Completing The Claim Form Instruction (Page 5 of 9) in pdf

Completing The Claim Form Instruction Page 5

Line 27 – Adjustments to Income

Enter the total of all adjustments to your income. You may claim any

of the following adjustments.

• Forfeited Interest Penalty – Deduct the penalty charged for

premature withdrawal from a savings account.

• Alimony Paid – Deduct alimony payments made to an ex-spouse

as directed by the court.

• Individual Retirement Account – If you contributed to an

Individual Retirement Account (IRA), Keogh Plan (HR10), or

Simplified Employee Plan (SEP), you may deduct the amount,

subject to the same limitations as for California personal income

tax.

• Self-Employed Health Insurance Deduction – You may deduct

the amount, subject to the same limitations as for California

personal income tax.

• Self-Employment Tax Deduction – Deduct one-half of the self-

employment tax imposed for the taxable year.

• Student Loan Interest Deduction – Deduct the amount allowed

for California personal income tax.

• Medical Savings Account (MSA) Deduction – Deduct the

amount you contributed to an MSA.

• Moving Expenses – Deduct allowable moving expenses that

were not reimbursed by your employer.

Note: You must attach the appropriate schedules or forms explaining

each adjustment.

The following items are not deductible from income: mortgage

payments, interest paid on loans (other than qualified education loans),

repairs, fees, taxes (other than self-employment tax), utilities, medical

bills, and health premiums (unless self-employed).

Line 28 – Total Household Income

Subtract line 27 from line 26 for total income. Enter the total on line

28.

Note: If the amount on line 28 is greater than $24,000 (or $34,000

for those who filed and qualified for postponement in the 1983-84

tax year), stop. You do not qualify for property tax postponement.

Line 29 – Is your residence part of a cooperative housing corporation?

Check the appropriate box.

A cooperative housing corporation is a corporation in which tenant-

stockholders own stock and are entitled to occupy for dwelling

purposes a house or apartment in a building owned by the corporation.

If you meet the basic eligibility requirements, the State Controller’s

Office will mail you a Notice of Election to Postpone and a

Completing The Claim Form Instruction Page 5