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

Health savings account (HSA) distributions for unqualified medical

Student Loan Interest Deduction Worksheet

expense. Distributions from an HSA not used for qualified medical expenses,

1 Enter the total amount from Schedule CA (540),

and included in federal income, are not taxable for California purposes. Enter

line 33, column A. If the amount on line 1 is zero,

the distribution not used for qualified medical expenses on line 21f, column B.

STOP. You are not allowed a deduction for California . . . . .1_________

California National Guard Surviving Spouse & Children Relief Act of 2004.

2 Enter the total interest you paid in 2013

Death benefits received from the State of California by a surviving spouse/RDP

on qualified student loans but not more than $2,500 here . .2_________

or member-designated beneficiary of certain military personnel killed in the

3 From Form 1040, add line 33

performance of duty is excluded from gross income. Military personnel include

(student loan interest deduction) to

the California National Guard, State Military Reserve, or the Naval Militia. If you

line 37 (AGI). Enter the result here . . . . . . 3 _________

reported a death benefit on line 21, column A, enter the death benefit amount

4 Enter the total military income

in column B.

included in federal adjusted gross

Ottoman Turkish Empire settlement payments. If you received settlement

income (get FTB Pub. 1032) . . . . . . . . . . . 4 _________

payments as a person persecuted by the regime that was in control of the

5 Subtract line 4 from line 3. . . . . . . . . . . . . 5 _________

Ottoman Turkish Empire from 1915 until 1923 your gross income does not

6 Enter the amount shown below for

include those excludable settlement payments, or interest, received by you,

your filing status.

your heirs, or your estate for payments received on or after January 1, 2005.

}

• Single, head of household, or

If you reported settlement payments on line 21, column A, enter the amount

qualifying widow(er) – $60,000

of settlement payments in column B.

• Married/RDP filing jointly – $120,000

6 _________

Mortgage forgiveness debt relief. California law does not conform to federal

7 Is the amount on line 5 more than the

law regarding the discharge of indebtedness from the disposition of your

amount on line 6?

principal residence occurring on or after January 1, 2013. Enter the amount

m No. Skip lines 7 and 8, enter -0- on

of discharge on line 21f, column C.

line 9, and go to line 10.

Line 22 – Total

m Yes. Subtract line 6 from line 5 . . . . . . 7 _________

Add line 7 through line 21f in column B and column C. Enter the totals on

8 Divide line 7 by $15,000 ($30,000 if married/RDP filing

line 22.

jointly). Enter the result as a decimal (rounded to at least

three places). If the result is 1.000 or more, enter 1.000 . .8 _ . _ _ _ _

Line 23 through Line 31a and Line 32 through Line 35 – California law is the

same as federal law with the exception of the following:

9 Multiply line 2 by line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . .9_________

10 Student loan interest deduction. Subtract line 9

• Line 23 (Educator Expenses) – California does not conform to federal law

from line 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10_________

regarding educator expenses. Enter the amount from column A, line 23 to

column B, line 23.

11 Student loan interest adjustment. If line 1 is less than

line 10, enter the difference here and

• Line 24 (Certain Business Expense of Reservists, Performing Artists, and

on Schedule CA (540), line 33, column C.. . . . . . . . . . . . .11_________

Fee Basis Government Officials) – If claiming a depreciation deduction

as an unreimbursed employee business expense on federal Form 2106,

• Line 34 (Tuition and Fees) – California does not conform to federal law

Employee Business Expenses, or Form 2106-EZ, Unreimbursed Employee

regarding the tuition and fees deduction. Enter the amount from column A,

Business Expenses, you may have an adjustment in column B or column C.

line 34 to column B, line 34.

For more information, get FTB Pub. 1001.

• Line 35 (Domestic Production Activities Deduction) – California does not

• Line 25 (Health Savings Account (HSA) Deduction) – Federal law allows

conform to the federal law regarding the domestic production activities

a deduction for contributions to an HSA account. California does not

deduction. Enter the amount from column A, line 35, to column B, line 35.

conform to this provision. Transfer the amount from column A, line 25, to

Line 36 – Add line 23 through line 31a and line 32 through line 35 in

column B, line 25.

column B and column C.

• Line 31a (Alimony Paid) – Enter the SSN or ITIN and last name of the

If you claimed the foreign housing deduction, include that amount in the

person to whom you paid alimony.

total you enter in column B, line 36. Enter the amount and “Form 2555” or

If you are a nonresident alien and did not deduct alimony on your federal

“Form 2555-EZ” on the dotted line next to line 36.

tax return, enter the amount you paid in column C.

If you are active duty military and not domiciled in California and your

• Line 32 (IRA Deduction) – If you are an active duty military servicemember

IRA deduction was limited because of a federal AGI limitation, recalculate

domiciled outside of California, you may have an adjustment. See line 36.

your deduction excluding your active duty military pay. If the recalculated

• Line 33 (Student Loan Interest Deduction) – California conforms to federal

amount is larger than the amount on line 32, column A, enter the difference

law regarding student loan interest deduction except for a spouse/RDP of a

between the two amounts in column C, line 36. Enter the amount and “MPA

non-California domiciled military taxpayer residing in a community property

Adjustment” on the dotted line next to line 36.

state. Use the Student Loan Interest Deduction Worksheet to compute the

Line 37 – Total

amount to enter on line 33. For more information, get FTB Pub. 1032.

Subtract line 36 from line 22 in column B and column C.

Also, transfer the amount from:

• Line 37, column B to Form 540, line 14

If column B is a negative number, transfer the amount as a positive number to

Form 540, line 16.

• Line 37, column C to Form 540, line 16

If column C is a negative number, transfer the amount as a positive number to

Form 540, line 14.

Schedule CA (540) Instructions 2013 Page 5

Instructions For Schedule Ca (540) - California Adjustments - Residents - 2013 Page 5

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