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enter -0-.

3. You were a full-time student over age 18 and under age 24 at the end

of 2013 and did not have earned income that was more than half of

Line 18 – Itemized deductions limitation

your support.

If you itemized deductions and your federal AGI is more than the amount

shown on line 18, your itemized deductions were limited for regular tax.

If condition 1, 2, or 3 applies to you, complete the Exemption Worksheet,

For AMT, this limitation does not apply. Enter the amount from line 9 of

including lines 7 through 10, to figure the amount to enter on line 22.

the Itemized Deductions Worksheet in the instructions for Schedule CA

Do not complete this worksheet if the child filed a joint tax return for

(540), Part II, line 43.

2012 or if both parents were deceased at the end of 2013.

Line 20 – AMT Net Operating Loss (NOL) Deduction

Certain January 1 Birthdays. If you were born on January 1, 1996, you

NOLs incurred in taxable years beginning on or after January 1, 2013,

are considered to be 18 at the end of 2013. Your exemption amount is

shall be carried back to each of the preceding two taxable years. For more

limited only if you did not have earned income that was more than half of

information, see What’s New section.

your support.

Any taxpayer entitled to a carryback period pursuant to IRC Section

If you were born on January 1, 1995, you are considered to be 19 at the

172(b)(3) may elect to relinquish/waive the entire carryback period

end of 2013. Your exemption amount is limited only if you were a full-

with respect to an NOL incurred in the 2013 taxable year. By making

time student who did not have earned income that was more than half of

the election, the taxpayer is electing to carry an NOL forward instead of

your support.

carrying it back in the previous two years. Get form FTB 3805V for more

If you were born on January 1, 1990, you are considered to be 24 at the

information.

end of 2013. Your exemption amount is not limited.

If you are carrying over an NOL from a prior year, refigure your NOL

Exemption Worksheet

deduction for AMT purposes as follows:

If line 21 (AMTI) is equal to or more than: $491,975 if single or head of

Step 1

AMT NOL for prior year: For the year the loss was incurred,

household; $655,961 if married/RDP filing jointly or qualifying widow(er);

complete another form FTB 3805D, Net Operating Loss (NOL)

$327,976 if married/RDP filing separately, your exemption amount is

Carryover Computation and Limitation – Pierce’s Disease;

zero. Do not complete this worksheet; instead, enter -0- on line 22.

FTB 3805V, Net Operating Loss (NOL) Computation and NOL

1. Enter $63,481 if single or head of household; $84,640

and Disaster Loss Limitations - Individuals, Estates, and Trusts;

if married/RDP filing jointly or qualifying widow(er);

FTB 3805Z, Enterprise Zone Deduction and Credit Summary;

$42,319 if married/RDP filing separately . . . . . . . . . . . . 1 ________

FTB 3806, Los Angeles Revitalization Zone Deduction and Credit

Summary; FTB 3807, Local Agency Military Based Recovery

2. Enter your AMTI from Schedule P (540),

Area Deduction and Credit Summary; or FTB 3809, Targeted Tax

Part I, line 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 ________

Area Deduction and Credit Summary, using your AMT income

3. Enter $238,051 if single or head of household;

and expense amounts rather than the regular tax amounts.

$317,401 if married/RDP filing jointly or qualifying

Step 2

AMT NOL carryover to the current year: If you incurred the

widow(er); $158,700 if married/RDP filing separately . . 3 ________

NOL in 2012, the amount of the carryover is the amount

4. Subtract line 3 from line 2. If zero or less, enter -0-. . . . 4 ________

figured in Step 1. Otherwise, the amount of the carryover is

5. Multiply line 4 by 25% (.25). . . . . . . . . . . . . . . . . . . . . . 5 ________

the amount from Step 1 minus the amounts used for AMT

purposes in all preceding carryover years.

6. Subtract line 5 from line 1. If zero or less, enter -0-.

If any of the three conditions under “Certain Children

Step 3

AMT NOL deduction for the current year: Enter on line 20 the

Under Age 24” apply to you, go to line 7. Otherwise,

lesser of the NOL carryover from Step 2 or 90% of the amount

enter this amount on Schedule P (540), Part II,

on line 19.

line 22 and complete Schedule P (540) . . . . . . . . . . . . . 6 ________

For more information, get form FTB 3805V.

7. Minimum exemption amount for certain children

Line 21 – Alternative minimum taxable income (AMTI)

under age 24. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

$7,150

Married/RDP taxpayers filing separate returns complete the following

8. Enter your earned income, if any. Refer to the

worksheet if line 21 is more than $327,976.

instructions for federal Form 6251 for more

1. Enter the amount from Schedule P (540),

information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 ________

Part I, line 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 ________

9. Add line 7 and line 8. . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 ________

2. Maximum exemption amount . . . . . . . . . . . . . . . . . . . . . 2 $327,976

10. Enter the smaller of line 6 or line 9 here and on

3. Subtract line 2 from line 1 . . . . . . . . . . . . . . . . . . . . . . . . 3 ________

Schedule P (540), Part II, line 22 . . . . . . . . . . . . . . . . . . 10 _______

4. Multiply line 3 by 25% (.25) . . . . . . . . . . . . . . . . . . . . . . 4 ________

5. Enter the smaller of line 4 or $42,319 . . . . . . . . . . . . . . . 5 ________

Line 23 – If the line 23 result is zero or less, enter -0- on line 23 and

6. Add line 1 and line 5. Enter the result here and replace

line 24. Go to line 25.

the amount on Schedule P (540), Part I, line 21,

with this amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 ________

Line 25 – Regular tax before credits

Enter on this line your regular tax from Form 540, line 31.

Part II Alternative Minimum Tax

Part III Credits That Reduce Tax

Line 22 – Exemption Amount

If line 21 is more than the amount shown for your filing status in

Complete Part III only if you have tax credits.

the middle column of the chart on line 22, complete the Exemption

Use Part III to determine the following:

Worksheet in the next column to figure the amount to enter on line 22.

• Amount of credit that may be used to offset tax.

Certain Children Under Age 24

• Tax that may be offset.

Your exemption amount is limited to the amount of your earned income

• Amount of credit, if any, that may be carried over to future years.

plus $7,150 if condition 1, 2, or 3 below applies to you.

• Order in which to claim credits, if you have more than one credit to

1. You were under age 18 at the end of 2013.

claim.

2. You were age 18 at the end of 2013 and did not have earned income

that was more than half of your support.

Page 6 Schedule P (540) Instructions 2013

Instructions For Schedule P (540) - Alternative Minimum Tax And Credit Limitations - Residents - 2013 Page 6

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