Instructions For Form 540 - California Resident Income Tax Return

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Instructions: Form 540

Line 62 – Mental Health Services Tax

If you meet all the conditions listed above, you do not need to qualify to use

the head of household filing status for 2013 in order to claim this credit.

If your taxable income is more than $1,000,000, compute the Mental Health

Services Tax using whole dollars only:

Use this worksheet to figure this credit using whole dollars only.

1. Enter the amount from line 19. . . . . . . . . . . . . . . . . . . . .1

1. Taxable income from line 19 . . . . . . . . . . . . . . . . . . 1

2. Credit percentage — 2% . . . . . . . . . . . . . . . . . . . . . . . . .2

.02

2. Less . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

$(1,000,000)

3. Credit amount. Multiply line 1 by line 2.

3. Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Enter the result or $1,272, whichever is less. . . . . . . . . .3

4. Tax rate – 1%. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

.01

5. Mental Health Services Tax – Multiply line 3 by

Credit for Child Adoption Costs — Code 197

line 4. Enter this amount here and on line 62. . . . . . 5

For the year in which an adoption decree or an order of adoption is entered

(e.g., adoption is final), claim a credit for 50% of the cost of adopting a child

Line 63 – Other Taxes and Credit Recapture

who was both:

If you received an early distribution of a qualified retirement plan and were

• A citizen or legal resident of the United States.

required to report additional tax on your federal tax return, you may also

• In the custody of a California public agency or a California political

be required to report additional tax on your California tax return. Get form

subdivision.

FTB 3805P, Additional Taxes on Qualified Plans (including IRAs) and Other

Tax-Favored Accounts. If required to report additional tax, report it on line 63

Treat a prior unsuccessful attempt to adopt a child (even when the costs were

and write “FTB 3805P” to the left of the amount.

incurred in a prior year) and a later successful adoption of a different child as

one effort when computing the cost of adopting the child. Include the following

California conforms to federal law for income received under IRC

costs if directly related to the adoption process:

Section 409A on a nonqualified deferred compensation (NQDC) plan and

discounted stock options and stock appreciation rights. Income received

• Fees for Department of Social Services or a licensed adoption agency.

under IRC Section 409A is subject to an additional 5% tax of the amount

• Medical expenses not reimbursed by insurance.

required to be included in income plus interest. Include the additional tax, if

• Travel expenses for the adoptive family.

any, on line 63. Write “NQDC” on the dotted line to the left of the amount.

Note:

If you used form(s)

• This credit does not apply when a child is adopted from another country

• FTB 3540, Credit Carryover and Recapture Summary

or another state, or was not in the custody of a California public agency

• FTB 3805Z, Enterprise Zone Deduction and Credit Summary

or a California political subdivision.

• FTB 3807, Local Agency Military Base Recovery Area Deduction and

• Any deduction for the expenses used to claim this credit must be reduced

Credit Summary

by the amount of the child adoption costs credit claimed.

• FTB 3808, Manufacturing Enhancement Area Credit Summary

Use the worksheet below to figure this credit using whole dollars only.

• FTB 3809, Targeted Tax Area Deduction and Credit Summary

If more than one adoption qualifies for this credit, complete a separate

Include the additional tax for credit recapture, if any, on line 63. Write the

worksheet for each adoption. The maximum credit is limited to $2,500 per

form number on the dotted line to the left of the amount on line 63.

minor child.

If you are required to recapture any prior year New Home Credit, include the

1. Enter qualifying costs for the child . . . . . . . . . . . . . . . . 1

additional tax on line 63. Write “FTB 3549-A” on the dotted line to the left

2. Credit percentage — 50% . . . . . . . . . . . . . . . . . . . . . . . 2

.50

of the amount on line 63. Get FTB Pub. 3549, New Home/First-Time Buyer

3. Credit amount. Multiply line 1 by line 2.

Credit, for more information.

Do not enter more than $2,500 . . . . . . . . . . . . . . . . . . . 3

Your allowable credit is limited to $2,500 for 2013. Carry over the excess

Payments

credit to future years until the credit is used.

To avoid a delay in the processing of your tax return, enter the correct

Line 46 – Nonrefundable Renter’s Credit

amounts on line 71 through line 74.

If you paid rent for at least six months in 2013 on your principal residence

Line 71 – California Income Tax Withheld

located in California you may qualify to claim the nonrefundable renter’s

Enter the total California income tax withheld from your:

credit which may reduce your tax. Complete the qualification record on

page 19.

• Form(s) W-2, Wage and Tax Statement, box 17

• Form(s) W-2G, Certain Gambling Winnings, box 15

Line 48

• Form(s) 1099-DIV, Dividends and Distributions, box 14

Subtract the amount on line 47 from the amount on line 35. Enter the result

• Form(s) 1099-INT, Interest Income, box 13

on line 48. If the amount on line 47 is more than the amount on line 35,

• Form(s) 1099-MISC, Miscellaneous Income, box 16

enter -0-. If you owe interest on deferred tax from installment obligations,

• Form(s) 1099-OID, Original Issue Discount, box 10

include the additional tax, if any, in the amount you enter on line 48. Write

• Form(s) 1099-R, Distributions from Pensions, Annuities, Retirement, or

“IRC Section 453 interest” or “IRC Section 453A interest” and the amount on

Profit Sharing Plans, IRAs, Insurance Contracts, etc., box 12

the dotted line to the left of the amount on line 48.

Do not include city, local, or county tax withheld, tax withheld by other

Other Taxes

states,or nonconsenting nonresident (NCNR) member’s tax from

Schedule K-1 (568), line 15e. Do not include withholding from Forms 592-B,

Attach the specific form or statement required for each item below.

Resident and Nonresident Withholding Tax Statement, or Form 593, Real

Line 61 – Alternative Minimum Tax (AMT)

Estate Withholding Tax Statement, on this line. For more details, see

instructions for line 73 on page 12.

If you claim certain types of deductions, exclusions, and credits, you may

owe AMT if your total income is more than:

Generally, tax should not be withheld on federal Form 1099-MISC. If you

want to pre-pay tax on income reported on federal Form 1099-MISC, use

• $84,640 married/RDP filing jointly or qualifying widow(er)

Form 540-ES, Estimated Tax for Individuals.

• $63,481 single or head of household

• $42,319 married/RDP filing separately

Line 72 – 2013 CA Estimated Tax and Other Payments

A child under age 19 or a student under age 24 may owe AMT if the sum of

Enter the total of any:

the amount on line 19 (taxable income) and any preference items listed on

Schedule P (540) and included on the return is more than the sum of $7,150

• California estimated tax payments you made using 2013 Form 540-ES,

and the child’s earned income.

electronic funds withdrawal, Web Pay, or credit card.

• Overpayment from your 2012 California income tax return that you

AMT income does not include income, adjustments, and items of tax

applied to your 2013 estimated tax.

preference related to any trade or business of a qualified taxpayer who has

• Payment you sent with form FTB 3519, Payment for Automatic Extension

gross receipts, less returns and allowances, during the taxable year of less

for Individuals.

than $1,000,000 from all trades or businesses.

• California estimated tax payments made on your behalf by an estate,

Get Schedule P (540) for more information. See “Order Forms and

trust, or S corporation on Schedule K-1 (541) or Schedule K-1 (100S).

Publications” on page 67.

Personal Income Tax Booklet 2013 Page 11

Instructions For Form 540 - California Resident Income Tax Return - 2013 Page 5

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