Instructions For Schedule Ca (540) - California Adjustments - Residents

Line 18 – Farm Income or (Loss)

f. Other (describe).

Adjustments to federal income or loss you report in column A generally

Identify the type of income reported in the space provided. If there is more

are necessary because of the difference between California and federal law

than one item to report on line 21f, attach a statement that lists each item and

relating to depreciation methods, special credits, and accelerated write-offs.

enter the total of all individual items in column B or column C as instructed

As a result, the recovery period or basis you use to figure California

below.

depreciation may be different from the amount used for federal purposes,

Parents’ Election to Report Child’s Interest and Dividends. California

and you may need to make an adjustment to your farm income or loss. For

conforms to federal law for elections made by parents reporting their child’s

more information, see the instructions for column B and column C, line 12.

interest and dividends. Parents may elect to report their child’s income on

Use form FTB 3801 to figure the total adjustment for line 18 if you have:

their California income tax return by completing form FTB 3803. If you make

• One or more passive activities that produce a loss.

this election, the child will not have to file a tax return. You may report your

• One or more passive activities that produce a loss and any nonpassive

child’s income on your California income tax return even if you do not do so

activity reported on federal Schedule F (Form 1040), Profit or Loss From

on your federal income tax return.

Farming.

If the amount of your child’s income you are reporting on your California

Use form FTB 3885A to figure the total adjustment for line 18 if you have:

income tax return is different than the amount you reported on your federal

• Only nonpassive activities which produce either gains or losses (or

income tax return, enter the difference on line 21f, column B or column C and

combination of gains and losses).

write “FTB 3803” on line 21f. Get form FTB 3803 for more information.

• Passive activities that produce gains.

Reward from a crime hotline. Enter in column B the amount of a reward

Line 19 – Unemployment Compensation

authorized by a government agency received from a crime hotline established

California excludes unemployment compensation from taxable income. Enter

by a government agency or nonprofit organization and that is included in the

on line 19, column B the amount of unemployment compensation shown in

amount on line 21 in column A.

column A.

You may not make this adjustment if you are an employee of the hotline or

Paid Family Leave Insurance (PFL) benefits, also known as Family

someone who sponsors rewards for the hotline.

Temporary Disability Insurance. Payments received from the PFL Program

Federal foreign earned income or housing exclusion. Enter in column C the

are reported on Form 1099-G, Certain Government Payments. Enter on

amount deducted from federal income on Form 1040, line 21.

line 19, column B the amount of PFL payments shown in column A. For more

Beverage container recycling income. Enter in column B the amount of

information, get FTB Pub. 1001.

recycling income included in the amount on line 21 in column A.

Line 20 – Social Security Benefits

Rebates or vouchers from a local water agency, energy agency, or energy

California excludes U.S. social security benefits or equivalent Tier 1 railroad

supplier. California law allows an income exclusion for rebates or vouchers

retirement benefits from taxable income. Enter in column B the amount of

from a local water agency, energy agency, or energy supplier for the purchase

taxable U.S. social security benefits or equivalent Tier 1 railroad retirement

and installation of water conservation appliances and devices. Enter in

benefits shown in column A, line 20(b).

column B the amount of this type of income included in the amount on line 21

Line 21 – Other Income

in column A.

a. California Lottery Winnings. California excludes California lottery

Original issue discount (OID) for debt instruments issued in 1985 and

winnings from taxable income. Enter in column B the amount of California

1986. In the year of sale or other disposition, you must recognize the

lottery winnings included in the federal amount on line 21 in column A.

difference between the amount reported on your federal tax return and

the amount reported for California purposes. Issuers: Enter the difference

Make no adjustment for lottery winnings from other states. They are taxable

between the federal deductible amount and the California deductible amount

by California. California and federal laws allow gambling losses only to the

on line 21f in column B. Holders: Enter the difference between the amount

extent of reported gambling income. If you reduced gambling income for

included in federal gross income and the amount included for California

California lottery income, you may need to reduce the losses included in the

purposes on line 21f in column C.

federal itemized deductions on line 38. Enter these losses on line 41 as a

negative number.

Foreign income of nonresident aliens. Adjust federal income to reflect

worldwide income computed under California law. Enter losses from foreign

b. Disaster Loss Carryover from Form FTB 3805V, Part III, line 6. If you

sources in column B. Enter foreign source income in column C.

have a California disaster loss carryover from your 2012 form FTB 3805V, Net

Operating Loss (NOL) Computation and NOL and Disaster Loss Limitations –

Cost-share payments received by forest landowners. Enter in column B

Individuals, Estates, and Trusts, enter that amount as a positive number in

the cost-share payments received from the Department of Forestry and Fire

column B.

Protection under the California Forest Improvement Act of 1978 or from the

United States Department of Agriculture, Forest Service, under the Forest

c. Federal NOL from Form 1040, line 21. If the amount on line 21 in

Stewardship Program and the Stewardship Incentives Program, pursuant to

column A includes a federal NOL, enter the amount of the federal NOL as a

the Cooperative Forestry Assistance Act.

positive number in column C. Get form FTB 3805V, to figure the allowable

California NOL.

Foreign income. If you excluded income exempted by U.S. tax treaties on

your federal Form 1040 (unless specifically exempt for state purposes), enter

d. NOL Carryover from Form FTB 3805V, Part III, line 5. The allowable NOL

the excluded amount in column C. If you claimed foreign earned income or

carryover under California law is different from the allowable NOL carryover

housing cost exclusion on your federal Form 1040 (under IRC Section 911),

under federal law. If you have a California NOL carryover from your 2012

see the instructions for line 21.

form FTB 3805V, enter it as a positive number in column B.

Compensation for false imprisonment. California excludes compensation

e. NOL from Forms FTB 3805D, FTB 3805Z, FTB 3806, FTB 3807, or

for false imprisonment from income. Enter the amount of compensation on

FTB 3809. Enter in column B the total NOL figured on the following forms.

line 21f, column B.

• FTB 3805D, Net Operating Loss (NOL) Carryover Computation and

Coverdell ESA distributions. If you received a distribution from a Coverdell

Limitation – Pierce’s Disease, line 7, column C

ESA, report only the taxable amount of the distribution on line 21f.

• FTB 3805Z, Enterprise Zone Deduction and Credit Summary, line 5b

• FTB 3806, Los Angeles Revitalization Zone Deduction and Credit

Grants paid to low-income individuals. California excludes grants paid to

Summary, line 3b

low-income individuals to construct or retrofit buildings to make them more

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

energy efficient. Federal has no similar exclusion. Enter on line 21f, column B

Summary, line 5b

the amount of this type of income.

• FTB 3809, Targeted Tax Area Deduction and Credit Summary, line 4b

Page 4 Schedule CA (540) Instructions 2013

Instructions For Schedule Ca (540) - California Adjustments - Residents - 2013 Page 4

Related Articles

Related forms

Related Categories