Fillable California Schedule S - Other State Tax Credit Form

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TAXABLE YEAR

CALIFORNIA SCHEDULE

2006

Other State Tax Credit

Attach to Form 540, Long Form 540NR, or Form 541.

Your SSN or ITIN

Name(s) as shown on your California tax return

FEIN

Part I Double-Taxed Income (Read Specific Line Instructions for Part I before completing this part.)

(a) Income item(s) description

(b) Double-taxed income taxable by California

________________________________________

$ _______________________________________

$ ______________________________________

________________________________________

_______________________________________

________________________________________

_______________________________________

1 Total double-taxed income . . . . . . . . . . . . . . . .

$ ______________________________________

Part II Figure Your Other State Tax Credit (Read Specific Line Instructions for Part II before completing this part.)

2 California tax liability. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 ______________________

3 Double-taxed income taxable by California. Enter the amount from Part I, line 1, column (b) . . . . . . . . . . . . . . . . . . . . . . . . . . 3 ______________________

4 California adjusted gross income. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 ______________________

5 Divide line 3 by line 4 (100% maximum) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 ______________________

6 Multiply line 2 by the percentage on line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 ______________________

7 Income tax liability paid to name of other state (use states abbreviation) ___________________________

See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 ______________________

8 Double-taxed income taxable by other state. Enter the amount from Part I, line 1, column (c). . . . . . . . . . . . . . . . . . . . . . . . . . 8 ______________________

9 Adjusted gross income taxable by other state. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 ______________________

10 Divide line 8 by line 9 (100% maximum) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 ______________________

11 Multiply line 7 by the percentage on line 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 ______________________

12 Other state tax credit. Enter the smaller of line 6 or line 11. Use Credit Code 187. See instructions . . . . . . . . . . . . . . . . .

❚

12 ______________________

General Information

Important: See Sections C and D for a complete

• Form 540X, Amended Individual Income

list of states and U.S. possessions for which the

Tax Return, if you filed Form 540 or Long

Taxpayers may qualify for a credit for income taxes

other state tax credit is allowed. See section H

Form 540NR; or

paid to another state when the same income that is

for a description of the source of various types of

• Form 541, California Fiduciary Income Tax Return,

taxed by the other state is also taxed by California.

income.

if you filed Form 541. Check “Amended return”

Effective for all open tax years, other state income

box below fiduciary address area on Side 1.

Beneficiaries of estates or trusts, partners of

taxes which are paid to the other state do not

partnerships, members of LLCs classified as

C California Residents

necessarily have to be in the same year, as long

partnerships, and shareholders of S corporations

as the taxes relate to the same transaction. For

California resident individuals or estates and trusts

that paid a net income tax to another state on

further information, see Cal. Code Regs., tit. 18

that derived income from sources within any of the

income that must be reported to California

section 18001-1(c).

following states or U.S. possessions and paid a

may also claim the other state tax credit. See

You must attach this schedule and a copy of your

net income tax to that state or U.S. possession on

sections F and G for details.

return(s) filed with the other state(s) to your

income that is also taxed by California may claim the

B Application of the Credit

California return. Partners of partnerships, members

other state tax credit:

of limited liability companies (LLCs) classified as

Credit is allowed for net income taxes paid to

Alabama, American Samoa, Arkansas, Colorado,

partnerships for tax purposes, and shareholders of

another state (not including any tax comparable to

Connecticut, Delaware, Georgia, Hawaii, Idaho,

S corporations, see Section G.

California’s alternative minimum tax) on income

Illinois, Iowa, Kansas, Kentucky, Louisiana, Maine,

Note: If you e-file, do not submit returns filed with

that is also subject to California tax. The credit

Maryland, Massachusetts, Michigan, Minnesota,

other states to California. Retain a copy of other state

is applied against California net tax, less other

Mississippi, Missouri, Montana, Nebraska,

tax returns, along with a copy of this form for your

credits. The credit cannot be applied against

New Hampshire (business profits tax), New

records.

California alternative minimum tax.

Jersey, New Mexico, New York, North Carolina,

A Purpose

North Dakota, Ohio, Oklahoma, Pennsylvania,

When a joint return is filed in California, the entire

Puerto Rico, Rhode Island, South Carolina,

amount of tax paid to the other state may be used

If you are an individual filing a California personal

Utah, Vermont, Virginia (dual residents*), Virgin

in figuring the credit, regardless of which spouse

income tax return or an estate or trust filing a

Islands, West Virginia, Wisconsin, and the District

paid the other state tax or whether a joint or

California fiduciary income tax return, use this form

of Columbia (unincorporated business tax and

separate return is filed in the other state.

to claim a credit against California tax for net income

income tax, the latter for dual residents only).

When a joint return is filed in the other state and

taxes imposed by and paid to another state or U.S.

California residents who are included in a

separate California returns are filed, the credit is

possession.

nonresident composite partnership or S corporation

allowed in proportion to the income reported on

Residents of California may claim a credit only if the

return filed with the states listed above as well as

each California return.

income taxed by the other state has a source within

Arizona, Indiana, Oregon, or Virginia may also claim

If, after paying tax to the other state, you get

the other state under California law. No credit is

a credit for their share of income taxes paid to these

a refund or credit due to an amended return,

allowed if the other state allows California residents

states, unless any of these states allow a credit for

computation error, audit, etc., you must report the

a credit for net income taxes paid to California.

taxes paid to California on the composite return.

refund or credit immediately to the Franchise Tax

California residents who are shareholders in a Texas

Nonresidents of California may claim a credit only for

Board (FTB). Prepare a revised Schedule S and

S corporation may claim the other state tax credit

net income taxes imposed by and paid to their states

attach it to:

for the tax paid by the Texas S corporation on its

of residence and only if such states do not allow

net taxable earned surplus. The corporation must be

their residents a credit for net income taxes paid to

treated as an S corporation for California purposes to

California.

claim the credit.

Schedule S 2006

8021063

California Schedule S - Other State Tax Credit Form - 2006

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