Form 3583 - California Telefile Payment Voucher, Form 540 2ez Tax Booklet

Instructions for Form 540 2EZ

Qualifying to use Form 540 2EZ

Loan interest Deduction – A deduction is allowed for interest paid on

any loan or financed indebtedness from a utility company to purchase

Check the table below to make sure you qualify to use Form 540 2EZ. If

energy efficient equipment and products for California residences.

you find that you cannot use this form, see page 3 for information

New California Income Exclusions

about e-file, page 4 for information about TeleFile, or go to

• Exclusion for amounts received as rebates or vouchers from a local

, and download and print Form 540A, Form 540, the

water agency, energy agency, or energy supplier for the purchase

Long or Short Form 540NR, or see the back cover.

and installation of water conservation appliances and devices.

Note: If you can be claimed as a dependent by another taxpayer, and

• Exclusion for grants paid to eligible low-income individuals to

your total income is less than or equal to $9,810 if single; $19,570 if

construct or retrofit buildings to be more energy efficient is

married filing joint or qualifying widow(er); or $13,870 if head of

excludable from income.

household, you cannot use Form 540 2EZ. See page 3 for information

New Voluntary Contribution Fund – You may make voluntary contribu-

about e-file, page 4 for information about TeleFile, or go to

tions to the Lupus Foundation of America, California Chapters Fund.

, and download and print Form 540A, Form 540, the

See page 8 for more information.

Long or Short Form 540NR, or see the back cover.

Things you need to know before you complete

Residency:

California resident entire year

Filing status:

And

Form 540 2EZ

• Single

• Under age 65* on 12/31/01; and

• Married filing joint

• Not blind on 12/31/01

Use blue or black ink to complete Form 540 2EZ.

• Head of household

The California 2EZ tables in this booklet are very different from other

• Qualifying widow(er)

tables you may have used and do not work for TeleFile or any other

*If your 65th birthday is on January 1, 2002, you are considered to

California tax forms. There are three separate tables, one for each filing

be age 65 on December 31, 2001.

status. The tax amounts have been reduced for the standard deduction

Dependents:

0 – 3 dependents allowed

for your filing status, your personal exemption credit, and dependent

Types of Income:

•

Wages, salaries, and tips

exemption credits to which you are entitled.

•

Taxable scholarship and fellowship grants (only

Use the label from inside the label holder on the cover of this booklet

if reported on Form W-2)

to speed processing and prevent common errors that can delay

•

Interest (only if $400 or less)

refunds. After completing your return, sign it and attach the mailing

•

Unemployment compensation

label. Make corrections to the label by crossing out any errors and

Total income:

printing the correct or missing information in black or blue ink.

•

$50,000 or less (single or head of household)

•

$100,000 or less (married filing joint or qualifying widow(er))

Enter your social security number(s) in the space(s) provided. This

information is not pre-printed on your label.

Total income includes wages, salaries, tips, taxable scholarship or

fellowship grants, and interest.

Specific Line Instructions

Adjustments to income: No deductions from total income such as

student loan interest deduction, IRA deduction, etc.

Instructions based on Internal Revenue Code (IRC) as of January 1,

Standard deduction only

1998, and California Revenue and Taxation Code (R&TC).

Payments:

Withholding only

Exemptions:

•

Personal exemption

Line 1 through Line 5 – Filing Status

•

Up to 3 dependent exemptions

See page 6 for the requirements for each of the filing statuses. Then fill

Credits:

Nonrefundable renter’s credit only

in the circle on Form 540 2EZ for the filing status that applies to you.

Law Changes for 2001

Line 6 – Can you be claimed as a dependent?

Note: The following new credits and exclusions cannot be claimed on

If your parent (or someone else) can claim you (or your spouse, if

TeleFile or Form 540 2EZ. You must use Form 540 or you can e-file it

married) as a dependent on his or her tax return, even if he or she

via our Website. Go to . If you want to file a paper

chooses not to, fill in the circle on line 6.

form, download it from our website or see the back cover, code 900.

Solar Energy System Credit – A new credit is available for the

Line 7 – Dependents

purchase and installation of a solar energy system. The credit allowed

Enter the names of the dependents you are entitled to claim. Up to 3

is equal to the lesser of 15% for taxable years 2001 through 2003 or

dependents are allowed on Form 540 2EZ. If you are entitled to claim 4

7 1/2% for taxable years 2004 and 2005 of the net cost paid to

or more dependents, you must e-file or use Form 540A or Form 540.

purchase and install a solar energy system for the production of

electricity, or the $4.50 per rated watt of generating capacity of that

Refundable Child and Dependent Care Expenses Credit

system.

If you qualify for the similar federal credit and your

Tip

California adjusted gross income is $100,000 or less,

Homeowners' and Renters' Assistance (HRA) – The HRA credit

claim the credit using Form 540A or Form 540. The

amounts allowable have increased by 45%.

easiest way to claim the credit is to e-file.

Net Operating Losses (NOLs) and Disaster Losses

• Special legislation was enacted which allows taxpayers special

Line 8 – Wages

treatment of losses sustained as a result of the 2000 Napa Valley

Enter the amount from Form W-2, box 16. If you have more than one

earthquakes. The losses can be carried forward at 100% for 5 years,

W-2, add all amounts shown in box 16. The picture on page 4 shows

then the remaining balance can be carried forward an additional

where this information is located on your Form W-2.

10 years at 55%.

• For taxable years beginning on or after January 1, 2001 and before

Line 9 – Interest Income

January 1, 2003, farmers are allowed a deduction for losses

sustained due to Pierce's Disease and its vectors. This loss will

Enter interest income shown on Form 1099-INT, box 1. If your total

create an NOL, which will be allowed to be carried forward for

interest income is more than $400, you cannot use this form. Go to

9 years at 100%. The NOL will be deducted only from income

and e-file or to download and print forms.

apportioned to the area affected by Pierce's Disease using a two-

factor formula.

Form 540 2EZ Tax Booklet 2001 Page 13

Form 3583 - California Telefile Payment Voucher, Form 540 2ez Tax Booklet - 2001 Page 7

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