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Before you begin Part III:

Section B1 Instructions

• Complete Form 540 through line 35.

Line 14 through Line 17 – If you have any of the credits listed in this

• Figure the amount of your credits using the credit form or worksheet

section, complete column (a) through column (c) for each credit in the

identified on the Credit Table on page 8. Attach the credit form to your

order listed.

Form 540, if applicable.

Section B2 Instructions

To complete Part III:

Line 18 through Line 21 – Follow the Credit Table Instructions to find

• Complete line 1 through line 3 to figure the amount of excess tax you

out in which section to claim your credit. Then complete column (a)

may offset by credits.

through column (d) for each credit in each section before going to the

• Identify which sections of Part III you may use to take your tax credits.

next section.

Credits without carryover provisions are listed on Schedule P (540) in

Generally it is to your advantage to apply credits with limited carryovers

Section A1, Section B1, and Section B3 and may be taken only in these

before credits with no limitation on carryover. However, you may apply

sections. See the Credit Table on page 8 for a list of credits. This table

credits with no limitation on carryover first, if that is to your advantage.

identifies the sections of Part III in which you may take these credits.

Section B3 Instructions

• If you have credits in Section B, complete line 13 in addition to the

Line 22 – If you have other state tax credit, complete column (a) through

lines for your credits.

column (c). Get Schedule S, Other State Tax Credit, for more information.

• Enter the credit code and the credit name in the space provided. Refer

to the Credit Table on page 8 for the credit code.

Section C Instructions

• Complete column (a) through column (d) for each line on which you

Line 24 and Line 25 – If you have any of the credits listed in this section,

are taking a credit. Refer to “Column Instructions.”

complete column (a) through column (d) for each credit in the order listed.

• If your credits are taken in more than one section, complete each

Column Instructions

section before going to the next section.

• Once you complete Part III, see “How to Claim Your Credits.”

In column:

Section A Instructions

(a) Enter the amount of credit available to offset tax.

(b) Figure the amount of credit you are able to use this year by entering

Line 3 – Subtract line 2 from line 1. If the amount is zero or less than

the smaller of the amount in column (a) or the amount in column (c)

zero, go to question 1. If the amount is more than zero, go to Section A1

from a previous line.

Instructions.

1. Does the Credit Table show that you may take your credit ONLY in

by subtracting the amount in column (b) from the balance in

Section A1 or Section A2?

column (c) of a previous line.

Yes

You may not take the credit this year. Go to question 2.

(d) Enter the amount of credit carryover available to use in future

years by subtracting the amount in column (b) from the amount in

Go to Section B to figure the amount of credit you may take

column (a).

this year. Then go to Section C if the Credit Table shows that

you may also take your credit in Section C.

How to Claim your Credits

2. Does the credit have carryover provisions?

Claim your credits on Line 4 through Line 12, Line 14 though Line 16,

and Line 18 through Line 22 by transferring them to Form 540 as

Yes

Enter the credit code, credit name, and credit amount in

follows:

column (a) of the section indicated by the table. Enter -0- in

column (b). Enter the credit amount in column (d). This is

• If you are claiming the New Jobs Credit, enter the amount of the credit

the amount of the credit you may carry over and use in future

from column (b) on Form 540, line 42, and form FTB 3527, line 22a.

years.

• If you claim one or two other credits, enter the name, code and amount

of the credit from column (b) on Form 540 line 43 and/or line 44.

You may not take the credit this year or in future years.

• If you have more than two credits to claim from Section A or

The prior year AMT credit must be applied before any credits that can

Section B, add the amounts from column (b) for those credits. Enter

reduce regular tax below the TMT.

the total on Form 540, line 45.

Section A1 Instructions

Line 7 Nonrefundable Child and Dependent Care Expenses Credit

Line 4 through Line 7 – If you have any of the credits listed in this section,

– Enter the total amount of the credit from column (b), Section A1 on

complete column (a) through column (c) for each credit in the order listed.

Form 540, line 40.

Section A2 Instructions

Line 17 Nonrefundable Renter’s Credit – Enter the total amount of

Line 8 through Line 12 – Follow the Credit Table Instructions to find out

nonrefundable renter’s credit from column (b), Section B1 on Form 540,

in which section to claim your credit. Then complete column (a) through

line 46.

column (d) for each credit in each section before going to the next section.

Credit Table Instructions

If claiming the New Jobs Credit, enter the amount from FTB 3527 line 21,

1. Find your credits in the Credit Table on page 8.

Total available jobs credit in column (a).

2. See which sections are identified under “Offset Tax in Section.”

3. Take the credit only in the sections the Credit Table identifies for your

credit.

4. Use the credit in the earliest section possible.

5. Complete each section before going to the next section.

Schedule P (540) Instructions 2013 Page 7

Instructions For Schedule P (540) - Alternative Minimum Tax And Credit Limitations - Residents - 2013 Page 7

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