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