Schedule S - Other State Tax Credit - 1998
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1E California Part-Year Residents
For this purpose, California’s sourcing principles
Year Residents, line 33, column E. In column (c),
apply even though the results may be contrary to
enter only the amount of double-taxed income
For the part of the year you were a resident of
the other states’ principles.
that is included in adjusted gross income taxed
California, follow the instructions for residents.
by your state of residence.
The following is a description of the source of
For the part of the year you were a resident of
various types of income:
Note: Generally, income that is taxed by Califor-
another state or states, follow the instructions for
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nia and the other state will be the same
nonresidents.
Compensation for services rendered by
amounts. However, the income amounts in col-
employees or independent contractors
umn (b) may be different than the amounts in
F Dual-Resident Estates and
has a source where the services are
column (c) because of differences in California
performed.
Trusts
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and the other state’s tax laws.
Income from tangible personal property and
real estate has a source where the property
Line 1 – Combine the amounts in column (b).
An estate or trust may claim a credit if it is
is located.
Combine the amounts in column (c). Enter the
treated as a ‘‘resident’’ of California and also of
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Income from intangible personal property
totals on this line and in Part II, line 3, and
another state. For this purpose, an estate or trust
generally has a source where the owner
Part II, line 8.
is considered to be a ‘‘resident’’ of any state that
resides.
taxes all its income regardless of whether the
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Part II – Computation of Other
Business income has a source where the
income is derived from sources within that state.
business is conducted.
The credit is limited to:
State Tax Credit
Get FTB Pub. 1031, Guidelines for Determining
1. The proportion of the tax paid to the other
Line 2 – Enter your California tax liability from:
Resident Status, for additional information con-
state by the estate or trust that the double-
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cerning source income. You can get this publica-
Residents – Form 540, line 25 minus line 33
taxed income bears to the entire income of
tion:
(without other state tax credit).
the estate or trust; and
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Nonresidents – Form 540NR, line 28 minus
2. The proportion of the estate’s or trust’s Cali-
By Internet – Download, view and print FTB
fornia tax that the double-taxed income bears
line 42 (without other state tax credit).
Pub. 1031 from our website located at:
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to the total income taxed by California.
Estates and Trusts – Form 541, line 25
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(without other state tax credit).
By phone – Call (800) 338-0505 and select
Beneficiary of an Estate or Trust
personal income tax forms requests. Enter
Line 4 – Enter your California adjusted gross
A beneficiary of an estate or trust who is a Cali-
code 941 when instructed to do so. Please
income from:
fornia resident and pays California tax on income
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allow 2 weeks to receive your order. If you
Residents – Form 540, line 17, and any lump-
that has been taxed to the estate or trust in
live outside California, please allow 3 weeks
sum distribution from Schedule G-1.
another state may also claim the credit. The
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to receive your order.
credit is limited to:
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Nonresidents – Schedule CA (540NR),
By mail – Write to: TAX FORMS REQUEST
line 33, column E, and any California source
1. The proportion of the tax paid to the other
UNIT, FRANCHISE TAX BOARD, PO BOX
lump-sum distribution from Schedule G-1.
state by the estate or trust that the income
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307, RANCHO CORDOVA CA 95741-0307.
Estates and Trusts – Enter your adjusted
taxed to the beneficiary in California and also
Note: Those persons subject to tax as California
gross income determined for purposes of the
to the estate or trust in the other state bears
residents solely by reason of the California Reve-
2% limitation of your miscellaneous itemized
to the entire income of the estate or trust;
nue and Taxation Section 17014(b) (holders of
deductions. See Form 541, line 15b
and
federal elective offices, certain Presidential
instructions.
2. The proportion of the beneficiary’s California
appointees and Congressional staff members)
tax that the income taxed to the beneficiary in
Line 7 – Do not include:
may base their credit computation on income
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California and also to the estate or trust in
Taxes paid to any local government such as
taxed by the other state, regardless of its source.
the other state bears to the beneficiary’s total
a city or county;
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income taxed by California.
Taxes paid to the federal government;
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Specific Line Instructions
Taxes paid to any foreign country; or
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G Pass-Through Entities
Any tax comparable to California’s alternative
minimum tax paid to another state.
More than one state – If you have a credit from
A partner is allowed a credit for the partner’s pro
more than one state, figure the credit separately
rata share of net income taxes paid by the part-
Line 9 – Adjusted gross income taxed by the
for each state. Add the credits from each state
nership to another state. A shareholder of an
other state:
and enter the total on Schedule S, line 12. You
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S corporation is allowed a credit for the share-
Residents – Enter only those items of total
must attach to your return a supplemental
holder’s pro rata share of taxes on or measured
adjusted gross income taxed by the other
schedule showing the name and credit computa-
by income paid by the S corporation to another
state.
tions for each state.
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state that either does not allow S corporation
Nonresidents – Enter total adjusted gross
elections or imposes tax on S corporations. A
income taxed by the other state.
Part I – Computation of Double-
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member of an LLC taxed as a partnership is
Estates and Trusts – Enter only those items
allowed a credit for the member’s pro rata share
Taxed Income
of total adjusted gross income taxed by the
of net income taxes paid by the company to
other state.
Double-taxed income is income taxed by Califor-
another state.
Note: Adjusted gross income includes all items
nia and the other state. In Part I, provide a
Include the amount of your pro rata share of tax
of income and loss but does not include itemized
breakdown of your double-taxed income by
paid to the other state for which you are allowed
deductions, deductions for federal income taxes
income item and amount. In column (a), identify
to claim a credit. Residents of California, see
or personal exemptions.
the income item such as wages earned in
General Information C; nonresidents of California,
another state while a California resident, gain on
Line 12 – The amount of this credit you may
see General Information D.
sale of real estate, ABC Partnership ordinary
claim on your tax return may be limited further.
Attach a copy of Schedule K-1 (100S, 565 or
income, etc. In column (b), enter the amount of
Refer to the credit instructions in your California
568) and a schedule reflecting your pro rata
income from that item taxed by California. In col-
tax booklet to see if there are any limitations on
share of the net income tax paid to the other
umn (c), enter the amount of income from that
the amount of credit you may claim. These
state.
item taxed by the other state.
instructions also explain how to claim this credit
on your tax return. You must use credit code
For residents of California, the income must also
H Income from Sources Within
number 187 when you claim this credit.
have a source in the other state. See General
the Other State
Information H, for a description of the source of
various types of income.
Residents of California may claim a credit for net
Nonresidents of California should enter in
income taxes imposed by and paid to another
column (b) only the amount of double-taxed
state only on income which has a source within
income that is included in Schedule CA (540NR),
the other state.
California Adjustments — Nonresidents or Part-
Side 2 Schedule S 1998
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