interest and dividends. Parents may elect to report their child’s
income on their California income tax return by completing form
FTB3803. 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
(Form1040), 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 line8, column A.
Financial Incentive for Seismic Improvement. California law allows an
income exclusion for loan forgiveness, grant, credit, rebate, voucher, or
other financial incentive issued by the California Residential Mitigation
Program or California Earthquake Authority to assist a residential
property owner or occupant with expenses paid, or obligation incurred
for earthquake loss mitigation. Enter in column B the amount of this type
of income included in the amount on line 8, column A.
Original issue discount (OID) for debt instruments issued in 1985 and
1986. In the year of sale or other disposition, you must recognize the
difference between the amount reported on your federal tax return and
the amount reported for California purposes. Issuers: Enter the difference
between the federal deductible amount and the California deductible
amount on line 8f in column B. Holders: Enter the difference between the
amount included in federal gross income and the amount included for
California purposes on line 8f, 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 unqualied medical
expense. Distributions from an HSA not used for qualified medical
expenses, and included in federal income, are not taxable for California
purposes. Enter the distribution not used for qualified medical expenses
on line 8f, columnB.
California National Guard Surviving Spouse & Children Relief Act of
2004.
Death benefits received from the State of California by a surviving
spouse/RDP or member-designated beneficiary of certain military
personnel killed in the performance of duty is excluded from gross
income. Military personnel include the California National Guard, State
Military Reserve, or the Naval Militia. If you reported a death benefit on
line 8, column A, enter the death benefit amount in column B.
Ottoman Turkish Empire settlement payments. If you received
settlement payments as a person persecuted by the regime that was in
control of the Ottoman Turkish Empire from 1915 until 1923 your gross
income does not include those excludable settlement payments, or
interest, received by you, your heirs, or your estate for payments received
on or after January 1, 2005. If you reported settlement payments on
line 8, column A, enter the amount of settlement payments in column B.
Mortgage forgiveness debt relief. California law does not conform
to federal law regarding the exclusion of income from discharge of
indebtedness from the disposition of your principal residence occurring
after December 31, 2017. Enter the amount of discharge on line 8f,
column C.
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-Prot School.
California law allows an income exclusion for income that would result
from the discharge of any student loan of an eligible individual. An
individual is eligible for the exclusion if any of the following apply during
the taxable year.
1. The individual is granted a discharge of any student loan because:
a. The individual successfully asserts that the school did something
wrong or failed to do something that it should have done.
b. The individual could not complete a program of study due to the
school closing.
2. The individual attended a Brightwood College school on or before
December 5, 2018, and is granted a discharge of any student loan
made in connection with attending that school, and that discharge is
not covered under item 1 above.
3. The individual attended a location of The Art Institute of California and
is granted a discharge of any student loan made in connection with
attending that school, and that discharge is not covered under item 1
above.
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 Ofcials – 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, line12.
• Line 13 Moving Expenses – California does not conform to
federal law regarding the suspension of the deduction for moving
expenses, except for members of the Armed Forces on active duty.
Non-military taxpayers prepare federal Form 3903, Moving Expenses,
using California amounts. If you have excess moving expense
reimbursements, enter the amount of moving expenses from line 3
of federal Form 3903 on Schedule CA (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
Qualied Charitable Contributions – Your California deduction may be
different from your federal deduction. California limits the amount of
your deduction to 50% of your federal 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
ScheduleA (Form1040) and are claiming the College Access Tax Credit
on your Form540, 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
Qualied Charitable Contributions –
Your California deduction may be
different from your federal deduction. California limits the amount of
your deduction to 50% of your federal 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,
columnC.
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
line16, column A on line 16, column B.
Federal Estate Tax – Federal estate tax paid on income in respect of a
decedent is not deductible for California. Enter the amount of federal
estate tax included in line 16, column A on line 16, column B.
Claim of Right – If you had to repay an amount that you included in your
income in an earlier year, because at the time you thought you had an
unrestricted right to it, you may be able to deduct the amount repaid from
your income for the year in which you repaid it. Or, if the amount you
repaid is more than $3,000, you may take a credit against your tax for the
year in which you repaid it, whichever results in the least tax.
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
Californiapurposes.
Enter the amount from line 10 of federal Form 2106 on line 19.
Line 20 – Tax Preparation Fees
Enter the fees you paid for preparation of your tax return, including fees
paid for filing your return electronically. If you paid your tax by credit
or debit card, include the convenience fee you were charged on line 21
instead of this line.
Line 21 – Other Expenses
Enter the total amount you paid to produce or collect taxable income and
manage or protect property held for earning income.
List the type of each expense next to line 21 and enter the total of these
expenses on line 21. If you are filing a paper return and you can’t fit all
your expenses on the dotted lines next to line 21, attach a statement
showing the type and amount of each expense.
Examples of expenses to include on line 21 are:
• Certain legal and accounting fees.
• Custodial fees (for example, trust account).
• Casualty and theft losses of property used in performing services
as an employee from federal Form 4684, 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 line27.
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
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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
ScheduleD(540).
Specic 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
January1, 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.
• Qualied 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).
• Qualied 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, donot complete or mail form FTB 3519. However, file
your tax return by October15,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
ofcialpayments.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
.
Page 54 FTB 3519 Instructions 2020
TAX PAYMENT WORKSHEET (KEEP FOR YOUR RECORDS)
1 Total tax you expect to owe. This is the amount you expect to enter on Form 540, line 65; or Form 540NR, line 75...........1 00
2 Payments and credits:
a California income tax withheld (including real estate and nonresident withholding) ....2a 00
b California estimated tax payments and amount applied from your 2019 tax return
(To check your estimated tax payments go to ftb.ca.gov and login or register for MyFTB.)
.....2b 00
c Other payments and credits (including any tax payments made with any previous
form FTB 3519)
........................................................2c 00
3 Total tax payments and credits. Add line 2a, line 2b, and line 2c
.............................................3 00
4 Tax due. Is line 1 more than line 3?
...................................................................4 00
• No. Stop here. You have no tax due. Do not mail form FTB 3519. If you file your tax return by October 15, 2021 (fiscal year filer – see
instructions), the automatic extension will apply.
• Yes. Subtract line 3 from line 1 and enter on line 4. This is your tax due. For online payments, do not mail the form, go to ftb.ca.gov/pay for more
information. If you meet the requirements of the Mandatory e-Pay program, you must make all payments electronically, regardless of the taxable
year or amount. Go to ftb.ca.gov/e-pay. For check or money order payments, using black or blue ink, complete your check or money order and form
FTB 3519. Enter the tax due amount from line 4 as the “Amount of payment.” Make your check or money order payable to the “Franchise Tax Board,”
and write your SSN or ITIN and “2020 FTB 3519” in the “For” section. Enclose, but do not staple your payment to form FTB 3519 and mail to:
FRANCHISE TAX BOARD, PO BOX 942867, SACRAMENTO CA 94267-0008.
Personal Income Tax Booklet 2020 Page 55
THIS PAGE INTENTIONALLY LEFT BLANK
Visit our website:
ftb.ca.gov
1201213
Form 540-ES 2020
DETACH HERE
.
00
540-ES Form 1 at bottom of page
ONLINE SERVICES: Use Web Pay and enjoy the ease of our free online payment service.
Go to ftb.ca.gov/pay for more information. You can schedule your
payments up to one year in advance.
Do not mail this form if you use Web Pay.
IF NO PAYMENT IS DUE, DO NOT MAIL THIS FORM
DETACH HERE
CAUTION: You may be required to pay electronically. See instructions.
TAXABLE YEAR
2021
Estimated Tax for Individuals
CALIFORNIA FORM
540-ES
Payment
Form
1
File and Pay by April 15, 2021
Fiscal year filers, enter year ending month: Year 2022
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 (If you have a foreign address, see instructions)
State
ZIP code
Do not combine this payment with payment of your tax due for 2020. Using black or blue ink, make your check or money order payable
to the “Franchise Tax Board.” Write your social security number or individual taxpayer identification number and “2021 Form 540-ES” on it.
Mail this form and your check or money order to: FRANCHISE TAX BOARD, PO BOX 942867, SACRAMENTO CA 94267-0008.
If no payment is due, do not mail this form.
See Section A of the instructions for an alternative to using this form.
Amount of payment
For Privacy Notice, get FTB 1131 ENG/SP.
.
00
DETACH HERE
1201213
Form 540-ES 2020
DETACH HERE
.
00
1201213
Form 540-ES 2020
.
00
3
Form 540-ES 2020
CAUTION: You may be required to pay electronically. See instructions.
TAXABLE YEAR
2021
Estimated Tax for Individuals
CALIFORNIA FORM
540-ES
Payment
Form
2
File and Pay by June 15, 2021
Fiscal year filers, enter year ending month: Year 2022
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./st
e. no.
City (If you have a foreign address, see instructions)
State
ZIP code
Do not combine this payment with payment of your tax due for 2020. Using black or blue ink, make your check or money order payable
to the “Franchise Tax Board.” Write your social security number or individual taxpayer identification number and “2021 Form 540-ES” on it.
Mail this form and your check or money order to: FRANCHISE TAX BOARD, PO BOX 942867, SACRAMENTO CA 94267-0008.
If no payment is due, do not mail this form.
See Section A of the instructions for an alternative to using this form.
Amount of payment
For Privacy Notice, get FTB 1131 ENG/SP.
IF NO PAYMENT IS DUE, DO NOT MAIL THIS FORM
DETACH HERE
CAUTION: You may be required to pay electronically. See instructions.
TAXABLE YEAR
2021
Estimated Tax for Individuals
CALIFORNIA FORM
540-ES
Payment
Form
3
File and Pay by Sept. 15, 2021
Fiscal year filers, enter year ending month: Year 2022
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 (If you have a foreign address, see instructions)
State
ZIP code
Do not combine this payment with payment of your tax due for 2020. Using black or blue ink, make your check or money order payable
to the “Franchise Tax Board.” Write your social security number or individual taxpayer identification number and “2021 Form 540-ES” on it.
Mail this form and your check or money order to: FRANCHISE TAX BOARD, PO BOX 942867, SACRAMENTO CA 94267-0008.
If no payment is due, do not mail this form.
See Section A of the instructions for an alternative to using this form.
Amount of payment
For Privacy Notice, get FTB 1131 ENG/SP.
IF NO PAYMENT IS DUE, DO NOT MAIL THIS FORM
DETACH HERE
CAUTION: You may be required to pay electronically. See instructions.
TAXABLE YEAR
2021
Estimated Tax for Individuals
CALIFORNIA FORM
540-ES
Payment
Form
4
File and Pay by Jan. 18, 2022
Fiscal year filers, enter year ending month: Year 2022
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 (If you have a foreign address, see instructions)
State
ZIP code
Do not combine this payment with payment of your tax due for 2020. Using black or blue ink, make your check or money order payable
to the “Franchise Tax Board.” Write your social security number or individual taxpayer identification number and “2021 Form 540-ES” on it.
Mail this form and your check or money order to: FRANCHISE TAX BOARD, PO BOX 942867, SACRAMENTO CA 94267-0008.
If no payment is due, do not mail this form.
See Section A of the instructions for an alternative to using this form.
Amount of payment
For Privacy Notice, get FTB 1131 ENG/SP.
120121
Page 58 Personal Income Tax Booklet 2020
THIS PAGE INTENTIONALLY LEFT BLANK
Visit our website:
ftb.ca.gov
Form 540-ES Instructions 2020 Page 59
2021 Instructions for Form 540-ES Estimated Tax For Individuals
General Information
Installment Payments – Installments due shall be 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.
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 the 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, 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) using tax preparation software, or your credit card.
A Purpose
Use Form 540-ES, Estimated Tax for Individuals, and the 2021 CA
Estimated Tax Worksheet, to determine if you owe estimated tax for 2021
and to figure the required amounts. Estimated tax is the tax you expect
to owe in 2021 after subtracting the credits you plan to take and tax you
expect to have withheld.
If you need to make a payment for your 2020 tax liability or make a
separate payment for any balance due on your 2020 tax return, use
form FTB 3519, Payment for Automatic Extension for Individuals.
Certain taxpayers are limited in their use of the prior year’s tax as a basis
for figuring their estimated tax. See Section C for more information.
Check for estimated payments we’ve received at ftb.ca.gov and login or
register for MyFTB.
Increasing your withholding could eliminate the need to make a large
payment with your tax return. To increase your withholding, complete
Employment Development Department (EDD) Form DE 4, Employee’s
Withholding Allowance Certificate, and give it to your employer’s
appropriate payroll staff. Y
ou can get this form from your employer, or by
calling EDD at 888.745.3886. You can download Form DE 4 from EDD’s
website at edd.ca.gov or 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.
B Who Must Make Estimated Tax Payments
Generally, you must make estimated tax payments if you expect to owe at
least $500 ($250 if married/RDP filing separately) in tax for 2021 (after
subtracting withholding and credits) and you expect your withholding
and credits to be less than the smaller of:
1. 90% of the tax shown on your 2021 tax return; or
2. 100% of the tax shown on your 2020 tax return including Alternative
Minimum Tax (AMT).
Note:
• 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 in 2020, see Section C for more information.
• If you are a military servicemember not domiciled in California, do
not include your military pay in your computation of estimated tax
payments. If you are the nonmilitary spouse of a servicemember
you may or may not need to include your pay in your computation of
estimated tax payments. For more information, get FTB Pub. 1032,
Tax Information for Military Personnel.
If you and your spouse/RDP paid joint estimated tax payments, but
are now filing separate income tax returns, either of you may claim all
of the amount paid, or you may each claim part of the joint estimated
payments. If you want the estimated tax payments to be divided, notify
the FTB before you file the income tax returns so that 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. The statements should be sent to:
JOINT ESTIMATE CREDIT ALLOCATION MS F283
TAXPAYER SERVICES CENTER
FRANCHISE TAX BOARD
PO BOX 942840
SACRAMENTO CA 94240-0040
C Limit on the Use of Prior Year’s Tax
Individuals who are required to make estimated tax payments, and
whose 2020 California adjusted gross income is more than $150,000
(or $75,000 if married/RDP filing separately), must figure estimated tax
based on the lesser of 90% of their tax for 2021 or 110% of their tax for
2020 including AMT. This rule does not apply to farmers or fishermen.
Taxpayers with 2021 California adjusted gross income equal to or greater
than $1,000,000 (or $500,000 if married/RDP filing separately), must
figure estimated tax based on their tax for 2021.
D When to Make Your Estimated Tax Payments
Pay your estimated payments by the dates shown below:
1st payment
....................................April 15, 2021
2nd payment
....................................June 15, 2021
3rd payment
...............................September 15, 2021
4th payment
.................................January 18, 2022
Filing an Early Tax Return In Place of the 4th Installment. If you file
your 2021 tax return by January 31, 2022, and pay the entire balance
due, you do not have to make your last estimated tax payment. In
addition, you will not owe a penalty for the fourth installment.
Annualization Option. If you do not receive your taxable income
evenly during the year, it may be to your advantage to annualize
your income. This method allows you to match your estimated tax
payments to the actual period when you earned the income. You may
use the annualization schedule included with the 2020 form FTB 5805,
Underpayment of Estimated Tax by Individuals and Fiduciaries.
Farmers and Fishermen. If you are a farmer or fisherman, and at least
two-thirds of your 2020 and 2021 gross income is from farming or
fishing, you may do either of the following:
• Pay all of your estimated tax by January 18, 2022.
• File your tax return for 2021 on or before March 1, 2022, and pay the
total tax due. In this case, you need not make estimated tax payments
for 2021. Use the 2020 form FTB 5805F, Underpayment of Estimated
Tax by Farmers and Fishermen, to determine if you paid the required
estimated tax. If the estimated tax is underpaid, attach the completed
form FTB 5805F to the back of your taxreturn.
Fiscal Year. If you file your tax return on a fiscal year basis, your due
dates will be the 15th day of the 4th, 6th, and 9th months of your fiscal
year and the 1st month of the following fiscal year
. If the due date falls on
a weekend, or legal holiday, use the next business day.
Page 60 Form 540-ES Instructions 2020
Mental Health Services Tax. If your taxable income or nonresident CA
source taxable income is more than $1,000,000, complete the worksheet
below.
A. Taxable income from Form 540, line 19,
or Form 540NR, line 35
........................____________
B. Less:
...................................... $(1,000,000)
C. Subtotal
...................................____________
D. Tax rate – 1%
............................... x .01
E. Mental Health Services Tax – Multiply line C by line D.
Enter this amount here and on line 17 of the 2021 CA
Estimated Tax Worksheet, on the next page
.
........____________
E How to Use Form 540-ES Payment Form
Use the CA Estimated Tax Worksheet and your 2020 California income tax
return as a guide for figuring your 2021 estimated tax. Be sure that the
amount shown on line 21 of the CA Estimated Tax Worksheet has been
reduced by any overpaid tax on your 2020 tax return which you chose to
apply toward your 2021 estimated tax payment.
Note:
• If you filed Form 540 2EZ for 2020, do not use the Form 540 2EZ
instructions to figure amounts on this worksheet. Instead, get the 2020
California 540 Personal Income Tax Booklet.
• Complete Form 540-ES using black or blue ink:
1. Complete the Record of Estimated Tax Payments on the next page
for your files.
2. Paying your tax:
W
eb Pay – Make a payment online or schedule a future payment
(up to one year in advance), go to ftb.ca.gov/pay for more
information. Do not mail Forms 540-ES to us.
Electronic Funds Withdrawal (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 or estimated tax payments.
Credit card – Use your Discover, MasterCard, Visa, or
American Express Card to pay your tax. Call 800.272.9829 or
go to ofcialpayments.com, use code 1555. Official Payments
Corporation charges a fee for this service. Do not mail
Forms 540-ES if you pay by credit card.
Check or money order – There is a separate payment form for
each due date. Be sure you use the form with the correct due date
shown in the top margin of the form.
Fiscal year filers: Enter the month of your fiscal year end
(located directly below the form’s title).
Print your name, address, and social security number (SSN)
or individual taxpayer identification number (ITIN) in the space
provided on Form 540-ES. If you have a foreign address,
enter the information in the following order: City, Country,
Province/Region, and Postal Code. Follow the country’s
practice for entering the postal code. Do not abbreviate the
country name.
Complete the amount of payment line of the form by entering
the amount of the payment that you are sending. Using black
or blue ink, make your check or money order payable to the
“Franchise Tax Board.” Write your SSN or ITIN and “2021
Form 540-ES” on it and mail to the address in Section F.
Make all checks and money orders payable in U.S. dollars and
drawn against a U.S. financial institution.
F Where to Mail Estimated Tax Payments
FRANCHISE TAX BOARD
PO BOX 942867
SACRAMENTO CA 94267-0008
G Failure to Make Estimated Tax Payments
If you do 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 tax return, whichever is earlier. Get the 2020
form FTB 5805 for more information.
Form 540-ES Instructions 2020 Page 61
........ 1 _________________
......... 2a _________________
................. 2b _________________
...................................................... 2c_________________
................................................................................. 3 _________________
......................................................... 4 _________________
......................... 5a_________________
............................................... 5b___.___ ___ ___ ___
.................................................... 5c_________________
............................... 6a_________________
.. 6b___.___ ___ ___ ___
........................ 7 _________________
................... 8 _________________
...................................................................................... 10 _________________
11 _________________
................................................................................ 12 _________________
...................... 13 _________________
................................................................................ 14 _________________
................................... 15 _________________
........................................................ 16 _________________
........................................ 17
................................. 18 _________________
....... 19a_________________
.......................... 19b_________________
........................................ 19c_________________
................... 19d_________________
.......................................................................... 19e_________________
.................................................. 19f _________________
...... 20 _________________
....................................... 21 _________________
..........................................▶
2021 California Estimated Tax Worksheet
Keep this worksheet for your records.
1 Residents: Enter your estimated 2021 California AGI. Nonresidents and part-year residents: Enter your estimated 2021
total AGI from all sources. Military servicemember/spouses, get FTB Pub. 1032, Tax Information for Military Personnel
2 a If you plan to itemize deductions, enter the estimated total of your itemized deductions
b If you do not plan to itemize deductions, enter the standard deduction for your filing status:
$4,601 single or married/RDP filing separately
$9,202 married/RDP filing jointly, head of household, or qualifying widow(er)
c Enter the amount from line 2a or line 2b, whichever applies
3 Subtract line 2c from line 1
4 Tax. Figure your tax on the amount on line 3 using the 2020 tax table for Form 540, or Form 540NR.
Also, include any tax from form FTB 3800, Tax Computation for Certain Children with Unearned Income, and form FTB 3803,
Parents’ Election to Report Child’s Interest and Dividends
5 Residents: Skip to line 6a. Nonresidents and part-year residents:
a Enter your estimated 2021 California taxable income from Schedule CA (540NR), Part IV, line 5
b Compute the CA Tax Rate: Tax on total taxable income from line 4
Total taxable income from line 3
c Multiply the amount on line 5a by the CA Tax Rate on line 5b
6 a Residents: Enter the exemption credit amount from the 2020 instructions for Form 540
b Nonresidents or part-year residents: Enter the CA credit proration percentage. Divide line 5a by line 3. If more than 1 enter 1.0000
7 Nonresidents: CA prorated exemption credits. Multiply the total exemption credit amount by line 6b
8
Residents: Subtract line 6a from line 4. Nonresidents or part-year residents: Subtract line 7 from line 5c
9 T
ax on accumulation distribution of trusts. See instructions for form FTB 5870A, Tax on Accumulation Distribution of Trusts
..... 9 _________________
10 Add line 8 and line 9
11 Credits for joint custody head of household, dependent parent, senior head of household, and child and dependent care expenses .
Nonresidents and part-year residents: For the child and dependent care expenses credit, use the amount from your 2020
Form 540NR, line 50. For the other credits listed on line 11, multiply the total 2020 credit amount by the ratio on line 6b.
12 Subtract line 11 from line 10
13 Other credits (such as other state tax credit). See the 2020 instructions for Form 540, or Form 540NR
14 Subtract line 13 from line 12
15 Interest on deferred tax from installment obligations under IRC Sections 453 or 453A
16 Alternative Minimum Tax. See Schedule P (540 or 540NR)
17 Mental Health Services T
ax Worksheet, line E (on page 60 of these instructions)
18 2021 Estimated Tax. Add line 14 through line 17. Enter the result, but not less than zero
19 a Multiply line 18 by 90% (.90). Farmers and fishermen multiply line 18 by 66 2/3% (.6667)
b Enter the sum of line 48, line 61, and line 62 from your 2020 Form 540
or the sum of line 63, line 71, and line 72 from your Form 540NR
c Enter the amount from your 2020 Form 540, line 17; or Form 540NR, line 32
d Is the amount on line 19c more than $150,000 ($75,000 if married/RDP filing separately)?
Yes. Go to line 19e. No. Enter the lesser of line 19a or line 19b. Skip line 19e and 19f and go to line 20
e Multiply 110% (1.10) by line 19b
f Enter the lesser of line 19a or line 19e and go to line 20 ( If your California AGI is equal to or greater than
$1,000,000/$500,000 for married filing separately
, use line 19a.)
Caution: Generally, if you do not prepay at least the amount on line 19d (or line 19f if no amount on line 19d), you may owe a
penalty for not paying enough estimated tax. To avoid a penalty, make sure your estimated tax on line 18 is as accurate as
possible. If you prefer, you may pay 100% of your 2021 estimated tax (line 18).
20 California income tax withheld and estimated to be withheld during 2021 (include withholding on pensions, annuities, etc.)
21 Balance. Subtract line 20 from line 19d (or line 19f if no amount on line 19d). If less than $500 (or less than $250,
if married/RDP filing separately), you do not have to make a payment at this time
22 Installment amount. Multiply the amount on line 21 by 30%. Enter the results on the 1st and 4th installments of your Forms 540-ES.
Multiply the amount on line 21 by 40%. Enter the result on the 2nd installment of your Forms 540-ES. There is not a required 3rd
installment payment. If you will earn your income at an uneven rate during the year, see Annualization Option in the instructions under Section D.
Record of Estimated Tax Payments
Payment form number (a) Date (b) Web Pay/Credit card and confirmation number (c) Amount paid (d) 2020 overpayment applied (e) Total amount paid and credited add (c) and (d)
1 $ $ $
2
3
4
Total
$ $ $
Page 62 Personal Income Tax Booklet 2020
THIS PAGE INTENTIONALLY LEFT BLANK
Visit our website:
ftb.ca.gov
TAXABLE YEAR
2020
Child and Dependent Care Expenses Credit
CALIFORNIA FORM
3506
Attach to your California Form 540 or Form 540NR.
Name(s) as shown on tax return
SSN or ITIN
. ___ ___
. ___ ___
Part I Unearned Income and Other Funds Received in 2020. See instructions.
Source of Income/Funds Amount
Source of Income/Funds
Amount
Part II Persons or Organizations Who Provided the Care in California – You must complete this part. See instructions.
1 Enter the following information for each person or organization that provided care in California. Only care provided in California qualies for the credit.
If you need more space, attach a separate sheet.
Provider
Provider
a. Care provider’s name
b. Care provider’s address
(number, street, apt. no., city, state,
and ZIP code)
c. Care provider’s telephone number
d. Is provider a person or organization?
□
Person
□
Organization
□
Person
□
Organization
e. Identification number (SSN, ITIN, or FEIN)
f. Address where care was provided
(number, street, apt. no., city, state, and
ZIP code) PO Box not acceptable.
g. Amount paid for care provided
Did you receive dependent care benefits? ▶ ▶ ▶ ▶ ▶ No. Complete Part III below.
Yes. Complete Part IV on Side 2 before you complete Part III.
Part III Credit for Child and Dependent Care Expenses
2 Information about your qualifying person(s). See instructions.
(a)
Qualifying person’s name
(b)
Qualifying person’s
social security number (SSN)
(See instructions)
(c)
Qualifying person’s
date of birth
(DOB – mm/dd/yyyy)
or disability status
(d)
Percentage of
physical custody
(See instructions)
(e)
Qualified expenses you
incurred and paid in 2020 for
the qualifying person’s
care in California
First Last
DOB: _____________
Disabled
□ Ye s
DOB: _____________
Disabled □ Ye s
DOB: _____________
Disabled □ Ye s
3 Add the amounts in column (e) of line 2. Do not enter more than $3,000 for one qualifying person or $6,000 for two
or more qualifying persons. If you completed Side 2, Part IV, enter the amount from line 33
........................
3 00
4 Enter YOUR earned income. See instructions
............................................................ 4 00
Nonresidents: Enter only your earned income from California sources. If you do not have earned income from California
sources, stop, you do not qualify for the credit. Military servicemembers, see instructions.
Part-year residents: Enter the total of (1) your earned income from California sources received while you were a
nonresident and (2) all earned income received while you were a resident. Military servicemembers, see instructions.
5 If married or an RDP filing a joint return, enter YOUR SPOUSE’S/RDP’s earned income. (If your spouse/RDP was a
student or was disabled, see the instructions.) If you are not filing a joint tax return, enter the amount from line 4
.......
5 00
Nonresidents: Enter only your spouse’s/RDP’s earned income from California sources. If your spouse/RDP does not have
earned income from California sources, stop, you do not qualify for the credit. Military servicemembers, see line 4 instructions.
Part-year residents: Enter the total of (1) your spouse’s/RDP’s earned income from California sources received while he
or she was a nonresident and (2) all earned income your spouse/RDP received while he or she was a resident. Military
servicemembers, see line 4 instructions.
6 Enter the smallest of line 3, line 4, or line 5
.............................................................
6 00
7 Enter the decimal amount shown in the chart of the instructions for line 7
......................................
7
8 Multiply line 6 by the decimal amount on line 7
...........................................................
8 00
9 Enter the decimal amount listed in the chart of the instructions for line 9
.......................................
9
10 Multiply the amount on line 8 by the decimal amount on line 9 ...............................................
10 00
11 Credit for prior year expenses paid in 2020. See instructions
................................................
11 00
12
Add line 10 and line 11. Enter the amount here and on Form 540, line 40; or Form 540NR, line 50 ........................
12 00
For Privacy Notice, get FTB 1131 ENG/SP.
7251203
FTB 3506 2020 Side 1
Part IV Dependent Care Benets
13 Enter the total amount of dependent care benefits you received for 2020. This amount should be shown in box 10 of
your federal Form(s) W-2. Do not include amounts that were reported to you as wages in box 1 of federal Form(s) W-2.
If you were self-employed or a partner, include amounts you received under a dependent care assistance program from
your sole proprietorship or partnership
................................................................
13 00
14 Enter the amount, if any, you carried over from 2019 and used in 2020 during the grace period
..................... 14 00
15 Enter the amount, if any, you forfeited or carried forward to 2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 00
16 Combine line 13 through line 15
...................................................................... 16 00
17
Enter the total amount of qualified expenses incurred in 2020 for the
care of the qualifying person(s). See instructions
............................. 17 00
18 Enter the smaller of line 16 or line 17
...................................... 18 00
19 Enter YOUR earned income
.............................................. 19 00
20
If married or an RDP filing a joint return, enter YOUR SPOUSE’S/RDP’s earned
income (if your spouse/RDP was a student or was disabled, see the instructions
for line 5); if married or an RDP filing a separate tax return, see the instructions
for the amount to enter; all others, enter the amount from line 19
................ 20 00
21 Enter the smallest of line 18, line 19, or line 20
.............................. 21 00
22
Enter $5,000 ($2,500 if married or an RDP filing separately and you were required
to enter your spouse’s/RDP’s earned income on line 20)
....................... 22 00
23
Enter the amount from line 13 that you received from your sole proprietorship or partnership.
If you did not receive any amounts, enter 0 - -
............................................................
23 00
24 Subtract line 23 from line 16
............................................. 24 00
25 Deductible benets. Enter the smallest of line 21, line 22, or line 23
......................................... 25 00
26 Excluded benets. Subtract line 25 from the smaller of line 21 or line 22. If zero or less, enter 0 - -
.................. 26 00
27 Taxable benets. Subtract line 26 from line 24. If zero or less, enter 0 - -
....................................... 27 00
28 Enter $3,000 ($6,000 if two or more qualifying persons)
................................................... 28 00
29 Add line 25 and line 26
............................................................................. 29 00
30
Subtract the amount on line 29 from the amount on line 28. If zero or less, stop. You do not qualify for the credit.
Exception – If you paid 2019 expenses in 2020, see instructions for line 11
.................................... 30 00
31 Complete Side 1, Part III, line 2. Add the amounts in column (e) and enter the total here
.......................... 31 00
32 Enter the amount from your federal Form 2441, Part III, line 31
.............................................. 32 00
33
Enter the smaller of line 30, line 31, or line 32. Also, enter this amount on Side 1, Part III, line 3 and
complete Part III, line 4 through line 12
................................................................ 33 00
Worksheet – Credit for 2019 Expenses Paid in 2020
1. Enter your 2019 qualified expenses paid in 2019. If you did not claim the credit for these expenses on your 2019
tax return, get and complete a 2019 form FTB 3506 for these expenses. You may need to amend your 2019 tax return
....... 1.
2. Enter your 2019 qualified expenses paid in 2020 ............................................................. 2.
3. Add the amounts on line 1 and line 2 ...................................................................... 3.
4. Enter $3,000 if care was for one qualifying person ($6,000 for two or more) ........................................ 4.
5. Enter any dependent care benefits received for 2019 and excluded from your income
(from your 2019 form FTB 3506, Part IV, line 26)
............................................................. 5.
6. Subtract amount on line 5 from amount on line 4 and enter the result ............................................. 6.
7. Compare your and your spouse’s/RDP’s earned income for 2019 and enter the smaller amount ......................... 7.
8. If filing a joint tax return, compare the amounts on line 3, line 6, and line 7 and enter the smallest amount. If not filing
a joint tax return, enter your earned income.
................................................................. 8.
9. Enter the amount from your 2019 form FTB 3506, Side 1, Part III, line 6 ........................................... 9.
10. Subtract amount on line 9 from amount on line 8 and enter the result. If zero or less, stop here. You cannot increase
your credit by any previous year’s expenses
.................................................................10.
11. Enter your 2019 federal adjusted gross income (AGI) (from your 2019 Form 540, line 13;
or Form 540NR, line 13)
................................................................................11.
12. 2019 federal AGI decimal amount (from 2019 form FTB 3506, instructions for line 7)
.................................12.______ . ______ ______
13. Multiply line 10 by line 12 ...............................................................................13.
14. 2019 California AGI decimal amount (from 2019 form FTB 3506, instructions for line 9)
...............................14.______ . ______ ______
15. Multiply line 13 by line 14. Enter the result here and on your 2020 form FTB 3506, Side 1, Part III, line 11 .................15.
7252203
Side 2 FTB 3506 2020
2020 Instructions for Form FTB 3506
Child and Dependent Care Expenses Credit
General Information
Attach the completed form FTB 3506, Child and Dependent Care Expenses
Credit, to your Form 540, California Resident Income Tax Return, or Form
540NR, California Nonresident or Part-Year Resident Income Tax Return, if
you claim the child and dependent care expenses credit.
The child and dependent care expenses credit is nonrefundable.
Registered Domestic Partners (RDP) – For purposes of California income
tax, references to a spouse, husband, or wife also refer to a California RDP,
unless otherwise specified. When we use the initials RDP, they refer to
both a California registered domestic “partner” and a California registered
domestic “partnership,” as applicable. For more information on RDPs, get
FTB Pub. 737, Tax Information for Registered Domestic Partners.
A Purpose
You may qualify to claim the 2020 credit for child and dependent care
expenses, if you (and your spouse/RDP) paid someone in California to care
for your child or other qualifying person while you worked or looked for
employment. You must have earned income to do so. If you qualify to claim
the credit, use form FTB 3506 to figure the amount of your credit.
If you received dependent care benefits for 2020 but do not qualify to claim
the credit, you are not required to complete form FTB 3506. For additional
definitions, requirements, and instructions, get federal Form 2441, Child and
Dependent Care Expenses.
B Differences in California and Federal Law
The differences between California and federal law are as follows:
• California allows this credit only for care provided in California.
• If you were a nonresident, you must have earned wages from working in
California or earned self-employment income from California business
activities.
• The California credit is a percentage of the federal credit.
• RDPs may file a joint California return and claim this credit. For more
information, get FTB Pub. 737.
C Qualifications
You may take the credit if all eight of the following apply.
1. If you are married or an RDP, you must file a joint tax return. For an
exception, see Section E, Married Persons or RDPs Filing Separate
Returns.
2. Care must be provided in California for one or more qualifying persons.
See Section D, Qualifying Person Defined.
3. You paid for care so you (and your spouse/RDP) could work or look for
work. However, if you did not find a job and have no earned income,
you do not qualify for the credit. If your spouse/RDP was a student or
disabled, see the instructions for Part III, line 5.
4. You (and your spouse/RDP) must have earned income (wages or
self-employment income) during the year. See the instructions for
Part III, line 4, for more information on earned income.
5. You and the qualifying person(s) live in the same home for more than
half the year.
6. The person who provided care was not your spouse/RDP, the parent of
your qualifying child, or a person for whom you can claim a dependent
exemption. If your child provided the care, the child must have been
age 19 or older by the end of 2020.
7. You report the required information about the care provider(s) in Part II,
line 1, and the information about the qualifying person(s) in Part III,
line 2.
8. Your federal adjusted gross income (AGI) is $100,000 or less.
D Qualifying Person Defined
Rules for Most People
A qualifying person is:
1. A child under age 13 who meets the requirements to be your dependent
as a Qualifying Child. A child who turned 13 during the year qualifies
only for the part of the year when he or she was 12 years old; or
2. Your spouse/RDP who was physically or mentally incapable of
self-care; or
3. Any person who was physically or mentally incapable of self-care and
either:
a.
Was your dependent.
b. Would have been your dependent except that:
i. He or she received gross income of $4,300 or more.
ii. He or she filed a joint tax return.
iii. You, or your spouse/RDP if filing a joint tax return, could be
claimed as a dependent on someone else’s 2020 tax return.
Qualifying Child
A Qualifying Child is a child who meets
all of the following tests:
• Relationship Test – The child must be your son, daughter, stepchild,
adopted child, eligible foster child, brother, sister, half-brother, half-sister,
stepbrother, stepsister, or a descendant of one of these. An adopted child
includes a child who has been lawfully placed with you for legal adoption
even if the adoption is not yet final. An eligible foster child must be placed
with you by an authorized placement agency or by a court.
• Age Test – For the purposes of qualifying for the Child and Dependent Care
Expenses Credit, the child must be under 13.
• Residency Test – The child must live with you for more than half the year.
• Support Test – The child must not have provided more than half of his or
her own support.
• Joint Return Test – The child must not have filed a joint federal or state
income tax return with his or her spouse/RDP.
• Citizenship Test – The child must be a citizen or national of the U.S. or a
resident of the U.S., Canada, or Mexico.
Tie-Breaker Rules: Qualifying Child of More Than One Person*
*These rules assume all other qualifying child requirements are satisfied.
If an individual may be claimed as a qualifying child by two or more
taxpayers for the same taxable year, the following rules apply:
If…
Then the child will be treated as the qualifying
child of the…
Only one of the
persons is the child’s
parent
Parent.
Both of the persons
are the child’s parent
but they do not file a
joint return
Parent with whom the child lived for the longer
period of time during the year.
If the child lived with both parents for the same
amount of time, the parent who had the higher AGI
for the year.
The child’s parents
can claim the child
as a qualifying
person but neither
parent does
Person with the highest AGI of all persons claiming
the child, but only if that person’s AGI is higher than
the highest AGI of any of the child’s parents.
No parent can
claim the child as a
qualifying child
Person with the highest AGI of all persons claiming
the child.
Divorced, RDP Terminated, Separated, or Never-Married Parents
For divorced, RDP terminated, separated, or never-married parents, special
rules apply in determining if your child meets the requirements to be your
qualifying person. When parents file separate returns, only one parent
qualifies to claim a child as a qualifying person.
FTB 3506 Instructions 2020 Page 65
Even if both parents pay for child care for the same child, both parents
cannot qualify for the credit. Some custody agreements designate which
parent is entitled to the credit. However, the designated parent must meet all
the qualifications in Section C, Qualifications, to claim the credit. To verify
that your child meets the requirements to be your qualifying person, use the
table below.
RULES FOR DIVORCED, RDP TERMINATED, SEPARATED, OR
NEVER-MARRIED PARENTS
IF AND THEN
ALL four of the following apply:
1. Your child was under 13 and/
or physically or mentally
incapable of self-care when
the care was provided.
Children turning 13 during
the year qualify only for the
part of the year they were
12 years old.
2. One of the following applies
a. You are divorced, legally
separated, or have
terminated a registered
domestic partnership.
b.
You are separated under
a written separation
agreement.
c.
You and the other parent
lived apart at all times
during the last 6 months
of the year. (This includes
parents never married to
each other.)
3. One or both parents had
custody of the child for more
than half the year.
4. One or both parents provided
more than half the child’s
support for the year
.
You were the
custodial parent and
you can claim the
dependent exemption
credit for the child.
The child
is your
qualifying
person.
You were the custodial
parent and under
the provisions of a
decree of divorce, legal
separation, termination
of registered domestic
partnership, or a
written separation
agreement, the
noncustodial parent
claimed the dependent
exemption credit,
or you signed a
statement releasing
the dependent
exemption credit to the
noncustodial parent.
The child
is your
qualifying
person.
You are not the
custodial parent.
The child
is not your
qualifying
person.
One or more of the four
statements above do not apply.
Use the “Rules
for Most
People” in
Section D.
Custodial Parent and Noncustodial Parent. The custodial parent is the
parent with whom the child lived for the greater number of nights during the
year. The other parent is the noncustodial parent. If the child lived with each
parent for an equal number of nights during the year, the custodial parent is
the parent with the higher AGI.
Parent Works at Night. If, due to a parent’s night-time work schedule, a
child lives for a greater number of days, but not nights, with the parent who
works at night, that parent is treated as the custodial parent. On a school
day, the child is treated as living at the primary residence registered with the
school.
E Married Persons or RDPs Filing Separate
Tax Returns
Generally, if you are married or an RDP, you must file a joint tax return to
claim the credit. However, you can take the credit on your separate tax return
if:
1. You meet all three requirements below:
• Y
ou lived apart from your spouse/RDP at all times during the last six
months of 2020.
• The qualifying person(s) lived in your home more than half of 2020.
• Y
ou provided over half the cost of keeping up your home.
2. You meet all the other qualifications in Section C, Qualifications.
F Nonresidents and Part-Year Residents
1. You must complete and attach Schedule CA (540NR), California
Adjustments – Nonresidents or Part-Year Residents, to your tax return,
Form 540NR. If Part I of Schedule CA (540NR) is not fully completed, we
may disallow your credit.
2. Nonresidents must have earned income from California sources to
qualify for the credit. A nonresident servicemember’s military wages are
considered earned income from a California sour
ce for the purpose of
qualifying for the credit.
3. Part-year residents must have earned income while a California resident
or earned income from California sources while a nonresident to qualify
for the credit.
G Military Personnel
For the purposes of this credit, active duty pay is considered earned income
from California sources, regardless of whether the servicemember is
domiciled in California. The federal Military Spouses Residency Relief Act
may affect the credit requirements for spouses of military servicemembers.
For more information, get FTB Pub. 1032, Tax Information for Military
Personnel.
Specific Line Instructions
Part I – Unearned Income and Other Funds
Received in 2020
List the source and amount of any money you received in 2020 that is not
included in your earned income (Part III, line 4 and line 5) but that was used
to support your household. Include child support, property settlements,
public assistance benefits, court awards, inheritances, insurance proceeds,
pensions and annuities, social security payments, workers’ compensation,
unemployment compensation, interest, and dividends.
Part II – Persons or Organizations Who Provided
the Care in California
Line 1
Complete line 1a through line 1g for each person or organization that
provided the care in California. Only care provided in California qualifies for
the credit. Use federal Form W-10, Dependent Care Provider’s Identification
and Certification, or any other source listed in the instructions for federal
Form W-10 to get the information from your care provider. If your provider
does not give you the information, complete as much of the information as
possible and explain that your provider did not give you the information you
requested.
If you do not give correct and complete information, we may disallow your
credit unless you can show you used due diligence in trying to get the
required information.
Line 1a through Line 1c
Enter your California care provider’s complete name (or business name),
address, and telephone number (including the area code). If you do not give
complete information, we may disallow your credit. We may contact your
care provider to verify the information you provide.
If you were covered by your employer’s dependent care plan and your
employer furnished the care (either at your workplace or by hiring a care
provider), enter your employer’s name on line 1a. Next, enter “See W-2” on
line 1b. Complete line 1c through line 1f. Then leave line 1g blank. But, if
your employer paid a third party (not hired by your employer) on your behalf
to provide care, you must provide information on the third party on line 1a
through line 1g.
Line 1d
For each care provider, check one box indicating whether the care provider is
a person or organization.
Page 66 FTB 3506 Instructions 2020
Line 1e
If your care provider is Then enter on line 1e
An individual The provider’s social security
number (SSN) or Individual Taxpayer
Identification Number (ITIN).
Not an individual The provider’s federal employer
identification number (FEIN).
A tax-exempt organization “Tax-exempt.”
Line 1f
Enter the complete physical address where the care was provided. A post
office box is not acceptable. If you do not provide correct or complete
information, your credit may be disallowed. Only care provided in California
qualifies for the credit.
Line 1g
Enter the total amount you actually paid in 2020 to your care provider for
care provided in California. Also include amounts your employer paid to
a third party on your behalf. It does not matter when the expenses were
incurred. Do not
reduce this amount by any reimbursement you received.
We may ask you to provide proof of payment. Cash payments without
verifiable documentation may not be accepted.
Part III – Credit for Child and Dependent Care
Expenses
Line 2
Complete column (a) through column (e) for each qualifying person for
whom care was provided in California. If claiming more than three qualifying
persons, attach a sheet of paper to your tax return with the required
information and write “see attached.” Write your name and SSN or ITIN on
the sheet.
Column (a)
Enter each qualifying person’s name.
Column (b)
Enter each qualifying person’s SSN. Verify that the name and SSN match
the qualifying person’s social security card to avoid the reduction or
disallowance of your credit. If the person was born in, and later died in,
2020, and does not have a SSN, enter “Died” in column (b) and attach a
copy of the person’s birth and death certificates.
Column (c)
Enter the qualifying person’s date of birth (mm/dd/yyyy) in the space
provided or if the qualifying person is disabled (physically or mentally
incapable of self-care), check the “Yes” box. Incomplete information could
result in a delay or disallowance of your credit.
Column (d)
If you shared custody of the qualifying person(s), enter the percentage of
time you possessed physical custody during 2020. If you have 50% or less
physical custody of your child, you do not qualify for the credit.
Column (e)
Qualified Expenses are amounts paid for the care of your qualifying person
while you worked or looked for work.
Enter the qualified expenses you incurred and paid in 2020 for the qualifying
person(s). Include only the qualified expenses for care provided in California.
If the child turned 13 years old during the year, include only the qualified
expenses for the part of the year the child was 12 years old.
Do not include in column (e) qualified expenses:
• You incurred in 2020 but did not pay until 2021. You may be able to use
these expenses to increase your 2021 credit.
• You incurred in 2019 but did not pay until 2020. Instead, see instructions
for line 11.
• You prepaid in 2020 for care to be provided in 2021. These expenses may
only be used to figure your 2021 credit.
A qualified expense does not include the amount you paid for education
(school tuition) or the amount you received through a subsidy program.
Qualified expenses include:
• The cost of care for the qualifying
person’s well-being and
protection. If care was provided
by a dependent care center, the
center must meet all applicable
state and local regulations.
• Cost of pre-school or similar
program below the kindergarten
level.
• Day camp, even if it specialized
in a particular activity, such as
soccer.
Qualified expenses do not include:
• Child support payments.
• Payments made to the parent of
your qualifying child.
• Payments made to your
spouse/RDP.
• Payments made to your child who
is under age 19 at the end of the
year, even if he or she is not your
dependent.
• Payments made to a dependent
for whom you (or your
spouse/RDP) can claim a
dependent exemption.
• Expenses paid by or reimbursed
through a subsidy program.
• Cost for education (school tuition)
at the kindergarten level and
above.
• Overnight camp.
Line 4
Earned income includes:
• Wages, salary, tips, and other
taxable employee compensation,
as well as, military compensation
including compensation for service
in a combat zone.
• Net earnings from
self-employment.
• Strike benefits.
• Disability payments you report as
wages.
• Active duty pay received by
servicemembers of the armed
forces is considered earned
income regardless of whether the
servicemember is domiciled in this
state or elsewhere.
Earned income does not include:
• Pensions or annuities
• Social security payments
• W
orkers’ compensation
• Interest
• Dividends
• Capital gains
• Unemployment compensation
• Public assistance
• California ser
vice income excluded
under the Militar
y Spouses
Residency Relief Act.
Nonresidents and Part-Year
Residents Only: Earned income
from California sources includes:
• Wages, salary, tips, and other
taxable employee compensation
for working in California, as
well as, military compensation
including compensation for
service in a combat zone.
• Net earnings from
self-employment from California
business activities.
• Strike benefits related to California
employment.
• Disability payments you report as
California wages.
• Active duty pay received by
servicemembers of the armed
forces is considered earned
income regardless of whether the
servicemember is domiciled in
this state or elsewhere.
Earned income does not include:
• Pensions or annuities
• Social security payments
• W
orkers’ compensation
• Interest
• Dividends
• Capital gains
• Unemployment compensation
• Public assistance
• California ser
vice income excluded
under the Militar
y Spouses
Residency Relief Act.
FTB 3506 Instructions 2020 Page 67
Page 68 FTB 3506 Instructions 2020
Line 5
Spouse/RDP Who Was a Student or Disabled
Your spouse/RDP was a student if he or she was enrolled as a full-time
student at a school during any 5 months of 2020. A school does not include
a night school or correspondence school.
Your spouse/RDP was disabled if he or she was not capable of self-care.
Figure your spouse’s/RDP’s earned income on a monthly basis.
For each month your spouse/RDP was a full-time student or disabled, enter
on line 5 the larger of the following:
• Your spouse’s/RDP’s actual earned income for that month.
• $250 ($500, if you have 2 or more qualifying persons).
If, in the same month, both you and your spouse/RDP qualified as either
full-time students or disabled, only one of you receive treatment as
having earned income of $250 (or $500) in that month. For any month
that your spouse/RDP was not a full-time student or disabled, use your
spouse’s/RDP’s actual earned income for that month.
Line 7
Use the chart below to determine the decimal amount to enter on line 7.
Your federal AGI is on Form 540, line 13 or Form 540NR, line 13. For military
personnel domiciled outside of California, use your federal AGI less your
military pay to determine the decimal amount to enter on line 7.
If your Federal AGI is:
Over But not over
The decimal amount
on Line 7 is:
$0 $15,000 .35
15,000 17,000 .34
17,000 19,000 .33
19,000 21,000 .32
21,000 23,000 .31
23,000 25,000 .30
25,000 27,000 .29
27,000 29,000 .28
29,000 31,000 .27
31,000 33,000 .26
33,000 35,000 .25
35,000 37,000 .24
37,000 39,000 .23
39,000 41,000 .22
41,000 43,000 .21
43,000 No limit .20
Line 9
Use the chart below to determine the decimal amount to enter on line 9. For
military personnel domiciled outside of California, use your federal AGI less
your military pay to determine the decimal amount to enter on line 9.
If your federal AGI from Form 540,
line 13 or Form 540NR, line 13 is:
The decimal amount to
enter on line 9 is:
$40,000 or less .50
Over $40,000 but not over $70,000 .43
Over $70,000 but not over $100,000 .34
Over $100,000 Stop. You do not qualify for this credit.
Line 11
If you had qualified expenses for care that was provided in 2019 that you
paid for in 2020, you may be able to increase your credit for 2020. Complete
the Worksheet on Side 2 of form FTB 3506. See Worksheet instructions on
this page.
Part IV – Dependent Care Benefits
Line 13
Dependent care benefits are:
• Amounts an employer paid directly to you (or your spouse/RDP), or to
your care provider for the care of your qualifying person(s), while you
worked.
• A day-care facility provided by your employer.
• Generally deducted from your salary.
• Shown in box 10 of your 2020 federal Form(s) W-2.
Line 14
Enter the amount from federal Form 2441, line 13.
Line 15
If you had a flexible spending account, any amount included on line 13 that
you did not receive because you did not incur the expense is considered
forfeited. Do not include amounts you expect to receive at a future date.
Line 17
Enter the total of all qualified expenses incurred in 2020. It does not matter
when the expenses were paid.
A qualified expense does not include the amount you paid for education
(school tuition) or the amount you received through a subsidy program.
Example: You received $2,000 cash under your employer’s dependent care
plan for 2020. The $2,000 is shown in box 10 of your federal Form W-2. You
incurred $900 of qualified expenses in 2020 for the care of your 3-year-old
dependent child. Enter $900 on line 17, but report the entire $2,000 on
line 13.
For all other lines, follow specific line instructions on the form. For additional
information, get federal Form 2441 or federal Publication 503, Child and
Dependent Care Expenses.
Line 20
If you are married or an RDP filing a separate return and you meet the
requirements of Section E, Married Persons or RDPs Filing Separate Tax
Returns, item 1, then enter your earned income from line 19. On line 22,
enter $5,000.
If you were married or an RDP and filed a separate return but did not meet
the requirements of Section E, Married Persons or RDPs Filing Separate Tax
Returns, item 1, then enter your spouse’s/RDP’s earned income. If your
spouse/RDP was a student or disabled in 2020, see the instructions for
line 5. On line 22, enter $2,500.
Worksheet – Credit for 2019 Expenses Paid
in 2020
You will need a copy of your 2019 California tax return to complete the
worksheet.
Line 12 and line 14
You need the 2019 form FTB 3506 instructions to complete the Credit for
2019 Expenses Paid in 2020 Worksheet, on Side 2. Forms are available at
ftb.ca.gov/forms or by calling 800.338.0505.
Line 12
Enter the decimal amount from the chart in the line 7 instructions of the
2019 form FTB 3506 that corresponds to your 2019 federal AGI.
Line 14
Enter the decimal amount from the chart in the line 9 instructions of the
2019 form FTB 3506 that corresponds to your 2019 California AGI.
TAXABLE YEAR
2020
California Earned Income Tax Credit
FORM
3514
Attach to your California Form 540, Form 540 2EZ or Form 540NR.
Name(s) as shown on tax return Your SSN or ITIN
Before you begin:
If you claim the California Earned Income Tax Credit (EITC) even though you know you are not eligible, you may not be allowed to take the credit for up
to 10 years.
If you are claiming the California EITC, you must provide your date of birth (DOB), and spouse’s/ Registered Domestic Partner’s (RDP’s) DOB if filing
jointly, on your California Form 540, Form 540 2EZ, or Form 540NR.
If you qualify for the California EITC you may also qualify for the Young Child Tax Credit (YCTC). See instructions for additional information.
Follow Step 1 through Step 9 in the instructions to determine if you meet the requirements, to complete this form, and to gure the amount of
the credit(s).
Part I Qualifying Information See Specific Instructions.
1 a Has the Internal Revenue Service (IRS) previously disallowed your federal Earned Income Credit (EIC)?
.....
□ Ye s
□ No
b Has the Franchise Tax Board (FTB) previously disallowed your California EITC?
.........................
□ Ye s
□ No
2 Federal AGI (federal Form 1040 or 1040-SR, line 11) ............................................... • 2
.
00
3 Federal EIC (federal Form 1040 or 1040-SR, line 27)
............................................... • 3
.
00
Part II Investment Income Information
4 Investment Income. See instructions for Step 2 – Investment Income .................................. •
4
.
00
Part III Qualifying Child Information
You must complete Part I and Part II before filling out Part III. If you are not claiming a qualifying child, skip Part III and go to Step 4 in the instructions.
Qualifying Child Information
Child 1 Child 2 Child 3
5 First name .....................
6 Last name ......................
7 SSN or ITIN. See instructions. ......
•• •
8 Date of birth (mm/dd/yyyy). If born
after 2001 and the child is younger
than you (or your spouse/RDP, if
filing jointly), skip line 9a and line 9b;
go to line 10
....................
9 a Was the child under age 24
at the end of 2020, a student,
and younger than you (or your
spouse/RDP, if filing jointly)? If
yes, go to line 10. If no, go to
line 9b. See instructions.
........
□ Ye s
□ No
□ Ye s
□ No
□ Ye s
□ No
b Was the child permanently and
totally disabled during any part
of 2020? If yes, go to line 10. If
no, stop here. The child is not a
qualifying child.
...............
□ Ye s
□ No
□ Ye s
□ No
□ Ye s
□ No
10 Child’s relationship to you.
See instructions.
................
11 Number of days child lived with you
in California during 2020.
Do not enter more than 366 days.
See instructions.
................
For Privacy Notice, get FTB 1131 ENG/SP.
8461203
FTB 3514 2020
Side 1
Child 1
Child 2
Child 3
12 a Child’s physical address during
2020 (number, street, and apt.
no./ste. no.). See instructions.
...
b City ........................
c State .......................
d ZIP code....................
Part IV California Earned Income
13 Wages, salaries, tips, and other employee compensation, subject to California withholding. See instructions. ...• 13
.
00
14 IHSS payments. See instructions.
..... ........................................................ 14
.
00
15 Prison inmate wages and/or pension or annuity from a nonqualified deferred compensation plan or a
nongovernmental IRC Section 457 plan. See instructions.
........................................... 15
.
00
16 Subtract line 14 and line 15 from line 13.
........................................................ • 16
.
00
17 Nontaxable combat pay. See instructions.
........................................................ 17
.
00
18 Business income or (loss). Enter amount from Worksheet 3, line 5. See instructions.
...................... 18
.
00
a Business name ................
b Business address ..............
City, state, and ZIP code .........
c Business license number ........
d SEIN ........................
e Business code ................
19 California Earned Income. Add line 16, line 17, and line 18 .......................................... • 19
.
00
Part V California Earned Income Tax Credit (Complete Step 6 in the instructions.)
20 California EITC. Enter amount from California Earned Income Tax Credit Worksheet, Part III, line 6.
This amount should also be entered on Form 540, line 75; or Form 540 2EZ, line 23
....................... • 20
.
00
8462203
Side 2 FTB 3514 2020
Part VI Nonresident or Part-Year Resident California Earned Income Tax Credit
21 CA Exemption Credit Percentage from Form 540NR, line 38. See instructions. ...
21
22 Nonresident or Part-Year Resident EITC. Multiply line 20 by line 21.
This amount should also be entered on Form 540NR, line 85
.........................................
•
22
.
00
Part VII Young Child Tax Credit (See Step 8 in the instructions before completing this part.)
23 California Earned Income. Enter the amount from form FTB 3514, line 19. ............................. 23
24 Available Young Child Tax Credit
1,000
.
00
...... .......................................................... 24
• If the amount on line 23 is $25,000 or less, skip lines 25 through 27 and enter $1,000 on line 28.
If applicable, complete lines 29 and 30.
• If the amount on line 23 is greater than $25,000, complete lines 25 through 28. If applicable,
complete lines 29 and 30.
25
Excess Earned Income over threshold. Subtract $25,000 from line 23
..................................
•
25
26 Divide line 25 by 100. Enter the result as a decimal out to two decimal places, do not round.
................ 26
27 Reduction amount. Multiply line 26 by $20. Enter the result as a decimal out to two decimal places,
do not round. ..................... ........................................................
•
27
28 Y
oung Child Tax Credit.
•
If you did not need to complete lines 25 through 27, your credit is the $1,000 from line 24.
• If you completed lines 25 through 27, to compute your credit, subtract line 27 from line 24. If your credit
amount is between $0 and $1, enter $1. If your credit amount is over $1, round to the nearest whole dollar.
This amount should also be entered on Form 540, line 76; or Form 540 2EZ, line 24 .......................
•
28
Part VIII Nonresident or Part-Year Resident Young Child Tax Credit (See Step 9 in the instructions.)
29 CA Exemption Credit Percentage from Form 540NR, line 38. See instructions .... 29
30 Nonresident or Part-Year Resident YCTC. Multiply line 28 by line 29.
This amount should also be entered on Form 540NR, line 86
.........................................
•
30
.
00
.
00
.
00
.
00
.
.
.
.
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8463203
FTB 3514 2020
Side 3
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Page 72 Personal Income Tax Booklet 2020
2020 Instructions for Form FTB 3514
California Earned Income Tax Credit
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).
What's New
Expansion for Credits Eligibility – For taxable years beginning on or after
January 1, 2020, California expanded Earned Income Tax Credit (EITC)
and Young Child Tax Credit (YCTC) eligibility to allow either the federal
Individual Tax Identification Number (ITIN) or the Social Security Number
(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 Franchise Tax Board (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, see Specific Instructions for line 7 and go to
ftb.ca.gov and search for eitc.
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 General Information B, Differences in California and
Federal Law and Specific Instructions, Step 5, line 13 and line 18.
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.
Registered Domestic Partners (RDPs)
For purposes of California income tax, references to a spouse, husband,
or wife also refer to a California RDP, unless otherwise specified.
When we use the initials RDP they refer to both a California registered
domestic “partner” and a California registered domestic “partnership,”
as applicable. For more information on RDPs, get FTB Pub. 737, Tax
Information for Registered Domestic Partners.
California Earned Income Tax Credit
The refundable California EITC is available to taxpayers who earned
wage income subject to California withholding and/or have net earnings
from self-employment. This credit is similar to the federal Earned
Income Credit (EIC) but with different income limitations. The CA
EITC reduces your California tax obligation, or allows a refund if no
California tax is due. You do not need a child to qualify, but must file a
California income tax return to claim the credit and attach a completed
form FTB 3514, California Earned Income Tax Credit.
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 CA 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 Step 8, Qualifications
for Young Child Tax Credit (YCTC) in the instructions.
A Purpose
Use form FTB 3514 to determine whether you qualify to claim the credit,
provide information about your qualifying children, if applicable, and to
figure the amount of your credit.
B Differences in California and Federal Law
The differences between California and federal law for the Earned Income
Tax Credit are as follows:
• California allows this credit for wage income (wages, salaries, tips and
other employee compensation) that is subject to California withholding.
• If you were a nonresident, you must have earned wage income that is
subject to California withholding.
• Both your earned income and federal adjusted gross income (AGI)
must be less than $56,844 to qualify for the federal credit, and less
than $30,001 to qualify for the California credit.
• An eligible individual without a qualifying child is 18 years or older for
the California credit.
• Y
ou may elect to include all of your (and/or all of your spouse’s/RDP’s
if filing jointly) nontaxable military combat pay in earned income for
California purposes, whether or not you elect to include it for federal
purposes. Get FTB Pub. 1032, Tax Information for Military Personnel,
for special rules that apply to military personnel claiming the EITC.
• California allows this credit to eligible individuals and their spouses
who have a valid federal ITIN or who have qualifying children who
have a valid federal ITIN.
Specic Instructions
If certain requirements are met, you or your eligible spouse may claim
the EITC even if you do not have a valid SSN and instead have a valid
federal ITIN. This also applies for the YCTC. If you have a valid federal
ITIN, enter it in the Your SSN or ITIN field at the top of the form. For
more information, see the What's New Section and specific instructions
for line 7.
If certain requirements are met, you may claim the EITC even if you do
not have a qualifying child. The amount of the credit is greater if you
have a qualifying child, and increases with each child that qualifies, up
to a maximum of three children. Follow Step 1 through Step 7 below to
determine if you qualify for the credit and to figure the amount of the
credit.
If your EITC was reduced or disallowed for any reason other than a math
or clerical error and you now want to take the EITC then answer “Yes”
on line 1b within the form and follow Step 1 through Step 7 below to
determine if you qualify for the credit.
Attach the completed form FTB 3514 to your Form 540 or 540 2EZ,
California Resident Income Tax Return, or Form 540NR, California
Nonresident or Part-Year Resident Income Tax Return, if you claim the
California EITC.
Step 1 Qualications for All Filers
a. Federal AGI
In taxable year 2020, is the amount on federal Form 1040, U.S.
Individual Income Tax Return, or Form 1040-SR, U.S. Tax Return for
Seniors, line 11 less than $30,001?
Yes Continue.
No Stop here, you cannot take the credit.
b. Do you, and your spouse/RDP if filing a joint return, have a valid SSN
or federal ITIN? See line 7, “Valid SSN” or “Valid ITIN” within Step 3,
Qualifying Child, for a full definition.
Yes If you have a qualifying child continue to question c. If you do
not have a qualifying child, continue to question d.
No Stop here, you cannot take the EITC.
FTB 3514 Instructions 2020 Page 73
c. Do you, and your spouse/RDP if filing a joint return, have a qualifying
child who has a valid SSN or federal ITIN?
Yes Continue to question d.
No You may qualify for the EITC as a filer without a qualifying
child, continue to question d.
d.
Is your filing status married filing separately?
Yes Stop here, you cannot take the credit.
No Continue.
e. Are you filing federal Form 2555, Foreign Earned Income?
Yes Stop here, you cannot take the credit.
No Continue.
f.
Were you or your spouse/RDP a nonresident alien for any part
of 2020?
Yes If your filing status is married filing jointly, continue. Otherwise,
stop here; you cannot take the EITC.
No Continue.
g. If you are filing Form 540NR, did you and your spouse/RDP live in
California for at least 184 days?
Ye
s Continue.
No Stop here, you cannot take the credit.
h. Complete line 1, line 2, and line 3 on the form. Then go to Step 2.
Step 2 Investment Income
If you are filing Form 540 or Form 540NR complete Worksheet 1. If you
are filing Form 540 2EZ complete Worksheet 2.
Worksheet 1 – Investment Income
Form 540 and Form 540NR Filers
Interest and Dividends
1 Add and enter the amounts from federal
Form 1040 or 1040-SR, line 2a and line 2b .
1
2 Enter the amount from federal Form 8814,
Parents’ Election to Report Child’s Interest
and Dividends, line 1b .................
2
3 Enter the amount from federal Form 1040 or
1040-SR, line 3b .....................
3
4 Enter any amounts from federal Form 8814,
line 12 for child's interest and dividends ...
4
Capital Gain Net Income
5 Enter the amount from federal Form 1040
or 1040-SR, line 7. If the result is less than
zero, enter 0 - - .......................
5
6 Enter the gain from federal Form 4797
Sales of Business Property, line 7. If the
amount on that line is a loss, enter 0 .
(But, if you completed federal Form 4797,
line 8 and line 9, enter the amount from
line 9 instead)
- -
.......................
6
7 Subtract line 6 from line 5.
(If the result is less than zero, enter 0 ) -- ...
7
Passive Activities
8
Enter the total of net income from passive
activities included on federal Schedule1
(Form 1040), Additional Income and
Adjustments to Income, line 5
..........
8
Other Activities
9 Enter any income from the rental of
personal property included on federal
Schedule 1 (Form 1040), line 8. If the result
is zero or less, enter 0 - -
................
9
10 Enter any expenses related to the rental
of personal property included as a
write-in adjustment on federal Schedule 1
(Form1040), line 22 ..................
10
11 Subtract line 10 from line 9.
(If the result is less than zero, enter 0 ) - -
...
11
Investment Income
12
Add the amounts on lines 1, 2, 3, 4, 7, 8,
and 11.
Enter the total.
This is your investment income
.........
12
13 Is the amount on line 12 more than $3,882
?
Y
es Stop here, you cannot take the credit.
No Enter the amount from line 12 on
form
FTB 3514, line 4. Go to Step 3.
Worksheet 2 – Investment Income
Form 540 2EZ Filer
1 Taxable interest. Enter the amount from
Form 540 2EZ, line 10. ................ 1
2 Nontaxable interest. Add and enter the
amounts from federal Form 1099-INT, box 3
and box 8, and the amount from federal
Form 1099-DIV, box 11 ................ 2
3 Dividends.
Enter the amount from
Form 540 2EZ, line 11 ................. 3
4 Capital gain net income. Enter the amount
from Form 540 2EZ, line 13 ............. 4
5 Investment Income. Add line 1, line 2, line 3
and line 4. Enter the amount here ........ 5
6 Is the amount on line 5 more than $3,882?
Yes Stop here, you cannot take the credit.
No Enter the amount from line 5 on form
FTB 3514, line 4.
Go to Step 3.
Step 3 Qualifying Child
Qualifying Child Denition
A qualifying child for the EITC is a child who meets the following
conditions:
• Is your son, daughter, stepchild, foster child, brother, sister,
stepbrother, stepsister, half brother, half sister, or a descendant of any
of them (for example, your grandchild, niece, or nephew).
• Is under age 19 at the end of 2020 and younger than you (or your
spouse/RDP, if filing jointly), or under age 24 at the end of 2020, a
student, and younger than you (or your spouse/RDP, if filing jointly),
or any age and permanently and totally disabled.
• Is not filing a joint return for 2020 or is filing a joint return for 2020
only to claim a refund of withheld income tax or estimated tax paid.
Get federal Publication 596, Earned Income Credit, for examples.
• Lived with you in California for more than half of 2020. If the child
did not live with you for the required time, see exceptions in the
instructions for line 11.
Note:
If the child was married or meets the conditions to be a
qualifying child of another person (other than your spouse/RDP if
filing a joint return), special rules apply. Get federal Publication 596
for more information.
Qualifying Child Questionnaire
a. Do you have at least one child who meets the conditions to be your
qualifying child?
Yes Continue.
No Go to Step 4.
b. Are you filing a joint return for 2020?
Yes Complete form FTB 3514, Part III, line 5 through line 12.
Go to Step 5.
No Continue.
Page 74 FTB 3514 Instructions 2020
c. Could you be a qualifying child of another person for 2020? (Answer
“No” if the other person is not required to file, and is not filing, a 2020
tax return or is filing a 2020 return only to claim a refund of withheld
income tax or estimated tax paid. Get federal Publication 596 for
examples.)
Yes Stop here, you cannot take the credit.
No Complete form FTB 3514, Part III, line 5 through line 12.
Go to Step 5.
Note: If your qualifying child is younger than six years old as of the last
day of the taxable year, you must list that child information under Child1,
Child 2 or Child 3 column. Do not include any child younger than six years
old as an attachment to the form FTB 3514. See Step 8 and Step 9 in the
instructions to see if you qualify for the Young Child Tax Credit.
Line 7 – SSN or ITIN
The child must have a valid SSN or ITIN, as defined below, unless the
child was born and died in 2020. If your child was born alive and died
in 2020 and did not have an SSN, enter “Died” on this line and attach a
copy of the child’s birth certificate, death certificate, or hospital medical
records or include it according to your software's instructions.
Valid SSN. A valid SSN is a number issued by the Social Security
Administration without regard to whether it was issued for employment
or issued solely for the purpose of receiving federally funded benefits.
Valid ITIN. A valid ITIN is a federal tax processing number issued by the
Internal Revenue Service that is not expired or revoked. For taxable years
beginning on or after January 1, 2020, a valid federal ITIN can be used
to claim the EITC and YCTC. If an ITIN is used, eligible individuals should
provide the documents listed below upon request by FTB:
• Identifying documents acceptable for purposes of obtaining a
California driver’s license as authorized by the Vehicle code and
related regulations for purposes of establishing documents acceptable
to prove identity.
• Identifying documents used to report earned income for the taxable
year.
Additionally, upon receiving a valid SSN, the individual should notify the
FTB in the time and manner prescribed by the FTB. For more information,
go to ftb.ca.gov and search for eitc.
An Adoption Taxpayer Identification Number (ATIN) cannot be used to
claim EITC. If you or your child has an ATIN and later gets a valid SSN
or a valid federal ITIN, you may be able to file an amended return. Use
Form 540, 540 2EZ, or 540NR to amend your original or previously filed
tax return with Schedule X, California Explanation of Amended Return
Changes, attached to the amended return.
If you did not have an SSN or federal ITIN by the due date of your 2020
return (including extensions), you cannot claim the EITC (or YCTC) on
either your original or an amended 2020 return, even if you later get an
SSN or federal ITIN. Also, if a child did not have an SSN or federal ITIN
by the due date of your return (including extensions), you cannot count
that child as a qualifying child in figuring the EITC (or YCTC) on either
your original or an amended 2020 return, even if that child later gets
an SSN or federal ITIN.
Line 9a – Student
A student is a child who during any part of 5 calendar months of 2020
was enrolled as a full-time student at a school, or took a full-time,
on-farm training course given by a school or a state, county, or local
government agency. A school includes a technical, trade, or mechanical
school. It does not include an on-the-job training course, correspondence
school, or school offering courses only through the Internet.
Line 9b – Permanently and totally disabled
A person is permanently and totally disabled if, at any time in 2020, the
person could not engage in any substantial gainful activity because of
a physical or mental condition and a doctor has determined that this
condition (a) has lasted or can be expected to last continuously for at
least a year, or (b) can be expected to lead to death.
Line 10 – Child’s relationship to you
For additional information see qualifying child definition.
Line 11 – Number of days child lived with you
Enter the number of days the child lived with you in California during
2020. To qualify, the child must have the same principal place of
residence in California as you for more than half of 2020, defined as
184 days or more. If the child was born or died in 2020 and your home
was the child’s home for more than half the time he or she was alive
during 2020, enter “366”. Do not enter more than 366 days. If the
child did not live with you for the required time, temporary absences
may count as time lived at home. For more information get federal
Publication 596.
Line 12 – Child’s physical address
Enter the physical address where the child resided during 2020. This
should be the address of the principal place of residence in California
where the child lived with you for more than half of 2020. If the child
lived with you in California for more than half of 2020, but moved within
California during this period, this should be the address of the principal
place of residence that was shared the longest.
Step 4 Filer Without a Qualifying Child
a. Is the amount on federal Form 1040 or 1040-SR, line 11 less than
$30,001?
Yes Continue.
No Stop here, you cannot take the credit.
b. Were you (or your spouse/RDP if filing a joint return) at least age
18 at the end of 2020? (Answer “Yes” if you, or your spouse/RDP
if filing a joint return, were born on or before Januar
y 1, 2003.) If
your spouse/RDP died in 2020 (or if you are preparing a return for
someone who died in 2020), get federal Publication 596 for more
information before you answer.
Yes Continue.
No Stop here, you cannot take the credit.
c. Was your main home, and your spouse’s/RDP’s if filing a joint return,
in California for more than half of 2020?
Yes Continue.
No Stop here, you cannot take the credit.
d. Are you filing a joint return for 2020? For more information get federal
Publication 596.
Yes Skip questions e and f; go to Step 5.
No Continue.
e. Could you be a qualifying child of another person for 2020? (Answer
“No” if the other person is not required to file, and is not filing, a 2020
tax return or is filing a 2020 return only to claim a refund of withheld
income tax or estimated tax paid. Get federal Publication 596 for
examples.)
Yes Stop here, you cannot take the credit.
No Continue.
f. Can you be claimed as a dependent on someone else’s 2020 tax
return?
Yes Stop here, you cannot take the credit.
No Go to Step 5.
Step 5 California Earned Income
Complete lines 13 through 19 to figure your California earned income.
Line 13 – Wages, salaries, tips, and other employee
compensation, subject to California withholding
Enter the total amount of your California wages from your federal
Form(s) W-2, Wage and Tax Statement. This amount appears on
Form W-2, box 16.
Note: If you have clergy wages, subtract the self employment tax, if any,
that was reported on federal Schedule SE (Form 1040), Self-Employment
Tax, and enter the result on form FTB 3514, line 13.
FTB 3514 Instructions 2020 Page 75
Employees and independent contractors − If the taxpayer’s classification
for California and federal purposes is different, enter the earned
income as wages on line 13 or as business income on line 18 based
on the federal classification of income. For example, a taxpayer may be
classified as an independent contractor for federal purposes, but as an
employee for California purposes. Based on this example, this taxpayer
would enter their income as business income on form FTB 3514, line 18.
Use your federal classification for EITC purposes only and for all other
purposes such as completing other tax forms, schedules, etc., use your
California classification.
Line 14 – IHSS payments
Enter the amount included on line 13, that you received as Medicaid
waiver payments, In Home Supportive Services (IHSS) payments, or
IHSS supplementary payments that are nontaxable for federal purposes.
Line 15 – Prison inmate wages and/or pension or annuity from a
nonqualied deferred compensation plan or a nongovernmental
IRC Section 457 plan
Enter the amount included on line 13, that you received for work
performed while an inmate in a penal institution.
Enter the amount included on line 13, that you received as a pension
or annuity from a nonqualified deferred compensation plan or a
nongovernmental IRC Section 457 plan. This amount may be shown on
federal Form W-2, box 11. If you received such an amount and box 11 is
blank, contact your employer for the amount received as a pension or
annuity.
Line 17 – Nontaxable combat pay
Enter the amount from federal Form W-2, box 12, code Q, if you elect
to include your nontaxable military combat pay in earned income for
EITC purposes. If you are filing a joint return, both you and/or your
spouse/RDP can elect to include your own nontaxable military combat
pay for EITC purposes. Each must include all of their nontaxable military
combat pay, not just a portion of it. You may elect to include nontaxable
military combat pay in earned income for California purposes, whether or
not you elect to include it for federal purposes.
Line 18 – Business income or (loss)
If you are self-employed and have net earnings from self-employment,
go to Worksheet 3 to figure your business income or loss. Attach a
copy of your complete federal return, including any federal Schedule
C (Form 1040), Profit or Loss From Business, ScheduleF (Form 1040),
Profit or Loss From Farming, Schedule SE (Form 1040), and any
Schedule K-1 (Form 1065), Partner’s Share of Income, Deductions,
Credits, etc.
Employees and independent contractors – If the taxpayer’s classification
for California and federal purposes is different, enter the earned income
as wages on line 13 or as business income on line 18 based on the
federal classification of income. For example, a taxpayer may be
classified as an independent contractor for federal purposes, but as an
employee for California purposes. Based on this example, this taxpayer
would enter their income as business income on form FTB 3514, line 18.
Use your federal classification for EITC purposes only and for all other
purposes such as completing other tax forms, schedules, etc., use your
California classification.
Worksheet 3 – Business Income or (Loss)
1 Business income or (loss). Enter the amount
from federal Schedule 1 (Form 1040), line3 1
2 Farm income or (loss). Enter the amount
from federal Schedule 1 (Form 1040), line6 2
3 Self-employment earnings from
partnerships reported on K-1s. Enter the net
profit (or loss) from federal Schedule K-1
(Form 1065), box 14, codeA ............ 3
4 Deductible part of self-employment tax.
Enter the amount from federal Schedule 1
(Form 1040), line 14 .................. 4
5 Total business income or (loss). Add line 1,
line 2, line 3, and subtract line 4. Enter the
amount here and on form FTB 3514,
line 18 ............................. 5
Lines 18 a-e Business information
Enter your business information in the spaces provided. If you have
multiple businesses, use the information from the schedule with the
largest net profit (loss).
Line b – Business address
Enter your business address. Show a street address instead of a box
number. Include the suite or room number, if any.
Line c – Business license number
Enter your business license number. A business license number is a
reference number from a county, city, or state that allows you to engage
in a specific business activity within the designated area. If you do not
have a business license number, leave line c blank.
Line d – SEIN
Enter your state employer identification number (SEIN) issued by the
California Employment Development Department. If you do not have a
SEIN, leave line d blank.
Line e – Business code
Use the six-digit code from federal Schedule C or Schedule F, box B.
After completing Step 5, line 18e, go to Step 6.
Page 76 FTB 3514 Instructions 2020
Step 6 How to Figure the CA EITC
Complete the California Earned Income Tax Credit Worksheet below. If you file Form 540 or 540 2EZ, after completing Step 6, skip Step 7 and go to
Step8. If you file a Form 540NR, after completing Step 6, go to Step 7.
California Earned Income Tax Credit Worksheet
Part I All Filers
1 Enter your California earned income from form FTB 3514, line 19. If the amount is zero or less, stop here ............ 1 ___________________
2 Look up the amount on line 1 in the EITC Table to find the credit. Be sure you use the correct
column for the number of qualifying children you have. Enter the credit here .................................. 2 ___________________
If the amount on line 2 is zero, stop here. You cannot take the credit.
3 Enter the amount from federal Form 1040 or 1040-SR, line 11 .......................... 3 _________________
4 Are the amounts on lines 1 and 3 the same?
Y
es Skip line 5; and enter the amount from line 2 on line 6.
No Go to line 5.
Part II Filers who Answered “No” on Line 4
5 If you have:
• No qualifying children, is the amount on line 3 less than $3,757?
• 1 qualifying child, is the amount on line 3 less than $5,642?
• 2 or more qualifying children, is the amount on line 3 less than $7,920?
Yes Leave line 5 blank; enter the amount from line 2 on line 6.
No Look up the amount on line 3 in the EITC Table to find the credit. Be sure you use the correct
column for the number of qualifying children you have. Enter the credit here.
.............................. 5
Compare the amounts on line 5 and line 2, enter the smaller
amount on line 6.
Part III Your Earned Income Tax Credit
6 This is your California earned income tax credit.
Enter this amount on form FTB 3514, line 20. .......................................................... 6
(continued on the next page)
FTB 3514 Instructions 2020 Page 77
Step 7 How to Figure the Nonresident or Part-Year
Resident EITC
If you file Form 540 or 540 2EZ, skip Step 7 and go to Step 8.
Line 21 – CA Exemption Credit Percentage
If you file a Form 540NR, enter your CA Exemption Credit Percentage
from Form 540NR, line 38 on form FTB 3514, line 21. However, if
your total taxable income was less than zero and you entered $0 on
Form540NR, line 19, complete Worksheet 4 below to compute the
correct CA Exemption Credit Percentage to enter on form FTB 3514,
line21.
Worksheet 4 – CA Exemption Credit Percentage
Complete this worksheet only if you are a nonresident or part-year
resident with negative total taxable income and you entered zero on
Form 540NR, line 19.
Part I Total Taxable Income
1 Enter the amount from Form 540NR, line 17.
If a negative amount, enter as negative ..... 1
2 Enter the amount from Form 540NR, line 18 . 2
3 T
otal Taxable Income. Subtract line 2 from
line 1. Enter the negative result here
....... 3
Part II California Taxable Income
4 Enter the amount from Schedule CA (540NR),
Part IV, line 1. If a negative amount,
enter as negative
...................... 4
5 Enter the amount from Schedule CA (540NR),
Part IV, line 4
......................... 5
6 California Taxable Income. Subtract line 5
from line 4. If a negative amount,
enter as negative
......................
6
Part III CA Exemption Credit Percentage
7 Subtract line 6 from line 3. If a negative
amount, enter as negative
............... 7
8 Enter the amount from line 3 as a positive
amount
..............................
8
9 Divide line 7 by line 8. Enter amount as
a decimal
............................ 9
10 CA Exemption Credit Percentage. Subtract
line 9 from 1.000. If more than 1, enter 1.000.
If less than zero, enter 0. Enter the result
as a decimal here and on form FTB 3514,
line 21 or line 29.
..................... 10
Line 22 – Nonresident or Part-Year Resident EITC
Multiply line 20 by line 21 and enter the result on form FTB 3514, line 22.
This amount should also be entered on Form 540NR, line 85.
Step 8 Qualications for Young Child Tax
Credit(YCTC)
To qualify for the YCTC, you must meet all of the following:
• You have been allowed the CA EITC on this form.
• You have at least one qualifying child for the CA EITC.
• Your qualifying child is younger than six years old as of the last
day of the taxable year
.
Caution: If you do not meet all of the above requirements, you cannot
take this credit.
If you meet all of the above requirements, complete Part VII, Young Child
Tax Credit. If you are a nonresident or part-year resident, also complete
Part VIII, Nonresident or Part-Year Resident Young Child Tax Credit.
For taxable years beginning on or after January 1, 2020, California
expanded YCTC eligibility to a qualifying child who is younger than
6 years old as of the last day of the taxable year, who has a valid federal
ITIN. The child must be a qualifying child of an eligible individual, the
eligible individual’s spouse (if married), who have a federal ITIN.
Note: If your qualifying child is younger than six years old as of the last
day of the taxable year, you must list that child information under Part III,
Qualifying Child Information, Child 1, Child 2 or Child 3 column. Do not
include any child younger than six years old as an attachment to the form
FTB 3514.
Line 23 – California Earned Income
CA earned income for purposes of the YCTC is the same as for the
CAEITC. Enter the amount from form FTB 3514, line 19.
Line 25 – Excess Earned Income over threshold
Subtract the $25,000 threshold amount from your CA earned income
entered on line 23 and enter the excess amount on line 25.
Line 26 and Line 27
For every $100 over the threshold amount, your credit is reduced by $20.
Line 28
This is the amount of your allowable YCTC to claim on your tax
return. This amount should also be entered on Form 540, line 76; or
Form 540 2EZ, line 24. If you file Form 540 or 540 2EZ, stop here, do not
go to Step 9.
Step 9 Nonresident or Part-Year Resident Young
Child Tax Credit
Line 29
If you file a Form 540NR, enter your CA Exemption Credit Percentage
from Form 540NR, line 38 on form FTB 3514, line 29. However, if you
completed Worksheet 4, enter the CA Exemption Credit Percentage from
Worksheet 4, line 10 on form FTB 3514, line 29.
Line 30
Multiply line 28 by line 29 and enter the result on form FTB 3514, line 30.
This amount should also be entered on Form 540NR, line 86.
Page 78 FTB 3514 Instructions 2020
Continued on next page.
2020 Earned Income Tax Credit Table – Continued
Caution: This is not a tax table. If you are married filing separately you do not qualify for this credit.
1. To find your credit, read down the “At least - But not over” columns and find the line that includes the amount you were told to look up from your
California Earned Income Tax Credit Worksheet.
2. Then, go to the column that includes the number of qualifying children you have. Enter the credit from that column on your Ca
lifornia Earned
Income Tax Credit Worksheet.
If the amount you are
looking up from
the worksheet is . . .
And your number of qualifying children is
At
least
But Not
Over
0 1 2 3
Your credit is . . .
1 50 2 7 9 10
51 100 5 22 26 29
101 150 8 36 43 48
151 200 11 51 60 67
201 250 15 65 77 86
251 300 18 80 94 105
301 350 21 94 111 125
351 400 24 109 128 144
401 450 28 123 145 163
451 500 31 137 162 182
501 550 34 152 179 201
551 600 37 166 196 220
601 650 41 181 213 239
651 700 44 195 230 258
701 750 47 210 247 278
751 800 50 224 264 297
801 850
54 239 281 316
851 900 57 253 298 335
901 950 60 267 315 354
951 1,000 63 282 332 373
1,001 1,050 67 296 349 392
1,051 1,100 70 311 366 411
1,101 1,150 73 325 383 431
1,151 1,200 76 340 400 450
1,201 1,250 80 354 417 469
1,251 1,300 83 369 434 488
1,301 1,350 86 383 451 507
1,351 1,400 89 398 468 526
1,401 1,450 93 412 485 545
1,451 1,500 96 426 502 564
1,501 1,550 99 441 519 584
1,551 1,600 102 455 536 603
1,601 1,650 106 470 553 622
1,651 1,700 109 484 570 641
1,701 1,750 112 499 587 660
1,751 1,800 115 513 604 679
1,801 1,850 119 528 621 698
1,851 1,900 122 542 638 717
1,901 1,950 125 556 655 737
1,951 2,000 128 571 672 756
If the amount you are
looking up from
the worksheet is . . .
And your number of qualifying children is
At
least
But Not
Over
0 1 2 3
Your credit is . . .
2,001 2,050 132 585 689 775
2,051 2,100 135 600 706 794
2,101 2,150 138 614 723 813
2,151 2,200 141 629 740 832
2,201 2,250 145 643 757 851
2,251 2,300 148 658 774 870
2,301 2,350 151 672 791 890
2,351 2,400 154 687 808 909
2,401 2,450 158 701 825 928
2,451 2,500 161 715 842 947
2,501 2,550 164 730 859 966
2,551 2,600 167 744 876 985
2,601 2,650 171 759 893 1,004
2,651 2,700 174 773 910 1,023
2,701 2,750 177 788 927 1,043
2,751 2,800 180 802 944 1,062
2,801 2,850 184 817 961 1,081
2,851 2,900 187 831 978 1,100
2,901 2,950 190 845 995 1,119
2,951 3,000 193 860 1,012 1,138
3,001 3,050 197 874 1,029 1,157
3,051 3,100 200 889 1,046 1,176
3,101 3,150
203 903 1,063 1,196
3,151 3,200 206 918 1,080 1,215
3,201 3,250 210 932 1,097 1,234
3,251 3,300 213 947 1,114 1,253
3,301 3,350 216 961 1,131 1,272
3,351 3,400 219 976 1,148 1,291
3,401 3,450 223 990 1,165 1,310
3,451 3,500 226 1,004 1,182 1,329
3,501 3,550 229 1,019 1,199 1,349
3,551 3,600 232 1,033 1,216 1,368
3,601 3,650 236 1,048 1,233 1,387
3,651 3,700 239 1,062 1,250 1,406
3,701 3,750 242 1,077 1,267 1,425
3,751 3,800 243 1,091 1,284 1,444
3,801 3,850 240 1,106 1,301 1,463
3,851 3,900 237 1,120 1,318 1,482
3,901 3,950 233 1,134 1,335 1,502
3,951 4,000 230 1,149 1,352 1,521
FTB 3514 2020 Page 79
Continued on next page.
If the amount you are
looking up from
the worksheet is . . .
And your number of qualifying children is
At
least
But Not
Over
0 1 2 3
Your credit is . . .
4,001 4,050 227 1,163 1,369 1,540
4,051 4,100 224 1,178 1,386 1,559
4,101 4,150 220 1,192 1,403 1,578
4,151 4,200 217 1,207 1,420 1,597
4,201 4,250 214 1,221 1,437 1,616
4,251 4,300 211 1,236 1,454 1,635
4,301 4,350 207 1,250 1,471 1,655
4,351 4,400 204 1,265 1,488 1,674
4,401 4,450 203 1,279 1,505 1,693
4,451 4,500 202 1,293 1,522 1,712
4,501 4,550 202 1,308 1,539 1,731
4,551 4,600 201 1,322 1,556 1,750
4,601 4,650 201 1,337 1,573 1,769
4,651 4,700 201 1,351 1,590 1,788
4,701 4,750 200 1,366 1,607 1,808
4,751 4,800 200 1,380 1,624 1,827
4,801 4,850 199 1,395 1,641 1,846
4,851 4,900 199 1,409 1,658 1,865
4,901 4,950 199 1,423 1,675 1,884
4,951 5,000 198 1,438 1,692 1,903
5,001 5,050 198 1,452 1,709 1,922
5,051 5,100 197 1,467 1,726 1,941
5,101 5,150
197 1,481 1,743 1,961
5,151 5,200 197 1,496 1,760 1,980
5,201 5,250 196 1,510 1,777 1,999
5,251 5,300 196 1,525 1,794 2,018
5,301 5,350 195 1,539 1,811 2,037
5,351 5,400 195 1,554 1,828 2,056
5,401 5,450 195 1,568 1,845 2,075
5,451 5,500 194 1,582 1,862 2,094
5,501 5,550 194 1,597 1,879 2,114
5,551 5,600 194 1,611 1,896 2,133
5,601 5,650 193 1,626 1,913 2,152
5,651 5,700 193 1,621 1,930 2,171
5,701 5,750 192 1,606 1,947 2,190
5,751 5,800 192 1,592 1,964 2,209
5,801 5,850 192 1,578 1,981 2,228
5,851 5,900 191 1,563 1,998 2,247
5,901 5,950 191 1,549 2,015 2,267
5,951 6,000 190 1,534 2,032 2,286
If the amount you are
looking up from
the worksheet is . . .
And your number of qualifying children is
At
least
But Not
Over
0 1 2 3
Your credit is . . .
6,001 6,050 190 1,520 2,049 2,305
6,051 6,100 190 1,505 2,066 2,324
6,101 6,150 189 1,491 2,083 2,343
6,151 6,200 189 1,476 2,100 2,362
6,201 6,250 188 1,462 2,117 2,381
6,251 6,300 188 1,447 2,134 2,400
6,301 6,350 188 1,433 2,151 2,420
6,351 6,400 187 1,419 2,168 2,439
6,401 6,450 187 1,404 2,185 2,458
6,451 6,500 186 1,390 2,202 2,477
6,501 6,550 186 1,375 2,219 2,496
6,551 6,600 186 1,361 2,236 2,515
6,601 6,650 185 1,346 2,253 2,534
6,651 6,700 185 1,332 2,270 2,553
6,701 6,750 184 1,317 2,287 2,573
6,751 6,800 184 1,303 2,304 2,592
6,801 6,850 184 1,289 2,321 2,611
6,851 6,900 183 1,274 2,338 2,630
6,901 6,950 183 1,260 2,355 2,649
6,951 7,000 182 1,245 2,372 2,668
7,001 7,050 182 1,231 2,389 2,687
7,051 7,100 182 1,216 2,406 2,706
7,101 7,150
181 1,202 2,423 2,726
7,151 7,200 181 1,187 2,440 2,745
7,201 7,250 180 1,173 2,457 2,764
7,251 7,300 180 1,158 2,474 2,783
7,301 7,350 180 1,144 2,491 2,802
7,351 7,400 179 1,130 2,508 2,821
7,401 7,450 179 1,115 2,525 2,840
7,451 7,500 178 1,101 2,542 2,859
7,501 7,550 178 1,086 2,559 2,879
7,551 7,600 178 1,072 2,576 2,898
7,601 7,650 177 1,057 2,593 2,917
7,651 7,700 177 1,043 2,610 2,936
7,701 7,750 177 1,028 2,627 2,955
7,751 7,800 176 1,014 2,644 2,974
7,801 7,850 176 1,000 2,661 2,993
7,851 7,900 175 985 2,678 3,012
7,901 7,950 175 971 2,691 3,027
7,951 8,000 175 956 2,674 3,008
Page 80 FTB 3514 2020
1. To find your credit, read down the “At least - But not over” columns and find the line that includes the amount you were told to look up from your
California Earned Income Tax Credit Worksheet.
2. Then, go to the column that includes the number of qualifying children you have. Enter the credit from that column on your California Earned
Income Tax Credit Worksheet.
2020 Earned Income Tax Credit Table
– Continued
Caution: This is not a tax table. If you are married filing separately you do not qualify for this credit.
Continued on next page.
If the amount you are
looking up from
the worksheet is . . .
And your number of qualifying children is
At
least
But Not
Over
0 1 2 3
Your credit is . . .
8,001 8,050 174 942 2,657 2,989
8,051 8,100 174 927 2,640 2,970
8,101 8,150 173 913 2,623 2,951
8,151 8,200 173 898 2,606 2,932
8,201 8,250 173 884 2,589 2,913
8,251 8,300 172 869 2,572 2,893
8,301 8,350 172 855 2,555 2,874
8,351 8,400 171 841 2,538 2,855
8,401 8,450 171 826 2,521 2,836
8,451 8,500 171 812 2,504 2,817
8,501 8,550 170 797 2,487 2,798
8,551 8,600 170 783 2,470 2,779
8,601 8,650 169 768 2,453 2,760
8,651 8,700 169 754 2,436 2,740
8,701 8,750 169 739 2,419 2,721
8,751 8,800 168 725 2,402 2,702
8,801 8,850 168 711 2,385 2,683
8,851 8,900 167 696 2,368 2,664
8,901 8,950 167 682 2,351 2,645
8,951 9,000 167 667 2,334 2,626
9,001 9,050 166 653 2,317 2,607
9,051 9,100 166 638 2,300 2,587
9,101 9,150
165 624 2,283 2,568
9,151 9,200 165 609 2,266 2,549
9,201 9,250 165 595 2,249 2,530
9,251 9,300 164 580 2,232 2,511
9,301 9,350 164 566 2,215 2,492
9,351 9,400 163 552 2,198 2,473
9,401 9,450 163 537 2,181 2,454
9,451 9,500 163 523 2,164 2,434
9,501 9,550 162 511 2,147 2,415
9,551 9,600 162 510 2,130 2,396
9,601 9,650 162 509 2,113 2,377
9,651 9,700 161 508 2,096 2,358
9,701 9,750 161 506 2,079 2,339
9,751 9,800 160 505 2,062 2,320
9,801 9,850 160 504 2,045 2,301
9,851 9,900 160 503 2,028 2,281
9,901 9,950 159 501 2,011 2,262
9,951 10,000 159 500 1,994 2,243
If the amount you are
looking up from
the worksheet is . . .
And your number of qualifying children is
At
least
But Not
Over
0 1 2 3
Your credit is . . .
10,001 10,050 158 499 1,977 2,224
10,051 10,100 158 498 1,960 2,205
10,101 10,150 158 496 1,943 2,186
10,151 10,200 157 495 1,926 2,167
10,201 10,250 157 494 1,909 2,148
10,251 10,300 156 493 1,892 2,128
10,301 10,350 156 491 1,875 2,109
10,351 10,400 156 490 1,858 2,090
10,401 10,450 155 489 1,841 2,071
10,451 10,500 155 488 1,824 2,052
10,501 10,550 154 486 1,807 2,033
10,551 10,600 154 485 1,790 2,014
10,601 10,650 154 484 1,773 1,995
10,651 10,700 153 483 1,756 1,975
10,701 10,750 153 481 1,739 1,956
10,751 10,800 152 480 1,722 1,937
10,801 10,850 152 479 1,705 1,918
10,851 10,900 152 478 1,688 1,899
10,901 10,950 151 476 1,671 1,880
10,951 11,000 151 475 1,654 1,861
11,001 11,050 150 474 1,637 1,842
11,051 11,100 150 473 1,620 1,822
11,101 11,150
150 471 1,603 1,803
11,151 11,200 149 470 1,586 1,784
11,201 11,250 149 469 1,569 1,765
11,251 11,300 148 468 1,552 1,746
11,301 11,350 148 466 1,535 1,727
11,351 11,400 148 465 1,518 1,708
11,401 11,450 147 464 1,501 1,689
11,451 11,500 147 463 1,484 1,669
11,501 11,550 146 461 1,467 1,650
11,551 11,600 146 460 1,450 1,631
11,601 11,650 146 459 1,433 1,612
11,651 11,700 145 458 1,416 1,593
11,701 11,750 145 456 1,399 1,574
11,751 11,800 145 455 1,382 1,555
11,801 11,850 144 454 1,365 1,536
11,851 11,900 144 453 1,348 1,516
11,901 11,950 143 451 1,331 1,497
11,951 12,000 143 450 1,314 1,478
FTB 3514 2020 Page 81
1. To find your credit, read down the “At least - But not over” columns and find the line that includes the amount you were told to look up from your
California Earned Income Tax Credit Worksheet.
2. Then, go to the column that includes the number of qualifying children you have. Enter the credit from that column on your California Earned
Income Tax Credit Worksheet.
2020 Earned Income Tax Credit Table
– Continued
Caution: This is not a tax table. If you are married filing separately you do not qualify for this credit.
Continued on next page.
If the amount you are
looking up from
the worksheet is . . .
And your number of qualifying children is
At
least
But Not
Over
0 1 2 3
Your credit is . . .
12,001 12,050 143 449 1,297 1,459
12,051 12,100 142 448 1,280 1,440
12,101 12,150 142 446 1,263 1,421
12,151 12,200 141 445 1,246 1,402
12,201 12,250 141 444 1,229 1,383
12,251 12,300 141 443 1,212 1,363
12,301 12,350 140 441 1,195 1,344
12,351 12,400 140 440 1,178 1,325
12,401 12,450 139 439 1,161 1,306
12,451 12,500 139 438 1,144 1,287
12,501 12,550 139 436 1,127 1,268
12,551 12,600 138 435 1,110 1,249
12,601 12,650 138 434 1,093 1,230
12,651 12,700 137 433 1,076 1,210
12,701 12,750 137 431 1,059 1,191
12,751 12,800 137 430 1,042 1,172
12,801 12,850 136 429 1,025 1,153
12,851 12,900 136 428 1,008 1,134
12,901 12,950 135 426 991 1,115
12,951 13,000 135 425 974 1,096
13,001 13,050 135 424 957 1,077
13,051 13,100 134 423 940 1,057
13,101 13,150
134 421 923 1,038
13,151 13,200 133 420 906 1,019
13,201 13,250 133 419 889 1,000
13,251 13,300 133 418 872 981
13,301 13,350 132 416 855 962
13,351 13,400 132 415 838 943
13,401 13,450 131 414 821 924
13,451 13,500 131 413 804 904
13,501 13,550 131 411 787 885
13,551 13,600 130 410 770 866
13,601 13,650 130 409 753 847
13,651 13,700 129 408 736 828
13,701 13,750 129 406 719 809
13,751 13,800 129 405 702 790
13,801 13,850 128 404 685 771
13,851 13,900 128 403 668 751
13,901 13,950 128 401 651 732
13,951 14,000 127 400 634 713
If the amount you are
looking up from
the worksheet is . . .
And your number of qualifying children is
At
least
But Not
Over
0 1 2 3
Your credit is . . .
14,001 14,050 127 399 617 694
14,051 14,100 126 398 600 675
14,101 14,150 126 397 583 656
14,151 14,200 126 395 566 637
14,201 14,250 125 394 549 618
14,251 14,300 125 393 532 598
14,301 14,350 124 392 515 579
14,351 14,400 124 390 510 560
14,401 14,450 124 389 509 541
14,451 14,500 123 388 507 522
14,501 14,550 123 387 506 511
14,551 14,600 122 385 504 509
14,601 14,650 122 384 502 507
14,651 14,700 122 383 501 506
14,701 14,750 121 382 499 504
14,751 14,800 121 380 497 503
14,801 14,850 120 379 496 501
14,851 14,900 120 378 494 499
14,901 14,950 120 377 492 498
14,951 15,000 119 375 491 496
15,001 15,050 119 374 489 494
15,051 15,100 118 373 488 493
15,101 15,150 118 372 486 491
15,151 15,200 118 370 484 489
15,201 15,250 117 369 483 488
15,251 15,300 117 368 481 486
15,301 15,350 116 367 479 484
15,351 15,400 116 365 478 483
15,401 15,450 116 364 476 481
15,451 15,500 115 363 474 479
15,501 15,550 115 362 473 478
15,551 15,600 114 360 471 476
15,601 15,650 114 359 470 474
15,651 15,700 114 358 468 473
15,701 15,750 113 357 466 471
15,751 15,800 113 355 465 469
15,801 15,850 112 354 463 468
15,851 15,900 112 353 461 466
15,901 15,950 112 352 460 464
15,951 16,000 111 350 458 463
Page 82 FTB 3514 2020
1. To find your credit, read down the “At least - But not over” columns and find the line that includes the amount you were told to look up from your
California Earned Income Tax Credit Worksheet.
2. Then, go to the column that includes the number of qualifying children you have. Enter the credit from that column on your California Earned
Income Tax Credit Worksheet.
2020 Earned Income Tax Credit Table
– Continued
Caution: This is not a tax table. If you are married filing separately you do not qualify for this credit.
Continued on next page.
If the amount you are
looking up from
And your number of qualifying children is
At
least
But Not
Over
0 1 2 3
Your credit is . . .
16,001 16,050 111 349 456 461
16,051 16,100 111 348 455 460
16,101 16,150 110 347 453 458
16,151 16,200 110 345 452 456
16,201 16,250 109 344 450 455
16,251 16,300 109 343 448 453
16,301 16,350 109 342 447 451
16,351 16,400 108 340 445 450
16,401 16,450 108 339 443 448
16,451 16,500 107 338 442 446
16,501 16,550 107 337 440 445
16,551 16,600 107 335 438 443
16,601 16,650 106 334 437 441
16,651 16,700 106 333 435 440
16,701 16,750 105 332 434 438
16,751 16,800 105 330 432 436
16,801 16,850 105 329 430 435
16,851 16,900 104 328 429 433
16,901 16,950 104 327 427 431
16,951 17,000 103 325 425 430
17,001 17,050 103 324 424 428
17,051 17,100 103 323 422 426
17,101 17,150
102 322 420 425
17,151 17,200 102 320 419 423
17,201 17,250 101 319 417 422
17,251 17,300 101 318 416 420
17,301 17,350 101 317 414 418
17,351 17,400 100 315 412 417
17,401 17,450 100 314 411 415
17,451 17,500 99 313 409 413
17,501 17,550 99 312 407 412
17,551 17,600 99 310 406 410
17,601 17,650 98 309 404 408
17,651 17,700 98 308 402 407
17,701 17,750 97 307 401 405
17,751 17,800 97 305 399 403
17,801 17,850 97 304 398 402
17,851 17,900 96 303 396 400
17,901 17,950 96 302 394 398
17,951 18,000 95 300 393 397
If the amount you are
looking up from
the worksheet is . . .
And your number of qualifying children is
At
least
But Not
Over
0 1 2 3
Your credit is . . .
18,001 18,050 95 299 391 395
18,051 18,100 95 298 389 393
18,101 18,150 94 297 388 392
18,151 18,200 94 295 386 390
18,201 18,250 94 294 384 388
18,251 18,300 93 293 383 387
18,301 18,350 93 292 381 385
18,351 18,400 92 290 380 383
18,401 18,450 92 289 378 382
18,451 18,500 92 288 376 380
18,501 18,550 91 287 375 379
18,551 18,600 91 285 373 377
18,601 18,650 90 284 371 375
18,651 18,700 90 283 370 374
18,701 18,750 90 282 368 372
18,751 18,800 89 280 366 370
18,801 18,850 89 279 365 369
18,851 18,900 88 278 363 367
18,901 18,950 88 277 362 365
18,951 19,000 88 275 360 364
19,001 19,050 87 274 358 362
19,051 19,100 87 273 357 360
19,101 19,150 86 272 355 359
19,151 19,200 86 270 353 357
19,201 19,250 86 269 352 355
19,251 19,300 85 268 350 354
19,301 19,350 85 267 348 352
19,351 19,400 84 265 347 350
19,401 19,450 84 264 345 349
19,451 19,500 84 263 344 347
19,501 19,550 83 262 342 345
19,551 19,600 83 260 340 344
19,601 19,650 82 259 339 342
19,651 19,700 82 258 337 340
19,701 19,750 82 257 335 339
19,751 19,800 81 255 334 337
19,801 19,850 81 254 332 336
19,851 19,900 80 253 330 334
19,901 19,950 80 252 329 332
19,951 20,000 80 250 327 331
FTB 3514 2020 Page 83
1. To find your credit, read down the “At least - But not over” columns and find the line that includes the amount you were told to look up from your
California Earned Income Tax Credit Worksheet.
2. Then, go to the column that includes the number of qualifying children you have. Enter the credit from that column on your California Earned
Income Tax Credit Worksheet.
2020 Earned Income Tax Credit Table
– Continued
Caution: This is not a tax table. If you are married filing separately you do not qualify for this credit.
the worksheet is . . .
Continued on next page.
If the amount you are
looking up from
the worksheet is . . .
And your number of qualifying children is
At
least
But Not
Over
0 1 2 3
Your credit is . . .
20,001 20,050 79 249 326 329
20,051 20,100 79 248 324 327
20,101 20,150 79 247 322 326
20,151 20,200 78 245 321 324
20,201 20,250 78 244 319 322
20,251 20,300 77 243 317 321
20,301 20,350 77 242 316 319
20,351 20,400 77 240 314 317
20,401 20,450 76 239 312 316
20,451 20,500 76 238 311 314
20,501 20,550 75 237 309 312
20,551 20,600 75 235 308 311
20,601 20,650 75 234 306 309
20,651 20,700 74 233 304 307
20,701 20,750 74 232 303 306
20,751 20,800 73 230 301 304
20,801 20,850 73 229 299 302
20,851 20,900 73 228 298 301
20,901 20,950 72 227 296 299
20,951 21,000 72 225 294 298
21,001 21,050 71 224 293 296
21,051 21,100 71 223 291 294
21,101 21,150
71 222 290 293
21,151 21,200 70 220 288 291
21,201 21,250 70 219 286 289
21,251 21,300 69 218 285 288
21,301 21,350 69 217 283 286
21,351 21,400 69 215 281 284
21,401 21,450 68 214 280 283
21,451 21,500 68 213 278 281
21,501 21,550 67 212 276 279
21,551 21,600 67 210 275 278
21,601 21,650 67 209 273 276
21,651 21,700 66 208 272 274
21,701 21,750 66 207 270 273
21,751 21,800 65 205 268 271
21,801 21,850 65 204 267 269
21,851 21,900 65 203 265 268
21,901 21,950 64 202 263 266
21,951 22,000 64 200 262 264
If the amount you are
looking up from
the worksheet is . . .
And your number of qualifying children is
At
least
But Not
Over
0 1 2 3
Your credit is . . .
22,001 22,050 63 199 260 263
22,051 22,100 63 198 258 261
22,101 22,150 63 197 257 259
22,151 22,200 62 195 255 258
22,201 22,250 62 194 254 256
22,251 22,300 62 193 252 255
22,301 22,350 61 192 250 253
22,351 22,400 61 190 249 251
22,401 22,450 60 189 247 250
22,451 22,500 60 188 245 248
22,501 22,550 60 187 244 246
22,551 22,600 59 185 242 245
22,601 22,650 59 184 240 243
22,651 22,700 58 183 239 241
22,701 22,750 58 182 237 240
22,751 22,800 58 180 236 238
22,801 22,850 57 179 234 236
22,851 22,900 57 178 232 235
22,901 22,950 56 177 231 233
22,951 23,000 56 175 229 231
23,001 23,050 56 174 227 230
23,051 23,100 55 173 226 228
23,101 23,150
55 172 224 226
23,151 23,200 54 170 222 225
23,201 23,250 54 169 221 223
23,251 23,300 54 168 219 221
23,301 23,350 53 167 218 220
23,351 23,400 53 165 216 218
23,401 23,450 52 164 214 217
23,451 23,500 52 163 213 215
23,501 23,550 52 162 211 213
23,551 23,600 51 160 209 212
23,601 23,650 51 159 208 210
23,651 23,700 50 158 206 208
23,701 23,750 50 157 204 207
23,751 23,800 50 155 203 205
23,801 23,850 49 154 201 203
23,851 23,900 49 153 200 202
23,901 23,950 48 152 198 200
23,951 24,000 48 150 196 198
Page 84 FTB 3514 2020
1. To find your credit, read down the “At least - But not over” columns and find the line that includes the amount you were told to look up from your
California Earned Income Tax Credit Worksheet.
2. Then, go to the column that includes the number of qualifying children you have. Enter the credit from that column on your California Earned
Income Tax Credit Worksheet.
2020 Earned Income Tax Credit Table
– Continued
Caution: This is not a tax table. If you are married filing separately you do not qualify for this credit.
Continued on next page.
If the amount you are
looking up from
the worksheet is . . .
And your number of qualifying children is
At
least
But Not
Over
0 1 2 3
Your credit is . . .
24,001 24,050 48 149 195 197
24,051 24,100 47 148 193 195
24,101 24,150 47 147 191 193
24,151 24,200 46 145 190 192
24,201 24,250 46 144 188 190
24,251 24,300 46 143 186 188
24,301 24,350 45 142 185 187
24,351 24,400 45 140 183 185
24,401 24,450 45 139 182 183
24,451 24,500 44 138 180 182
24,501 24,550 44 137 178 180
24,551 24,600 43 135 177 178
24,601 24,650 43 134 175 177
24,651 24,700 43 133 173 175
24,701 24,750 42 132 172 174
24,751 24,800 42 130 170 172
24,801 24,850 41 129 168 170
24,851 24,900 41 128 167 169
24,901 24,950 41 127 165 167
24,951 25,000 40 125 164 165
25,001 25,050 40 124 162 164
25,051 25,100 39 123 160 162
25,101 25,150
39 122 159 160
25,151 25,200 39 120 157 159
25,201 25,250 38 119 155 157
25,251 25,300 38 118 154 155
25,301 25,350 37 117 152 154
25,351 25,400 37 115 150 152
25,401 25,450 37 114 149 150
25,451 25,500 36 113 147 149
25,501 25,550 36 112 146 147
25,551 25,600 35 110 144 145
25,601 25,650 35 109 142 144
25,651 25,700 35 108 141 142
25,701 25,750 34 107 139 140
25,751 25,800 34 105 137 139
25,801 25,850 33 104 136 137
25,851 25,900 33 103 134 135
25,901 25,950 33 102 132 134
25,951 26,000 32 100 131 132
If the amount you are
looking up from
the worksheet is . . .
And your number of qualifying children is
At
least
But Not
Over
0 1 2 3
Your credit is . . .
26,001 26,050 32 99 129 131
26,051 26,100 31 98 128 129
26,101 26,150 31 97 126 127
26,151 26,200 31 95 124 126
26,201 26,250 30 94 123 124
26,251 26,300 30 93 121 122
26,301 26,350 29 92 119 121
26,351 26,400 29 90 118 119
26,401 26,450 29 89 116 117
26,451 26,500 28 88 114 116
26,501 26,550 28 87 113 114
26,551 26,600 28 85 111 112
26,601 26,650 27 84 110 111
26,651 26,700 27 83 108 109
26,701 26,750 26 82 106 107
26,751 26,800 26 80 105 106
26,801 26,850 26 79 103 104
26,851 26,900 25 78 101 102
26,901 26,950 25 77 100 101
26,951 27,000 24 75 98 99
27,001 27,050 24 74 96 97
27,051 27,100 24 73 95 96
27,101 27,150 23 72 93 94
27,151 27,200 23 70 92 93
27,201 27,250 22 69 90 91
27,251 27,300 22 68 88 89
27,301 27,350 22 67 87 88
27,351 27,400 21 65 85 86
27,401 27,450 21 64 83 84
27,451 27,500 20 63 82 83
27,501 27,550 20 62 80 81
27,551 27,600 20 60 78 79
27,601 27,650 19 59 77 78
27,651 27,700 19 58 75 76
27,701 27,750 18 57 74 74
27,751 27,800 18 55 72 73
27,801 27,850 18 54 70 71
27,851 27,900 17 53 69 69
27,901 27,950 17 52 67 68
27,951 28,000 16 50 65 66
FTB 3514 2020 Page 85
1. To find your credit, read down the “At least - But not over” columns and find the line that includes the amount you were told to look up from your
California Earned Income Tax Credit Worksheet.
2. Then, go to the column that includes the number of qualifying children you have. Enter the credit from that column on your California Earned
Income Tax Credit Worksheet.
2020 Earned Income Tax Credit Table
– Continued
Caution: This is not a tax table. If you are married filing separately you do not qualify for this credit.
1. To find your credit, read down the “At least - But not over” columns and find the line that includes the amount you were told to look up from your
California Earned Income Tax Credit Worksheet.
2. Then, go to the column that includes the number of qualifying children you have. Enter the credit from that column on your California Earned
Income Tax Credit Worksheet.
2020 Earned Income Tax Credit Table
– Continued
Caution: This is not a tax table. If you are married filing separately you do not qualify for this credit.
If the amount you are
looking up from
the worksheet is . . .
And your number of qualifying children is
At
least
But Not
Over
0 1 2 3
Your credit is . . .
28,001 28,050 16 49 64 64
28,051 28,100 16 48 62 63
28,101 28,150 15 47 60 61
28,151 28,200 15 45 59 59
28,201 28,250 14 44 57 58
28,251 28,300 14 43 56 56
28,301 28,350 14 42 54 54
28,351 28,400 13 40 52 53
28,401 28,450 13 39 51 51
28,451 28,500 12 38 49 50
28,501 28,550 12 37 47 48
28,551 28,600 12 35 46 46
28,601 28,650 11 34 44 45
28,651 28,700 11 33 42 43
28,701 28,750 11 32 41 41
28,751 28,800 10 30 39 40
28,801 28,850 10 29 38 38
28,851 28,900 9 28 36 36
28,901 28,950 9 27 34 35
28,951 29,000 9 25 33 33
29,001 29,050 8 24 31 31
29,051 29,100 8 23 29 30
29,101 29,150
7 22 28 28
29,151 29,200 7 20 26 26
29,201 29,250 7 19 24 25
29,251 29,300 6 18 23 23
29,301 29,350 6 17 21 21
29,351 29,400 5 15 20 20
29,401 29,450 5 14 18 18
29,451 29,500 5 13 16 16
29,501 29,550 4 12 15 15
29,551 29,600 4 10 13 13
29,601 29,650 3 9 11 11
29,651 29,700 3 8 10 10
29,701 29,750 3 7 8 8
29,751 29,800 2 5 6 7
29,801 29,850 2 4 5 5
29,851 29,900 1 3 3 3
29,901 29,950 1 2 2 2
29,951 30,000 1 1 1 1
Page 86 FTB 3514 2020
Continued on next page.
2020 California Tax Table
To Find Your Tax:
• Read down the column labeled “If Your Taxable Income Is . . .” to find the range that includes your taxable income from Form 540, line 19.
• Read across the columns labeled “The Tax For Filing Status” until you find the tax that applies for your taxable income and filing status.
Filing status: 1 or 3 (Single; Married/RDP Filing Separately) 2 or 5 (Married/RDP Filing Jointly; Qualifying Widow(er)) 4 (Head of Household)
If Your Taxable
Income Is ...
The Tax For
Filing Status
At
Least
But Not
Over
1 Or 3
Is
2 Or 5
Is
4
Is
$1 $50 $0 $0 $0
51 150 1 1 1
151 250 2 2 2
251 350 3 3 3
351 450 4 4 4
451 550 5 5 5
551 650 6 6 6
651 750 7 7 7
751 850 8 8 8
851 950 9 9 9
951 1,050 10 10 10
1,051 1,150 11 11 11
1,151 1,250 12 12 12
1,251 1,350 13 13 13
1,351 1,450 14 14 14
1,451 1,550 15 15 15
1,551 1,650 16 16 16
1,651 1,750 17 17 17
1,751 1,850 18 18 18
1,851 1,950 19 19 19
1,951 2,050 20 20 20
2,051 2,150 21 21 21
2,151 2,250 22 22
22
2,251 2,350 23 23 23
2,351 2,450 24 24 24
2,451 2,550 25 25 25
2,551 2,650 26 26 26
2,651 2,750 27 27 27
2,751 2,850 28 28 28
2,851 2,950 29 29 29
2,951 3,050 30 30 30
3,051 3,150 31 31 31
3,151 3,250 32 32 32
3,251 3,350 33 33 33
3,351 3,450 34 34 34
3,451 3,550 35 35 35
3,551 3,650 36 36 36
3,651 3,750 37 37 37
3,751 3,850 38 38 38
3,851 3,950 39 39 39
3,951 4,050 40 40 40
4,051 4,150 41 41 41
4,151 4,250 42 42 42
4,251 4,350 43 43 43
4,351 4,450 44 44 44
4,451 4,550 45 45 45
4,551 4,650 46 46 46
4,651 4,750 47 47 47
4,751 4,850 48 48 48
4,851 4,950 49
49 49
4,951 5,050 50 50 50
5,051 5,150 51 51 51
5,151 5,250 52 52 52
5,251 5,350 53 53 53
5,351 5,450 54 54 54
5,451 5,550 55 55 55
5,551 5,650 56 56 56
5,651 5,750 57 57 57
5,751 5,850 58 58 58
5,851 5,950 59 59 59
5,951 6,050 60 60 60
6,051 6,150 61 61 61
6,151 6,250 62 62 62
6,251 6,350 63 63 63
6,351 6,450 64 64 64
If Your Taxable
Income Is ...
The Tax For
Filing Status
At
Least
But Not
Over
1 Or 3
Is
2 Or 5
Is
4
Is
6,451 6,550 65 65 65
6,551 6,650 66 66 66
6,651 6,750 67 67 67
6,751 6,850 68 68 68
6,851 6,950 69 69 69
6,951 7,050 70 70 70
7,051 7,150 71 71 71
7,151 7,250 72 72 72
7,251 7,350 73 73 73
7,351 7,450 74 74 74
7,451 7,550 75 75 75
7,551 7,650 76 76 76
7,651 7,750 77 77 77
7,751 7,850 78 78 78
7,851 7,950 79 79 79
7,951 8,050 80 80 80
8,051 8,150 81 81 81
8,151 8,250 82 82 82
8,251 8,350 83 83 83
8,351 8,450 84 84 84
8,451 8,550 85 85 85
8,551 8,650 86 86 86
8,651 8,750 87 87
87
8,751 8,850 88 88 88
8,851 8,950 89 89 89
8,951 9,050 91 90 90
9,051 9,150 93 91 91
9,151 9,250 95 92 92
9,251 9,350 97 93 93
9,351 9,450 99 94 94
9,451 9,550 101 95 95
9,551 9,650 103 96 96
9,651 9,750 105 97 97
9,751 9,850 107 98 98
9,851 9,950 109 99 99
9,951 10,050 111 100 100
10,051 10,150 113 101 101
10,151 10,250 115 102 102
10,251 10,350 117 103 103
10,351 10,450 119 104 104
10,451 10,550 121 105 105
10,551 10,650 123 106 106
10,651 10,750 125 107 107
10,751 10,850 127 108 108
10,851 10,950 129 109 109
10,951 11,050 131 110 110
11,051 11,150 133 111 111
11,151 11,250 135 112 112
11,251 11,350 137 113 113
11,351 11,450 139
114 114
11,451 11,550 141 115 115
11,551 11,650 143 116 116
11,651 11,750 145 117 117
11,751 11,850 147
118 118
11,851 11,950 149 119 119
11,951 12,050 151 120 120
12,051 12,150 153 121 121
12,151 12,250 155 122 122
12,251 12,350 157 123 123
12,351 12,450 159 124 124
12,451 12,550 161 125 125
12,551 12,650 163 126 126
12,651 12,750 165 127 127
12,751 12,850 167 128 128
12,851 12,950 169 129 129
If Your Taxable
Income Is ...
The Tax For
Filing Status
At
Least
But Not
Over
1 Or 3
Is
2 Or 5
Is
4
Is
12,951 13,050 171 130 130
13,051 13,150 173 131 131
13,151 13,250 175 132 132
13,251 13,350 177 133 133
13,351 13,450 179 134 134
13,451 13,550 181 135 135
13,551 13,650 183 136 136
13,651 13,750 185 137 137
13,751 13,850 187 138 138
13,851 13,950 189 139 139
13,951 14,050 191 140 140
14,051 14,150 193 141 141
14,151 14,250 195 142 142
14,251 14,350 197 143 143
14,351 14,450 199 144 144
14,451 14,550 201 145 145
14,551 14,650 203 146 146
14,651 14,750 205 147 147
14,751 14,850 207 148 148
14,851 14,950 209 149 149
14,951 15,050 2 11 150 150
15,051 15,150 213 151 151
15,151 15,250 215 152
152
15,251 15,350 217 153 153
15,351 15,450 219 154 154
15,451 15,550 221 155 155
15,551 15,650 223 156
156
15,651 15,750 225 157 157
15,751 15,850 227 158 158
15,851 15,950 229 159 159
15,951 16,050 231 160 160
16,051 16,150 233 161 161
16,151 16,250 235 162 162
16,251 16,350 237 163 163
16,351 16,450 239 164 164
16,451 16,550 241 165 165
16,551 16,650 243 166 166
16,651 16,750 245 167 167
16,751 16,850 247 168 168
16,851 16,950 249 169 169
16,951 17,050 251 170 170
17,051 17,150 253 171 171
17,151 17,250 255 172 172
17,251 17,350 257 173 173
17,351 17,450 259 174 174
17,451 17,550 261 175 175
17,551 17,650 263 176 176
17,651 17,750 265 177 177
17,751 17,850 267 178 178
17,851 17,950 269
179 179
17,951 18,050 271 181 181
18,051 18,150 273 183 183
18,151 18,250 275 185 185
18,251 18,350 277
187 187
18,351 18,450 279 189 189
18,451 18,550 281 191 191
18,551 18,650 283 193 193
18,651 18,750 285 195 195
18,751 18,850 287 197 197
18,851 18,950 289 199 199
18,951 19,050 291 201 201
19,051 19,150 293 203 203
19,151 19,250 295 205 205
19,251 19,350 297 207 207
19,351 19,450 299 209 209
Personal Income Tax Booklet 2020 Page 87
2020 California Tax Table
– Continued
Continued on next page.
Filing status: 1 or 3 (Single; Married/RDP Filing Separately) 2 or 5 (Married/RDP Filing Jointly; Qualifying Widow(er)) 4 (Head of Household)
If Your Taxable
Income Is ...
The Tax For
Filing Status
At
Least
But Not
Over
1 Or 3
Is
2 Or 5
Is
4
Is
19,451 19,550 301 2 11 211
19,551 19,650 303 213 213
19,651 19,750 305 215 215
19,751 19,850 307 217 217
19,851 19,950 309 219 219
19,951 20,050 311 221 221
20,051 20,150 313 223 223
20,151 20,250 315 225 225
20,251 20,350 317 227 227
20,351 20,450 319 229 229
20,451 20,550 321 231 231
20,551 20,650 323 233 233
20,651 20,750 325 235 235
20,751 20,850 327 237 237
20,851 20,950 329 239 239
20,951 21,050 331 241 241
21,051 21,150 333 243 243
21,151 21,250 335 245 245
21,251 21,350 339 247 247
21,351 21,450 343 249 249
21,451 21,550 347 251 251
21,551 21,650 351 253 253
21,651 21,750 355 255
255
21,751 21,850 359 257 257
21,851 21,950 363 259 259
21,951 22,050 367 261 261
22,051 22,150 371 263
263
22,151 22,250 375 265 265
22,251 22,350 379 267 267
22,351 22,450 383 269 269
22,451 22,550 387 271 271
22,551 22,650 391 273 273
22,651 22,750 395 275 275
22,751 22,850 399 277 277
22,851 22,950 403 279 279
22,951 23,050 407 281 281
23,051 23,150 4 11 283 283
23,151 23,250 415 285 285
23,251 23,350 419 287 287
23,351 23,450 423 289 289
23,451 23,550 427 291 291
23,551 23,650 431 293 293
23,651 23,750 435 295 295
23,751 23,850 439 297 297
23,851 23,950 443 299 299
23,951 24,050 447 301 301
24,051 24,150 451 303 303
24,151 24,250 455 305 305
24,251 24,350 459 307 307
24,351 24,450 463
309 309
24,451 24,550 467 3 11 3 11
24,551 24,650 471 313 313
24,651 24,750 475 315 315
24,751 24,850 479
317 317
24,851 24,950 483 319 319
24,951 25,050 487 321 321
25,051 25,150 491 323 323
25,151 25,250 495 325 325
25,251 25,350 499 327 327
25,351 25,450 503 329 329
25,451 25,550 507 331 331
25,551 25,650 511 333 333
25,651 25,750 515 335 335
25,751 25,850 519 337 337
25,851 25,950 523 339 339
25,951 26,050 527 341 341
26,051 26,150 531 343 343
26,151 26,250 535 345 345
26,251 26,350 539 347 347
26,351 26,450 543 349 349
If Your Taxable
Income Is ...
The Tax For
Filing Status
At
Least
But Not
Over
1 Or 3
Is
2 Or 5
Is
4
Is
26,451 26,550 547 351 351
26,551 26,650 551 353 353
26,651 26,750 555 355 355
26,751 26,850 559 357 357
26,851 26,950 563 359 359
26,951 27,050 567 361 361
27,051 27,150 571 363 363
27,151 27,250 575 365 365
27,251 27,350 579 367 367
27,351 27,450 583 369 369
27,451 27,550 587 371 371
27,551 27,650 591 373 373
27,651 27,750 595 375 375
27,751 27,850 599 377 377
27,851 27,950 603 379 379
27,951 28,050 607 381 381
28,051 28,150 6 11 383 383
28,151 28,250 615 385 385
28,251 28,350 619 387 387
28,351 28,450 623 389 389
28,451 28,550 627 391 391
28,551 28,650 631 393 393
28,651 28,750 635 395
395
28,751 28,850 639 397 397
28,851 28,950 643 399 399
28,951 29,050 647 401 401
29,051 29,150 651 403
403
29,151 29,250 655 405 405
29,251 29,350 659 407 407
29,351 29,450 663 409 409
29,451 29,550 667 4 11 4 11
29,551 29,650 671 413 413
29,651 29,750 675 415 415
29,751 29,850 679 417 417
29,851 29,950 683 419 419
29,951 30,050 687 421 421
30,051 30,150 691 423 423
30,151 30,250 695 425 425
30,251 30,350 699 427 427
30,351 30,450 703 429 429
30,451 30,550 707 431 431
30,551 30,650 711 433 433
30,651 30,750 715 435 435
30,751 30,850 719 437 437
30,851 30,950 723 439 439
30,951 31,050 727 441 441
31,051 31,150 731 443 443
31,151 31,250 735 445 445
31,251 31,350 739 447 447
31,351 31,450 743
449 449
31,451 31,550 747 451 451
31,551 31,650 751 453 453
31,651 31,750 755 455 455
31,751 31,850 759
457 457
31,851 31,950 763 459 459
31,951 32,050 767 461 461
32,051 32,150 771 463 463
32,151 32,250 775 465 465
32,251 32,350 779 467 467
32,351 32,450 783 469 469
32,451 32,550 787 471 471
32,551 32,650 791 473 473
32,651 32,750 795 475 475
32,751 32,850 799 477 477
32,851 32,950 803 479 479
32,951 33,050 807 481 481
33,051 33,150 8 11 483 483
33,151 33,250 815 485 485
33,251 33,350 819 487 487
33,351 33,450 823 489 489
If Your Taxable
Income Is ...
The Tax For
Filing Status
At
Least
But Not
Over
1 Or 3
Is
2 Or 5
Is
4
Is
33,451 33,550 829 491 491
33,551 33,650 835 493 493
33,651 33,750 841 495 495
33,751 33,850 847 497 497
33,851 33,950 853 499 499
33,951 34,050 859 501 501
34,051 34,150 865 503 503
34,151 34,250 871 505 505
34,251 34,350 877 507 507
34,351 34,450 883 509 509
34,451 34,550 889 5 11 5 11
34,551 34,650 895 513 513
34,651 34,750 901 515 515
34,751 34,850 907 517 517
34,851 34,950 913 519 519
34,951 35,050 919 521 521
35,051 35,150 925 523 523
35,151 35,250 931 525 525
35,251 35,350 937 527 527
35,351 35,450 943 529 529
35,451 35,550 949 531 531
35,551 35,650 955 533 533
35,651 35,750 961 535
535
35,751 35,850 967 537 537
35,851 35,950 973 539 539
35,951 36,050 979 541 541
36,051 36,150 985 543
543
36,151 36,250 991 545 545
36,251 36,350 997 547 547
36,351 36,450 1,003 549 549
36,451 36,550 1,009 551 551
36,551 36,650 1,015 553 553
36,651 36,750 1,021 555 555
36,751 36,850 1,027 557 557
36,851 36,950 1,033 559 559
36,951 37,050 1,039 561 561
37,051 37,150 1,045 563 563
37,151 37,250 1,051 565 565
37,251 37,350 1,057 567 567
37,351 37,450 1,063 569 569
37,451 37,550 1,069 571 571
37,551 37,650 1,075 573 573
37,651 37,750 1,081 575 575
37,751 37,850 1,087 577 577
37,851 37,950 1,093 579 579
37,951 38,050 1,099 581 581
38,051 38,150 1,105 583 583
38,151 38,250 1 ,111 585 585
38,251 38,350 1,117 587 587
38,351 38,450 1,123
589 589
38,451 38,550 1,129 591 591
38,551 38,650 1,135 593 593
38,651 38,750 1,141 595 595
38,751 38,850 1,147
597 597
38,851 38,950 1,153 599 599
38,951 39,050 1,159 601 601
39,051 39,150 1,165 603 603
39,151 39,250 1,171 605 605
39,251 39,350 1,177 607 607
39,351 39,450 1,183 609 609
39,451 39,550 1,189 6 11 611
39,551 39,650 1,195 613 613
39,651 39,750 1,201 615 615
39,751 39,850 1,207 617 617
39,851 39,950 1,213 619 619
39,951 40,050 1,219 621 621
40,051 40,150 1,225 623 623
40,151 40,250 1,231 625 625
40,251 40,350 1,237 627 627
40,351 40,450 1,243 629 629
Page 88 Personal Income Tax Booklet 2020
2020 California Tax Table
– Continued
Continued on next page.
Filing status: 1 or 3 (Single; Married/RDP Filing Separately) 2 or 5 (Married/RDP Filing Jointly; Qualifying Widow(er)) 4 (Head of Household)
If Your Taxable
Income Is ...
The Tax For
Filing Status
At
Least
But Not
Over
1 Or 3
Is
2 Or 5
Is
4
Is
40,451 40,550 1,249 631 631
40,551 40,650 1,255 633 633
40,651 40,750 1,261 635 635
40,751 40,850 1,267 637 637
40,851 40,950 1,273 639 639
40,951 41,050 1,279 641 641
41,051 41,150 1,285 643 643
41,151 41,250 1,291 645 645
41,251 41,350 1,297 647 647
41,351 41,450 1,303 649 649
41,451 41,550 1,309 651 651
41,551 41,650 1,315 653 653
41,651 41,750 1,321 655 655
41,751 41,850 1,327 657 657
41,851 41,950 1,333 659 659
41,951 42,050 1,339 661 661
42,051 42,150 1,345 663 663
42,151 42,250 1,351 665 665
42,251 42,350 1,357 667 667
42,351 42,450 1,363 670 670
42,451 42,550 1,369 674 674
42,551 42,650 1,375 678 678
42,651 42,750 1,381 682
682
42,751 42,850 1,387 686 686
42,851 42,950 1,393 690 690
42,951 43,050 1,399 694 694
43,051 43,150 1,405 698
698
43,151 43,250 1,411 702 702
43,251 43,350 1,417 706 706
43,351 43,450 1,423 710 710
43,451 43,550 1,429 714 714
43,551 43,650 1,435 718 718
43,651 43,750 1,441 722 722
43,751 43,850 1,447 726 726
43,851 43,950 1,453 730 730
43,951 44,050 1,459 734 734
44,051 44,150 1,465 738 738
44,151 44,250 1,471 742 742
44,251 44,350 1,477 746 746
44,351 44,450 1,483 750 750
44,451 44,550 1,489 754 754
44,551 44,650 1,495 758 758
44,651 44,750 1,501 762 762
44,751 44,850 1,507 766 766
44,851 44,950 1,513 770 770
44,951 45,050 1,519 774 774
45,051 45,150 1,525 778 778
45,151 45,250 1,531 782 782
45,251 45,350 1,537 786 786
45,351 45,450 1,543
790 790
45,451 45,550 1,549 794 794
45,551 45,650 1,555 798 798
45,651 45,750 1,561 802 802
45,751 45,850 1,567
806 806
45,851 45,950 1,573 810 810
45,951 46,050 1,579 814 814
46,051 46,150 1,585 818 818
46,151 46,250 1,591 822 822
46,251 46,350 1,597 826 826
46,351 46,450 1,603 830 830
46,451 46,550 1,611 834 834
46,551 46,650 1,619 838 838
46,651 46,750 1,627 842 842
46,751 46,850 1,635 846 846
46,851 46,950 1,643 850 850
46,951 47,050 1,651 854 854
47,051 47,150 1,659 858 858
47,151 47,250 1,667 862 862
47,251 47,350 1,675 866 866
47,351 47,450 1,683 870 870
If Your Taxable
Income Is ...
The Tax For
Filing Status
At
Least
But Not
Over
1 Or 3
Is
2 Or 5
Is
4
Is
47,451 47,550 1,691 874 874
47,551 47,650 1,699 878 878
47,651 47,750 1,707 882 882
47,751 47,850 1,715 886 886
47,851 47,950 1,723 890 890
47,951 48,050 1,731 894 894
48,051 48,150 1,739 898 898
48,151 48,250 1,747 902 902
48,251 48,350 1,755 906 906
48,351 48,450 1,763 910 910
48,451 48,550 1,771 914 914
48,551 48,650 1,779 918 918
48,651 48,750 1,787 922 922
48,751 48,850 1,795 926 926
48,851 48,950 1,803 930 930
48,951 49,050 1,811 934 934
49,051 49,150 1,819 938 938
49,151 49,250 1,827 942 942
49,251 49,350 1,835 946 946
49,351 49,450 1,843 950 950
49,451 49,550 1,851 954 954
49,551 49,650 1,859 958 958
49,651 49,750 1,867 962
962
49,751 49,850 1,875 966 966
49,851 49,950 1,883 970 970
49,951 50,050 1,891 974 974
50,051 50,150 1,899 978
978
50,151 50,250 1,907 982 982
50,251 50,350 1,915 986 986
50,351 50,450 1,923 990 990
50,451 50,550 1,931 994 994
50,551 50,650 1,939 998 998
50,651 50,750 1,947 1,002 1,002
50,751 50,850 1,955 1,006 1,006
50,851 50,950 1,963 1,010 1,010
50,951 51,050 1,971 1,014 1,014
51,051 51,150 1,979 1,018 1,018
51,151 51,250 1,987 1,022 1,022
51,251 51,350 1,995 1,026 1,026
51,351 51,450 2,003 1,030 1,030
51,451 51,550 2,011 1,034 1,034
51,551 51,650 2,019 1,038 1,038
51,651 51,750 2,027 1,042 1,042
51,751 51,850 2,035 1,046 1,046
51,851 51,950 2,043 1,050 1,050
51,951 52,050 2,051 1,054 1,054
52,051 52,150 2,059 1,058 1,058
52,151 52,250 2,067 1,062 1,062
52,251 52,350 2,075 1,066 1,066
52,351 52,450 2,083
1,070 1,070
52,451 52,550 2,091 1,074 1,074
52,551 52,650 2,099 1,078 1,078
52,651 52,750 2,107 1,082 1,082
52,751 52,850 2,115
1,086 1,086
52,851 52,950 2,123 1,090 1,090
52,951 53,050 2,131 1,094 1,094
53,051 53,150 2,139 1,098 1,098
53,151 53,250 2,147 1,102 1,102
53,251 53,350 2,155 1,106 1,106
53,351 53,450 2,163 1,110 1,110
53,451 53,550 2,171 1,114 1,114
53,551 53,650 2,179 1,118 1,118
53,651 53,750 2,187 1,122 1,122
53,751 53,850 2,195 1,126 1,126
53,851 53,950 2,203 1,130 1,130
53,951 54,050 2,211 1,134 1,134
54,051 54,150 2,219 1,138 1,138
54,151 54,250 2,227 1,142 1,142
54,251 54,350 2,235 1,146 1,146
54,351 54,450 2,243 1,150 1,150
If Your Taxable
Income Is ...
The Tax For
Filing Status
At
Least
But Not
Over
1 Or 3
Is
2 Or 5
Is
4
Is
54,451 54,550 2,251 1,154 1,154
54,551 54,650 2,259 1,158 1,158
54,651 54,750 2,267 1,162 1,164
54,751 54,850 2,275 1,166 1,170
54,851 54,950 2,283 1,170 1,176
54,951 55,050 2,291 1,174 1,182
55,051 55,150 2,299 1,178 1,188
55,151 55,250 2,307 1,182 1,194
55,251 55,350 2,315 1,186 1,200
55,351 55,450 2,323 1,190 1,206
55,451 55,550 2,331 1,194 1,212
55,551 55,650 2,339 1,198 1,218
55,651 55,750 2,347 1,202 1,224
55,751 55,850 2,355 1,206 1,230
55,851 55,950 2,363 1,210 1,236
55,951 56,050 2,371 1,214 1,242
56,051 56,150 2,379 1,218 1,248
56,151 56,250 2,387 1,222 1,254
56,251 56,350 2,395 1,226 1,260
56,351 56,450 2,403 1,230 1,266
56,451 56,550 2,411 1,234 1,272
56,551 56,650 2,419 1,238 1,278
56,651 56,750 2,427 1,242
1,284
56,751 56,850 2,435 1,246 1,290
56,851 56,950 2,443 1,250 1,296
56,951 57,050 2,451 1,254 1,302
57,051 57,150 2,459 1,258
1,308
57,151 57,250 2,467 1,262 1,314
57,251 57,350 2,475 1,266 1,320
57,351 57,450 2,483 1,270 1,326
57,451 57,550 2,491 1,274 1,332
57,551 57,650 2,499 1,278 1,338
57,651 57,750 2,507 1,282 1,344
57,751 57,850 2,515 1,286 1,350
57,851 57,950 2,523 1,290 1,356
57,951 58,050 2,531 1,294 1,362
58,051 58,150 2,539 1,298 1,368
58,151 58,250 2,547 1,302 1,374
58,251 58,350 2,555 1,306 1,380
58,351 58,450 2,563 1,310 1,386
58,451 58,550 2,571 1,314 1,392
58,551 58,650 2,579 1,318 1,398
58,651 58,750 2,588 1,322 1,404
58,751 58,850 2,597 1,326 1,410
58,851 58,950 2,606 1,330 1,416
58,951 59,050 2,616 1,334 1,422
59,051 59,150 2,625 1,338 1,428
59,151 59,250 2,634 1,342 1,434
59,251 59,350 2,644 1,346 1,440
59,351 59,450 2,653
1,350 1,446
59,451 59,550 2,662 1,354 1,452
59,551 59,650 2,671 1,358 1,458
59,651 59,750 2,681 1,362 1,464
59,751 59,850 2,690 1,366 1,470
59,851 59,950 2,699 1,370 1,476
59,951 60,050 2,709 1,374 1,482
60,051 60,150 2,718 1,378 1,488
60,151 60,250 2,727 1,382 1,494
60,251 60,350 2,737 1,386 1,500
60,351 60,450 2,746 1,390 1,506
60,451 60,550 2,755 1,394 1,512
60,551 60,650 2,764 1,398 1,518
60,651 60,750 2,774 1,402 1,524
60,751 60,850 2,783 1,406 1,530
60,851 60,950 2,792 1,410 1,536
60,951 61,050 2,802 1,414 1,542
61,051 61,150 2,811 1,418 1,548
61,151 61,250 2,820 1,422 1,554
61,251 61,350 2,830 1,426 1,560
61,351 61,450 2,839 1,430 1,566
Personal Income Tax Booklet 2020 Page 89
2020 California Tax Table
– Continued
Continued on next page.
Filing status: 1 or 3 (Single; Married/RDP Filing Separately) 2 or 5 (Married/RDP Filing Jointly; Qualifying Widow(er)) 4 (Head of Household)
If Your Taxable
Income Is ...
The Tax For
Filing Status
At
Least
But Not
Over
1 Or 3
Is
2 Or 5
Is
4
Is
61,451 61,550 2,848 1,434 1,572
61,551 61,650 2,857 1,438 1,578
61,651 61,750 2,867 1,442 1,584
61,751 61,850 2,876 1,446 1,590
61,851 61,950 2,885 1,450 1,596
61,951 62,050 2,895 1,454 1,602
62,051 62,150 2,904 1,458 1,608
62,151 62,250 2,913 1,462 1,614
62,251 62,350 2,923 1,466 1,620
62,351 62,450 2,932 1,470 1,626
62,451 62,550 2,941 1,474 1,632
62,551 62,650 2,950 1,478 1,638
62,651 62,750 2,960 1,482 1,644
62,751 62,850 2,969 1,486 1,650
62,851 62,950 2,978 1,490 1,656
62,951 63,050 2,988 1,494 1,662
63,051 63,150 2,997 1,498 1,668
63,151 63,250 3,006 1,502 1,674
63,251 63,350 3,016 1,506 1,680
63,351 63,450 3,025 1,510 1,686
63,451 63,550 3,034 1,514 1,692
63,551 63,650 3,043 1,518 1,698
63,651 63,750 3,053 1,522
1,704
63,751 63,850 3,062 1,526 1,710
63,851 63,950 3,071 1,530 1,716
63,951 64,050 3,081 1,534 1,722
64,051 64,150 3,090 1,538
1,728
64,151 64,250 3,099 1,542 1,734
64,251 64,350 3,109 1,546 1,740
64,351 64,450 3,118 1,550 1,746
64,451 64,550 3,127 1,554 1,752
64,551 64,650 3,136 1,558 1,758
64,651 64,750 3,146 1,562 1,764
64,751 64,850 3,155 1,566 1,770
64,851 64,950 3,164 1,570 1,776
64,951 65,050 3,174 1,574 1,782
65,051 65,150 3,183 1,578 1,788
65,151 65,250 3,192 1,582 1,794
65,251 65,350 3,202 1,586 1,800
65,351 65,450 3,211 1,590 1,806
65,451 65,550 3,220 1,594 1,812
65,551 65,650 3,229 1,598 1,818
65,651 65,750 3,239 1,602 1,824
65,751 65,850 3,248 1,606 1,830
65,851 65,950 3,257 1,610 1,836
65,951 66,050 3,267 1,614 1,842
66,051 66,150 3,276 1,618 1,848
66,151 66,250 3,285 1,622 1,854
66,251 66,350 3,295 1,626 1,860
66,351 66,450 3,304
1,630 1,866
66,451 66,550 3,313 1,634 1,872
66,551 66,650 3,322 1,638 1,878
66,651 66,750 3,332 1,642 1,884
66,751 66,850 3,341
1,646 1,890
66,851 66,950 3,350 1,652 1,896
66,951 67,050 3,360 1,658 1,902
67,051 67,150 3,369 1,664 1,908
67,151 67,250 3,378 1,670 1,914
67,251 67,350 3,388 1,676 1,920
67,351 67,450 3,397 1,682 1,926
67,451 67,550 3,406 1,688 1,932
67,551 67,650 3,415 1,694 1,939
67,651 67,750 3,425 1,700 1,947
67,751 67,850 3,434 1,706 1,955
67,851 67,950 3,443 1,712 1,963
67,951 68,050 3,453 1,718 1,971
68,051 68,150 3,462 1,724 1,979
68,151 68,250 3,471 1,730 1,987
68,251 68,350 3,481 1,736 1,995
68,351 68,450 3,490 1,742 2,003
If Your Taxable
Income Is ...
The Tax For
Filing Status
At
Least
But Not
Over
1 Or 3
Is
2 Or 5
Is
4
Is
68,451 68,550 3,499 1,748 2,011
68,551 68,650 3,508 1,754 2,019
68,651 68,750 3,518 1,760 2,027
68,751 68,850 3,527 1,766 2,035
68,851 68,950 3,536 1,772 2,043
68,951 69,050 3,546 1,778 2,051
69,051 69,150 3,555 1,784 2,059
69,151 69,250 3,564 1,790 2,067
69,251 69,350 3,574 1,796 2,075
69,351 69,450 3,583 1,802 2,083
69,451 69,550 3,592 1,808 2,091
69,551 69,650 3,601 1,814 2,099
69,651 69,750 3,611 1,820 2,107
69,751 69,850 3,620 1,826 2,115
69,851 69,950 3,629 1,832 2,123
69,951 70,050 3,639 1,838 2,131
70,051 70,150 3,648 1,844 2,139
70,151 70,250 3,657 1,850 2,147
70,251 70,350 3,667 1,856 2,155
70,351 70,450 3,676 1,862 2,163
70,451 70,550 3,685 1,868 2,171
70,551 70,650 3,694 1,874 2,179
70,651 70,750 3,704 1,880
2,187
70,751 70,850 3,713 1,886 2,195
70,851 70,950 3,722 1,892 2,203
70,951 71,050 3,732 1,898 2,211
71,051 71,150 3,741 1,904
2,219
71,151 71,250 3,750 1,910 2,227
71,251 71,350 3,760 1,916 2,235
71,351 71,450 3,769 1,922 2,243
71,451 71,550 3,778 1,928 2,251
71,551 71,650 3,787 1,934 2,259
71,651 71,750 3,797 1,940 2,267
71,751 71,850 3,806 1,946 2,275
71,851 71,950 3,815 1,952 2,283
71,951 72,050 3,825 1,958 2,291
72,051 72,150 3,834 1,964 2,299
72,151 72,250 3,843 1,970 2,307
72,251 72,350 3,853 1,976 2,315
72,351 72,450 3,862 1,982 2,323
72,451 72,550 3,871 1,988 2,331
72,551 72,650 3,880 1,994 2,339
72,651 72,750 3,890 2,000 2,347
72,751 72,850 3,899 2,006 2,355
72,851 72,950 3,908 2,012 2,363
72,951 73,050 3,918 2,018 2,371
73,051 73,150 3,927 2,024 2,379
73,151 73,250 3,936 2,030 2,387
73,251 73,350 3,946 2,036 2,395
73,351 73,450 3,955
2,042 2,403
73,451 73,550 3,964 2,048 2,411
73,551 73,650 3,973 2,054 2,419
73,651 73,750 3,983 2,060 2,427
73,751 73,850 3,992
2,066 2,435
73,851 73,950 4,001 2,072 2,443
73,951 74,050 4,011 2,078 2,451
74,051 74,150 4,020 2,084 2,459
74,151 74,250 4,029 2,090 2,467
74,251 74,350 4,039 2,096 2,475
74,351 74,450 4,048 2,102 2,483
74,451 74,550 4,057 2,108 2,491
74,551 74,650 4,066 2,114 2,499
74,651 74,750 4,076 2,120 2,507
74,751 74,850 4,085 2,126 2,515
74,851 74,950 4,094 2,132 2,523
74,951 75,050 4,104 2,138 2,531
75,051 75,150 4,113 2,144 2,539
75,151 75,250 4,122 2,150 2,547
75,251 75,350 4,132 2,156 2,555
75,351 75,450 4,141 2,162 2,563
If Your Taxable
Income Is ...
The Tax For
Filing Status
At
Least
But Not
Over
1 Or 3
Is
2 Or 5
Is
4
Is
75,451 75,550 4,150 2,168 2,571
75,551 75,650 4,159 2,174 2,579
75,651 75,750 4,169 2,180 2,587
75,751 75,850 4,178 2,186 2,595
75,851 75,950 4,187 2,192 2,603
75,951 76,050 4,197 2,198 2,611
76,051 76,150 4,206 2,204 2,619
76,151 76,250 4,215 2,210 2,627
76,251 76,350 4,225 2,216 2,635
76,351 76,450 4,234 2,222 2,643
76,451 76,550 4,243 2,228 2,651
76,551 76,650 4,252 2,234 2,659
76,651 76,750 4,262 2,240 2,667
76,751 76,850 4,271 2,246 2,675
76,851 76,950 4,280 2,252 2,683
76,951 77,050 4,290 2,258 2,691
77,051 77,150 4,299 2,264 2,699
77,151 77,250 4,308 2,270 2,707
77,251 77,350 4,318 2,276 2,715
77,351 77,450 4,327 2,282 2,723
77,451 77,550 4,336 2,288 2,731
77,551 77,650 4,345 2,294 2,739
77,651 77,750 4,355 2,300
2,747
77,751 77,850 4,364 2,306 2,755
77,851 77,950 4,373 2,312 2,763
77,951 78,050 4,383 2,318 2,771
78,051 78,150 4,392 2,324
2,779
78,151 78,250 4,401 2,330 2,787
78,251 78,350 4,411 2,336 2,795
78,351 78,450 4,420 2,342 2,803
78,451 78,550 4,429 2,348 2,811
78,551 78,650 4,438 2,354 2,819
78,651 78,750 4,448 2,360 2,827
78,751 78,850 4,457 2,366 2,835
78,851 78,950 4,466 2,372 2,843
78,951 79,050 4,476 2,378 2,851
79,051 79,150 4,485 2,384 2,859
79,151 79,250 4,494 2,390 2,867
79,251 79,350 4,504 2,396 2,875
79,351 79,450 4,513 2,402 2,883
79,451 79,550 4,522 2,408 2,891
79,551 79,650 4,531 2,414 2,899
79,651 79,750 4,541 2,420 2,907
79,751 79,850 4,550 2,426 2,915
79,851 79,950 4,559 2,432 2,924
79,951 80,050 4,569 2,438 2,933
80,051 80,150 4,578 2,444 2,943
80,151 80,250 4,587 2,450 2,952
80,251 80,350 4,597 2,456 2,961
80,351 80,450 4,606
2,462 2,971
80,451 80,550 4,615 2,468 2,980
80,551 80,650 4,624 2,474 2,989
80,651 80,750 4,634 2,480 2,998
80,751 80,850 4,643
2,486 3,008
80,851 80,950 4,652 2,492 3,017
80,951 81,050 4,662 2,498 3,026
81,051 81,150 4,671 2,504 3,036
81,151 81,250 4,680 2,510 3,045
81,251 81,350 4,690 2,516 3,054
81,351 81,450 4,699 2,522 3,064
81,451 81,550 4,708 2,528 3,073
81,551 81,650 4,717 2,534 3,082
81,651 81,750 4,727 2,540 3,091
81,751 81,850 4,736 2,546 3,101
81,851 81,950 4,745 2,552 3,110
81,951 82,050 4,755 2,558 3,119
82,051 82,150 4,764 2,564 3,129
82,151 82,250 4,773 2,570 3,138
82,251 82,350 4,783 2,576 3,147
82,351 82,450 4,792 2,582 3,157
Page 90 Personal Income Tax Booklet 2020
Filing status: 1 or 3 (Single; Married/RDP Filing Separately) 2 or 5 (Married/RDP Filing Jointly; Qualifying Widow(er)) 4 (Head of Household)
– Continued
2020 California Tax Table
If Your Taxable
Income Is ...
The Tax For
Filing Status
At
Least
But Not
Over
1 Or 3
Is
2 Or 5
Is
4
Is
82,451 82,550 4,801 2,588 3,166
82,551 82,650 4,810 2,594 3,175
82,651 82,750 4,820 2,600 3,184
82,751 82,850 4,829 2,606 3,194
82,851 82,950 4,838 2,612 3,203
82,951 83,050 4,848 2,618 3,212
83,051 83,150 4,857 2,624 3,222
83,151 83,250 4,866 2,630 3,231
83,251 83,350 4,876 2,636 3,240
83,351 83,450 4,885 2,642 3,250
83,451 83,550 4,894 2,648 3,259
83,551 83,650 4,903 2,654 3,268
83,651 83,750 4,913 2,660 3,277
83,751 83,850 4,922 2,666 3,287
83,851 83,950 4,931 2,672 3,296
83,951 84,050 4,941 2,678 3,305
84,051 84,150 4,950 2,684 3,315
84,151 84,250 4,959 2,690 3,324
84,251 84,350 4,969 2,696 3,333
84,351 84,450 4,978 2,702 3,343
84,451 84,550 4,987 2,708 3,352
84,551 84,650 4,996 2,714 3,361
84,651 84,750 5,006 2,720
3,370
84,751 84,850 5,015 2,726 3,380
84,851 84,950 5,024 2,732 3,389
84,951 85,050 5,034 2,738 3,398
85,051 85,150 5,043 2,744
3,408
85,151 85,250 5,052 2,750 3,417
85,251 85,350 5,062 2,756 3,426
85,351 85,450 5,071 2,762 3,436
85,451 85,550 5,080 2,768 3,445
85,551 85,650 5,089 2,774 3,454
85,651 85,750 5,099 2,780 3,463
85,751 85,850 5,108 2,786 3,473
85,851 85,950 5,117 2,792 3,482
85,951 86,050 5,127 2,798 3,491
86,051 86,150 5,136 2,804 3,501
86,151 86,250 5,145 2,810 3,510
86,251 86,350 5,155 2,816 3,519
86,351 86,450 5,164 2,822 3,529
86,451 86,550 5,173 2,828 3,538
86,551 86,650 5,182 2,834 3,547
86,651 86,750 5,192 2,840 3,556
86,751 86,850 5,201 2,846 3,566
86,851 86,950 5,210 2,852 3,575
86,951 87,050 5,220 2,858 3,584
87,051 87,150 5,229 2,864 3,594
87,151 87,250 5,238 2,870 3,603
87,251 87,350 5,248 2,876 3,612
87,351 87,450 5,257
2,882 3,622
87,451 87,550 5,266 2,888 3,631
87,551 87,650 5,275 2,894 3,640
87,651 87,750 5,285 2,900 3,649
87,751 87,850 5,294
2,906 3,659
87,851 87,950 5,303 2,912 3,668
87,951 88,050 5,313 2,918 3,677
88,051 88,150 5,322 2,924 3,687
88,151 88,250 5,331 2,930 3,696
88,251 88,350 5,341 2,936 3,705
88,351 88,450 5,350 2,942 3,715
88,451 88,550 5,359 2,948 3,724
88,551 88,650 5,368 2,954 3,733
88,651 88,750 5,378 2,960 3,742
88,751 88,850 5,387 2,966 3,752
88,851 88,950 5,396 2,972 3,761
If Your Taxable
Income Is ...
The Tax For
Filing Status
At
Least
But Not
Over
1 Or 3
Is
2 Or 5
Is
4
Is
88,951 89,050 5,406 2,978 3,770
89,051 89,150 5,415 2,984 3,780
89,151 89,250 5,424 2,990 3,789
89,251 89,350 5,434 2,996 3,798
89,351 89,450 5,443 3,002 3,808
89,451 89,550 5,452 3,008 3,817
89,551 89,650 5,461 3,014 3,826
89,651 89,750 5,471 3,020 3,835
89,751 89,850 5,480 3,026 3,845
89,851 89,950 5,489 3,032 3,854
89,951 90,050 5,499 3,038 3,863
90,051 90,150 5,508 3,044 3,873
90,151 90,250 5,517 3,050 3,882
90,251 90,350 5,527 3,056 3,891
90,351 90,450 5,536 3,062 3,901
90,451 90,550 5,545 3,068 3,910
90,551 90,650 5,554 3,074 3,919
90,651 90,750 5,564 3,080 3,928
90,751 90,850 5,573 3,086 3,938
90,851 90,950 5,582 3,092 3,947
90,951 91,050 5,592 3,098 3,956
91,051 91,150 5,601 3,104 3,966
91,151 91,250 5,610 3,110
3,975
91,251 91,350 5,620 3,116 3,984
91,351 91,450 5,629 3,122 3,994
91,451 91,550 5,638 3,128 4,003
91,551 91,650 5,647 3,134
4,012
91,651 91,750 5,657 3,140 4,021
91,751 91,850 5,666 3,146 4,031
91,851 91,950 5,675 3,152 4,040
91,951 92,050 5,685 3,158 4,049
92,051 92,150 5,694 3,164 4,059
92,151 92,250 5,703 3,170 4,068
92,251 92,350 5,713 3,176 4,077
92,351 92,450 5,722 3,182 4,087
92,451 92,550 5,731 3,188 4,096
92,551 92,650 5,740 3,194 4,105
92,651 92,750 5,750 3,200 4,114
92,751 92,850 5,759 3,206 4,124
92,851 92,950 5,768 3,214 4,133
92,951 93,050 5,778 3,222 4,142
93,051 93,150 5,787 3,230 4,152
93,151 93,250 5,796 3,238 4,161
93,251 93,350 5,806 3,246 4,170
93,351 93,450 5,815 3,254 4,180
93,451 93,550 5,824 3,262 4,189
93,551 93,650 5,833 3,270 4,198
93,651 93,750 5,843 3,278 4,207
93,751 93,850 5,852 3,286 4,217
93,851 93,950 5,861
3,294 4,226
93,951 94,050 5,871 3,302 4,235
94,051 94,150 5,880 3,310 4,245
94,151 94,250 5,889 3,318 4,254
94,251 94,350 5,899
3,326 4,263
94,351 94,450 5,908 3,334 4,273
94,451 94,550 5,917 3,342 4,282
94,551 94,650 5,926 3,350 4,291
94,651 94,750 5,936 3,358 4,300
94,751 94,850 5,945 3,366 4,310
94,851 94,950 5,954 3,374 4,319
94,951 95,050 5,964 3,382 4,328
95,051 95,150 5,973 3,390 4,338
95,151 95,250 5,982 3,398 4,347
95,251 95,350 5,992 3,406 4,356
95,351 95,450 6,001 3,414 4,366
If Your Taxable
Income Is ...
The Tax For
Filing Status
At
Least
But Not
Over
1 Or 3
Is
2 Or 5
Is
4
Is
95,451 95,550 6,010 3,422 4,375
95,551 95,650 6,019 3,430 4,384
95,651 95,750 6,029 3,438 4,393
95,751 95,850 6,038 3,446 4,403
95,851 95,950 6,047 3,454 4,412
95,951 96,050 6,057 3,462 4,421
96,051 96,150 6,066 3,470 4,431
96,151 96,250 6,075 3,478 4,440
96,251 96,350 6,085 3,486 4,449
96,351 96,450 6,094 3,494 4,459
96,451 96,550 6,103 3,502 4,468
96,551 96,650 6,112 3,510 4,477
96,651 96,750 6,122 3,518 4,486
96,751 96,850 6,131 3,526 4,496
96,851 96,950 6,140 3,534 4,505
96,951 97,050 6,150 3,542 4,514
97,051 97,150 6,159 3,550 4,524
97,151 97,250 6,168 3,558 4,533
97,251 97,350 6,178 3,566 4,542
97,351 97,450 6,187 3,574 4,552
97,451 97,550 6,196 3,582 4,561
97,551 97,650 6,205 3,590 4,570
97,651 97,750 6,215 3,598
4,579
97,751 97,850 6,224 3,606 4,589
97,851 97,950 6,233 3,614 4,598
97,951 98,050 6,243 3,622 4,607
98,051 98,150 6,252 3,630
4,617
98,151 98,250 6,261 3,638 4,626
98,251 98,350 6,271 3,646 4,635
98,351 98,450 6,280 3,654 4,645
98,451 98,550 6,289 3,662 4,654
98,551 98,650 6,298 3,670 4,663
98,651 98,750 6,308 3,678 4,672
98,751 98,850 6,317 3,686 4,682
98,851 98,950 6,326 3,694 4,691
98,951 99,050 6,336 3,702 4,700
99,051 99,150 6,345 3,710 4,710
99,151 99,250 6,354 3,718 4,719
99,251 99,350 6,364 3,726 4,728
99,351 99,450 6,373 3,734 4,738
99,451 99,550 6,382 3,742 4,747
99,551 99,650 6,391 3,750 4,756
99,651 99,750 6,401 3,758 4,765
99,751 99,850 6,410 3,766 4,775
99,851 99,950 6,419 3,774 4,784
99,951 100,000 6,426 3,780 4,791
OVER $100,000 YOU MUST COMPUTE YOUR
TAX USING THE TAX RATE SCHEDULES.
Personal Income Tax Booklet 2020 Page 91
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Visit our website:
ftb.ca.gov
Page 92 Personal Income Tax Booklet 2020
2020 California Tax Rate Schedules
Tip
To e-file and eliminate the math, go to ftb.ca.gov. To figure your tax online, go to ftb.ca.gov/tax-rates.
Use only if your taxable income on Form 540, line 19 is more than $100,000. If $100,000 or less, use the Tax Table.
If the amount on
Form 540, line 19 is
Enter on Form 540,
line 31
of the
amount over –over –
But not over –
Schedule X –
Use if your filing status is
Single or Married/RDP Filing Separately
$ 0 $ 8,932 $ 0.00 + 1.00% $ 0
8,932 21,175 89.32 + 2.00% 8,932
21,175 33,421 334.18 + 4.00% 21,175
33,421 46,394 824.02 + 6.00% 33,421
46,394 58,634 1,602.40 + 8.00% 46,394
58,634 299,508 2,581.60 + 9.30% 58,634
299,508 359,407 24,982.88 + 10.30% 299,508
359,407 599,012 31,152.48 + 11.30% 359,407
599,012 AND OVER 58,227.85 + 12.30% 599,012
If the amount on
Form 540, line 19 is
Enter on Form 540,
line 31
of the
amount over –
over –
But not o
ver –
Schedule Y –
Use if your filing status is
Married/RDP Filing Jointly or Qualifying
Widow(er)
$ 0 $ 17,864 $ 0.00 + 1.00% $ 0
17,864 42,350
178.64 + 2.00% 17,864
42,350 66,842 668.36 + 4.00% 42,350
66,842 92,788 1,648.04 + 6.00% 66,842
92,788 117,268 3,204.80 + 8.00% 92,788
117,268 599,016 5,163.20 + 9.30% 117,268
599,016 718,814 49,965.76 + 10.30% 599,016
718,814 1,198,024 62,304.95 + 11.30% 718,814
1,198,024 AND OVER 116,455.68 + 12.30% 1,198,024
If the amount on
Form 540, line 19 is
Enter on Form 540,
line 31
of the
amount over –
over –
But not o
ver –
Schedule Z –
Use if your filing status is
Head of Household
$ 0 $ 17,876 $ 0.00 + 1.00% $ 0
17,876 42,353 178.76 + 2.00% 17,876
42,353 54,597 668.30 + 4.00% 42,353
54,597 67,569 1,158.06 + 6.00% 54,597
67,569 79,812 1,936.38 + 8.00% 67,569
79,812 407,329 2,915.82 + 9.30% 79,812
407,329 488,796 33,374.90 + 10.30% 407,329
488,796 814,658 41,766.00 + 11.30% 488,796
814,658 AND OVER 78,588.41 + 12.30% 814,658
How to Figure Tax Using the 2020 California Tax Rate Schedules
Example: Chris and Pat Smith are filing a joint tax return using Form 540. Their taxable income on Form 540, line 19 is $125,000.
Step 1: Using Schedule Y, they find the taxable income range that includes their taxable income of $125,000.
Example Your Income
Step 2: They subtract the amount at the beginning of their range from
their taxable income.
$125,000 $
- 117,268 -
$ 7,732 $
Step 3: They multiply the result from Step 2 by the percentage for
their range.
$ 7,732 $
x .0930 x
$ 719.08 $
Step 4: They round the amount from Step 3 to two decimals (if
necessary) and add it to the tax amount for their income
range. After rounding the result, they will enter $5,882 on
Form 540, line 31.
$5,163.20 $
+ 719.08 +
$5,882.28 $
Personal Income Tax Booklet 2020 Page 93
How To Get California Tax Information
Where To Get Income Tax Forms and Publications
By Internet – You can download, view, and print California income tax
forms and publications at ftb.ca.gov/forms or you may have these
forms and publications mailed to you. Many of our most frequently used
forms may be filed electronically, printed out for submission, and saved
for record keeping.
By phone – To order California tax forms and publications:
•
Refer to the list on the next page and find the code number for the
form you want to order.
•
Call 800.338.0505.
• Follow the recorded instructions.
• Enter the three-digit form code when you are instructed.
Allow two weeks to receive your order. If you live outside California,
allow three weeks to receive your order.
In person – Many post offices and libraries provide free California tax
booklets during the filing season.
Employees at libraries and post offices cannot provide tax information or
assistance.
By mail – Write to:
TAX FORMS REQUEST UNIT MS D120
FRANCHISE TAX BOARD
PO BOX 307
RANCHO CORDOVA CA 95741-0307
Letters
If you write to us, be sure your letter includes your social security
number or individual taxpayer identification number and your daytime
and evening telephone numbers. Send your letter to:
FRANCHISE TAX BOARD
PO BOX 942840
SACRAMENTO CA 94240-0040
We will respond to your letter within 10 weeks. In some cases, we
may call you to respond to your inquiry, or ask you for additional
information. Do not attach correspondence to your tax return unless the
correspondence relates to an item on the return.
Your Rights As A Taxpayer
The FTB’s goals include making certain that your rights are protected
so that you have the highest confidence in the integrity, efficiency, and
fairness of our state tax system. FTB 4058, California Taxpayers’ Bill of
Rights, includes information on your rights as a California taxpayer, the
Taxpayers’ Rights Advocate Program, and how to request written advice
from the FTB on whether a particular transaction is taxable. See “Where
T
o Get Income Tax Forms and Publications.”
Franchise Tax Board Privacy Notice on
Collection
The privacy and security of your personal information is of the utmost
importance to us. We want you to have the highest confidence in the
integrity, efficiency, and fairness of our state tax system.
Your Rights and Responsibilities – You have a right to know what types
of information we gather, how we use it, and to whom we may provide
it. Information collected is subject to the California Information Practices
Act, Civil Code section 1798-1798.78, except as provided in Revenue
and Taxation Code (R&TC) Section 19570.
If you meet certain requirements, you must file a valid tax return and
related documents. You must provide your social security number or
other identifying number on your tax return and related documents for
identification. (R&TC Sections 18501, 18621, and 18624)
Reasons for Information Requests – We may request additional
information to verify and collect the correct amount of tax. (R&TC
Section 19504) You must provide all requested information, unless
indicated as “optional.”
Consequences of Noncompliance – We charge penalties and interest if
you:
•
Meet income requirements but do not file a valid tax return.
• Do not provide the information we request.
• Provide false information.
We may also disallow your claimed exemptions, exclusions, credits,
deductions, or adjustments. If you provide false information, you may be
subject to civil penalties and criminal prosecution. Noncompliance can
increase your tax liability, or delay or reduce any tax refund.
Disclosure of Information – We will not disclose your personal
information, unless authorized by law. We may disclose your tax
information to:
•
The Internal Revenue Service.
• Other states’ income tax officials.
• California government agencies and officials.
• Third parties to determine or collect your tax liabilities.
• Your authorized representative(s).
If you owe taxes, we may disclose your balance due as part of our
collection process to: employers, financial institutions, county recorders,
process agents, or other asset holders.
Responsibility for the Records – The director of the Processing
Services Bureau maintains Franchise Tax Board’s records. You may
review your records and bring any inaccuracies to our attention. You can
obtain information about your records by:
Phone
800.852.5711 (within the United States)
916.845.6500 (outside of the United States)
800.822.6268 (TTY/TDD)
Mail
DISCLOSURE OFFICER MS A181
FRANCHISE TAX BOARD
PO BOX 1468
SACRAMENTO CA 95812-1468
To learn more about our Privacy Policy Statement, go to ftb.ca.gov/privacy/
Page 94 Personal Income Tax Booklet 2020
•
Automated Phone Service (Keep This Booklet For Future Use)
Automated Phone Service
Use our automated phone service to get
recorded answers to many of your questions
about California T
axes and to order current year
Personal Income Tax Forms and Publications.
You can also:
• Get current year tax refund information.
• Get balance due and payment information.
Have paper and pencil ready to take notes.
T
elephone: 800.338.0505 from within
the United States
916.845.6500 from outside
the United States
Answers To Tax Questions
Call our automated phone service, follow the
recorded instructions and enter the 3‑digit code.
Code Filing Assistance
100 Do I need to file a tax return?
111 Which form should I use?
112 How do I file electronically and get a fast
refund?
201 How can I get an extension to file?
203 What is the nonrefundable renter’s credit
and how do I qualify?
204 I never received a Form W‑2. What do I do?
205 I have no withholding taken out. What do I
do?
206 Do I have to attach a copy of my federal tax
return?
209 I lived in California for part of the year. Do I
have to file a tax return?
210 I did not live in California. Do I have to file a
tax return?
215 Who qualifies me to use the head of
household filing status?
222 How much can I deduct for vehicle license
fees?
Penalties
403 What is the estimate penalty rate?
Notices And Bills
503 How do I file a protest against a Notice of
Proposed Assessment?
506 How can I get information about my
Form 1099‑G?
Tax For Children
601 Can my child take a personal exemption
credit when I claim her or him as a
dependent on my tax return?
Miscellaneous
611 What address do I send my payment to?
619 How do I report a change of address?
Order Forms and Publications
If your current address is on file, you can order
California tax forms and publications. Call our
automated phone service, follow the recorded
instructions and enter the 3‑digit code.
Code California Tax Forms and Publications
900 California Resident Income Tax Booklet:
Form 540, Resident Income Tax Return
965 Form 540 2EZ Tax Booklet
903 Schedule CA (540), California Adjustments
– Residents, FTB 3885A, Depreciation and
Amortization Adjustments, and Schedule D,
California Capital Gain or Loss Adjustment
969 Large Print Resident Booklet
907
Form 540‑ES, Estimated Tax for Individuals
908 Schedule X, California Explanation of
Amended Return Changes
909 Schedule D‑1, Sales of Business Property
910 Schedule G‑1, Tax on Lump‑Sum
Distributions
911 Schedule P (540), Alternative Minimum Tax
and Credit Limitations – Residents
913 Schedule S, Other State Tax Credit
914 California Nonresident Income Tax Booklet:
Form 540NR, Nonresident or Part‑Year
Resident Income Tax Return
917 Schedule CA (540NR), California
Adjustments – Nonresidents or Part ‑Year
Residents
918 Schedule P (540NR), Alternative Minimum
Tax and Credit Limitations – Nonresidents
or Part‑Year Residents
932 FTB 3506, Child and Dependent Care
Expenses Credit
938 FTB 3514, California Earned Income Tax
Credit
937 FTB 3516, Request for Copy of Personal
Income or Fiduciary Tax Return
921 FTB 3519, Payment for Automatic
Extension for Individuals
922 FTB 3525, Substitute for Form W‑2, Wage
and Tax Statement
923 FTB 3526, Investment Interest Expense
Deduction
939 FTB 3532, Head of Household Filing Status
Schedule
940 FTB 3540, Credit Carryover and Recapture
Summary
949 FTB 3567, Installment Agreement Request
924 FTB 3800, Tax Computation for Certain
Children with Unearned Income
929 FTB 3801, Passive Activity Loss Limitations
925 FTB 3805E, Installment Sale Income
928 FTB 3805P, Additional Taxes on Qualified
Plans (Including IRAs) and Other Tax‑
Favored Accounts
926 FTB 3805V, Net Operating Loss (NOL)
Computation and NOL and Disaster Loss
Limitations — Individuals, Estates, and
Trusts
943 FTB 4058, California Taxpayers’ Bill of
Rights
927 FTB 5805, Underpayment of Estimated Tax
by Individuals and Fiduciaries
919 FTB Pub. 1001, Supplemental Guidelines to
California Adjustments
920 FTB Pub. 1005, Pension and Annuity
Guidelines
945 FTB Pub. 1006, California Tax Forms and
Related Federal Forms
946 FTB Pub. 1008, Federal Tax Adjustments
and Your Notification Responsibilities to
California
941 FTB Pub. 1031, Guidelines for Determining
Resident Status
942 FTB Pub. 1032, Tax Information for Military
Personnel
934 FTB Pub. 1540, California Head of
Household Filing Status
Current Year Refund Information
If you file by mail, wait at least 8 weeks after you
file your tax return before you call to find out
about your refund. You need your social security
number, the numbers in your street address, box
number, route number, or PMB number, and your
ZIP code to use this service.
Balance Due and Payment
Information
Wait at least 45 days from the date you mailed
your payment before you call to verify receipt.
You need your social security number, the
numbers in your street address, box number,
route number, or PMB number, and your ZIP code
to use this service.
General Phone Service
Telephone assistance is available year‑round from
7 a.m. until 5 p.m. Monday through Friday, except
holidays. Hours are subject to change.
Telephone: 800.852.5711 from within
the United States
916.845.6500 from outside
the United States
800.829.1040 for federal
tax questions, call the IRS
TTY/TDD: 800.822.6268 for persons with
hearing or speech disability
711 or 800.735.2929 California relay
service
Large-print forms and instructions – The
Resident Booklet is available in large print upon
request. See “Order Forms and Publications”
or ‘’Where T
o Get Income Tax Forms and
Publications.’’
Asistencia en español
Asistencia telefónica está disponible durante todo
el año desde las 7 a.m. hasta las 5 p.m. de lunes
a viernes, excepto días feriados. Las horas están
sujetas a cambios.
Teléfono: 800.852.5711 dentro de los
Estados Unidos
916.845.6500 fuera de los
Estados Unidos
800.829.1040 para preguntas
sobre impuestos federales llame
al IRS
TTY/TDD: 800.822.6268 para personas con
discapacidades auditivas o
del habla
711 ó 800.735.2929 servicio de
relevo de California
Personal Income Tax Booklet 2020 Page 95
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