Instructions For Form 540 - California Resident Income Tax Return

Instructions: Form 540

e-file at ftb.ca.gov

Line 75

To view payments made or get your current account balance,

✓

Tip

For the Claim of Right credit, follow the reporting instructions in

go to ftb.ca.gov and search for myftb account.

Schedule CA (540), line 41 under the Claim of Right.

Claim of Right: If you are claiming the tax credit on your California tax return,

If you and your spouse/RDP paid joint estimated taxes but are now filing

include the amount of the credit in the total for this line. Write in “IRC 1341”

separate income tax returns, either of you may claim the entire amount paid,

and the amount of the credit to the left of the amount column.

or each may claim part of the joint estimated tax payments. If you want the

estimated tax payments to be divided, notify the FTB before you file the tax

To determine if you are entitled to this credit, refer to your prior year

returns so the payments can be applied to the proper account. The FTB will

California Form 540, Form 540NR (Long or Short), or Schedule CA (540

accept in writing, any divorce agreement (or court-ordered settlement) or

or 540NR) to verify the amount was included in your CA taxable income.

a statement showing the allocation of the payments along with a notarized

If the amount repaid under a “Claim of Right” was not originally taxed by

signature of both taxpayers.

California, you are not entitled to claim the credit.

Send statements to:

Overpaid Tax or Tax Due

JOINT ESTIMATED CREDIT ALLOCATION MS F225

TAXPAYER SERVICES CENTER

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

FRANCHISE TAX BOARD

line 91 through line 94.

PO BOX 942840

SACRAMENTO, CA 94240-0040

Line 91 – Overpaid Tax

If the amount on line 75 is more than the amount on line 64, your payments

If you or your spouse/RDP made separate estimated tax payments, but are

now filing a joint income tax return, add the amounts you each paid. Attach

and credits are more than your tax. Subtract the amount on line 64 from the

a statement to the front of Form 540 explaining that payments were made

amount on line 75. Enter the result on line 91.

under both SSNs.

✓

You do not have to make estimated tax payments if you are a nonresident or

Tip

Choose e-file and Direct Deposit and get your refund faster.

new resident of California in 2014 and did not have a California tax liability in

2013.

Line 92 – Amount You Want Applied to Your 2014

Line 73 – Real Estate and Other Withholding

Estimated Tax

Enter the total of California withholding from Form 593, Real Estate

Apply all or part of the amount on line 91 to your estimated tax for 2014.

Withholding Tax Statement, and Form 592-B, Resident and Nonresident

Enter on line 92 the amount of line 91 that you want applied to your 2014

Withholding Tax Statement. Attach a copy of Form(s) 593 and 592-B to the

estimated tax.

lower front of Form 540, Side 1.

An election to apply an overpayment to estimated tax is binding. Once the

Caution: Do not include withholding from federal Form(s) W-2, W-2G, or

election is made, the overpayment cannot be applied to a deficiency after the

1099, or NCNR member’s tax from Schedule K-1 (568), line 15e on this line.

due date of the tax return.

Line 74 – Excess California SDI (or VPDI) Withheld

Line 93 – Overpaid Tax Available This Year

You may claim a credit for excess State Disability Insurance (SDI) or

If you entered an amount on line 92, subtract it from the amount on line 91.

Voluntary Plan Disability Insurance (VPDI) if you meet all of the following

Enter the result on line 93. Choose to have this entire amount refunded

conditions:

to you, make contributions to the California Seniors Special Fund (see

• You had two or more California employers during 2013.

page 23), or make other voluntary contributions from this amount.

• You received more than $100,880 in wages.

Line 94 – Tax Due

• The amounts of SDI (or VPDI) withheld appear on your Form(s) W-2. Be

If the amount on line 75 is less than the amount on line 64, subtract the

sure to attach your Form(s) W -2 to the lower front of your Form 540.

amount on line 75 from the amount on line 64. Enter the result on line 94.

If SDI (or VPDI) was withheld from your wages by a single employer, at

Your tax is more than your payments and credits.

more than 1.0% of your gross wages, you may not claim excess SDI (or

There is a penalty for not paying enough tax during the year. You may have

VPDI) on your Form 540. Contact the employer for a refund.

to pay a penalty if:

To determine the amount to enter on line 74, complete the Excess SDI (or

• The tax due on line 94 is $500 or more ($250 or more if married/RDP

VPDI) Worksheet below. If married/RDP filing jointly, figure the amount of

filing separately).

excess SDI (or VPDI) separately for each spouse/RDP.

• The amount of state income tax withheld on line 71 is less than 90% of

the amount of your total tax on line 64.

Excess SDI (or VPDI) Worksheet

If this applies to you, see instructions on line 113.

Use whole dollars only.

Increasing your withholding could eliminate the need to make a large

Follow the instructions below to figure the amount of income tax to enter

payment with your tax return. To increase your withholding, complete EDD

on Form 540, line 74. If you are married/RDP and file a joint return, you

Form DE 4, Employee’s Withholding Allowance Certificate, and give it to your

must figure the amount of excess SDI (or VPDI) separately for each

employer’s appropriate payroll staff. Get this form from your employer or by

spouse/RDP.

calling EDD at 888.745.3886. Download the DE 4 at edd.ca.gov or to use

Your

the online calculator, go to ftb.ca.gov and search for de 4.

You

Spouse/RDP

1. Add amounts of SDI (or VPDI) withheld

Form DE 4 specifically adjusts your California state withholding and is not

shown on your Forms W-2.

the same as the federal Form W-4, Employee’s Withholding Allowance

Enter the total here . . . . . . . . . . . . . . . . . . . .1

Certificate.

$1,008.80

2. 2013 SDI (or VPDI) limit. . . . . . . . . . . . . . . .2

Use Tax

3. Excess SDI (or VPDI) withheld. Subtract

Line 95 – Use Tax. This is not a total line.

line 2 from line 1. Enter the results here.

Combine the amounts on line 3 and enter

You may owe use tax if you make purchases from out of state retailers

the total, in whole dollars only on line 74 . .3

(for example, purchases made by telephone, over the Internet, by mail, or

in person) where sales or use tax was not paid and you use those items

If zero or less, enter -0- on line 74.

in California. If you have questions about whether a purchase is taxable,

go to the State Board of Equalization’s website at boe.ca.gov, or call their

Customer Service Center at 800.400.7115 or California Relay Service (CRS)

711 (for hearing and speech disabilities.)

Page 12 Personal Income Tax Booklet 2013

Instructions For Form 540 - California Resident Income Tax Return - 2013 Page 6

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