Instructions For Schedule S - 2016


2016 Instructions for Schedule S
Other State Tax Credit
General Information
Application of the Credit
California residents who are included in a
group nonresident tax return similar to the
Credit is allowed for net income taxes paid to
For taxes paid to another state on or after
tax return described in California Revenue &
another state (not including any tax comparable
January 1, 2009, a claim for credit or refund
Taxation Code (R&TC) Section 18535, filed
to California’s alternative minimum tax) on
of an overpayment of income tax attributable
with the states listed in this section, as well
income that is also subject to California tax.
to taxes paid to another state may be filed
as Arizona (AZ), Indiana (IN), Oregon (OR),
The credit is applied against California net tax,
within one year from the date tax is paid to
or Virginia (VA) may also claim a credit for
less other credits. The credit cannot be applied
the other state or within the general statute of
their share of income taxes paid to these
against California alternative minimum tax.
limitations, whichever period expires later.
states, unless any of these states allow a
When a joint tax return is filed in California,
credit for taxes paid to California on the group
Taxpayers may qualify for a credit for income
the entire amount of tax paid to the other state
nonresident tax return.
taxes paid to another state when the same
may be used in figuring the credit, regardless
income that is taxed by the other state is
Attach a statement and schedule showing
of which spouse/RDP paid the other state tax
also taxed by California. Other state income
your share of the net income tax paid to the
or whether a joint or separate tax return is filed
taxes which are paid to the other state do not
other state.
in the other state.
necessarily have to be in the same year, as long
*A dual resident is any taxpayer who is defined
When a joint tax return is filed in the other
as the taxes relate to the same transaction.
as a California resident under California law
state and separate California tax returns are
You must attach Schedule S, Other State Tax
and a Virginia resident under Virginia law. If
filed, the credit is allowed in proportion to the
Credit, and a copy of your tax return(s) filed
you are a dual resident, you are allowed to
income reported on each California tax return.
with the other state(s) to your California tax
claim the other state tax credit for taxes paid
If, after paying tax to the other state, you get
return. If you e-file, do not submit tax returns
to Virginia on Virginia source income. Dual
a refund or credit due to an amended tax
filed with other states to California. Retain a
residents who are elected or appointed officials
return, computation error, audit, etc., you must
copy of other state tax returns, along with a
and staff as defined in R&TC Section 17014(b)
report the refund or credit immediately to the
copy of this form for your records.
may claim the other state tax credit for taxes
Franchise Tax Board (FTB). Prepare a revised
paid to Virginia on all income taxed by Virginia
Shareholders of S corporations, partners of
Schedule S and attach it to any of the following:
whether or not it has a source in Virginia. (See
partnerships, and members of limited liability
Section H, Income from Sources Within the
• Form 540X, Amended Individual Income
companies (LLCs) classified as partnerships
Other State.)
Tax Return, if you filed Form 540, California
for tax purposes, see Section G, Pass-Through
Resident Income Tax Return, or Long Form
Entities, for more information.
California Nonresidents
540NR, California Nonresident or Part-Year
Resident Income Tax Return.
California nonresident individuals, estates, or
• Form 541, California Fiduciary Income
trusts that are residents of one of the following
If you are an individual filing a California
Tax Return, if you filed Form 541. Check
states or U.S. possessions and paid a net
personal income tax return or an estate or
“Amended tax return” box below fiduciary
income tax to that state or U.S. possession
trust filing a California fiduciary income tax
address area on Side 1.
on income that is also taxed by California may
return, use Schedule S to claim a credit against
claim the other state tax credit:
California tax for net income taxes imposed by
California Residents
Arizona (AZ), Guam (GU), Indiana (IN),
and paid to another state or U.S. possession.
Oregon (OR), and Virginia (VA).
California resident individuals, estates, or
Residents of California may claim a credit only
trusts that derived income from sources within
California nonresidents who are residents of
if the income taxed by the other state has a
any of the following states or U.S. possessions
any state or U.S. possession not listed may not
source within the other state under California
and paid a net income tax to that state or U.S.
claim this credit. This credit is not allowed on a
law. No credit is allowed if the other state
possession on income that is also taxed by
California group nonresident tax return.
allows California residents a credit for net
California may claim the other state tax credit:
income taxes paid to California.
California Part-Year
Alabama (AL), American Samoa (AS),
Nonresidents of California may claim a credit
Arkansas (AR), Colorado (CO),
only for net income taxes imposed by and paid
Connecticut (CT), Delaware (DE), District of
California part-year residents:
to their states of residence and only if such
Columbia (DC) (unincorporated business tax
states do not allow their residents a credit for
• Follow the instructions for residents for the
and income tax, the latter for dual residents
net income taxes paid to California.
part of the year that you were a California
only), Georgia (GA), Hawaii (HI), Idaho (ID),
Important: See Sections C, California
Illinois (IL), Iowa (IA), Kansas (KS),
• Follow the instructions for nonresidents
Residents, and D, California Nonresidents,
Kentucky (KY), Louisiana (LA), Maine (ME),
for a list of states and U.S. possessions for
for the part of the year that you were a
Maryland (MD), Massachusetts (MA),
which the other state tax credit is allowed. See
Michigan (MI), Minnesota (MN),
Section H, Income from Sources Within the
Mississippi (MS), Missouri (MO),
Dual-Resident Estates and
Other State, for a description of the source of
Montana (MT), Nebraska (NE), New
various types of income.
Hampshire (NH) (business profits tax),
Beneficiaries of estates or trusts, partners
New Jersey (NJ), New Mexico (NM),
An estate or trust may claim a credit if it is
of partnerships, members of LLCs classified
New York (NY), North Carolina (NC),
treated as a “resident” of California and also as
as partnerships, and shareholders of
North Dakota (ND), Ohio (OH),
a “resident” of another state. For this purpose
S corporations that paid a net income tax to
Oklahoma (OK), Pennsylvania (PA),
an estate or trust is considered a resident of
another state on income that must be reported
Puerto Rico (PR), Rhode Island (RI),
any state that taxes the trust or estate based
to California may also claim the other state tax
South Carolina (SC), Tennessee (TN)
on its net income. An estate or trust will not
credit. See Sections F, Dual-Resident Estates
(excise tax only), Utah (UT), Vermont (VT),
be considered a resident where the other state
and Trusts, and G, Pass-Through Entities, for
Virgin Islands (VI),Virginia (VA) (dual
more information.
residents*), West Virginia (WV), and
Wisconsin (WI).
Page 1 Schedule S Instructions 2016 (REV 02-17)


00 votes

Related Articles

Related forms

Related Categories

Parent category: Financial
Page of 2