Instructions for Schedule P (540NR)
Alternative Minimum Tax and Credit Limitations — Nonresidents or Part-Year Residents
References in these instructions are to the Internal Revenue Code (IRC) as of January 1, 2009, and to the California Revenue and Taxation Code (R&TC).
2010 New Home Credit – To claim the New Home Credit of 2010
you must have received a Certificate of Allocation from Franchise Tax
Net Operating Loss (NOL) Carryback – NOLs incurred in taxable years
Board (FTB). The credit was available if you purchased a qualified
beginning on or after January 1, 2013, shall be carried back to each of
principal residence on or after January 1, 2011, and before August
the preceding two taxable years.
1, 2011, pursuant to an enforceable contract executed on or before
The allowable NOL carryback percentage varies. For an NOL incurred in
December 31, 2010. For more information, go to ftb.ca.gov and search
a taxable year beginning on or after:
for home credit or get FTB Pub 3549, New Home/First-Time Buyer
• January 1, 2013, and before January 1, 2014, the carryback amount
shall not exceed 50% of the NOL.
Registered Domestic Partners (RDPs)
• January 1, 2014, and before January 1, 2015, the carryback amount
Under California law, RDPs must file their California income tax returns
shall not exceed 75% of the NOL.
using either the married/RDP filing jointly or married/RDP filing
• January 1, 2015, the carryback amount shall be 100% of the NOL.
separately filing status. RDPs have the same legal benefits, protections,
and responsibilities as married couples unless otherwise specified.
Individuals, Estates, and Trusts compute the NOL carryback in Part IV of
form FTB 3805V, Net Operating Loss (NOL) Computation and NOL and
If you entered into a same sex legal union in another state, other than
Disaster Loss Limitations – Individuals, Estates, and Trusts. For more
a marriage, and that union has been determined to be substantially
information, get form FTB 3805V.
equivalent to a California registered domestic partnership, you are
required to file a California income tax return using either the
married/RDP filing jointly or married/RDP filing separately filing status.
In general, for taxable years beginning on or after January 1, 2010,
For purposes of California income tax, references to a spouse, husband,
California law conforms to the Internal Revenue Code (IRC) as of
or wife also refer to a California RDP, unless otherwise specified.
January 1, 2009. However, there are continuing differences between
When we use the initials RDP they refer to both a California registered
California and federal law. When California conforms to federal tax law
domestic “partner” and a California registered domestic “partnership,”
changes, we do not always adopt all of the changes made at the federal
as applicable. For more information on RDPs, get FTB Pub. 737, Tax
level. For more information, go to ftb.ca.gov and search for conformity.
Information for Registered Domestic Partners.
Additional information can be found in FTB Pub. 1001, Supplemental
New Jobs Credit – For taxable years beginning on or after
Guidelines to California Adjustments, the instructions for California
January 1, 2009, and before January 1, 2014, a new jobs credit is
Schedule CA (540 or 540NR), and the Business Entity tax booklets.
allowed for a qualified employer in the amount of $3,000 for each
The instructions provided with California tax forms are a summary of
qualified full-time employee hired during the taxable year. For more
California tax law and are only intended to aid taxpayers in preparing
information, go to ftb.ca.gov and search for new jobs or get FTB 3527,
their state income tax returns. We include information that is most
New Jobs Credit.
useful to the greatest number of taxpayers in the limited space available.
Nonresident and Part-Year Resident
It is not possible to include all requirements of the California Revenue
For taxable years beginning on or after January 1, 2002, California law
and Taxation Code (R&TC) in the tax booklets. Taxpayers should not
changed to clarify the method used to calculate loss carryovers, deferred
consider the tax booklets as authoritative law.
deductions, and deferred income for nonresident and part-year resident
Specific differences between California and federal law are noted in the
taxpayers. This changed the tax computation to recognize those items,
instructions under the applicable line items.
and established a new method to determine percentages for computing
tax for all nonresidents and part-year residents. The nonresident tax
Child and Dependent Care Expenses Credit – For taxable years
forms (Long and Short Form 540NR) were revised to more clearly
beginning on or after January 1, 2011 the child and dependent care
show that nonresidents pay tax to California only on their California
expenses credit is nonrefundable.
taxable income. For more information, get FTB Pub. 1100, Taxation of
California Motion Picture and Television Production Credit – For
Nonresidents and Individuals Who Change Residency.
taxable years beginning on or after January 1, 2011, a California motion
picture and television production credit is allowed to a qualified taxpayer.
Servicemembers domiciled outside of California, and their spouses/
The credit is allocated and certified by the California Film Commission
RDPs, may exclude the servicemember’s military compensation from
(CFC). The qualified taxpayer can:
gross income when computing the tax rate on nonmilitary income.
• Offset the credit against income tax liability.
They may also exclude the spouse’s income from services performed in
• Sell the credit to an unrelated party (independent films only).
California if the spouse/RDP has the same residence or domicile as the
• Assign the credit to an affiliated corporation.
military servicemember and the spouse is in California to be with the
• Apply the credit against qualified sales and use taxes.
servicemember. Requirements for military servicemembers domiciled
For more information, get form FTB 3541, California Motion Picture
in California remain unchanged. Military servicemembers domiciled in
and Television Production Credit, form FTB 3551, Sale of Credit
California must include their military pay in total income. In addition,
Attributable to an Independent Film, or go to ftb.ca.gov and search for
they must include their military pay in California source income when
stationed in California. However, military pay is not California source
income when a servicemember is permanently stationed outside of
Tax Computation for Certain Children with Investment Income – For
California. For more information, get FTB Pub. 1032, Tax Information for
taxable years beginning on or after January 1, 2010, California conforms
to the provision of the Small Business and Work Opportunity Tax Act of
2007 which increased the age of children to 18 and under or a student
Estimated Tax Payments
under age 24 for elections made by parents reporting their child’s
Alternative Minimum Tax (AMT) is required to be included in the
interest and dividends.
computation of the estimated tax payments in order to meet a safe
harbor from the underpayment of estimated tax penalty.
Schedule P (540NR) Instructions 2013 Page 1