Instructions For Schedule S - 2016 (Page 2 of 2) in pdf

is taxing the entity solely because of income

• Income from tangible personal property and

In column (c), enter only the amount of

sourced in the other taxing state. The credit is

real estate has a source where the property

double-taxed income that is included in

limited to:

is located.

adjusted gross income taxed by your state of

• Income from intangible personal property

residence.

1. The proportion of the tax paid to the

(such as interest and dividends) generally

other state by the estate or trust that the

Line 1 – Combine the amounts in column (b)

has a source where the owner resides.

double-taxed income bears to the total

and column (c). Enter the totals on this line

• Business income has a source where the

income taxed by the other state.

and in Part II, line 3, and line 8 respectively.

benefit of the services are received.

2. The proportion of the estate’s or trust’s

Part II – Figure Your Other State

California tax that the double-taxed income

Those persons subject to tax as California

Tax Credit

bears to the total income taxed by California.

residents solely by reason of the R&TC

Section 17014(b) (holders of federal elective

Beneficiary of an Estate or Trust

Line 2 – Enter your California tax liability from:

offices, certain Presidential appointees, and

A beneficiary of an estate or trust who is a

• Residents – Form 540, line 48 (without

Congressional staff members) may base their

California resident and pays California tax on

other state tax credit).

credit computation on income taxed by the

income that has been taxed to the estate or

• Nonresidents – Long Form 540NR, line 63

other state, regardless of its source.

trust in another state may also claim the credit.

(without other state tax credit).

Get FTB Pub. 1031, Guidelines for Determining

The credit is limited to both of the following:

• Estates and Trusts – Form 541, line 25

Resident Status, for additional information

1. The proportion of the tax paid to the other

(without other state tax credit).

concerning source income.

state by the estate or trust that income taxed

Line 4 – Enter your California adjusted gross

• Internet – You can download, view, and

to the beneficiary in California and also to

income from:

print California tax forms and publications

the estate or trust in the other state bears to

• Residents – Form 540, line 17, and any

at ftb.ca.gov.

the total income taxed by the other state.

lump-sum distribution from Schedule G-1,

• Phone – Call 800.338.0505, and follow

2. The proportion of the beneficiary’s California

Tax on Lump-Sum Distributions.

the recorded instructions. Enter code 941

tax that the income taxed to the beneficiary

• Nonresidents – Long Form 540NR, line 32,

when instructed to do so. Allow two weeks

in California and also to the estate or trust

and any California source lump-sum

to receive your order. If you live outside

in the other state bears to the beneficiary’s

distribution from Schedule G-1.

California, please allow three weeks to

total income taxed by California.

• Estates and Trusts – Enter your adjusted

receive your order.

Attach a copy of Schedule K-1 (541),

gross income determined for purposes of

• Mail –

Beneficiary’s Share of Income, Deductions,

the 2% limitation of your miscellaneous

TAX FORMS REQUEST UNIT

Credits, etc., and a schedule showing your share

itemized deductions. See Form 541, line

FRANCHISE TAX BOARD

of the net income tax paid to the other state.

15b instructions.

PO BOX 307

Pass-Through Entities

Line 7 – Enter the income tax liability net of all

RANCHO CORDOVA CA 95741-0307

credits (R&TC Section 17039) paid to the other

A shareholder of an S corporation is allowed a

state. Do not include any of the following:

Specific Line Instructions

credit for the shareholder’s share of net income

• Taxes paid to any local government, such

taxes paid by the S corporation to another

as a city or county.

Credit from more than one state – If you have

state that either does not allow S corporation

• Taxes paid to the federal government.

a credit from more than one state, figure the

elections or imposes tax on S corporations

• Taxes paid to any foreign country.

credit separately by completing a separate

and the S corporation elected to be treated as

• Any tax comparable to California’s alternative

Schedule S for each state. Add the credits from

an S corporation in the other state. A partner

minimum tax paid to another state.

each state’s Schedule S, line 12 and enter the

is allowed a credit for the partner’s share of

• Tax on net passive income, built in gains

total on your tax return. See instructions for

net income taxes paid by the partnership to

tax, gross income tax, and any special tax

line 12. You must attach the schedules to your

another state. A member of an LLC classified

paid to another state (S corporation).

tax return.

as a partnership is allowed a credit for the

member’s distributive share of net income

Line 9 – Adjusted gross income taxed by the

Part I – Double-Taxed Income

taxes paid by the LLC to another state.

other state:

Double-taxed income is income taxed by

Attach a copy of Schedule K-1 (100S, 565, or

• Residents – Enter only those items of

California and the other state. In Part I, provide

568), Share of Income, Deductions, Credits,

total adjusted gross income taxed by the

a breakdown of your double-taxed income

etc., and a schedule showing your share of the

other state.

by income item and amount. In column (a),

net income tax paid to the other state.

• Nonresidents – Enter total adjusted gross

identify the income item, such as wages earned

income taxed by the other state.

Income from Sources Within

in another state while a California resident, gain

• Estates and Trusts – Enter only those items

on sale of real estate, ABC Partnership ordinary

the Other State

of total adjusted gross income taxed by the

income, etc. In column (b), enter the amount

other state.

Residents of California may claim a credit

of income from that item taxed by California. In

Generally, adjusted gross income includes all

for net income taxes imposed by and paid

column (c), enter the amount of income from

items of income and loss but does not include

to another state only on income which has a

that item taxed by the other state.

itemized deductions, standard deduction,

source within the other state.

For residents of California, the income that

deductions for federal income taxes, or

For this purpose, California’s sourcing

is taxed by the other state must also have

personal exemptions.

principles apply even though the results may

a source in the other state. See Section H,

Line 12 – Refer to the credit instructions in

be contrary to the other states’ principles. The

Income from Sources Within the Other State,

your California Tax booklet for an explanation

following describes the sources of various

for a description of the source of various types

of how to:

types of income:

of income.

• Claim this credit on your tax return.

• Compensation for services rendered by

Nonresidents of California should enter in

• See if there are further limitations on the

employees has a source where the services

column (b) only the amount of double- taxed

amount of credit you may claim.

are performed.

income that is included in Schedule CA (540NR),

• Compensation for services rendered by

Use credit code 187 when you claim this credit.

California Adjustments — Nonresidents

independent contractors has a source where

or Part-Year Residents, line 37, column E.

the benefit of the services are received.

Schedule S Instructions 2016 (REV 02-17) Page 2

Instructions For Schedule S - 2016 Page 2

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