California Schedule S - Other State Tax Credit - 2004

TAXABLE YEAR

CALIFORNIA SCHEDULE

2004

Other State Tax Credit

S

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

Your social security number

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Name(s) as shown on your California tax return

FEIN

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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

(c) Double-taxed income taxable by other state

_______________________________________

$ ______________________________________

$ _____________________________________

_______________________________________

_______________________________________

______________________________________

_______________________________________

_______________________________________

______________________________________

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) ___________________________ for the same income taxed by

California. 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. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

12 _________________

Important: See sections C and D for a complete

• Form 540X, Amended Individual Income Tax

General Information

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

Return, if you filed Form 540 or Long

other state tax credit is allowed. See section H

Form 540NR; or

Taxpayers may qualify for a credit for income taxes

for a description of the source of various types of

• Form 541, California Fiduciary Income Tax

paid to another state when the same income that is

income.

Return, if you filed Form 541. Check “Amended

taxed by the other state is also taxed by California,

return” box below fiduciary address area on

even when the same income is taxed in different

Beneficiaries of estates or trusts, partners of

Side 1.

years by the other state and California. For further

partnerships, members of LLCs classified as

information see Cal. Code Regs., tit. 18

partnerships, and shareholders of S corporations

C California Residents

section 18001-1(c).

that paid a net income tax to another state on

California resident individuals or estates and trusts

income that must be reported to California may

You must attach this schedule and a copy of your

that derived income from sources within any of the

also claim the other state tax credit. See

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

following states or U.S. possessions and paid a net

sections F and G for details.

California return. Partners of partnerships,

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

members of limited liability companies (LLCs)

B Application of the Credit

income that is also taxed by California may claim

classified as partnerships for tax purposes, and

the other state tax credit:

shareholders of S corporations, see section G.

Credit is allowed for net income taxes paid to

another state (not including any tax comparable

Alabama, American Samoa, Arkansas, Colorado,

Note: If you e-file, you do not need to submit

to California’s alternative minimum tax) on

Connecticut, Delaware, Georgia, Hawaii, Idaho,

returns filed with other states with your California

income that is also subject to California tax. The

Illinois, Iowa, Kansas, Kentucky, Louisiana,

return. Retain a copy of other state tax returns,

credit is applied against California net tax, less

Maine, Maryland, Massachusetts, Michigan,

along with a copy of this form for your records.

other credits. The credit cannot be applied

Minnesota, Mississippi, Missouri, Montana,

A Purpose

against California alternative minimum tax.

Nebraska, New Hampshire (business profits tax),

New Jersey, New Mexico, New York,

When a joint return is filed in California, the

If you are an individual filing a California personal

North Carolina, North Dakota, Ohio, Oklahoma,

entire amount of tax paid to the other state may

income tax return or an estate or trust filing a

Pennsylvania, Puerto Rico, Rhode Island,

be used in figuring the credit, regardless of

California fiduciary income tax return, use this form

South Carolina, Utah, Vermont, Virginia (dual

which spouse paid the other state tax or whether

to claim a credit against California tax for net

residents*), Virgin Islands, West Virginia,

a joint or separate return is filed in the other

income taxes imposed by and paid to another state

Wisconsin, and the District of Columbia

state.

or U.S. possession.

(unincorporated business tax and income tax, the

When a joint return is filed in the other state and

Residents of California may claim a credit only if the

latter for dual residents only).

separate California returns are filed, the credit is

income taxed by the other state has a source within

California residents who are included in a

allowed in proportion to the income reported on

the other state under California law. No credit is

nonresident composite partnership or S corporation

each California return.

allowed if the other state allows California residents

return filed with the states listed above as well as

a credit for net income taxes paid to California.

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

Arizona, Indiana, Oregon, or Virginia may also claim

refund or credit due to an amended return,

Nonresidents of California may claim a credit only

a credit for their share of income taxes paid to these

computation error, audit, etc., you must report

for net income taxes imposed by and paid to their

states, unless any of these states allow a credit for

the refund or credit immediately to the Franchise

states of residence and only if such states do not

taxes paid to California on the composite return.

Tax Board (FTB). Prepare a revised Schedule S

allow their residents a credit for net income taxes

California residents who are shareholders in a Texas

and attach it to:

paid to California.

S corporation may claim the other state tax credit

for the tax paid by the Texas S corporation on its net

taxable earned surplus. The corporation must be

S04104

Schedule S 2004