- The child had gross income of $4,300 or more;
- The child filed a joint return, or
- You could be claimed as a dependent on someone else’s return.
If the child isn’t claimed as your dependent, enter the child’s name in the entry space under the “Qualifying widow(er)” filing status.
Which Form To Use
Beginning in tax year 2019, Short Form 540NR, has been eliminated. Use Form 540NR if either you or your spouse/RDP were a nonresident or part-year resident in tax year 2021.
If you and your spouse/RDP were California residents during the entire tax year 2021, use Forms 540, California Resident Income Tax Return, or 540 2EZ, California Resident Income Tax Return. To download or order the 540 Personal Income Tax Booklet or the 540 2EZ Personal Income Tax Booklet, go to ftb.ca.gov/forms or see “Where to Get Income Tax Forms and Publications.”
What’s New and Other Important Information for 2021
Differences between California and Federal Law
In general, for taxable years beginning on or after January 1, 2015, California law conforms to the Internal Revenue Code (IRC) as of January 1, 2015. However, there are continuing differences between California and federal law. When California conforms to federal tax law changes, we do not always adopt all of the changes made at the federal level. For more information, go to ftb.ca.gov and search for conformity. Additional information can be found in FTB Pub. 1001, Supplemental Guidelines to California Adjustments, the instructions for California Schedule CA (540NR), California Adjustments – Nonresidents or Part-Year Residents, and the Business Entity tax booklets.
The instructions provided with California tax forms are a summary of California tax law and are only intended to aid taxpayers in preparing their state income tax returns. We include information that is most useful to the greatest number of taxpayers in the limited space available. It is not possible to include all requirements of the California Revenue and Taxation Code (R&TC) in the instructions. Taxpayers should not consider the instructions as authoritative law.
Conformity – For updates regarding federal acts, go to ftb.ca.gov and search for conformity.
2021 Tax Law Changes/What’s New
Voluntary Contributions – You may contribute to the following new funds:
- Mental Health Crisis Prevention Voluntary Tax Contribution Fund
- California Community and Neighborhood Tree Voluntary Tax Contribution Fund
COBRA Premium Assistance – The American Rescue Plan Act (ARPA) of 2021, enacted on March 11, 2021, allows an exclusion from gross income for COBRA premium assistance subsidies received by eligible individuals for the COBRA coverage period beginning on April 1, 2021 and ending on September 30, 2021. California law does not conform to this federal provision. For more information, see Schedule CA (540NR) instructions.
Employer-Provided Dependent Care Assistance Exclusion – California conforms to the employer-provided dependent care assistance exclusion from gross income as of the specified date of January 1, 2015, without any modifications. The ARPA of 2021, enacted on March 11, 2021, temporarily increases the amount of the exclusion from gross income from $5,000 to $10,500 (and half of that amount for married filing separate) for employer-provided dependent care assistance. CA law does not conform to this change under the federal ARPA. For more information, see Schedule CA (540NR) instructions.
Expanded Definition of Qualified Higher Education Expenses – For taxable years beginning on or after January 1, 2021, California law conforms to the expanded definition of qualified higher education expenses associated with participation in a registered apprenticeship program and payment on the principal or interest of a qualified education loan under the federal Further Consolidated Appropriations Act, 2020.
Federal Acts – In general, R&TC does not conform to the changes under the following federal acts. California taxpayers continue to follow the IRC as of the specified date of January 1, 2015, with modifications. For specific adjustments due to the following acts, see the Schedule CA (540NR) instructions.
- American Rescue Plan Act (ARPA) of 2021 (enacted on March 11, 2021)
- Consolidated Appropriations Act (CAA), 2021 (enacted on December 27, 2020)
- Coronavirus Aid, Relief, and Economic Security (CARES) Act (enacted on March 27, 2020)
- Setting Every Community Up for Retirement Enhancement (SECURE) Act (enacted on December 20, 2019)
California Microbusiness COVID-19 Relief Grant – For taxable years beginning on or after January 1, 2020, and before January 1, 2023, California law allows an exclusion from gross income for grant allocations received by a taxpayer pursuant to the California Microbusiness COVID-19 Relief Program that is administered by the Office of Small Business Advocate (CalOSBA). For more information, see R&TC Section 17158.1 and Schedule CA (540NR) instructions.
Shuttered Venue Operator Grant – For taxable years beginning on or after January 1, 2019, California law allows an exclusion from gross income for amounts awarded as a shuttered venue operator grant under the CAA, 2021. The CAA, 2021, allows deductions for eligible expenses paid for with grant amounts. California law conforms to this federal provision, with modifications. For California purposes, these deductions do not apply to an ineligible entity. "Ineligible entity" means a taxpayer that is either a publicly-traded company or does not meet the 25% reduction from gross receipts requirements under Section 311 of Division N of the CAA, 2021. For more information, see R&TC Section 17158.3 and Schedule CA (540NR) instructions.
California Venues Grant – For taxable years beginning on or after September 1, 2020, and before January 1, 2030, California law allows an exclusion from gross income for grant allocations received by a taxpayer pursuant to the California Venues Grant Program that is administered by CalOSBA. For more information, see R&TC Section 17158 and Schedule CA (540NR) instructions.
Small Business COVID-19 Relief Grant Program – For taxable years beginning on or after January 1, 2020, and before January 1, 2030, California allows an exclusion from gross income for grant allocations received by a taxpayer pursuant to the COVID-19 Relief Grant under Executive Order No.E 20/21-182 and the California Small Business COVID-19 Relief Grant Program established by Section 12100.83 of the Government Code. For more information, see Schedule CA (540NR) instructions.
Income Exclusion for Rent Forgiveness – For taxable years beginning on or after January 1, 2020, and before January 1, 2025, gross income shall not include a tenant’s rent liability that is forgiven by a landlord or rent forgiveness provided through funds grantees received as a direct allocation from the Secretary of the Treasury based on the federal CAA, 2021. For more information, see Schedule CA (540NR) instructions.
Paycheck Protection Program (PPP) Loans Forgiveness – For taxable years beginning on or after January 1, 2019, California law allows an exclusion from gross income for covered loan amounts forgiven under the federal CARES Act, Paycheck Protection Program and Health Care Enhancement Act, Paycheck Protection Program Flexibility Act of 2020, the CAA, 2021, or the PPP Extension Act of 2021.
Also, the ARPA expands PPP eligibility to include “additional covered nonprofit entities” which includes certain Code 501(c) nonprofit organizations and Internet-only news publishers and Internet-only periodical publishers. California law does not conform to this expansion of PPP eligibility. For more information, see Schedule CA (540NR) instructions.
The CAA, 2021, allows deductions for eligible expenses paid for with covered loan amounts. California law conforms to this federal provision, with modifications. For California purposes, these deductions do not apply to an ineligible entity. “Ineligible entity” means a taxpayer that is either a publicly-traded company or does not meet the 25% reduction from gross receipts requirements under Section 311 of Division N of the CAA, 2021. For more information, see Schedule CA (540NR) instructions or R&TC Section 17131.8 or go to ftb.ca.gov and search for AB 80.
Revenue Procedure 2021-20 allows taxpayers to make an election to report the eligible expense deductions related to a PPP loan on a timely filed original 2021 tax return including extensions. If a taxpayer makes an election for federal purposes, California will follow the federal treatment for California tax purposes.
Advance Grant Amount – For taxable years beginning on or after January 1, 2019, California law conforms to the federal law regarding the treatment for an emergency Economic Injury Disaster Loan (EIDL) grant under the federal CARES Act or a targeted EIDL advance under the CAA, 2021.
Other Loan Forgiveness – For taxable years beginning on or after January 1, 2019, California law allows an exclusion from gross income for borrowers of forgiveness of indebtedness described in Section 1109(d)(2)(D) of the federal CARES Act as stated by section 278, Division N of the federal CAA, 2021. The CAA, 2021, allows deductions for eligible expenses paid for with covered loan amounts. California law conforms to this federal provision, with modifications. For California purposes, these deductions generally do not apply to an ineligible entity. “Ineligible entity” means a taxpayer that is either a publicly-traded company or does not meet the 25% reduction from gross receipts requirements under Section 311 of the CAA, 2021. For more information, see Schedule CA (540NR) instructions or go to ftb.ca.gov and search for AB 80.
Gross Income Exclusion for Bruce’s Beach – Effective September 30, 2021, California law allows an exclusion from gross income for the first time sale in the taxable year in which the land within Manhattan State Beach, known as “Peck’s Manhattan Beach Tract Block 5” and commonly referred to as “Bruce’s Beach” is sold, transferred, or encumbered. A recipient’s gross income does not include the following:
- Any sale, transfer, or encumbrance of Bruce’s Beach;
- Any gain, income, or proceeds received that is directly derived from the sale, transfer, or encumbrance of Bruce’s Beach.
For more information, get Schedule D (540NR), California Capital Gain or Loss Adjustment.
Reporting Requirements – For taxable years beginning on or after January 1, 2021, taxpayers who benefited from the exclusion from gross income for the PPP loans forgiveness, other loan forgiveness, the EIDL advance grant, restaurant revitalization grant, or shuttered venue operator grant, and related eligible expense deductions under the federal CARES Act, Paycheck Protection Program and Health Care Enhancement Act, Paycheck Protection Program Flexibility Act of 2020, the ARPA of 2021, the CAA, 2021, or the PPP Extension Act of 2021, should file form FTB 4197, Information on Tax Expenditure Items, as part of the FTB's annual reporting requirement. For more information, get form FTB 4197.
Moving Expense Deduction – For taxable years beginning on or after January 1, 2021, taxpayers should file California form FTB 3913, Moving Expense Deduction, to claim moving expense deductions. Attach the completed form FTB 3913 to Form 540NR, California Nonresident or Part-Year Resident Income Tax Return. For more information, see Schedule CA (540NR) instructions and get form FTB 3913.
Homeless Hiring Tax Credit – For taxable years beginning on or after January 1, 2022, and before January 1, 2027, a Homeless Hiring Tax Credit (HHTC) will be available to a qualified taxpayer that hires individuals who are, or recently were, homeless. The amount of the tax credit will be based on the number of hours the employee works in the taxable year. Employers must obtain a certification of the individual’s homeless status from an organization that works with the homeless and must receive a tentative credit reservation for that employee. Any credits not used in the taxable year may be carried forward up to three years. For more information, go to ftb.ca.gov and search for hhtc.
Elective Tax for Pass-Through Entities (PTE) and Credit for Owners – For taxable years beginning on or after January 1, 2021, and before January 1, 2026, California law allows an entity taxed as a partnership or an “S” corporation to annually elect to pay an elective tax at a rate of 9.3 percent based on its qualified net income. The election shall be made on an original, timely filed return and is irrevocable for the taxable year.
The law allows a credit against the personal income tax to a taxpayer, other than a partnership, that is a partner, shareholder, or member of a qualified entity that elects to pay the elective tax, in an amount equal to 9.3 percent of the partner’s, shareholder’s, or member’s pro rata share or distributive share and guaranteed payments of qualified net income subject to the election made by the qualified entity. A disregarded business entity and its partners or members cannot claim the credit, except for a disregarded single member limited liability company (SMLLC) that is owned by an individual, fiduciary, estate, or trust subject to personal income tax. For more information, go to ftb.ca.gov and search for pte elective tax and get the following new PTE elective tax forms and instructions:
- Form FTB 3893, Pass-Through Entity Elective Tax Payment Voucher
- Form FTB 3804, Pass-Through Entity Elective Tax Calculation
- Form FTB 3804-CR, Pass-Through Entity Elective Tax Credit
Main Street Small Business Tax Credit II – For the taxable year beginning on or after January 1, 2021, and before January 1, 2022, a new Main Street Small Business Tax Credit is available to a qualified small business employer that received a tentative credit reservation from the California Department of Tax and Fee Administration (CDTFA). For more information, get form FTB 3866, Main Street Small Business Tax Credits.
New Donated Fresh Fruits or Vegetables Credit – The sunset date for the New Donated Fresh Fruits or Vegetables Credit is extended until taxable years beginning before January 1, 2027. For more information, get form FTB 3814, New Donated Fresh Fruits or Vegetables Credit.
Natural Heritage Preservation Credit – The Natural Heritage Preservation Credit is available for qualified contributions made on or after January 1, 2021, and no later than June 30, 2026. This credit may not be claimed for any contributions made on or after July 1, 2020, and on or before December 31, 2020. For more information, get form FTB 3503, Natural Heritage Preservation Credit.
Other Important Information
Dependent Exemption Credit with No ID – For taxable years beginning on or after January 1, 2018, taxpayers claiming a dependent exemption credit for a dependent who is ineligible for a Social Security Number (SSN) and a federal Individual Taxpayer Identification Number (ITIN) may provide alternative information to the FTB to identify the dependent. To claim the dependent exemption credit, taxpayers complete form FTB 3568, Alternative Identifying Information for the Dependent Exemption Credit, attach the form and required documentation to their tax return, and write “no id” in the SSN field of line 10, Dependents, on Form 540NR. For each dependent being claimed that does not have an SSN and an ITIN, a form FTB 3568 must be provided along with supporting documentation.
Taxpayers may amend their tax return beginning with taxable year 2018 to claim the dependent exemption credit. For more information on how to amend your tax returns, see “Instructions for Filing a 2021 Amended Return.”
CARES Act Qualified Employer Plan Loans – For taxable years beginning on or after January 1, 2020, California conforms to the qualified employer plan loans provision under the federal CARES Act which temporarily increases the amount of loans allowable from a qualified employer plan to $100,000 for coronavirus-related relief and delays by one year the due date for any repayment for an outstanding loan from a qualified employer plan if requirements are met.
Expansion for Credits Eligibility – For taxable years beginning on or after January 1, 2020, California expanded EITC and YCTC eligibility to allow either the federal ITIN or the SSN to be used by all eligible individuals, their spouses, and qualifying children. If an ITIN is used, eligible individuals should provide identifying documents upon request of the FTB. Any valid SSN can be used, not only those that are valid for work. Additionally, upon receiving a valid SSN, the individual should notify the FTB in the time and manner prescribed by the FTB. The YCTC is available if the eligible individual or spouse has a qualifying child younger than six years old. For more information, go to ftb.ca.gov and search for eitc, or get form FTB 3514.
Worker Status: Employees and Independent Contractors – Some individuals may be classified as independent contractors for federal purposes and employees for California purposes, which may also cause changes in how their income and deductions are classified. Proposition 22 was operative as of December 16, 2020 and may affect a taxpayer’s worker classification. For more information, see the instructions for Schedule CA (540NR).
Minimum Essential Coverage Individual Mandate – For taxable years beginning on or after January 1, 2020, California law requires residents and their dependents to obtain and maintain minimum essential coverage (MEC), also referred to as qualifying health care coverage. Individuals who fail to maintain qualifying health care coverage for any month during the taxable year will be subject to a penalty unless they qualify for an exemption. For more information, see specific line instructions for Form 540NR, lines 74, 87, and 91, or get the following health care forms, instructions, and publications:
- Form FTB 3849, Premium Assistance Subsidy
- Form FTB 3853, Health Coverage Exemptions and Individual Shared Responsibility Penalty
- Form FTB 3895, California Health Insurance Marketplace Statement
- Publication 3849A, Premium Assistance Subsidy (PAS)
- Publication 3895B, California Instructions for Filing Federal Forms 1094-B and 1095-B
- Publication 3895C, California Instructions for Filing Federal Forms 1094-C and 1095-C
Rental Real Estate Activities – For taxable years beginning on or after January 1, 2020, the dollar limitation for the offset for rental real estate activities shall not apply to the low income housing credit program. For more information, see R&TC Section 17561(d)(1). Get form FTB 3801-CR, Passive Activity Credit Limitations, for more information.
R&TC Section 41 Reporting Requirements – Beginning in taxable year 2020, California allows individuals and other taxpayers operating under the personal income tax law to claim credits and deductions of business expenses paid or incurred during the taxable year in conducting commercial cannabis activity. Sole proprietors conducting a commercial cannabis activity that is licensed under California Medicinal and Adult-Use Cannabis Regulation and Safety Act should file form FTB 4197. The FTB uses information from form FTB 4197 for reports required by the California Legislature. Get form FTB 4197 for more information.
Net Operating Loss Suspension – For taxable years beginning on or after January 1, 2020, and before January 1, 2023, California has suspended the net operating loss (NOL) carryover deduction. Taxpayers may continue to compute and carryover an NOL during the suspension period. However, taxpayers with net business income or modified adjusted gross income of less than $1,000,000 or with disaster loss carryovers are not affected by the NOL suspension rules.
The carryover period for suspended losses is extended by:
- Three years for losses incurred in taxable years beginning before January 1, 2020.
- Two years for losses incurred in taxable years beginning on or after January 1, 2020, and before January 1, 2021.
- One year for losses incurred in taxable years beginning on or after January 1, 2021, and before January 1, 2022.
For more information, see R&TC Section 17276.23, and get form FTB 3805V, Net Operating Loss (NOL) Computation and NOL and Disaster Loss Limitations – Individuals, Estates, and Trusts.
Excess Business Loss Limitation – The federal CARES Act made amendments to IRC Section 461(l) by eliminating the excess business loss limitation of noncorporate taxpayers for taxable year 2020 and retroactively removing the limitation for taxable years 2018 and 2019. California does not conform to those amendments. Also, California law does not conform to the federal changes in the ARPA that extends the limitation on excess business losses of noncorporate taxpayers for taxable years beginning after December 31, 2020 and ending before January 1, 2027. Complete form FTB 3461, California Limitation on Business Losses, if you are a noncorporate taxpayer and your net losses from all of your trades or businesses are more than $262,000 ($524,000 for married taxpayers filing a joint return). For more information, get form FTB 3461 and the instructions for Schedule CA (540NR).
Program 3.0 California Motion Picture and Television Production Credit – For taxable years beginning on or after January 1, 2020, California R&TC Section 17053.98 allows a third film credit, program 3.0, against tax. The credit is allocated and certified by the California Film Commission (CFC). The qualified taxpayer can:
- Offset the credit against income tax liability.
- Sell the credit to an unrelated party (independent films only).
- Assign the credit to an affiliated corporation.
- Apply the credit against qualified sales and use taxes.
For more information, get form FTB 3541, California Motion Picture and Television Production Credit, form FTB 3551, Sale of Credit Attributable to an Independent Film, go to ftb.ca.gov and search for motion picture, or go to the CFC website at film.ca.gov and search for incentives.
Business Credit Limitation – For taxable years beginning on or after January 1, 2020, and before January 1, 2023, there is a $5,000,000 limitation on the application of business credits for taxpayers. The total of all business credits including the carryover of any business credit for the taxable year may not reduce the “net tax” by more than $5,000,000. Business credits should be applied against “net tax” before other credits. Business credits disallowed due to the limitation may be carried over. The carryover period for disallowed credits is extended by the number of taxable years the credit was not allowed. For more information, get Schedule P (540NR), Alternative Minimum Tax and Credit Limitations – Nonresidents or Part-Year Residents.
Loophole Closure and Small Business and Working Families Tax Relief Act of 2019 – The Tax Cuts and Jobs Act (TCJA) signed into law on December 22, 2017, made changes to the IRC. California R&TC does not conform to all of the changes. In general, for taxable years beginning on or after January 1, 2019, California conforms to the following TCJA provisions:
- California Achieving a Better Life Experience (ABLE) Program
- Student loan discharged on account of death or disability
- Federal Deposit Insurance Corporation (FDIC) Premiums
- Excess employee compensation
- Excess business loss
Like-Kind Exchanges – The TCJA amended IRC Section 1031 limiting the nonrecognition of gain or loss on like-kind exchanges to real property held for productive use or investment. California conforms to this change under the TCJA for exchanges initiated after January 10, 2019. However, for California purposes, with regard to individuals, this limitation only applies to:
- A taxpayer who is a head of household, a surviving spouse, or spouse filing a joint return with adjusted gross income (AGI) of $500,000 or more for the taxable year in which the exchange begins.
- Any other taxpayer filing an individual return with AGI of $250,000 or more for the taxable year in which the exchange begins.
Get Schedule D-1, Sales of Business Property, for more information.
California requires taxpayers who exchange property located in California for like‑kind property located outside of California under IRC Section 1031, to file an annual information return with the FTB. For more information, get form FTB 3840, California Like‑Kind Exchanges, or go to ftb.ca.gov and search for like kind.
Young Child Tax Credit – For taxable years beginning on or after January 1, 2019, the refundable YCTC is available to taxpayers who also qualify for the California EITC and who have at least one qualifying child who is younger than six years old as of the last day of the taxable year. The maximum amount of credit allowable for a qualified taxpayer is $1,000. The credit amount phases out as earned income exceeds the threshold amount of $25,000, and completely phases out at $30,000. For more information, see specific line instructions for Form 540NR, line 86 and get form FTB 3514.
Net Operating Loss Carrybacks – For taxable years beginning on or after January 1, 2019, net operating loss carrybacks are not allowed.
Alimony – California law does not conform to changes made by the TCJA to federal law regarding alimony and separate maintenance payments that are not deductible by the payor spouse, and are not includable in the income of the receiving spouse, if made under any divorce or separation agreement executed after December 31, 2018, or executed on or before December 31, 2018, and modified after that date (if the modification expressly provides that the amendments apply). See Schedule CA (540NR) specific line instructions for more information.
Small Business Accounting/Percentage of Completion Method – For taxable years beginning on or after January 1, 2019, California law generally conforms to the TCJA’s definition of small businesses as taxpayers whose average annual gross receipts over three years do not exceed $25 million. These small businesses are exempt from the requirement of using the Percentage of Completion Method of accounting for any construction contract if the contract is estimated to be completed within two years from the date the contract was entered into. A taxpayer may elect to apply the provision regarding accounting for long term contracts to contracts entered into on or after January 1, 2018.
Student Loan Discharged Due to Closure of a For-Profit School – California law allows an income exclusion for an eligible individual who is granted a discharge of any student loan under specified conditions. This income exclusion has now been expanded to include a discharge of student loans occurring on or after January 1, 2019, and before January 1, 2024, for individuals who attended a Brightwood College school or a location of The Art Institute of California. Additional information can be found in the instructions for California Schedule CA (540NR).
Charitable Contribution and Business Expense Deductions Disallowance – For taxable years beginning on or after January 1, 2014, California law disallows a charitable contribution deduction to an educational organization that is a postsecondary institution or to the Key Worldwide Foundation, and a deduction for a business expense related to a payment to the Edge College and Career Network, LLC, to a taxpayer who meets specific conditions, including that they are named in any of several specified criminal complaints. For taxable years beginning on or after 2014, file an amended Form 540NR and Schedule X, California Explanation of Amended Return Changes, to report the correct amount of charitable contribution and business expense deductions, as applicable. Additional information can be found in the instructions of California Schedule CA (540NR).
Real Estate Withholding Statement – Effective January 1, 2020, the real estate withholding forms and instructions have been consolidated into one new Form 593, Real Estate Withholding Statement. For more information, get Form 593.
California Earned Income Tax Credit – For taxable years beginning on or after January 1, 2018, the age limit for an eligible individual without a qualifying child is revised to 18 years or older. For more information, go to ftb.ca.gov and search for eitc or get form FTB 3514.
Native American Earned Income Exemption – For taxable years beginning on or after January 1, 2018, federally recognized tribal members living in California Indian country who earn income from any federally recognized California Indian country are exempt from California taxation. This exemption applies only to earned income. Enrolled tribal members who receive per capita income must reside in their affiliated tribe’s Indian country to qualify for tax exempt status. Additional information can be found in the instructions for Schedule CA (540NR) and form FTB 3504, Enrolled Tribal Member Certification.
IRC Section 965 Deferred Foreign Income – Under federal law, if you own (directly or indirectly) certain foreign corporations, you may have to include on your return certain deferred foreign income. California does not conform. For more information, see the Schedule CA (540NR) instructions.
Global Intangible Low-Taxed Income (GILTI) Under IRC Section 951A – Under federal law, if you are a U.S. shareholder of a controlled foreign corporation, you must include your GILTI in your income. California does not conform. For more information, see the Schedule CA (540NR) instructions.
Wrongful Incarceration Exclusion – California law conforms to federal law excluding from gross income certain amounts received by wrongfully incarcerated individuals for taxable years beginning before, on, or after January 1, 2018. If you included income for wrongful incarceration in a prior taxable year, you can file an amended California personal income tax return for that year. If the normal statute of limitations has expired, you must file a claim by January 1, 2019.
College Access Tax Credit – For taxable years beginning on and after January 1, 2017, and before January 1, 2023, the College Access Tax Credit (CATC) is available to entities awarded the credit from the California Educational Facilities Authority (CEFA). The credit is 50% of the amount contributed by the taxpayer for the taxable year to the College Access Tax Credit Fund. The amount of the credit is allocated and certified by the CEFA. For more information, go to the CEFA website at treasurer.ca.gov and search for catc.
Schedule X, California Explanation of Amended Return Changes – For taxable years beginning on or after January 1, 2017, use Schedule X to determine any additional amount you owe or refund due to you, and to provide reason(s) for amending your previously filed income tax return. For additional information, see “Instructions for Filing a 2021 Amended Return.”
Improper Withholding on Severance Paid to Veterans – The Combat-Injured Veterans Tax Fairness Act of 2016 gives veterans who retired from the Armed Forces for medical reasons additional time to claim a refund if they had taxes improperly withheld from their severance pay. If you filed an amended return with the IRS on this issue, you have two years to file your amended California return.
California Achieving a Better Life Experience (ABLE) Program – For taxable years beginning on or after January 1, 2016, the California Qualified ABLE Program was established and California generally conforms to the federal income tax treatment of ABLE accounts. This program was established to help blind or disabled U.S. residents save money in a tax-favored ABLE account to maintain health, independence, and quality of life. Additional information can be found in the instructions of form FTB 3805P, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts.
Electronic Funds Withdrawal (EFW) – Make extension or estimated tax payments using tax preparation software. Check with your software provider to determine if they support EFW for extension or estimated tax payments.
Payments and Credits Applied to Use Tax – For taxable years beginning on or after January 1, 2015, if a taxpayer includes use tax on their personal income tax return, payments and credits will be applied to use tax first, then towards income tax, interest, and penalties. Additional information can be found in the instructions for California Form 540.
Dependent Social Security Number – Taxpayers claiming an exemption credit must write each dependent’s SSN in the spaces provided within line 10 for California Form 540NR. If you are claiming an exemption credit for a dependent who is ineligible for an SSN and a federal ITIN, you may complete and provide form FTB 3568 with required documentation attached to the tax return and write "no id" in the SSN field of line 10. For more information, see Form 540NR specific instructions for line 10 and get FTB 3568.
Financial Incentive for Seismic Improvement – Taxpayers can exclude from gross income any amount received as loan forgiveness, grant, credit, rebate, voucher, or other financial incentive issued by the California Residential Mitigation Program or the California Earthquake Authority to assist a residential property owner or occupant with expenses paid, or obligations incurred, for earthquake loss mitigation. Additional information can be found in the instructions for California Schedule CA (540NR).
Disaster Losses – For taxable years beginning on or after January 1, 2014, and before January 1, 2024, taxpayers may deduct a disaster loss for any loss sustained in any city, county, or city and county in California that is proclaimed by the Governor to be in a state of emergency. For these Governor-only declared disasters, subsequent state legislation is not required to activate the disaster loss provisions. Additional information can be found in the instructions for California form FTB 3805V.
Penalty Assessed by Professional Sports League – An owner of all or part of a professional sports franchise will not be allowed a deduction for the amount of any fine or penalty paid or incurred, that was assessed or imposed by the professional sports league that includes that franchise. Additional information can be found in the instructions for California Schedule CA (540NR).
Mandatory Electronic Payments – You are required to remit all your payments electronically once you make an estimate or extension payment exceeding $20,000 or you file an original tax return with a total tax liability over $80,000. Once you meet this threshold, all subsequent payments regardless of amount, tax type, or taxable year must be remitted electronically. The first payment that would trigger the mandatory e-pay requirement does not have to be made electronically. Individuals who do not send the payment electronically may be subject to a 1% noncompliance penalty.
You can request a waiver from mandatory e-pay if one or more of the following is true:
- You have not made an estimated tax or extension payment in excess of $20,000 during the current or previous taxable year.
- Your total tax liability reported for the previous taxable year did not exceed $80,000.
- The amount you paid is not representative of your total tax liability.
For more information or to obtain the waiver form, go to ftb.ca.gov/e-pay. Electronic payments can be made using Web Pay on FTB’s website, EFW as part of the e-file tax return, or your credit card.
Estimated Tax Payments – Taxpayers are required to pay 30% of the required annual payment for the 1st required installment, 40% of the required annual payment for the 2nd required installment, no installment is due for the 3rd required installment, and 30% of the required annual payment for the 4th required installment.
Taxpayers with a tax liability less than $500 ($250 for married/RDP filing separately) do not need to make estimated tax payments.
Backup Withholding – With certain limited exceptions, payers that are required to withhold and remit backup withholding to the IRS are also required to withhold and remit to the FTB on income sourced to California. If the payee has backup withholding, the payee must contact the FTB to provide a valid taxpayer identification number, before filing the tax return. Failure to provide a valid taxpayer identification number may result in a denial of the backup withholding credit. For more information, go to ftb.ca.gov and search for backup withholding.
Registered Domestic Partners (RDP) – Under California law, RDPs must file their California income tax return using either the married/RDP filing jointly or married/RDP filing separately filing status. RDPs have the same legal benefits, protections, and responsibilities as married couples unless otherwise specified.
If you entered into a same sex legal union in another state, other than a marriage, and that union has been determined to be substantially equivalent to a California registered domestic partnership, you are 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, or wife also refer to a California RDP, unless otherwise specified. When we use the initials RDP they refer to both a California registered domestic “partner” and a California registered domestic “partnership,” as applicable. For more information on RDPs, get FTB Pub. 737.
Direct Deposit Refund – You can request a direct deposit refund on your tax return whether you e-file or file a paper tax return. Be sure to fill in the routing and account numbers carefully and double-check the numbers for accuracy to avoid it being rejected by your bank.
Direct Deposit for ScholarShare 529 College Savings Plans – If you have a ScholarShare 529 College Savings Plan account maintained by the ScholarShare Investment Board, you may have your refund directly deposited to your ScholarShare account. Go to scholarshare529.com for instructions.
Group Nonresident Returns (also known as Composite Returns) – For taxable years beginning on or after January 1, 2009:
- Group nonresident returns may include less than two nonresident individuals.
- Nonresident individuals with more than $1,000,000 of California taxable income are eligible to be included in group nonresident returns. An additional 1% tax will be assessed on their entire California taxable income if they elect to be part of the group return.
See FTB Pub. 1067, Guidelines for Filing a Group Form 540NR, for more information.
California Disclosure Obligations – If the individual was involved in a reportable transaction, including a listed transaction, the individual may have a disclosure requirement. Attach federal Form 8886, Reportable Transaction Disclosure Statement, to the back of the California tax return along with any other supporting schedules. If this is the first time the reportable transaction is disclosed on the tax return, send a duplicate copy of the federal Form 8886 to the address below. The FTB may impose penalties if the individual fails to file federal Form 8886 or fails to provide any other required information. A material advisor is required to provide a reportable transaction number to all taxpayers and material advisors for whom the material advisor acts as a material advisor.
Mail Tax Shelter Filing
ABS 389 MS F340
Franchise Tax Board
PO Box 1673
Rancho Cordova, CA 95812-9900
For more information, go to ftb.ca.gov and search for disclosure obligation.
How Nonresidents and Part-Year Residents Are Taxed
General Information
Nonresidents of California who received California sourced income in 2021, or moved into or out of California in 2021, file Form 540NR. California taxes all income received while you resided in California and the income you received from California sources while a nonresident.
If you file Form 540NR, use Schedule CA (540NR) column A through column D to compute your total adjusted gross income as if you were a resident of California for the entire year. Use column E to compute all items of total adjusted gross income you received while a resident of California and those you received from California sources while a nonresident. You determine your California tax by multiplying your California taxable income by an effective tax rate. The effective tax rate is the tax on total taxable income, taken from the tax table, divided by total taxable income. You may also qualify for California tax credits, which reduces the amount of California tax you owe.
If you were a resident of California for all of 2021, get a California Resident Personal Income Tax Booklet and file Form 540 or Form 540 2EZ.
For more information on the taxation of nonresidents and part-year residents, get FTB Pub. 1100, Taxation of Nonresidents and Individuals Who Change Residency. Go to ftb.ca.gov/forms or see “Where To Get Income Tax Forms and Publications.”
Pension Income of Retirees Who Move to Another State
Nonresidents of California Receiving a California Pension
California does not impose tax on retirement income attributable to services performed in California received by a nonresident after December 31, 1995.
California Residents Receiving an Out-of-State Pension
In general California residents are taxed on all income, including income from sources outside California. Therefore, a pension attributable to services performed outside California but received after you become a California resident is taxable.
For more information about pensions, go to ftb.ca.gov/forms and get FTB Pub. 1005, Pension and Annuity Guidelines.
Temporary and Transitory Absences from California
If you are domiciled in California and you worked outside of California for an uninterrupted period of at least 546 consecutive days under an employment contract, you are considered a nonresident. This provision also applies to the spouse/RDP who accompanies the employed individual during those 546 consecutive days. However, you will not qualify under this provision if you are present in California for a total of more than 45 days during any taxable year covered by the contract, or if you have income from stocks, bonds, notes, or other intangible property in excess of $200,000 for any taxable year covered by the contract. For more information, go to ftb.ca.gov/forms and get FTB Pub. 1031.
Group Nonresident Return
Nonresident partners, nonresident members, and nonresident shareholders of a partnership, limited liability company, or S corporation that does business in California or has income from California sources may elect to file a group nonresident return on Form 540NR. For more information, go to ftb.ca.gov/forms and get FTB Pub. 1067, Guidelines for Filing a Group Form 540NR. This publication includes form FTB 1067A, Nonresident Group Return Schedule, which must be attached to the group Form 540NR.
Military Servicemembers
Active duty military servicemembers go to ftb.ca.gov/forms and get FTB Pub. 1032.
Servicemembers domiciled outside of California, and their spouses/RDPs, exclude the member’s military compensation from gross income when computing the tax rate on nonmilitary income. Requirements for military servicemembers domiciled in California remain unchanged. Military servicemembers domiciled in California must include their military pay in total income. In addition, they must include their military pay in California source income when stationed in California. However, military pay is not California source income when a servicemember is permanently stationed outside of California. Beginning 2009, the federal Military Spouses Residency Relief Act may affect the California income tax filing requirements for spouses of military personnel.
2021 Instructions for Form 540NR California Nonresident or Part-Year Resident Income Tax Return
References in these instructions are to the Internal Revenue Code (IRC) as of January 1, 2015, and the California Revenue and Taxation Code (R&TC).
Before You Begin
Complete your federal income tax return (Form 1040, U.S. Individual Income Tax Return; Form 1040-SR, U.S. Tax Return for Seniors; or Form 1040-NR, U.S. Nonresident Alien Income Tax Return) before you begin your Form 540NR, California Nonresident or Part-Year Resident Income Tax Return. Use information from your federal income tax return to complete your Form 540NR. Complete and mail Form 540NR by April 18, 2022. If unable to mail your return by this date, see Important Dates.
To get forms and publications referred to in these instructions, go to ftb.ca.gov/forms or see “Where To Get Income Tax Forms and Publications.”
Tip: You may qualify for the federal earned income tax credit. See Earned Income Tax Credit for more information.
Note: The lines on Form 540NR are numbered with gaps in the line number sequence. For example, lines 20 through 30 do not appear on Form 540NR, so the line number that follows line 19 on Form 540NR is line 31.
Caution: Form 540NR has five sides. If filing Form 540NR, you must send all five sides to the Franchise Tax Board (FTB).
If you need to amend your Form 540NR, complete an amended Form 540NR and check the box at the top of Form 540NR indicating AMENDED return. Attach Schedule X, California Explanation of Amended Return Changes, to the amended Form 540NR. For specific instructions, see “Instructions for Filing a 2021 Amended Return.”
Filling in Your Return
- Use black or blue ink on the tax return you send to the FTB.
- Enter your Social Security Number(s) or Individual Taxpayer Identification Number(s) at the top of Form 540NR, Side 1.
- Print numbers and CAPITAL LETTERS in the space provided. Be sure to line up dollar amounts.
- If you do not have an entry for a line, leave it blank unless the instructions for a line specifically tell you to enter zero. Do not enter a dash or the word “NONE.”
Name(s) and Address
Print your first name, middle initial, last name, and street address in the spaces provided at the top of Form 540NR.
Suffix
Use the Suffix field for generational name suffixes such as “SR”, “JR”, “III”, “IV”. Do not enter academic, professional, or honorary suffixes.
Additional Information
Use the Additional Information field for “In-Care-of” name and other supplemental address information only.
Foreign Address
If you have a foreign address, follow the country’s practice for entering the city, county, province, state, country, and postal code, as applicable, in the appropriate boxes. Do not abbreviate the country name.
Principal Business Activity (PBA) Code
For federal Schedule C (Form 1040), Profit or Loss From Business (Sole Proprietorship) business filers, enter the numeric PBA code from federal Schedule C (Form 1040), line B.
Date of Birth (DOB)
Enter your DOBs (mm/dd/yyyy) in the spaces provided. If your filing status is married/RDP filing jointly or married/RDP filing separately, enter the DOBs in the same order as the names.
Prior Name
If you or your spouse/RDP filed your 2020 tax return under a different last name, write the last name only from the 2020 tax return.
Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN)
Enter your SSNs in the spaces provided. If you file a joint tax return, enter the SSNs in the same order as the names.
If you do not have an SSN because you are a nonresident or a resident alien for federal tax purposes, and the Internal Revenue Service (IRS) issued you an ITIN, enter the ITIN in the space provided for the SSN.
An ITIN is a tax processing number issued by the IRS to foreign nationals and others who have a federal tax filing requirement and do not qualify for an SSN. It is a nine-digit number that always starts with the number 9.
Filing Status
Line 1 through Line 5 – Filing Status
Check only one box for line 1 through line 5. Enter the required additional information if you checked the box on line 3 or line 5. See filing status requirements.
Usually, your California filing status must be the same as the filing status you used on your federal income tax return.
Exception for Married Taxpayers Who File a Joint Federal Income Tax Return – You may file separate California returns if either spouse was either of the following:
- An active member of the United States Armed Forces or any auxiliary military branch during 2021.
- A nonresident for the entire year and had no income from California sources during 2021. Caution – Community Property States: If either spouse earned California source income while domiciled in a community property state, the community income will be split equally between the spouses. Both spouses will have California source income and they will not qualify for the nonresident spouse exception. For more information, get FTB Pub. 1031, Guidelines for Determining Resident Status.
If you had no federal filing requirement, use the same filing status for California you would have used to file a federal income tax return.
Registered domestic partners (RDPs) who file single for federal must file married/RDP filing jointly or married/RDP filing separately for California. If you are an RDP and file head of household for federal purposes, you may file head of household for California purposes only if you meet the requirements to be considered unmarried or considered not in a domestic partnership.
Nonresident Alien – A joint tax return may be filed if, in the case of a nonresident alien married to a United States citizen or resident, both spouses/RDPs elect to treat the nonresident alien spouse/RDP as a resident for tax purposes.
If You Filed Federal Form 1040-NR, you do not qualify to use the head of household or married/RDP filing jointly filing statuses. Instead, use single, married/RDP filing separately, or qualifying widow(er) filing status, whichever applies to you.
If You File as Head of Household, do not claim yourself or a nonrelative as the qualifying individual for head of household. Get FTB Pub. 1540, Tax Information for Head of Household Filing Status, for more information. See “Where To Get Income Tax Forms and Publications.”
Exemptions
Line 6 – Can be Claimed as a Dependent
Check the box on line 6 if someone else can claim you or your spouse/RDP as a dependent on their tax return, even if they choose not to.
Line 7 – Personal Exemptions
Did you check the box on line 6?
- Single or married/RDP filing separately, enter -0-.
- Head of household, enter -0-.
- Married/RDP filing jointly and both you and your spouse/RDP can be claimed as dependents, enter -0-.
- Married/RDP filing jointly and only one spouse/RDP can be claimed as a dependent, enter 1.
Do not claim this credit if someone else can claim you as a dependent on their tax return.
Line 8 – Blind Exemptions
The first year you claim this exemption credit, attach a doctor’s statement to the back of Form 540NR indicating you or your spouse/RDP is visually impaired. If you e-file, attach any requested forms, schedules and documents according to your software’s instructions. Visually impaired means not capable of seeing better than 20/200 while wearing glasses or contact lenses, or if your field of vision is not more than 20 degrees.
Do not claim this credit if someone else can claim you as a dependent on their tax return.
Line 9 – Senior Exemptions
If you were 65 years of age or older by December 31, 2021*, you should claim an additional exemption credit on line 9. If you are married/or an RDP, each spouse/RDP 65 years of age or older should claim an additional credit. You may contribute all or part of this credit to the California Seniors Special Fund. See “Voluntary Contribution Fund Descriptions” for more information.
*If your 65th birthday is on January 1, 2022, you are considered to be age 65 on December 31, 2021.
Do not claim this credit if someone else can claim you as a dependent on their tax return.
Line 10 – Dependent Exemptions
To claim an exemption credit for each of your dependents, you must write each dependent’s first and last name, SSN or ITIN and relationship to you in the space provided. If you are claiming more than three dependents, attach a statement with the required dependent information to your tax return. The persons you list as dependents must be the same persons you listed as dependents on your federal income tax return. If you filed form FTB 3568, Alternative Identifying Information for the Dependent Exemption Credit, to qualify to claim your dependents for California purposes, the dependents you claim on your California income tax return may not match those claimed on your federal income tax return. Count the number of dependents listed and enter the total in the box on line 10. Multiply the number you entered by the pre‑printed dollar amount and enter the result.
For taxable years beginning on or after January 1, 2018, taxpayers claiming a dependent exemption credit for a dependent who is ineligible for an SSN or a federal ITIN may provide alternative information to the FTB to identify the dependent.
To claim the dependent exemption credit, taxpayers complete form FTB 3568, attach the form and required documentation to their tax return, and write “no id” in the SSN field of line 10, Dependents, on Form 540NR. For each dependent being claimed that does not have an SSN and an ITIN, a form FTB 3568 must be provided along with supporting documentation. If you e-file, attach any requested forms, schedules and documents according to your software’s instructions.
Taxpayers may amend their tax returns beginning with taxable year 2018 to claim the dependent exemption credit. These taxpayers should complete an amended Form 540NR, write “no id” in the SSN field on the Dependents line, and attach Schedule X. To complete Schedule X, check box m for “Other” on Part II, line 1, and write the explanation “Claim dependent exemption credit with no id and form FTB 3568 is attached” on Part II, line 2. Make sure to attach form FTB 3568 and the required supporting documents in addition to the amended tax return and Schedule X. If taxpayers do not claim the dependent exemption credit on their original 2021 tax return, they may amend their 2021 tax return following the same procedures used to amend their previous year amended tax returns beginning with taxable year 2018. For more information, get FTB Notice 2021-01.
If your dependent child was born and died in 2021 and you do not have an SSN or an ITIN for the child, write “Died” in the space provided for the SSN and include a copy of the child’s birth certificate, death certificate, or hospital records. The document must show the child was born alive. If you e-file, attach any requested forms, schedules and documents according to your software’s instructions.
Line 11 – Exemption Amount
Add line 7 through line 10 and enter the total dollar amount of all exemptions for personal, blind, senior, and dependent.
Total Taxable Income
Refer to your completed federal income tax return to complete this section.
Line 12 – California Wages
Enter the total amount of your California wages from your federal Form(s) W‑2, Wage and Tax Statement. This amount appears on Form W-2, box 16.
Line 13 – Federal Adjusted Gross Income (AGI) from federal Form 1040, 1040-SR, or 1040-NR, line 11
RDPs who file a California tax return as married/RDP filing jointly and have no RDP adjustments between federal and California, combine their individual AGIs from their federal tax returns filed with the IRS. Enter the combined AGI on Form 540NR, line 13.
RDP adjustments include but are not limited to the following:
- Transfer of property between spouses/RDPs
- Capital loss
- Transactions between spouses/RDPs
- Sale of residence
- Dependent care assistance
- Investment interest
- Qualified residence interest acquisition loan & equity loan
- Expense depreciation property limits
- Individual Retirement Account
- Interest education loan
- Rental real estate passive loss
- Rollover of publicly traded securities gain into specialized small business investment companies
RDPs filing as married/RDP filing separately, former RDPs filing single, and RDPs with RDP adjustments will use the California RDP Adjustments Worksheet in FTB Pub. 737, Tax Information for Registered Domestic Partners, or complete a federal pro forma Form 1040 or 1040-SR. Transfer the amount from the California RDP Adjustments Worksheet, line 27, column D, or federal pro forma Form 1040 or 1040-SR, line 11, to Form 540NR, line 13.
Line 14 – California Adjustments – Subtractions (from Schedule CA (540NR), Part II, line 27, column B)
If there are differences between your federal and California income, i.e. social security, complete Schedule CA (540NR). Follow the instructions for Schedule CA (540NR). Enter the amount from Schedule CA (540NR), Part II, line 27, column B on Form 540NR, line 14.
If the amount on Schedule CA (540NR), Part II, line 27, column B is a negative number, do not transfer it to Form 540NR, line 14 as a negative number. Instead, transfer the number as a positive number to Form 540NR, line 16.
Line 15 – Subtotal
Subtract the amount on line 14 from the amount on line 13. Enter the result on line 15. If the amount on line 13 is less than zero, combine the amounts on line 13 and line 14 and enter the amount in parentheses. For example: “(12,325).”
Line 16 – California Adjustments – Additions (from Schedule CA (540NR), Part II, line 27, column C)
If there are differences between your federal and California deductions, complete Schedule CA (540NR). Follow the instructions for Schedule CA (540NR). Enter the amount from Schedule CA (540NR), Part II, line 27, column C on Form 540NR, line 16.
If the amount on Schedule CA (540NR), Part II, line 27, column C is a negative number, do not transfer it to Form 540NR, line 16 as a negative number. Instead, transfer the number as a positive number to Form 540NR, line 14.
Line 17 – Adjusted Gross Income From All Sources
Combine line 15 and line 16. This amount should match the amount on Schedule CA (540NR), Part II, line 27, column D.
Line 18 – California Itemized Deductions or California Standard Deduction
Decide whether to itemize your deductions, such as charitable contributions, medical expenses, etc., or take the standard deduction. Your California income tax will be less if you take the larger of your California:
- Itemized deductions (total itemized deductions allowed under California law).
- Standard deduction.
On federal tax returns, individual taxpayers who claim the standard deduction are allowed an additional deduction for net disaster losses. For California, deductions for disaster losses are only allowed for those individual taxpayers who itemized their deductions.
If married/or an RDP and filing separate Form 540NR, you and your spouse/RDP must either both itemize your deductions (even if the itemized deductions of one spouse/RDP are less than the standard deduction) or both take the standard deduction.
Also, if someone else can claim you as a dependent, you may claim the greater of the standard deduction or your itemized deductions. To figure your standard deduction, see the California Standard Deduction Worksheet for Dependents.
Itemized Deductions – Figure your California itemized deductions by completing Schedule CA (540NR), Part III, lines 1 through 30. Enter the result on Form 540NR, line 18.
If you did not itemize deductions on your federal income tax return but will itemize deductions for your Form 540NR, first complete federal Schedule A (Form 1040), Itemized Deductions. Then check the box on Side 4, Part III of the Schedule CA (540NR), and complete Part III. Attach both the federal Schedule A (Form 1040) and California Schedule CA (540NR) to the back of your tax return.
Standard Deduction – Find your standard deduction on the California Standard Deduction Chart for Most People. If you checked the box on Form 540NR, line 6, use the California Standard Deduction Worksheet for Dependents, instead.
California Standard Deduction Chart for Most People
Do not use this chart if your parent, or someone else, can claim you (or your spouse/RDP) as a dependent on their tax return.
| Your Filing Status | Enter On Line 18 |
|---|---|
| 1 – Single | $4,803 |
| 2 – Married/RDP filing jointly | $9,606 |
| 3 – Married/RDP filing separately | $4,803 |
| 4 – Head of household | $9,606 |
| 5 – Qualifying widow(er) | $9,606 |
The California standard deduction amounts are less than the federal standard deduction amounts.
California Standard Deduction Worksheet for Dependents
Use this worksheet only if your parent, or someone else, can claim you (or your spouse/RDP) as a dependent on their return. Use whole dollars only.
- Enter your earned income from: line 2 of the “Standard Deduction Worksheet for Dependents’’ in the instructions for federal Form 1040 or 1040-SR.
- Minimum standard deduction: $1,100.00.
- Enter the larger of line 1 or line 2 here.
- Enter the amount shown for your filing status:
- Single or married/RDP filing separately, enter $4,803.
- Married/RDP filing jointly, head of household, or qualifying widow(er), enter $9,606.
- Standard deduction. Enter the smaller of line 3 or line 4 here and on Form 540NR, line 18.
Line 19 – Taxable Income
Capital Construction Fund (CCF) – If you claim a deduction on your federal Form 1040 or 1040-SR, line 15 for a contribution made to a CCF set up under the Merchant Marine Act of 1936, reduce the amount you would otherwise enter on line 19 by the amount of the deduction. Next to line 19, enter “CCF” and the amount of the deduction. For more information, get federal Publication 595, Capital Construction Fund for Commercial Fishermen.
California Taxable Income
When you figure your tax, use the correct filing status and taxable income amount.
Line 31 – Tax
Tip: e-file and you won’t have to do the math. Go to ftb.ca.gov and search for efile.
To figure your tax on the amount on line 19, use one of the following methods and check the matching box on line 31:
- Tax Table – If your taxable income on line 19 is $100,000 or less, use the tax table. Use the correct filing status column in the tax table.
- Tax Rate Schedules – If your taxable income on line 19 is over $100,000, use the tax rate schedule for your filing status.
- FTB 3800 – Generally, you use form FTB 3800, Tax Computation for Certain Children with Unearned Income, to figure the tax on a separate Form 540NR for your child who was age 18 and under or a student under age 24 on January 1, 2022, and who had more than $2,200 of investment income. Attach form FTB 3800 to the child’s Form 540NR.
- FTB 3803 – If, as a parent, you elect to report your child’s interest and dividend income of $11,000 or less (but not less than $1,100) on your return, complete form FTB 3803, Parents’ Election to Report Child’s Interest and Dividends. File a separate form FTB 3803 for each child whose income you elect to include on your Form 540NR. Add the amount of tax, if any, from each form FTB 3803, line 9, to the amount of your tax from the tax table or tax rate schedules and enter the result on Form 540NR, line 31. Attach form(s) FTB 3803 to your return.
To prevent possible delays in processing your tax return or refund, enter the correct tax amount on this line. To automatically figure your tax or to verify your tax calculation, use our online tax calculator. Go to ftb.ca.gov/tax-rates.
Line 32 – CA Adjusted Gross Income
Complete Schedule CA (540NR), Part IV, line 1 to determine your California adjusted gross income. Follow the instructions for Schedule CA (540NR). Enter on Form 540NR, line 32 the amount from Schedule CA (540NR), Part IV, line 1.
Line 36 – CA Tax Rate
In this computation, the FTB rounds the tax rate to four digits after the decimal. If your computation is different, you may receive a notice due to the difference in rounding. Contact us at 800-852-5711 if you disagree with this notice.
Line 38 – CA Exemption Credit Percentage
Divide the California Taxable Income (line 35) by Total Taxable Income (line 19). This percentage does not apply to the Nonrefundable Renter’s Credit, Nonrefundable Child and Dependent Care Expenses Credit, Other State Tax Credit, or credits that are conditional upon a transaction occurring wholly within California. If more than 1, enter 1.0000.
Line 39 – CA Prorated Exemption Credits
Use your exemption credits to reduce your tax. If your federal AGI on line 13 is more than the amount listed below for your filing status, your credits will be limited.
| If your filing status is: | Is Form 540NR, line 13 more than: |
|---|---|
| Single or married/RDP filing separately | $212,288 |
| Married/RDP filing jointly or qualifying widow(er) | $424,581 |
| Head of household | $318,437 |
AGI Limitation Worksheet
Use whole dollars only.
- Enter the amount from Form 540NR, line 13.
- Enter the amount for your filing status on line b:
- Single or married/RDP filing separately: $212,288
- Married/RDP filing jointly or qualifying widow(er): $424,581
- Head of household: $318,437
- Subtract line b from line a.
- Divide line c by $2,500 ($1,250 if married/RDP filing separately). If the result is not a whole number, round it to the next higher whole number.
- Multiply line d by $6.
- Add the numbers from the boxes on Form 540NR, line 7, line 8, and line 9 (not the dollar amounts).
- Multiply line e by line f.
- Add the total dollar amounts from Form 540NR, line 7, line 8, and line 9.
- Subtract line g from line h. If zero or less, enter -0-.
- Enter the number from the box on Form 540NR, line 10 (not the dollar amount).
- Multiply line e by line j.
- Enter the dollar amount from Form 540NR, line 10.
- Subtract line k from line l. If zero or less, enter -0-.
- Add line i and line m. Enter the result here.
- Multiply the amount on line n by the CA Exemption Credit Percentage on Form 540NR, line 38. Enter the result here and on Form 540NR, line 39.
Line 41 – Tax from Schedule G-1 and Form FTB 5870A
If you received a qualified lump-sum distribution in 2021 and you were born before January 2, 1936, get California Schedule G-1, Tax on Lump-Sum Distributions, to figure your tax by special methods that may result in less tax. Attach Schedule G-1 to your tax return.
If you received accumulation distributions from foreign trusts or from certain domestic trusts, get form FTB 5870A, Tax on Accumulation Distribution of Trusts, to figure the additional tax. Attach form FTB 5870A to your tax return.
Special Credits and Nonrefundable Credits
A variety of California tax credits are available to reduce your tax if you qualify. To figure and claim most special credits, you must complete a separate form or schedule and attach it to your Form 540NR. The Credit Chart describes the credits and provides the name, credit code, and number of the required form or schedule. Many credits are limited to a certain percentage or a certain dollar amount. In addition, the total amount you may claim for all credits is limited by tentative minimum tax (TMT); go to Box A to see if your credits are limited.
If you are not claiming any other special credits go to line 50 and line 61 to see if you qualify for the Nonrefundable Child and Dependent Care Expenses Credit or the Nonrefundable Renter’s Credit.
Box A
Did you complete federal Schedule C, D, E, or F and claim or receive any of the following (Note: If your business gross receipts are less than $1,000,000 from all trades or businesses, you do not have to report alternative minimum tax (AMT). For more information, see line 71 instructions.):
- Accelerated depreciation in excess of straight-line
- Intangible drilling costs
- Depletion
- Circulation expenditures
- Research and experimental expenditures
- Mining exploration/development costs
- Amortization of pollution control facilities
- Income/loss from tax shelter farm activities
- Income/loss from passive activities
- Income from long-term contracts using the percentage of completion method
- Pass-through AMT adjustment from an estate or trust reported on Schedule K-1 (541)
Box B
Did you claim or receive any of the following:
- Investment interest expense
- Income from incentive stock options in excess of the amount reported on your return
- Income from installment sales of certain property
Box C
| If your filing status is: | Is Form 540NR, line 17 more than: |
|---|---|
| Single or head of household | $292,763 |
| Married/RDP filing jointly or qualifying widow(er) | $390,351 |
| Married/RDP filing separately | $195,172 |
Yes Get and complete Schedule P (540NR). See “Order Forms and Publications.” No Your credits are not limited.
Line 50 – Nonrefundable Child and Dependent Care Expenses Credit – Code 232
Claim this credit if you paid someone to care for your qualifying child under the age of 13, other dependent who is physically or mentally incapable of caring for him or herself, or spouse/RDP if physically or mentally incapable of caring for him or herself. To claim this credit, your federal AGI must be $100,000 or less. Complete and attach form FTB 3506, Child and Dependent Care Expenses Credit. See “Where To Get Income Tax Forms and Publications.”
The care must have been provided in California. You must have California-sourced income (wages earned working in California or self‑employment income from California business activities).
A servicemember’s active duty military pay is considered earned income, regardless of whether the servicemember is domiciled in California. Get FTB Pub. 1032, Tax Information for Military Personnel, for more information.
Schedule P (540NR) – If you need to complete Schedule P (540NR) and you claim any of the credits on line 51 through line 53, do not enter an amount on line 51 through line 53. Instead, enter the total amount of these credits from Schedule P (540NR), Part III, Section B1, line 12 through line 14, on Form 540NR, line 55. Do not follow the instructions for line 55. Write “Schedule P (540NR)” to the left of the amount entered on line 55.
Line 51 – Credit for Joint Custody Head of Household – Code 170
You may not claim this credit if you used the head of household, married/RDP filing jointly, or the qualifying widow(er) filing status.
Claim the credit if unmarried and not an RDP at the end of 2021 (or if married/or an RDP, you lived apart from your spouse/RDP for all of 2021 and you used the married/RDP filing separately filing status); and if you furnished more than one-half the household expenses for your home that also served as the main home of your child, step-child, or grandchild for at least 146 days but not more than 219 days of your taxable year. If the child is married/or an RDP, you must be entitled to claim a dependent exemption for the child.
Also, the custody arrangement for the child must be part of a decree of dissolution or legal separation or part of a written agreement between the parents where the proceedings have been initiated, but a decree of dissolution or legal separation has not yet been issued.
If your Federal AGI is more than $212,288, subtract line n from the AGI Limitation Worksheet from line 31 of the Form 540NR and enter this amount on line 1 of the worksheet below to calculate your credit.
Use the worksheet below to figure this credit using whole dollars only:
- Subtract line 11 from line 31 on Form 540NR and enter the result here.
- Enter the amount from Form 540NR, line 41.
- Add line 1 and line 2.
- Credit percentage – 30%: .30
- Credit amount. Multiply line 3 by line 4. Enter on this line the result or $513, whichever is less. Enter this amount on Form 540NR, line 51.
If you qualify for both the Credit for Joint Custody Head of Household and the Credit for Dependent Parent, you are only allowed to claim one or the other, not both. Select the credit that will allow the maximum benefit.
Line 52 – Credit for Dependent Parent – Code 173
You may not claim this credit if you used the single, head of household, qualifying widow(er), or married/RDP filing jointly filing status.
Claim this credit only if all of the following apply:
- You were married/or an RDP at the end of 2021 and you used the married/RDP filing separately filing status.
- Your spouse/RDP was not a member of your household during the last six months of the year.
- You furnished over one-half the household expenses for your dependent mother’s or father’s home, whether or not she or he lived in your home.
To figure the amount of this credit, use the worksheet for the Credit for Joint Custody Head of Household.
On the last line of the worksheet, enter the result or $513, whichever is less. Enter this amount on Form 540NR, line 52.
If you qualify for both the Credit for Joint Custody Head of Household and the Credit for Dependent Parent, you are only allowed to claim one or the other, not both. Select the credit that will allow the maximum benefit.
Line 53 – Credit for Senior Head of Household – Code 163
Claim this credit if you:
- Were 65 years of age or older on December 31, 2021*.
- Qualified as a head of household in 2019 or 2020 by providing a household for a qualifying individual who died during 2019 or 2020.
- Did not have adjusted gross income over $83,039 for 2021.
*If your 65th birthday is on January 1, 2022, you are considered to be age 65 on December 31, 2021.
If you meet all the conditions listed, you do not need to qualify to use the head of household filing status for 2021 in order to claim this credit.
Use the worksheet below to figure this credit using whole dollars only:
- Enter the amount from Form 540NR, line 19.
- Credit percentage – 2%: .02
- Credit amount. Multiply line 1 by line 2. Enter on this line the result or $1,565, whichever is less. Enter this amount on Form 540NR, line 53.
Line 54 and Line 55 – Credit Percentage and Credit Amount
If you claimed credits on line 51, line 52, or line 53, complete the worksheet below to compute your credit percentage and the allowable prorated credit to enter on line 55 using whole dollars only. If you completed Schedule P (540NR), see the instructions above the line 51 instructions.
Part I – Credit Percentage
- Enter the percentage amount from line 38 here and on Form 540NR, line 54. If more than 1, enter 1.0000.
Part II – Credit Amount
Credit for Joint Custody Head of Household
- Enter the amount from Form 540NR, line 51.
- Credit Percentage from Part I, line 1.
- Multiply line 1 by line 2.
- Enter the lesser of the amount from line 3 or $513.
Credit for Dependent Parent
- Enter the amount from Form 540NR, line 52.
- Credit Percentage from Part I, line 1.
- Multiply line 5 by line 6.
- Enter the lesser of the amount on line 7 or $513.
Credit for Senior Head of Household
- Enter the amount from Form 540NR, line 53.
- Credit Percentage from Part I, line 1.
- Multiply line 9 by line 10.
- Enter the lesser of the amount on line 11 or $1,565.
Total Prorated Credits
- Add line 4, line 8, and line 12. Enter the result here and on Form 540NR, line 55.
Line 58 through Line 60 – Additional Special Credits
A code identifies each credit. To claim only one or two credits, enter the credit name, code, and amount of the credit on line 58 and line 59.
To claim more than two credits, use Schedule P (540NR), Part III. Get Schedule P (540NR) instructions, “How to Claim Your Credits.”
Important: Attach Schedule P (540NR) and any required supporting schedules or statements to your Form 540NR.
Carryovers: If you claim a credit with carryover provisions and the amount of the credit available this year exceeds your tax, carry over any excess credit to future years until the credit is used (unless the carryover period is a fixed number of years). If you claim a credit carryover for an expired credit, use form FTB 3540, Credit Carryover and Recapture Summary, to figure the amount of the credit.
Credit for Child Adoption Costs – Code 197
For the year in which an adoption decree or an order of adoption is entered (e.g. adoption is final), claim a credit for 50% of the cost of adopting a child who was both:
- A citizen or legal resident of the United States
- In the custody of a California public agency or a California political subdivision
Treat a prior unsuccessful attempt to adopt a child (even when the costs were incurred in a prior year) and a later successful adoption of a different child as one effort when computing the cost of adopting the child. Include the following costs if directly related to the adoption process:
- Fees for Department of Social Services or a licensed adoption agency
- Medical expenses not reimbursed by insurance
- Travel expenses for the adoptive family
Note:
- This credit does not apply when a child is adopted from another country or another state, or who was not in the custody of a California public agency or a California political subdivision.
- Any deduction for the expenses used to claim this credit must be reduced by the amount of the child adoption costs credit claimed.
Use the following worksheet to figure this credit using whole dollars only. If more than one adoption qualifies for this credit, complete a separate worksheet for each adoption. The maximum credit is limited to $2,500 per minor child.
- Enter qualifying costs for the child.
- Credit percentage – 50%: .50
- Credit amount. Multiply line 1 by line 2. Do not enter more than $2,500.
Your allowable credit is limited to $2,500 for 2021. You may carryover the excess credit to future years until the credit is used.
Line 61 – Nonrefundable Renter’s Credit
If you paid rent for at least six months in 2021 on your principal residence located in California you may qualify to claim the nonrefundable renter’s credit which may reduce your tax. Complete the Nonrefundable Renter’s Credit Qualification Record.
Line 63
Subtract the amount on line 62 from the amount on line 42. Enter the result on line 63. If the amount on line 62 is more than the amount on line 42, enter -0-.
Other Taxes
Attach the specific form or statement required for each item below.
Line 71 – Alternative Minimum Tax (AMT)
If you claim certain types of deductions, exclusions, and credits, you may owe AMT if your total income is more than:
- $104,094 married/RDP filing jointly or qualifying widow(er)
- $78,070 single or head of household
- $52,044 married/RDP filing separately
A child under age 19 or a student under age 24 may owe AMT if the sum of the amount on line 19 (taxable income) and any preference items listed on Schedule P (540NR) and included on the return is more than the sum of $7,850 and the child’s earned income.
AMT income does not include income, adjustments, and items of tax preference related to any trade or business of a qualified taxpayer who has gross receipts, less returns and allowances, during the taxable year of less than $1,000,000 from all trades or businesses.
Get Schedule P (540NR) for more information. See “Where To Get Income Tax Forms and Publications.”
Line 72 – Mental Health Services Tax
If your taxable income or nonresident CA source taxable income is more than $1,000,000, compute the Mental Health Services tax using whole dollars only:
- CA Taxable income from Form 540NR, line 35.
- Less: ($1,000,000)
- Subtotal
- Tax rate – 1%: .01
- Mental Health Services Tax – Multiply line 3 by line 4. Enter this amount here and on Form 540NR, line 72.
Line 73 – Other Taxes and Credit Recapture
If you received an early distribution of a qualified retirement plan and were required to report additional tax on your federal tax return, you may also be required to report additional tax on your California tax return. Get form FTB 3805P, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts. If required to report additional tax, report it on line 73 and write “FTB 3805P” to the left of the amount.
In general, California conforms to federal law for income received under IRC Section 409A on a nonqualified deferred compensation (NQDC) plan and discounted stock options and stock appreciation rights. Income received under IRC Section 409A is subject to an additional 5% tax plus interest. Include the additional tax, if any, on line 73. Write “NQDC” on the dotted line to the left of the amount.
If you owe interest on deferred tax from installment obligations, include the additional tax, if any, in the amount you enter on line 73. Write “IRC Section 453A interest” and the amount on the dotted line to the left of the amount on line 73.
If you used form(s):
- FTB 3531, California Competes Tax Credit – Enter only the recaptured amount used. Get the instructions for form FTB 3531, Part III, Credit Recapture, for more information.
- FTB 3540, Credit Carryover and Recapture Summary
- FTB 3554, New Employment Credit
Include the additional tax for credit recapture, if any, on line 73. Write the form number on the dotted line to the left of the amount on line 73.
Line 74 – Excess Advance Premium Assistance Subsidy (APAS) Repayment
Enter your excess APAS repayment amount from form FTB 3849, line 29.
You may have to repay excess APAS even if someone else enrolled you, your spouse, or your dependent in coverage purchased through Covered California (Marketplace). In that case, another individual may have received form FTB 3895 for the coverage.
You also may have to repay excess APAS if you enrolled an individual in coverage through the Marketplace, you don’t claim the individual as a dependent on your return, and no one else claims that individual as a dependent. For more information, get the instructions for form FTB 3849 and FTB Pub 3849A.
Payments
Before you begin this section, have the following federal Form(s) available:
- W-2, Wage and Tax Statement
- W-2G, Certain Gambling Winnings
- 1099-DIV, Dividends and Distributions
- 1099‑INT, Interest Income
- 1099‑MISC, Miscellaneous Information
- 1099-NEC, Nonemployee Compensation
- 1099-OID, Original Issue Discount
- 1099‑R, Distributions from Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.
Also, have your California Form(s) 592‑B, Resident and Nonresident Withholding Tax Statement, and 593, Real Estate Withholding Statement, available.
If you received wages and do not have a federal Form W-2, see Frequently Asked Questions, Question 2.
Line 81 – California Income Tax Withheld
Enter the total California income tax withheld from your federal Form(s):
- W-2, box 17
- W-2G, box 15
- 1099-DIV, box 15
- 1099-INT, box 17
- 1099-MISC, box 15
- 1099-NEC, box 5
- 1099-OID, box 14
- 1099-R, box 14
Do not include city, local, or county tax withheld, tax withheld by other states, or nonconsenting nonresident (NCNR) member’s tax from Schedule K-1 (568), line 15e. Do not include nonresident or real estate withholding from Form(s) 592-B or 593, on this line as withholding. For more information, see instructions for line 83. If you had California tax withheld and did not receive Form(s) W-2 or 1099, contact the entity that paid the income.
If you received Form(s) 1099-DIV, 1099-INT, 1099-MISC, 1099-NEC, 1099-OID, or 1099-R showing California income tax withheld, include in the total on line 81 the amount(s) withheld and attach a copy of the Form(s) 1099 to the lower front of your tax return.
Generally, tax should not be withheld on federal Form 1099-MISC or Form 1099-NEC. If you want to pre-pay tax on income reported on federal Form 1099-MISC or Form 1099-NEC, use Form 540‑ES, Estimated Tax for Individuals.
Line 82 – 2021 CA Estimated Tax and Other Payments
Enter the total of any:
- California estimated tax payments you made using 2021 Form 540‑ES, electronic funds withdrawal, Web Pay, or credit card.
- Overpayment from your 2020 California income tax return that you applied to your 2021 estimated tax.
- Payment you sent with form FTB 3519, Payment for Automatic Extension for Individuals.
- California estimated tax payments made on your behalf by an estate or trust on Schedule K-1 (541) or an S corporation on Schedule K-1(100S).
If you are including NCNR tax, write “LLC” on the dotted line to the left of the amount on line 82, and attach Schedule K-1 (568) with the amount of the NCNR tax claimed. The LLC’s return must be filed before an individual member’s account can be credited. If you e-file, attach any requested forms, schedules and documents according to your software’s instructions.
If you and your spouse/RDP paid joint estimated taxes but are now filing separate income tax returns, either of you may claim the entire amount paid, or each may claim part of the joint estimated tax payments. If you want the estimated tax payments to be divided, notify the FTB before you file the tax returns so the payments can be applied to the proper account. The FTB will accept in writing, any divorce agreement (or court-ordered settlement) or a statement showing the allocation of the payments along with a notarized signature of both taxpayers.
Send statements to:
Mail Joint Estimate Credit Allocation MS F283
Taxpayer Services Center
Franchise Tax Board
PO Box 942840
Sacramento, CA 94240-0040
To view payments made or get your current account balance, go to ftb.ca.gov and login or register for MyFTB.
If you or your spouse/RDP made separate estimated tax payments, but are now filing a joint income tax return, add the amounts you each paid. Attach a statement to the front of your Form 540NR explaining that payments were made under both SSNs. If you e-file, attach any requested forms, schedules and documents according to your software’s instructions.
You do not have to make estimated tax payments if you are a nonresident or new resident of California in 2022 and did not have a California tax liability in 2021.
Line 83 – Withholding (Form 592-B and/or 593)
If you were a nonresident who received California source income or sold California real estate, enter the total California tax withheld from your Form(s) 592-B and 593. Attach a copy of Form(s) 592-B and 593 to the lower front of Form 540NR, Side 1.
If your filing status changed after escrow closed and before filing your California tax return, please contact us at 888-792-4900, prior to filing your California tax return, for instructions on how to claim your withholding credit.
Do not include withholding from other forms on this line. Do not include NCNR member’s tax from Schedule K-1 (568), line 15e as withholding; see instructions for line 82.
Line 84 – Excess California SDI (or VPDI) Withheld
You may be entitled to claim a credit for excess State Disability Insurance (SDI) or Voluntary Plan Disability Insurance (VPDI) if you meet all of the following conditions:
- You had two or more California employers during 2021.
- You received more than $128,298 in gross wages from California sources.
- The amounts of SDI (or VPDI) withheld appear on your federal Form(s) W-2. Be sure to attach your Form(s) W-2 to your Form 540NR.
If SDI (or VPDI) was withheld from your wages by a single employer, at a rate of more than 1.20% of your gross wages, you may not claim excess SDI (or VPDI) on your Form 540NR. Contact the employer for a refund.
To determine the amount to enter on line 84, complete the Excess SDI (or VPDI) Worksheet below. If married/RDP filing jointly, figure the amount of excess SDI (or VPDI) separately for each spouse/RDP.
Excess SDI (or VPDI) Worksheet
Use whole dollars only.
Follow the instructions below to figure the amount of excess SDI to enter on Form 540NR, line 84. If you are married/or an RDP and file a joint tax return, you must figure the amount of excess SDI (or VPDI) separately for each spouse/RDP.
| You | Your Spouse/RDP | |
|---|---|---|
| 1. Add amounts of SDI (or VPDI) withheld shown on your federal Forms W-2. Enter the total here. | ||
| 2. 2021 SDI (or VPDI) limit | $1,539.58 | $1,539.58 |
| 3. Excess SDI (or VPDI) withheld. Subtract line 2 from line 1. Enter the results here. Combine the amounts on line 3 and enter the total, in whole dollars only, on line 84. |
If zero or less, enter -0- on line 84.
Line 85 – Earned Income Tax Credit (EITC)
Enter your Earned Income Tax Credit from form FTB 3514, California Earned Income Tax Credit, line 22.
Line 86 – Young Child Tax Credit (YCTC)
Enter your Young Child Tax Credit from form FTB 3514, line 30.
Line 87 – Net Premium Assistance Subsidy (PAS)
Enter your net PAS amount from form FTB 3849, line 26.
Line 88
For the Claim of Right credit, follow the reporting instructions in Schedule CA (540NR), Part III, line 16 under the Claim of Right.
Claim of Right: If you are claiming the tax credit on your California tax return, include the amount of the credit in the total for this line. Write in “IRC 1341” and the amount of the credit to the left of the amount column.
To determine if you are entitled to this credit, refer to your prior year California Form 540NR or Schedule CA (540NR), column E, to verify the amount was included in your CA taxable income. If the amount repaid under a “Claim of Right” was not originally taxed by California, you are not entitled to claim the credit.
ISR Penalty
Line 91 – Individual Shared Responsibility (ISR) Penalty
Check the box on Form 540NR, line 91, if you, your spouse/RDP (if filing a joint return), and anyone you can or do claim as a dependent had minimum essential coverage (also referred to as qualifying health care coverage) that covered all of 2021. Medicare Part A or C qualifies as minimum essential coverage. If you check the box on Form 540NR, line 91, you do not owe the individual shared responsibility penalty and do not need to file form FTB 3853. For more information, get form FTB 3853.
If you and your household did not have full-year health care coverage, then go to form FTB 3853 to determine if you have an individual shared responsibility penalty. Enter your individual shared responsibility penalty from form FTB 3853, Part IV, line 1.
Overpaid Tax or Tax Due
To avoid a delay in the processing of your tax return, enter the correct amounts on line 101 through line 104.
Line 101 – Overpaid Tax
If the amount on line 92 is more than the amount on line 75, subtract the amount on line 75 from the amount on line 92. Enter the result on line 101. Your payments and credits are more than your tax.
Refund Intercept – The FTB administers the Interagency Intercept Collection (IIC) program on behalf of the State Controller’s Office. The IIC program intercepts (offsets) refunds when individuals and business entities owe delinquent debts to government agencies including the IRS and California colleges. All refunds are subject to interception. The FTB only intercepts the amount owed.
Refunds from joint tax returns may be applied to the debts of the taxpayer or spouse/RDP. After all tax liabilities are paid, any remaining credit will be applied to requested voluntary contributions, if any, and the remainder will be refunded.
If the debt was previously paid to the requestor and the FTB also intercepted the refund, any overpayment will be refunded by the agency that received the funds.
For more information, go to ftb.ca.gov and search for interagency intercept collection.
Line 102 – Amount You Want Applied to Your 2022 Estimated Tax
Apply all or part of the amount on line 101 to your estimated tax for 2022. Enter on line 102 the amount of line 101 you want applied to 2022.
An election to apply an overpayment against estimated tax is binding. Once the election is made, the overpayment cannot be applied to a deficiency after the due date of the tax return.
Line 103 – Overpaid Tax Available This Year
If you entered an amount on line 102, subtract it from the amount on line 101. Enter the result on line 103. You may have this entire amount refunded to you or make contributions to the California Seniors Special Fund or make other voluntary contributions from this amount. If you make a contribution, skip line 104 and go to the instructions for contributions.
Line 104 – Tax Due
If the amount on line 92 is less than the amount on line 75, subtract the amount on line 92 from the amount on line 75. Enter the result on line 104. Your tax is more than your payments and credits.
There is a penalty for not paying enough tax during the year. You may have to pay a penalty if:
- The tax due on line 104 is $500 or more ($250 or more if married/RDP filing separately).
- The amount of state income tax withheld on line 81 is less than 90% of the amount of your total tax on line 75.
If you owe a penalty, the FTB will figure the penalty and send you a bill.
Contributions
You can make voluntary contributions to the funds listed on Side 4. See “Voluntary Contribution Fund Descriptions” for more information.
You may also contribute any amount to the State Parks Protection Fund/Parks Pass Purchase. To receive a single annual park pass, your contribution must equal or exceed $195. When applicable, the FTB will forward your name and address from your tax return to the Department of Parks and Recreation (DPR) who will issue a single Vehicle Day Use Annual Pass to you. Only one pass will be provided per tax return. You may contact DPR directly to purchase additional passes. If there is an error on your tax return in the computation of total contributions or if we disallow the contribution you requested because there is no credit available for the tax year, your name and address will not be forwarded to DPR. Any contribution less than $195 will be treated as a voluntary contribution and may be deducted as a charitable contribution. For more information, go to parks.ca.gov/annualpass/ or email info@parks.ca.gov.
Code 400 – Contribution to California Seniors Special Fund
If you and/or your spouse/RDP are 65 years of age or older and claim the Senior Exemption Credit on line 9, you may make a combined total contribution of up to $258 or $129 per spouse/RDP. Contributions entered on code 400 will be distributed to The Area Agency on Aging Council of California (TACC) to provide advice on and sponsorship of Senior Citizen issues. Any excess contributions not required by TACC will be distributed to senior citizen service organizations throughout California for meals, adult day care, and transportation.
Use the worksheet below to figure your contribution:
- If you contribute, enter $129; if you and your spouse/RDP contribute, enter $258.
- Enter the ratio from Form 540NR, line 38.
- Contribution amount. Multiply line 1 by line 2. Enter the result (rounded to the nearest whole dollar) here.
You may contribute any amount up to the amount on line 3. Enter your contribution on the line for code 400.
Line 120 – Total Contributions
Add amounts in code 400 through code 446. Enter the result on line 120.
Amount You Owe
Add or subtract correctly to figure the amount you owe.
Line 121 – Amount You Owe
If you did not enter an amount on line 120, enter the amount from line 104 on line 121. This is the amount you owe with your Form 540NR.
If you entered an amount on line 120, add that amount to the amount on line 104. Enter the result on line 121. This is the amount you owe with your Form 540NR.
If you have an amount on line 103 and line 120, subtract line 120 from line 103. If line 120 is more than line 103 enter the difference on line 121.
To avoid a late filing penalty, file your Form 540NR by the extended due date even if unable to pay the amount you owe.
Mandatory Electronic Payments – You are required to remit all your payments electronically once you make an estimate or extension payment exceeding $20,000 or you file an original return with a total tax liability over $80,000. Once you meet this threshold, all subsequent payments regardless of amount, tax type, or taxable year must be remitted electronically. The first payment that would trigger the mandatory e-pay requirement does not have to be made electronically. Individuals that do not send the payment electronically will be subject to a 1% noncompliance penalty.
You can request a waiver from mandatory e-pay if one or more of the following is true:
- You have not made an estimated tax or extension payment in excess of $20,000 during the current or previous taxable year.
- Your total tax liability reported for the previous taxable year did not exceed $80,000.
- The amount you paid is not representative of your total tax liability.
For more information or to obtain the waiver form, go to ftb.ca.gov/e-pay. Electronic payments can be made using Web Pay on the FTB’s website, electronic funds withdrawal (EFW) as part of the e-file tax return, or your credit card.
Payment Options
- Electronic Funds Withdrawal – Instead of paying by check or money order, you may use this convenient option if you e-file. Provide your bank information, amount you want to pay, and the date you want the balance due to be withdrawn from your account. Your tax preparation software will offer this option.
- Web Pay – Pay the amount you owe using our secure online payment service. Go to ftb.ca.gov/pay for more information.
- Credit Card – Whether you e-file or file by mail, you can use your Discover, MasterCard, Visa, or American Express card to pay your personal income taxes. If you pay by credit card, do not mail form FTB 3519 to us. Call 800-272-9829 or go to the ACI Payments, Inc. (formerly Official Payments) website at officialpayments.com, and use the jurisdiction code 1555. ACI Payments, Inc. charges a convenience fee for using this service.
- Check or Money Order – Using black or blue ink, make your check or money order payable to the “Franchise Tax Board.” Do not send cash or other items of value (such as stamps, lottery tickets, foreign currency, and gift cards). Write your SSN or ITIN and “2021 Form 540NR” on the check or money order. Enclose, but do not staple, your payment with your return. Make all checks or money orders payable in U.S. dollars and drawn against a U.S. financial institution. Do not combine your 2021 tax payment and any 2022 estimated tax payment in the same check. Prepare two separate checks and mail each in a separate envelope. If you e-filed your tax return, mail your check or money order with form FTB 3582, Payment Voucher for Individual e-filed Returns. Do not mail a copy of your e-filed tax return. A penalty may be imposed if your check is returned by your bank for insufficient funds. If you enter an amount on line 122 or line 123, see the instructions for line 124 for information about how to prepare your check or money order.
Paying by Credit Card – Whether you e-file or file by mail, use your Discover, MasterCard, Visa, or American Express card to pay your personal income taxes (tax return balance due, extension payment, estimated tax payment, or tax due with bill notice). There is a convenience fee for this service. This fee is paid directly to ACI Payments, Inc. based on the amount of your tax payment.
Convenience Fee
- 2.30% of the tax amount charged (rounded to the nearest cent)
- Minimum fee: $1
Example: Tax Payment = $753.56 Convenience Fee = $17.33
When will my payments be effective?
Your payment is effective on the date you charge it.
What if I change my mind?
If you pay your tax liability by credit card and later reverse the credit card transaction, you may be subject to penalties, interest, and other fees imposed by the FTB for nonpayment or late payment of your tax liability.
How do I use my credit card to pay my income tax bill?
Once you have determined the type of payment and how much you owe, the following information is needed:
- Your Discover, MasterCard, Visa, or American Express card
- Credit card number
- Expiration date
- Amount you are paying
- Your and your spouse’s/RDP’s SSN or ITIN
- First 4 letters of your and your spouse’s/RDP’s last name
- Taxable year
- Home phone number (including area code)
- ZIP code for address where your monthly credit card bill is sent
- FTB Jurisdiction Code: 1555
Go to the ACI Payments, Inc. website at officialpayments.com and select Payment Center, or call 800.2PAY.TAX or 800-272-9829 and follow the recorded instructions. ACI Payments, Inc. provides customer assistance at 877-297-7457 Monday through Friday, 5:00 a.m. to 5:00 p.m. PST. ACI Payments, Inc. will tell you the convenience fee before you complete your transaction. Decide whether to complete the transaction at that time.
- Payment Date:
- Confirmation Number:
If you cannot pay the full amount or can only make a partial payment for the amount shown on Form 540NR, line 121, see the information regarding installment payments in Question 4 of the "Frequently Asked Questions".
Interest and Penalties
If you file your tax return or pay your tax after the original due date, you may owe interest and penalties on the tax due.
Do not reduce the amount on line 101 or increase the amount on line 104 by any penalty or interest amounts. Enter on Form 540NR, line 122 the amount of interest and penalties.
Line 122 – Interest and Penalties
Interest. Interest will be charged on any late filing or late payment penalty from the original due date of the return to the date paid. In addition, if other penalties are not paid within 15 days, interest will be charged from the date of the billing notice until the date of payment. Interest compounds daily and the interest rate is adjusted twice a year. The FTB website has a chart of interest rates in effect since 1976. Go to ftb.ca.gov and search for interest rates.
Late Filing of Tax Return – If you do not file your tax return by October 17, 2022, you will incur a late filing penalty plus interest from the original due date of the tax return. The maximum total penalty is 25% of the tax not paid if the tax return is filed after October 17, 2022. The minimum penalty for filing a tax return more than 60 days late is $135 or 100% of the balance of tax due, whichever is less.
Late Payment of Tax – If you fail to pay your total tax liability by April 18, 2022, you will incur a late payment penalty plus interest. The penalty is 5% of the tax not paid when due plus 1/2% for each month, or part of a month, the tax remains unpaid. We may waive the late payment penalty based on reasonable cause. Reasonable cause is presumed when 90% of the tax shown on the return is paid by the original due date of the return. However, the imposition of interest is mandatory. If, after April 18, 2022, you find that your estimate of tax due was too low, pay the additional tax as soon as possible to avoid or minimize further accumulation of penalties and interest.
Other Penalties – We may impose other penalties if a payment is returned for insufficient funds. We may also impose penalties for negligence, substantial understatement of tax, and fraud.
Line 123 – Underpayment of Estimated Tax
You may be subject to an estimated tax penalty if any of the following is true:
- Your withholding and credits are less than 90% of your current tax year liability.
- Your withholding and credits are less than 100% of your prior year tax liability (110% if AGI is more than $150,000 or $75,000 if married/RDP filing separately).
- You did not pay enough through withholding to keep the amount you owe with your tax return under $500 ($250 if married/RDP filing separately).
- You did not make the required estimate payments, if you pay an installment after the date it is due, or if you underpay any installment, a penalty may be assessed on the portion of estimated tax that was underpaid from the due date of the installment to the date of payment or the due date of your return, whichever is earlier. Get the 2021 form FTB 5805, Underpayment of Estimated Tax by Individuals and Fiduciaries, for more information.
The FTB can figure the penalty for you when you file your tax return and send you a bill.
Is line 104 less than $500 ($250 if married/RDP filing separately)?
Yes Stop. You may not be subject to an estimated payment penalty. No Continue. You may be subject to an estimated payment penalty.
Is line 104 less than 10% of the amount on line 63 (excluding the tax on lump-sum distributions on line 41)?
Yes Stop. You may not be subject to an estimated payment penalty. No You may be subject to an estimated payment penalty, get form FTB 5805 (or form FTB 5805F, Underpayment of Estimated Tax by Farmers and Fishermen).
The underpayment of estimated tax penalty shall not apply to the extent the underpayment of an installment was created or increased by any provision of law that is chaptered during and operative for the taxable year of the underpayment. To request a waiver of underpayment of estimated tax penalty, get form FTB 5805 or form FTB 5805F. See “Where To Get Income Tax Forms and Publications.”
If you complete one of these forms, enter the amount of the penalty on line 123 and check the correct box on line 123. Complete and attach the form if you claim a waiver, use the annualized income installment method, or pay tax according to the schedule for farmers and fishermen, even if no penalty is owed.
See “Important Dates” for more information on estimated tax payments and how to avoid the underpayment penalty.
Line 124 – Total Amount Due
Is there an amount on line 121?
Yes Add line 121, line 122, and line 123. Enter the result on line 124. For payment options, see line 121 instructions. No Go to line 125.
Make all checks or money orders payable in U.S. dollars and drawn against a U.S. financial institution.
Refund and Direct Deposit
Line 125 – Refund or No Amount Due
Did you report amounts on line 120, line 122, or line 123?
- More than line 103, subtract line 103 from the sum of line 120, line 122, and line 123 and enter the result on line 124. This is your total amount due. For payment options, see line 121 instructions.
- Less than line 103, subtract the sum of line 120, line 122, and line 123 from line 103 and enter the result on line 125. This is your refund amount.
Line 126 and Line 127 – Direct Deposit of Refund
Direct deposit is safe and convenient. To have your refund directly deposited into your bank account, fill in the account information on Form 540NR, Side 5, line 126 and line 127. Fill in the routing and account numbers and indicate the account type. Verify routing and account numbers with your financial institution. Do not attach a voided check or deposit slip. See the illustration below.
Individual taxpayers may request that their refund be electronically deposited into more than one checking or savings account. This allows more options for managing your refund. For example, you can request part of your refund go to your checking account to use now and the rest to your savings account to save for later.
The routing number must be nine digits. The first two digits must be 01 through 12 or 21 through 32. On the sample check, the routing number is 250250025. The account number can be up to 17 characters and can include numbers and letters. Include hyphens, but omit spaces and special symbols. On the sample check, the account number is 202020.
Check the appropriate box for the type of account. Do not check more than one box for each line.
Enter the portion of your refund you want directly deposited into each account. Each deposit must be at least $1. When filing an original return, the total of line 126 and line 127 must equal the total amount of your refund on line 125. If line 126 and line 127 do not equal line 125, the FTB will issue a paper check.
When filing an amended return, only complete the amended Form 540NR through line 125. Next complete the California Schedule X. The amount from Schedule X, line 11 is your additional refund amount. This amount will be carried over to your amended Form 540NR and will be entered on line 126 and line 127. The total of the amended Form 540NR, line 126 and line 127 must equal the total amount of your refund on Schedule X, line 11. If the total of the amended Form 540NR, line 126 and line 127 do not equal Schedule X, line 11, the FTB will issue a paper check.
Adjusted Refunds – If there is a change made to your refund, you will still receive your refund via direct deposit. For more information on direct deposit of adjusted refunds, go to ftb.ca.gov and search for direct deposit.
Caution: Check with your financial institution to make sure your deposit will be accepted and to get the correct routing and account numbers. The FTB is not responsible for a lost refund due to incorrect account information entered by you or your representative.
Prior to depositing the refund, the FTB may first verify with your financial institution that the name on the account you designated to receive the direct deposit refund matches the name provided on the tax return. Some financial institutions will not allow a joint refund to be deposited to an individual account. If the direct deposit is rejected, the FTB will issue a paper check.
Direct Deposit for ScholarShare 529 College Savings Plans – If you have a ScholarShare 529 College Savings Plan account maintained by the ScholarShare Investment Board, you may have your refund directly deposited to your ScholarShare account. Please visit scholarshare529.com for instructions.
Sign Your Tax Return
Sign your tax return in the designated space on Form 540NR, Side 5. If you file a joint tax return, your spouse/RDP must also sign it.
Include your preferred phone number and email address in case the FTB needs to contact you regarding your tax return. By providing this information, the FTB will be able to provide you better customer service.
Joint Tax Return – If you file a joint tax return, both you and your spouse/RDP are generally responsible for the tax and any interest or penalties due on the tax return. This means that if one spouse/RDP does not pay the tax due, the other spouse/RDP may have to pay the tax due. See “Innocent Joint Filer Relief” under Additional Information section for more information.
Paid Preparer Information – If you pay a person to prepare your Form 540NR, that person must sign and complete the area at the bottom of Side 5 including an identification number. The IRS requires a paid tax preparer to get and use a preparer tax identification number (PTIN). If the preparer has a federal employer identification number (FEIN), it should be entered only in the space provided. A paid preparer must give you a copy of your tax return to keep for your records.
Third Party Designee – If you want to allow your preparer, a friend, family member, or any other person you choose to discuss your 2021 tax return with the FTB, check the “Yes” box in the signature area of your tax return. Also, print the designee’s name and telephone number.
If you check the “Yes” box, you and your spouse/RDP, if filing a joint tax return, are authorizing the FTB to call the designee to answer any questions that may arise during the processing of your tax return. You are also authorizing the designee to:
- Give the FTB any information that is missing from your tax return.
- Call the FTB for information about the processing of your tax return or the status of your refund or payments.
- Receive copies of notices or transcripts related to your tax return, upon request.
- Respond to certain FTB notices about math errors, offsets, and tax return preparation.
You are not authorizing the designee to receive any refund check, bind you to anything (including any additional tax liability), or otherwise represent you before the FTB. If you want to expand or change the designee’s authorization, go to ftb.ca.gov/poa.
The authorization will automatically end no later than the due date (without regard to extensions) for filing your 2022 tax return. This is April 15, 2023, for most people. If you wish to revoke the authorization before it ends, notify us by telephone at 800-852-5711 or by writing to Franchise Tax Board, PO Box 942840, Sacramento, CA 94240‑0040, include your name, SSN, and the designee’s name.
Power of Attorney – If another person prepared your tax return, he or she is not automatically granted access to your tax information in future dealings with us. At some point, you may wish to designate someone to act on your behalf in matters related or unrelated to this tax return (e.g., an audit examination). To protect your privacy, you must submit to us a legal document called a “Power of Attorney” (POA) authorizing another person to discuss or receive personal information about your income tax records.
For more information, go to ftb.ca.gov/poa.
Check Your Social Security Number (or ITIN) – Verify that you have written your social security number (or ITIN) in the spaces provided at the top of Form 540NR. If you file a joint tax return, verify that you and your spouse’s/RDP’s numbers are entered in the same order as your names.
Filing Your Tax Return
Important: Attach a copy of your federal income tax return, and all supporting federal forms and schedules to the back of Form 540NR.
Federal Form(s) W-2, W-2G, and 1099, and CA Form(s) 592-B, and 593. Attach all the Form(s) W-2 and W‑2G you received to the lower front of your tax return. Also, attach any Form(s) 1099, 592-B, and 593 showing California income tax withheld.
If you do not receive your Form(s) W-2 by January 31, 2022, contact your employer or go to ftb.ca.gov and login or register for MyFTB. Only your employer can issue or correct a Form W-2. If you cannot get a copy of your Form W-2, complete form FTB 3525, Substitute for Form W-2, Wage and Tax Statement, or Form 1099-R. See “Where To Get Income Tax Forms and Publications”
If you forget to send your Form(s) W-2 or any other withholding form(s) with your income tax return, do not send it separately, or with another copy of your tax return. Wait until the FTB requests it from you.
Assembling Your Tax Return
Assemble your tax return in the order shown below.
Caution: Form 540NR has five sides. If filing Form 540NR, you must file all five sides with the FTB.
Mailing Your Tax Return
If you owe, mail your tax return to:
Mail Franchise Tax Board
PO Box 942867
Sacramento, CA 94267-0001
If you have a refund, or if no amount due, mail your tax return to:
Mail Franchise Tax Board
PO Box 942840
Sacramento, CA 94240-0001
Nonrefundable Renter’s Credit Qualification Record
Tip: e-file and skip this page! The tax software product you use to e-file will help you find out if you qualify for this credit and will figure the correct amount of the credit automatically. Go to ftb.ca.gov to check your e-file options.
If you were a resident of California for at least six months in 2021 and paid rent on property in California, which was your principal residence, you may qualify for a credit that you can use to reduce your tax. Answer the questions below to see if you qualify. For purposes of California income tax, references to a spouse, husband, or wife also refer to a California Registered Domestic Partner (RDP), unless otherwise specified. When we use the initials RDP, they refer to both a California registered domestic “partner” and a California registered domestic “partnership,” as applicable. For more information on RDPs, get FTB Pub. 737. Do not mail this record. Keep with your tax records.
- Were you a resident of California for at least six full months of the tax year in 2021? Military personnel. If you are not a legal resident of California, you do not qualify for this credit. Your spouse/RDP may claim up to a maximum of $60 if he or she was a resident during 2021, and is otherwise qualified. YES. Go to question 2. NO. Stop here. You do not qualify for this credit.
- Is your adjusted gross income from all sources on your Form 540NR, line 17:
- $45,448 or less if single or married/RDP filing separately
- $90,896 or less if married/RDP filing jointly, head of household, or qualifying widow(er)?
- Did you pay rent, for at least half of 2021, on property (including a mobile home that you owned on rented land) in California, which was your principal residence? YES. Go to question 4. NO. Stop here. You do not qualify for this credit.
- Can you be claimed as a dependent by a parent, foster parent, legal guardian, or any other person in 2021? NO. Go to question 6. YES. Go to question 5.
- For more than half the year in 2021, did you live in the home of the person who can claim you as a dependent? NO. Go to question 6. YES. Stop here. You do not qualify for this credit.
- Was the property you rented exempt from property tax in 2021? You do not qualify for this credit if, for more than half of the year, you rented property that was exempt from property taxes. Exempt property includes most government-owned buildings, church-owned parsonages, college dormitories, and military barracks. However, if you or your landlord paid possessory interest taxes for the property you rented, then you may claim this credit. NO. Go to question 7. YES. Stop here. You do not qualify for this credit.
- Did you claim the homeowner’s property tax exemption anytime during 2021? You do not qualify for this credit if you or your spouse/RDP received a homeowner’s property tax exemption at any time during the year. However, if you lived apart from your spouse/RDP for the entire year and your spouse/RDP received a homeowner’s property tax exemption for a separate residence, then you may claim this credit if you are otherwise qualified. NO. Go to question 8. YES. If your filing status is single or married/RDP filing separately, stop here, you do not qualify for this credit. If your filing status is married/RDP filing jointly, go to question 9.
- Were you single in 2021? YES. Go to question 11. NO. Go to question 9.
- Did your spouse/RDP claim the homeowner’s property tax exemption anytime during 2021? You do not qualify for this credit if you or your spouse/RDP received a homeowner’s property tax exemption at any time during the year. However, if you lived apart from your spouse/RDP for the entire year and your spouse/RDP received a homeowner’s property tax exemption for a separate residence, then you may claim this credit if you are otherwise qualified. NO. Go to question 11. YES. If both you and your spouse/RDP claimed the homeowner’s property tax exemption, stop here, you do not qualify for this credit. Otherwise, go to question 10.
- Did you and your spouse/RDP maintain separate residences for the entire year in 2021? YES. Go to question 11. NO. Stop here. You do not qualify for this credit.
- Use the following chart to find the amount of your credit based on the number of full months you were a resident of and rented property in California in 2021. Enter the amount on the line below the chart. If married/RDP filing jointly where one spouse/RDP claimed the homeowner’s property tax exemption and both spouses/RDPs lived apart for the entire year, enter half of the amount listed on the chart for married/RDP filing jointly on the line below the chart. Follow the instructions after the chart.
| Filing status | Number of months | ||||||
|---|---|---|---|---|---|---|---|
| 6 | 7 | 8 | 9 | 10 | 11 | 12 | |
| Single or married/RDP filing separately | $30 | $35 | $40 | $45 | $50 | $55 | $60 |
| Married/RDP filing jointly, head of household or qualifying widow(er) | $60 | $70 | $80 | $90 | $100 | $110 | File Form 540 |
| Street Address | City, State, and ZIP Code | Dates Rented in 2021 (From______to______) |
|---|---|---|
| a | ||
| b |
| Name | Street Address | City, State, ZIP Code, and Telephone Number |
|---|---|---|
| a | ||
| b |
Voluntary Contribution Fund Descriptions
Make voluntary contributions of $1 or more in whole dollar amounts to the funds listed below. To contribute to the California Seniors Special Fund, use the instructions for code 400 below. The amount you contribute either reduces your overpaid tax or increases your tax due. You may contribute only to the funds listed and cannot change the amount you contribute after you file your tax return. For more information, go to ftb.ca.gov and search for voluntary contributions.
Code 400, California Seniors Special Fund
If you and/or your spouse/RDP are 65 years of age or older as of January 1, 2022, and claim the Senior Exemption Credit, you may make a combined total contribution of up to $258 or $129 per spouse/RDP. Contributions made to this fund will be distributed to the Area Agency on Aging Councils (TACC) to provide advice on and sponsorship of Senior Citizens issues. Any excess contributions not required by TACC will be distributed to senior citizen service organizations throughout California for meals, adult day care, and transportation.
Code 401, Alzheimer’s Disease and Related Dementia Voluntary Tax Contribution Fund
Contributions will be used to provide grants to California scientists to study Alzheimer’s disease and related disorders. This research includes basic science, diagnosis, treatment, prevention, behavioral problems, and caregiving. With almost 600,000 Californians living with the disease and another 2 million providing care to a loved one with Alzheimer’s, our state is in the early stages of a major public health crisis. Your contribution will ensure that Alzheimer’s disease receives the attention, research, and resources it deserves. For more information go to cdph.ca.gov and search for Alzheimer.
Code 403, Rare and Endangered Species Preservation Voluntary Tax Contribution Program
Contributions will be used to help protect and conserve California’s many threatened and endangered species and the wild lands that they need to survive, for the enjoyment and benefit of you and future generations of Californians.
Code 405, California Breast Cancer Research Voluntary Tax Contribution Fund
Contributions will fund research toward preventing and curing breast cancer. Breast cancer is the most common cancer to strike women in California. It kills 4,000 California women each year. Contributions also fund research on prevention and better treatment, and keep doctors up-to-date on research progress. For more information about the research your contributions support, go to cbcrp.org. Your contribution can help make breast cancer a disease of the past.
Code 406, California Firefighters’ Memorial Voluntary Tax Contribution Fund
Contributions will be used for the repair and maintenance of the California Firefighters’ Memorial on the grounds of the State Capitol, ceremonies to honor the memory of fallen firefighters and to assist surviving loved ones, and for an informational guide detailing survivor benefits to assist the spouses/RDPs and children of fallen firefighters.
Code 407, Emergency Food for Families Voluntary Tax Contribution Fund
Contributions will be used to help local food banks feed California’s hungry. Your contribution will fund the purchase of much-needed food for delivery to food banks, pantries, and soup kitchens throughout the state. The State Department of Social Services will monitor its distribution to ensure the food is given to those most in need.
Code 408, California Peace Officer Memorial Foundation Voluntary Tax Contribution Fund
Contributions will be used to preserve the memory of California’s fallen peace officers and assist the families they left behind. Since statehood, over 1,300 courageous California peace officers have made the ultimate sacrifice while protecting law-abiding citizens. The non-profit charitable organization, California Peace Officers’ Memorial Foundation, has accepted the privilege and responsibility of maintaining a memorial for fallen officers on the State Capitol grounds. Each May, the Memorial Foundation conducts a dignified ceremony honoring fallen officers and their surviving families by offering moral support, crisis counseling, and financial support that includes academic scholarships for the children of those officers who have made the supreme sacrifice. On behalf of all of us and the law-abiding citizens of California, thank you for your participation.
Code 410, California Sea Otter Voluntary Tax Contribution Fund
The California Coastal Conservancy and the Department of Fish and Wildlife will each be allocated 50% of the contributions. Contributions allocated to the California Coastal Conservancy will be used for research, science, protection, projects, or programs related to the Federal Sea Otter Recovery Plan or improving the nearshore ocean ecosystem, including, program activities to reduce sea otter mortality. Contributions allocated to the Department of Fish and Wildlife will be used to establish a sea otter fund within the department’s index coding system for increased investigation, prevention, and enforcement action.
Code 413, California Cancer Research Voluntary Tax Contribution Fund
Contributions will be used to conduct research relating to the causes, detection, and prevention of cancer and to expand community-based education on cancer, and to provide prevention and awareness activities for communities that are disproportionately at risk or afflicted by cancer.
Code 422, School Supplies for Homeless Children Voluntary Tax Contribution Fund
Contributions will be used to provide school supplies and health-related products to homeless children.
Code 423, State Parks Protection Fund/Parks Pass Purchase
Contributions will be used for the protection and preservation of California’s state parks and for the cost of a Vehicle Day Use Annual Pass valid at most park units where day use fees are collected. The pass is not valid at off-highway vehicle units, or for camping, oversized vehicle, extra vehicle, per-person, or supplemental fees. If a taxpayer’s contribution equals or exceeds $195, the taxpayer will receive a single Vehicle Day Use Annual Pass. Amounts contributed in excess of the parks pass cost may be deducted as a charitable contribution for the year in which the voluntary contribution is made. Any contribution less than $195 will be treated as a voluntary contribution and may be deducted as a charitable contribution. For more information go to parks.ca.gov/annualpass/ or email info@parks.ca.gov.
Code 424, Protect Our Coast and Oceans Voluntary Tax Contribution Fund
Contributions will be used to provide grants to community organizations working to protect, restore, and enhance the California coast and ocean. Contributions will support shoreline cleanups, habitat restoration, coastal access improvements, and ocean education programs.
Code 425, Keep Arts in Schools Voluntary Tax Contribution Fund
Contributions will be used by the Arts Council for the allocation of grants to individuals or organizations administering arts programs for children in preschool through 12th grade.
Code 431, Prevention of Animal Homelessness and Cruelty Voluntary Tax Contribution Fund
Contributions will be used to provide funding to programs designed to prevent and eliminate animal homelessness, and cruelty, research that explores novel approaches to preventing and eliminating pet homelessness, and the prevention, investigation, and prosecution of animal cruelty and neglect.
Code 438, California Senior Citizen Advocacy Voluntary Tax Contribution Fund
Contributions will be used to conduct the sessions of the California Senior Legislature and to support its ongoing activities on behalf of older persons.
Code 439, Native California Wildlife Rehabilitation Voluntary Tax Contribution Fund
Contributions will be used to support the recovery and rehabilitation of injured, sick, or orphaned native wildlife, and conservation education.
Code 440, Rape Kit Backlog Voluntary Tax Contribution Fund
Contributions will be used for DNA testing in the processing of rape kits.
Code 443, Schools Not Prisons Voluntary Tax Contribution Fund
Contributions will be used to fund academic and career readiness programs that seek to break the school-to-prison pipeline.
Code 444, Suicide Prevention Voluntary Tax Contribution Fund
Contributions will be used to fund crisis center programs designed to provide suicide prevention services.
Code 445, Mental Health Crisis Prevention Voluntary Tax Contribution Fund
Contributions will be used to fund the Crisis Intervention Team program that trains peace officers to assist and engage safely with persons living with mental illness.
Code 446, California Community and Neighborhood Tree Voluntary Tax Contribution Fund
Contributions will be used to support the Department of Forestry and Fire Protection’s grant program for urban forest management activities under the California Urban Forestry Act of 1978. This program focuses on bringing trees to communities that are disadvantaged or lack government infrastructure needed to enter into and support urban tree planting and care agreements.
Credit Chart
| Credit Name | Code | Description |
|---|---|---|
| California Competes Tax – FTB 3531 | 233 | The credit, which is allocated and certified by the California Competes Tax Credit Committee, is available for businesses that want to come to California or to stay and grow in California. Website: business.ca.gov |
| California Motion Picture and Television Production – FTB 3541 | 223 | For taxable years beginning on or after January 1, 2011, the original credit is allocated and certified by the California Film Commission, and is available for qualified production expenditures attributable to a qualified motion picture, an independent film, or a TV series that relocates to California. Website: film.ca.gov |
| Child Adoption Costs – See Credit for Child Adoption Costs Worksheet | 197 | 50% of qualified costs in the year an adoption is ordered |
| Child and Dependent Care Expenses – FTB 3506 – See Nonrefundable Child and Dependent Care Expenses Credit | 232 | Similar to the federal credit except that the California credit amount is based on a specified percentage of the federal credit. |
| College Access Tax – FTB 3592 | 235 | The credit, which is allocated and certified by the California Educational Facilities Authority, is available for taxpayers who contribute to the College Access Tax Credit Fund. Website: treasurer.ca.gov/cefa |
| Dependent Parent – See Credit for Dependent Parent | 173 | Must use married/RDP filing separately status and have a dependent parent |
| Disabled Access for Eligible Small Business – FTB 3548 | 205 | Similar to the federal credit but limited to $125 based on 50% of qualified expenditures that do not exceed $250 |
| Donated Agricultural Products Transportation – FTB 3547 | 204 | 50% of the costs paid or incurred for the transportation of agricultural products donated to nonprofit charitable organizations |
| Earned Income Tax – FTB 3514 | None | This refundable credit is similar to the federal Earned Income Credit (EIC) but with different income limitations. |
| Young Child Tax – FTB 3514 | None | This refundable credit is available to taxpayers who also qualify for the CA Earned Income Tax Credit (EITC) and who have at least one qualifying child who is younger than six years old as of the last day of the taxable year. |
| Enhanced Oil Recovery – FTB 3546 | 203 | One third of the similar federal credit and limited to qualified enhanced oil recovery projects located within California. |
| Joint Custody Head of Household – See Joint Custody Head of Household Worksheet | 170 | 30% of tax up to $513 for taxpayers who are single or married/RDP filing separately, who have a child and meet the support test |
| Low-Income Housing – FTB 3521 | 172 | Similar to the federal credit but limited to low-income housing in California |
| Main Street Small Business Tax II – FTB 3866 | 241 | The credit is available to qualified small business employers that received a tentative credit reservation from the California Department of Tax and Fee Administration (CDTFA). |
| Natural Heritage Preservation – FTB 3503 | 213 | 55% of the fair market value of any qualified contribution of property donated to the state, any local government, or any nonprofit organization designated by a local government. |
| New California Motion Picture and Television Production – FTB 3541 | 237 | For taxable years beginning on or after January 1, 2016, the new credit is allocated and certified by the California Film Commission, and is available for qualified production expenditures attributable to a qualified motion picture, an independent film, or a TV series that relocates to California. Website: film.ca.gov |
| New Donated Fresh Fruits or Vegetables – FTB 3814 | 238 | 15% of the qualified value of the donated fresh fruits, vegetables, or other qualified donated items made to California food banks, based on weighted average wholesale price |
| New Employment – FTB 3554 | 234 | The credit is available for a taxpayer that hires a full-time employee and pays or incurs wages in a designated census tract or economic development area, and receives a tentative credit reservation for that full-time employee. |
| Nonrefundable Renter’s – See Nonrefundable Renter's Credit Qualification Record | None | For California residents who paid rent for their principal residence for at least 6 months in 2021 and whose AGI does not exceed a certain limit |
| Other State Tax – Schedule S | 187 | Net income tax paid to another state or a U.S. possession on income also taxed by California |
| Pass-Through Entity Elective Tax – FTB 3804-CR | 242 | For taxable years beginning on or after January 1, 2021, and before January 1, 2026, California allows a credit against the personal income tax to a taxpayer, other than a partnership, that is a partner, shareholder, or member of a qualified entity that elects to pay the elective tax. |
| Prior Year Alternative Minimum Tax – FTB 3510 | 188 | Must have paid alternative minimum tax in a prior year and have no alternative minimum tax liability in 2021 |
| Prison Inmate Labor – FTB 3507 | 162 | 10% of wages paid to prison inmates |
| Program 3.0 California Motion Picture and Television Production – FTB 3541 | 239 | For taxable years beginning on or after January 1, 2020, the newest credit is allocated and certified by the California Film Commission, and is available for qualified production expenditures attributable to a qualified motion picture, an independent film, or a TV series that relocates to California. Website: film.ca.gov |
| Research – FTB 3523 | 183 | Similar to the federal credit but limited to costs for research activities in California |
| Senior Head of Household – See Credit for Senior Head of Household Worksheet | 163 | 2% of taxable income up to $1,565 for seniors who qualified for head of household in 2019 or 2020 and whose qualifying individual died during 2019 or 2020 |
Repealed Credits:
The expiration dates for the credits listed below have passed. However, these credits had carryover provisions. You may claim these credits only if you have an unused carryover available from prior years. If you are not required to complete Schedule P (540NR), Alternative Minimum Tax and Credit Limitations – Nonresidents or Part-Year Residents, get form FTB 3540, Credit Carryover and Recapture Summary, to figure your credit carryover to future years. For EZ, LAMBRA, MEA or TTA credit carryovers, get form FTB 3805Z, form FTB 3807, form FTB 3808, or form FTB 3809. See “Where To Get Income Tax Forms and Publications”.
- Agricultural Products: 175
- Commercial Solar Electric System: 196
- Commercial Solar Energy: 181
- Community Development Financial Institutions Investment: 209
- Donated Fresh Fruits or Vegetables: 224
- Employer Childcare Contribution: 190
- Employer Childcare Program: 189
- Employee Ridesharing: 194
- Employer Ridesharing:
- Large employer: 191
- Small employer: 192
- Transit passes: 193
Frequently Asked Questions
(Go to ftb.ca.gov for more frequently asked questions.)
- What if I can’t file by April 18, 2022, and I think I owe tax? You must pay 100% of the amount you owe by April 18, 2022, to avoid interest and penalties. If you cannot file because you have not received all your federal Form(s) W-2, estimate the amount of tax you owe by completing form FTB 3519, Payment for Automatic Extension for Individuals. Mail it to the FTB with your payment by April 18, 2022, or pay online at ftb.ca.gov/pay. Then, when you receive all your federal Forms W-2, complete and mail your tax return by October 17, 2022, (you must use Form 540NR).
- I never received a federal Form W-2. What should I do?Automated Phone code: 204 If not all your federal Forms W-2 were received by January 31, 2022, contact your employer. Only an employer issues or corrects a federal Form W-2. For more information, call 800-338-0505, follow the recorded instructions and enter code 204 when instructed. If you cannot get a copy of your federal Form W-2, complete form FTB 3525 or federal Form 1099-R. Go to ftb.ca.gov/forms or see “Where To Get Income Tax Forms and Publications.” For online wage and withholding information, go to ftb.ca.gov and login or register for MyFTB.
- How can I get help? Throughout California more than 1,200 sites provide trained volunteers offering free help during the tax filing season to persons who file simple federal and state income tax returns. Many military bases also provide this service for members of the U.S. Armed Forces. Go to ftb.ca.gov and search for vita to find a list of participating locations or call the FTB at 800-852-5711 to find a location near you.
- What do I do if I can’t pay what I owe with my 2021 tax return? Pay as much as possible when you file your tax return. If unable to pay your tax in full with your tax return, make a request for monthly payments. However, interest accrues and an underpayment penalty may be charged on the tax not paid by April 18, 2022, even if your request for monthly payments is approved. To make monthly payments, complete form FTB 3567, Installment Agreement Request, online or mail it to the address on the form. Do not mail it with your tax return. The Installment Agreement Request might not be processed and approved until after your tax return is processed, and you may receive a bill before you receive approval of your request. Automated Phone code: 949 To order this form, go to ftb.ca.gov/forms or call 800-338-0505, follow the recorded instructions and enter code 949 when instructed. Automated Phone code: 610 For information on how to pay by credit card, go to ftb.ca.gov/pay, or call 800-338-0505, follow the recorded instructions and enter code 610 when instructed.
- Is direct deposit safe? Direct deposit is safe and convenient. To have your refund directly deposited into your bank account, fill in the account information on Form 540NR, Side 5, line 126 and line 127. Fill in the routing and account numbers and indicate the account type.
- How can I check on the status of my refund? Go to ftb.ca.gov and search for refund status. You will need your social security number (SSN) or individual taxpayer identification number (ITIN) and the refund amount from your tax return. You can also call our automated phone service.
- I discovered an error on my tax return. What should I do?Automated Phone code: 908 If you discover an error on your California income tax return, after you filed it (paper or e-file), file an amended Form 540NR and attach Schedule X, California Explanation of Amended Return Changes, to correct your previously filed tax return. Get Schedule X at ftb.ca.gov/forms or call 800-338-0505, follow the recorded instructions and enter code 908 when instructed.
- The IRS made changes to my federal tax return. What should I do? If your federal income tax return is examined and changed by the IRS and you owe additional tax, report these changes to the FTB within six months of the date of the final federal determination. If the changes the IRS made result in a refund due for California, claim a refund within two years of the date of the final federal determination. File an amended Form 540NR and Schedule X to correct your previously filed income tax return, and mail them to the following address, as applicable: Mail Without payment
Franchise Tax Board
PO Box 942840
Sacramento, CA 94240-0001
Owe Money? Web Pay lets you pay online, so you can schedule it and forget it! Go to ftb.ca.gov/pay for more information.
Additional Information
California Sales and Use Tax
In general, the purchase of goods outside California that are brought into the state for storage, use, or other consumption may be subject to use tax. The use tax rate is the same as the sales tax rate in effect where the goods will be stored, used, or consumed; usually your residence address. The tax is based on the purchase price of the goods.
- If you purchased goods from an out-of-state retailer (such as a mail order firm) and sales tax would have been charged if you purchased the goods in California, you may owe the use tax on your purchase if the out-of-state retailer did not collect the California tax.
- If you traveled to a foreign country and brought goods home with you, the use tax will be based on the purchase price of the goods you listed on your U.S. Customs Declaration after deduction of the $800 per individual exemption allowable by law within any 30-day period. This deduction does not apply to goods sent or shipped to California by common carrier.
You should report and pay your use tax directly to the California Department of Tax and Fee Administration by going to their website at cdtfa.ca.gov.
If you file a federal Schedule C (Form 1040), Profit or Loss From Business, with your federal income tax return and are in the business of selling tangible personal property, you may be required to obtain a seller’s permit with the California Department of Tax and Fee Administration. If you do not sell tangible personal property, but you have at least $100,000 in business gross receipts, you may be required to register with the California Department of Tax and Fee Administration to report use tax.
If you have any questions concerning the taxability of a purchase, or want information about obtaining a seller’s permit, or registering to report use tax, go to the California Department of Tax and Fee Administration’s website at cdtfa.ca.gov or call their Customer Service Center at 1-800-400-7115 (CRS:711) (for hearing and speech disabilities). Income tax information is not available at these numbers.
Collection Fees
The FTB is required to assess collection and filing enforcement cost recovery fees on delinquent accounts.
Deceased Taxpayers
A final tax return must be filed for a person who died in 2021 if a tax return normally would be required. The administrator or executor, if one is appointed, or beneficiary must file the tax return. Please print “deceased” and the date of death next to the taxpayer’s name at the top of the tax return.
If you are a surviving spouse/RDP and no administrator or executor has been appointed, file a joint tax return if you did not remarry or entered into another registered domestic partnership during 2021. Indicate next to your signature that you are the surviving spouse/RDP.
You may also file a joint tax return with an administrator or executor acting on behalf of the deceased taxpayer.
If you file a tax return and claim a refund due to a deceased taxpayer, you are certifying under penalty of perjury either that you are the legal representative of the deceased taxpayer’s estate (in this case, attach certified copies of the letters of administration or letters testamentary) or that you are entitled to the refund as the deceased’s surviving relative or sole beneficiary under the provisions of the California Probate Code. You must also attach a copy of federal Form 1310, Statement of Person Claiming Refund Due a Deceased Taxpayer, and a copy of the death certificate when you file a tax return and claim a refund due.
Innocent Joint Filer Relief
If you file a joint tax return, both you and your spouse/RDP are generally responsible for paying the tax and any interest or penalties due on the tax return. However, you may qualify for relief of payment on all or part of the balance as an innocent joint filer. For more information, get form FTB 705, Innocent Joint Filer Relief Request, at ftb.ca.gov/forms or call 916-845-7072, Monday – Friday between 8 a.m. to 5 p.m., except holidays.
Requesting a Copy of Your Tax Return
The FTB keeps personal income tax returns for three and one-half years from the original due date. To obtain a copy of your tax return, write a letter or complete form FTB 3516, Request for Copy of Personal Income or Fiduciary Tax Return. In most cases, a $20 fee is charged for each taxable year you request. However, no charge applies for victims of a designated California or federal disaster, or you request copies from a field office that assisted you in completing your tax return. See “Order Forms and Publications.”
Local Benefits
You cannot deduct the amounts you pay for local benefits that apply to property in a limited area (construction of streets, sidewalks, or water and sewer systems). You must look at your real estate tax bill to determine if any nondeductible itemized charges are included in your bill. For more information, go to ftb.ca.gov and search for real estate tax or get federal Publication 17, Your Federal Income Taxes-For Individuals, Chapter 11.
Vehicle License Fees for Federal Schedule A
On your federal Schedule A (Form 1040), Itemized Deductions, you may deduct the California motor vehicle license fee listed on your Vehicle Registration Billing Notice from the Department of Motor Vehicles. The other fees listed on your billing notice such as registration fee, weight fee, and county fees are not deductible.
Voting Is Everybody’s Business
To register to vote in California, you must be:
- A United States citizen and a resident of California,
- 18 years old or older on Election Day,
- Not currently in state or federal prison or on parole for the conviction of a felony, and
- Not currently found mentally incompetent to vote by a court.
Pre-register at 16. Vote at 18. Voter pre-registration is now available for 16 and 17 year olds who otherwise meet the voter registration eligibility requirements. California youth who pre-register to vote will have their registration become active once they turn 18 years old.
If you wish to receive a paper Voter Registration or Pre-Registration Application, call the California Secretary of State’s Voter Hotline at 800-345-VOTE or simply register online at RegisterToVote.ca.gov. For more information about how and when to register to vote, visit sos.ca.gov/elections.
It’s Your Right … Register and Vote
If You File Electronically
If you e-file your tax return, make sure all the amounts entered on the paper copy of your California tax return are correct before you sign form FTB 8453, California e-file Return Authorization for Individuals, or form FTB 8879, California e-file Signature Authorization for Individuals. If you are requesting direct deposit of a refund, make sure that your account and routing information is correct. Your tax return can be transmitted to the FTB by your preparer or e-file service only after you sign forms FTB 8453 or FTB 8879. The preparer or e-file service must provide you with:
- A copy of forms FTB 8453 or FTB 8879.
- Any original CA Forms 592-B, 593, and federal Forms W-2, 1099-G, and any other Form(s) 1099.
- A paper copy of your California tax return showing the data transmitted to the FTB.
You cannot retransmit an e-filed tax return once we have accepted the original. You can correct an error by filing an amended Form 540NR and Schedule X to correct your previously filed tax return.
Instructions for Filing a 2021 Amended Return
Important Information
Protective Claim – If you are filing a claim for refund for a taxable year where an audit is being conducted by another state's taxing agency, litigation is pending or where a final determination by the IRS is pending, check box a for “Protective claim for refund” on Schedule X, Part II, line 1. Specify the pending litigation or reference to the federal determination on Part II, line 2 so we can properly process your claim.
Military Compensation – If you are filing an amended return to exclude military compensation as a result of the Servicemembers Civil Relief Act (P.L. 108-189), check box k for “Military HR 100” on Schedule X, Part II, line 1. In addition, attach a copy of your military Form W-2, Wage and Tax Statement, revised Schedule CA (540NR), and any other affected forms or schedules to your amended Form 540NR. If you are amending a taxable year for which the normal statute of limitations (SOL) has expired, attach a statement explaining why the SOL is still open. If the SOL is open because of military service in a combat zone or outside the United States, attach copies of any documents that show when you served in a combat zone or overseas. Beginning in 2009, the Military Spouses Residency Relief Act may affect the California income tax filing requirements for spouses of military personnel. For additional information, get FTB Pub. 1032, Tax Information for Military Personnel.
Do not attach your previously filed return to your amended return.
Do not file an amended return to correct your SSN, name, or address, instead, call or write us. See “Contacting the Franchise Tax Board” for more information.
Use Tax – Do not amend your return to correct a use tax error reported on your original tax return. Enter the amount from your original return. The California Department of Tax and Fee Administration (CDTFA) administers this tax. Refer all questions or requests relating to use tax to the CDTFA at cdtfa.ca.gov or call 800-400-7115.
Amount You Want Applied To Your 2022 Estimated Tax – Enter zero on amended Form 540NR, line 102 and get the instructions for Schedule X for the actual amount you want applied to your 2022 estimated tax.
Voluntary Contributions – You cannot amend voluntary contributions. Enter the amount from your original return.
Direct Deposit – You can now use direct deposit on your amended return.
When filing an amended return, only complete the amended Form 540NR through line 125. Next complete the Schedule X. The amount from Schedule X, line 11 is your additional refund amount. This amount will be carried over to your amended Form 540NR and will be entered on line 126 and line 127. The total of the amended Form 540NR, line 126 and line 127 must equal the total amount of your refund on Schedule X, line 11. If the total of the amended Form 540NR, line 126 and line 127 do not equal Schedule X, line 11, the FTB will issue a paper check.
Dependent Exemption Credit with No ID – For taxable years beginning on or after January 1, 2018, taxpayers claiming a dependent exemption credit for a dependent who is ineligible for an SSN and a federal ITIN may provide alternative information to the FTB to identify the dependent. To claim the dependent exemption credit, taxpayers complete form FTB 3568, attach the form and required documentation to their tax return, and write “no id” in the SSN field of line 10, Dependents, on Form 540NR. For each dependent being claimed that does not have an SSN and an ITIN, a form FTB 3568 must be provided along with supporting documentation.
If you are amending a return beginning with taxable year 2018 to claim the dependent exemption credit, complete an amended Form 540NR, and write “no id” in the SSN field on the Dependents line, and attach Schedule X. To complete Schedule X, check box m for “Other” on Part II, line 1, and write the explanation “Claim dependent exemption credit with no id and form FTB 3568 is attached” on Part II, line 2. Make sure to attach form FTB 3568 and the required supporting documents in addition to the amended return and Schedule X. If you do not claim the dependent exemption credit on the original 2021 tax return, you may amend the 2021 tax return following the same procedures used to amend your previous year amended tax returns beginning with taxable year 2018. For more information, get FTB Notice 2021-01.
Purpose
Use Form 540NR to amend your original or previously filed California nonresident or part-year resident income tax return. If the FTB adjusted your return, you should use the amounts as adjusted by the FTB. Check the box at the top of Form 540NR indicating AMENDED return and follow the instructions. Submit the completed amended Form 540NR and Schedule X along with all required schedules and supporting forms.
When to File
Generally, if you filed federal Form 1040-X, Amended U.S. Individual Income Tax Return, file an amended California tax return within six months unless the changes do not affect your California tax liability. File an amended return only after you have filed your original or previously filed California tax return.
California Statute of Limitations
Original tax return was filed on or before April 15th: If you are making a claim for refund, file an amended tax return within four years from the original due date of the tax return or within one year from the date of overpayment, whichever period expires later.
Original tax return was filed within the extension period (April 15th – October 15th): If you are making a claim for refund, file an amended tax return within four years from the date the original tax return was filed or within one year from the date of overpayment, whichever period expires later.
Original tax return was filed after October 15th: If you are making a claim for refund, file an amended tax return within four years from the original due date of the tax return (April 15th) or within one year from the date of overpayment, whichever period expires later
If you are filing your amended tax return after the normal statute of limitation period (four years after the due date of the original tax return), attach a statement explaining why the normal statute of limitations does not apply.
If you are filing your amended return in response to a billing notice you received, you will continue to receive billing notices until your amended tax return is accepted. You may file an informal claim for refund even though the full amount due including tax, penalty, and interest has not yet been paid. After the full amount due has been paid, you have the right to appeal to the Office of Tax Appeals at ota.ca.gov or to file suit in court if your claim for refund is disallowed.
To file an informal claim for refund, check box l for “Informal claim” on Schedule X, Part II, line 1 and mail the claim to:
Mail Franchise Tax Board
PO Box 942840
Sacramento, CA 94240-0040Financially Disabled Taxpayers
The statute of limitations for filing claims for refunds is suspended during periods when a taxpayer is “financially disabled.” You are considered “financially disabled” when you are unable to manage your financial affairs due to a medically determinable physical or mental impairment that is deemed to be either a terminal impairment or is expected to last for a continuous period of not less than 12 months. You are not considered “financially disabled” during any period that your spouse/RDP or any other person is legally authorized to act on your behalf on financial matters. For more information, get form FTB 1564, Financially Disabled – Suspension of the Statute of Limitations.
Federal Notices
If you were notified of an error on your federal income tax return that changed your AGI, you may need to amend your California income tax return for that year.
If the IRS examines and changes your federal income tax return, and you owe additional tax, report these changes to the FTB within six months. You do not need to inform the FTB if the changes do not increase your California tax liability. If the changes made by the IRS result in a refund due, you must file a claim for refund within two years. Use an amended Form 540NR and Schedule X to make any changes to your California income tax returns previously filed.
Include a copy of the final federal determination, along with all underlying data and schedules that explain or support the federal adjustment. Note: Most penalties assessed by the IRS also apply under California law. If you are including penalties in a payment with your amended tax return, see Schedule X, line 8a instructions.
Children With Investment Income
If your child was required to file form FTB 3800, Tax Computation for Certain Children with Unearned Income, and your taxable income has changed, review your child’s tax return to see if you need to file an amended tax return. Get form FTB 3800 for more information.
Contacting the Franchise Tax Board
If you have not received a refund within six months of filing your amended return, do not file a duplicate amended return for the same year. For information on the status of your refund, you may write to:
Mail Franchise Tax Board
PO Box 942840
Sacramento, CA 94240-0040For telephone assistance, see General Phone Service.
Filing Status
Your filing status for California must be the same as the filing status you used on your federal income tax return, unless you are in a RDP. If you are an RDP and file single for federal, you must file married/RDP filing jointly or married/RDP filing separately for California. If you entered into a same‑sex marriage, your filing status for California would generally be the same as the filing status that was used for federal. If you are a same-sex married individual or an RDP and file head of household for federal, you may file head of household for California only if you meet the requirements to be considered unmarried or considered not in a registered domestic partnership.
Exception for Filing a Separate Tax Return – A married couple who filed a joint federal tax return may file separate state tax returns if either spouse was either of the following:
- An active member of the United States armed forces (or any auxiliary military branch) during the year being amended.
- A nonresident for the entire year and had no income from California sources during the year being amended.
Changing Your Filing Status – If you changed your filing status on your federal amended tax return, also change your filing status for California unless you meet one of the exceptions listed above.
Married/RDP Filing Jointly to Married/RDP Filing Separately You cannot change from married/RDP filing jointly to married/RDP filing separately after the due date of the tax return.
Exception: A married couple who meets the “Exception for Filing a Separate Tax Return” shown above may change from joint to separate tax returns after the due date of the tax return.
Filing Separate Tax Returns to Married/RDP Filing Jointly – If you or your spouse/RDP (or both of you) filed a separate tax return, you generally can change to a joint tax return any time within four years from the original due date of the separate tax return(s). To change to a joint tax return, you and your spouse/RDP must have been legally married or an RDP on the last day of the taxable year.
To amend from separate tax returns to a joint tax return, follow Form 540NR instructions to complete only one amended tax return. Both you and your spouse/RDP must sign the amended joint tax return.
2021 California Tax Rate Schedules
Tip: To e-file and eliminate the math, go to ftb.ca.gov. To figure your tax online, go to ftb.ca.gov/tax-rates.
Use only if your taxable income on Form 540NR, line 19 is more than $100,000. If $100,000 or less, use the Tax Table.
Schedule X
Use if your filing status is Single or Married/RDP Filing Separately
If the amount on Form 540NR, line 19 is over – But not over – Enter on Form 540NR, line 31 $0 $9,325 $0.00 + 1.00% of the amount over $0 9,325 22,107 93.25 + 2.00% of the amount over 9,325 22,107 34,892 348.89 + 4.00% of the amount over 22,107 34,892 48,435 860.29 + 6.00% of the amount over 34,892 48,435 61,214 1,672.87 + 8.00% of the amount over 48,435 61,214 312,686 2,695.19 + 9.30% of the amount over 61,214 312,686 375,221 26,082.09 + 10.30% of the amount over 312,686 375,221 625,369 32,523.20 + 11.30% of the amount over 375,221 625,369 AND OVER 60,789.92 + 12.30% of the amount over 625,369 Schedule Y
Use if your filing status is Married/RDP Filing Jointly or Qualifying Widow(er)
If the amount on Form 540NR, line 19 is over – But not over – Enter on Form 540NR, line 31 $0 $18,650 $ 0.00 + 1.00% of the amount over $0 18,650 44,214 186.50 + 2.00% of the amount over 18,650 44,214 69,784 697.78 + 4.00% of the amount over 44,214 69,784 96,870 1,720.58 + 6.00% of the amount over 69,784 96,870 122,428 3,345.74 + 8.00% of the amount over 96,870 122,428 625,372 5,390.38 + 9.30% of the amount over 122,428 625,372 750,442 52,164.17 + 10.30% of the amount over 625,372 750,442 1,250,738 65,046.38 + 11.30% of the amount over 750,442 1,250,738 AND OVER 121,579.83 + 12.30% of the amount over 1,250,738 Schedule Z
Use if your filing status is Head of Household
If the amount on Form 540NR, line 19 is over – But not over – Enter on Form 540NR, line 31 $ 0 $18,663 $ 0.00 + 1.00% of the amount over $0 18,663 44,217 186.63 + 2.00% of the amount over 18,663 44,217 56,999 697.71 + 4.00% of the amount over 44,217 56,999 70,542 1,208.99 + 6.00% of the amount over 56,999 70,542 83,324 2,021.57 + 8.00% of the amount over 70,542 83,324 425,251 3,044.13 + 9.30% of the amount over 83,324 425,251 510,303 34,843.34 + 10.30% of the amount over 425,251 510,303 850,503 43,603.70 + 11.30% of the amount over 510,303 850,503 AND OVER 82,046.30 + 12.30% of the amount over 850,503 How to Figure Tax Using the 2021 California Tax Rate Schedules
Example: Chris and Pat Smith are filing a joint tax return using Form 540NR. Their taxable income on Form 540NR, line 19 is $125,000.
Using Schedule Y, they find the taxable income range that includes their taxable income of $125,000.
They subtract the amount at the beginning of their range from their taxable income.
Example: $125,000 − 122,428 = $2,572
They multiply the result from Step 2 by the percentage for their range.
Example: $2,572 × .0930 = $239.20
They round the amount from Step 3 to two decimals (if necessary) and add it to the tax amount for their income range. After rounding the result, they will enter $5,630 on Form 540NR, line 31.
Example: $5,390.38 + 239.20 = $5,629.58
Paying Your Taxes
General Information
You must file and pay 100% of the amount you owe by April 18, 2022, to avoid interest and penalties. There are several ways to pay your tax:
- Electronic funds withdrawal
- Web Pay
- Credit card
- Check or money order (Make all checks or money orders payable in U.S. dollars and drawn against a U.S. financial institution.)
- Pre-approved monthly payments
Electronic Funds Withdrawal
Use this convenient option if you e-file. Simply provide your bank information, amount you want to pay, and the date you want the balance due to be withdrawn from your account. Your tax preparation software will offer this option.
Web Pay
Enjoy the convenience of online bill payment with Web Pay. Pay the amount you owe using our secure online payment service. Go to ftb.ca.gov/pay for more information. With Web Pay, you can schedule it, and forget it!
Credit Card
To make a payment using your Discover, MasterCard, Visa, or American Express card go to the Official Payments Corporation website or call:
- officialpayments.com and select Payment Center.
- 800-2PAY-TAX or 800-272-9829 and follow the recorded instructions.
ACI Payments, Inc. (formerly Official Payments) charges a convenience fee for this service. This fee is based on the amount of your tax payment. ACI Payments, Inc. will tell you the convenience fee before you complete your transaction. You can decide whether to complete the transaction at that time.
Fee: 2.30% of tax amount charged (round to nearest cent)
Minimum fee: $1 Example: Tax Payment = $753.56
2.30% Fee = $17.33For persons with hearing or speaking limitations, call California Relay Service at 800-735-2929. For all other special assistance, call 800-487-4567, Monday through Friday, 5 a.m. to 5 p.m. PST.
Frequently Asked Questions
When will my payment be effective?
- Web Pay: Your payment is effective on the payment date you select.
- Credit Card: Your payment is effective on the date you charge it.
What if I change my mind?
- Web Pay: Contact our e-Programs Customer Service at 916-845-0353 at least two business days before your scheduled payment date to cancel your payment.
- Credit Card: Contact your card issuer for information about canceling or reversing the charge.
If you change your mind and you still owe money, be sure to make your payment another way. We may charge penalties, interest, and other fees for nonpayment or late payment of taxes.
How do I know if you received my payment?
- Your account statement is your proof of payment.
- To verify the payment, go to ftb.ca.gov and login or register for MyFTB.
How To Get California Tax Information
Where To Get Income Tax Forms and Publications
By Internet – You can download, view, and print California income tax forms and publications at ftb.ca.gov/forms or you may have these forms and publications mailed to you. Our most frequently used forms may be filed electronically, printed out for submission, and saved for record keeping.
By phone – To order California tax forms and publications:
- Refer to the Order Forms and Publications list and find the code number for the form you want to order.
- Call 800-338-0505.
- Follow the recorded instructions
- Enter the three-digit form code when you are instructed.
Allow two weeks to receive your order. If you live outside California, allow three weeks to receive your order.
In person – Many post offices and libraries provide free California tax booklets during the filing season.
Employees at libraries and post offices cannot provide tax information or assistance.
By mail – Write to:
Mail Tax Forms Request Unit MS D120
Franchise Tax Board
PO Box 307
Rancho Cordova, CA 95741-0307Letters
If you write to us, be sure your letter includes your social security number, or individual taxpayer identification number, and your daytime and evening telephone numbers. Send your letter to:
Mail Franchise Tax Board
PO Box 942840
Sacramento, CA 94240-0040We will respond to your letter within 10 weeks. In some cases, we may call you to respond to your inquiry, or ask for additional information. Do not attach correspondence to your tax return unless the correspondence relates to an item on the tax return.
Your Rights As A Taxpayer
The FTB’s goals include making certain that your rights are protected so that you have the highest confidence in the integrity, efficiency, and fairness of your state tax system. For more information, get FTB 4058, California Taxpayers’ Bill of Rights. See “Where To Get Income Tax Forms and Publications.”
Franchise Tax Board Privacy Notice on Collection
The privacy and security of your personal information is of the utmost importance to us. We want you to have the highest confidence in the integrity, efficiency, and fairness of our state tax system.
Your Rights and Responsibilities
You have a right to know what types of information we gather, how we use it, and to whom we may provide it. Information collected is subject to the California Information Practices Act, Civil Code Sections 1798-1798.78, except as provided in Revenue and Taxation Code (R&TC) Section 19570.
If you meet certain requirements, you must file a valid tax return and related documents. You must provide your social security number or other identifying number on your tax return and related documents for identification. (R&TC Sections 18501, 18621,and 18624)
Reasons for Information Requests
We may request additional information to verify and collect the correct amount of tax. (R&TC Section 19504) You must provide all requested information, unless indicated as “optional.”
Consequences of Noncompliance
We charge penalties and interest, if you:
- Meet income requirements but do not file a valid tax return.
- Do not provide the information we request.
- Provide false information.
We may also disallow your claimed exemptions, exclusions, credits, deductions, or adjustments. If you provide false information, you may be subject to civil penalties and criminal prosecution. Noncompliance can increase your tax liability or delay or reduce any tax refund.
Disclosure of Information
We will not disclose your personal information, unless authorized by law. We may disclose your tax information to:
- The Internal Revenue Service.
- Other states’ income tax officials.
- California government agencies and officials.
- Third parties to determine or collect your tax liabilities.
- Your authorized representative(s).
If you owe taxes, we may disclose your balance due as part of our collection process to: employers, financial institutions, county recorders, process agents, or other asset holders.
Responsibility for the Records
The director of the Processing Services Bureau maintains Franchise Tax Board’s records. You may review your records and bring any inaccuracies to our attention. You can obtain information about your records by:
Phone 800-852-5711 (within the United States)
916-845-6500 (outside of the United States)
Mail Disclosure Officer MS A181
Franchise Tax Board
PO Box 1468
Sacramento, CA 95812-1468To learn more about our Privacy Policy Statement, go to ftb.ca.gov/privacy.
Automated Phone Service
(Keep This Information For Future Use)
Automated Phone Service
Use our automated phone service to get recorded answers to many of your questions about California Taxes and to order current year Personal Income Tax Forms and Publications.
- Get current year tax refund information.
- Get balance due and payment information.
Have paper and pencil ready to take notes.
Telephone: 800-338-0505 from within the United States
916-845-6500 from outside the United StatesAnswers To Tax Questions
Call our automated phone service, follow the recorded instructions and enter the 3-digit code.
Code Filing Assistance 100 Do I need to file a tax return? 111 Which form should I use? 112 How do I file electronically and get a fast refund? 201 How can I get an extension to file? 203 What is the nonrefundable renter’s credit and how do I qualify? 204 I never received a Form W-2. What do I do? 205 I have no withholding taken out. What do I do? 206 Do I have to attach a copy of my federal tax return? 209 I lived in California for part of the year. Do I have to file a tax return? 210 I did not live in California. Do I have to file a tax return? 215 Who qualifies me to use the head of household filing status? 222 How much can I deduct for vehicle license fees? Penalties 403 What is the estimate penalty rate? Notices And Bills 503 How do I file a protest against a Notice of Proposed Assessment? 506 How can I get information about my Form 1099-G? Tax For Children 601 Can my child take a personal exemption credit when I claim her or him as a dependent on my tax return? Miscellaneous 611 What address do I send my payment to? 619 How do I report a change of address?
Order Forms and Publications
If your current address is on file, you can order California tax forms and publications. Call our automated phone service, follow the recorded instructions and enter the 3‑digit code.
Code California Tax Forms and Publications 900 California Resident Income Tax Booklet: Form 540, Resident Income Tax Return 965 Form 540 2EZ Tax Booklet 903 Schedule CA (540), California Adjustments – Residents, FTB 3885A, Depreciation and Amortization Adjustments, and Schedule D, California Capital Gain or Loss Adjustment 907 Form 540-ES, Estimated Tax for Individuals 908 Schedule X, California Explanation of Amended Return Changes 909 Schedule D-1, Sales of Business Property 910 Schedule G-1, Tax on Lump-Sum Distributions 911 Schedule P (540), Alternative Minimum Tax and Credit Limitations – Residents 913 Schedule S, Other State Tax Credit 914 California Nonresident Income Tax Booklet: Form 540NR, Nonresident or Part-Year Resident Income Tax Return 917 Schedule CA (540NR), California Adjustments – Nonresidents or Part-Year Residents 918 Schedule P (540NR), Alternative Minimum Tax and Credit Limitations – Nonresidents or Part-Year Residents 948 FTB 1131 EN-SP, Franchise Tax Board Privacy Notice on Collection 932 FTB 3506, Child and Dependent Care Expenses Credit 938 FTB 3514, California Earned Income Tax Credit 937 FTB 3516, Request for Copy of Personal Income Tax or Fiduciary Tax Return 921 FTB 3519, Payment for Automatic Extension for Individuals 922 FTB 3525, Substitute for W-2 Wage and Tax Statement 923 FTB 3526, Investment Interest Expense Deduction 939 FTB 3532, Head of Household Filing Status Schedule 940 FTB 3540, Credit Carryover and Recapture Summary 949 FTB 3567, Installment Agreement Request 924 FTB 3800, Tax Computation for Certain Children with Unearned Income 929 FTB 3801, Passive Activity Loss Limitations 925 FTB 3805E, Installment Sale Income 928 FTB 3805P, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts 926 FTB 3805V, Net Operating Loss (NOL) Computation and NOL and Disaster Loss Limitations – Individuals, Estates, and Trusts 943 FTB 4058, California Taxpayers’ Bill of Rights 927 FTB 5805, Underpayment of Estimated Tax by Individuals and Fiduciaries 919 FTB Pub. 1001, Supplemental Guidelines to California Adjustments 920 FTB Pub. 1005, Pension and Annuity Guidelines 945 FTB Pub. 1006, California Tax Forms and Related Federal Forms 946 FTB Pub. 1008, Federal Tax Adjustments and Your Notification Responsibilities to California 941 FTB Pub. 1031, Guidelines for Determining Resident Status 942 FTB Pub. 1032, Tax Information for Military Personnel 934 FTB Pub. 1540, Tax Information for Head of Household Filing Status
Current Year Refund Information
If you file by mail, wait at least 8 weeks after you file your tax return before you call to find out about your refund. You need your social security number, the numbers in your street address, box number, route number, or PMB number, and your ZIP code to use this service.
Balance Due and Payment Information
Wait at least 45 days from the date you mailed your payment before you call to verify receipt. You need your social security number, the numbers in your street address, box number, route number or PMB number, and your ZIP Code to use this service.
General Phone Service
Telephone assistance is available year-round from 7 a.m. until 5 p.m. Monday through Friday, except holidays. Hours are subject to change.
Telephone: 800-852-5711 from within the United States 916-845-6500 from outside the United States 800-829-1040 for federal tax questions, call the IRS California Relay Service: 711 or 800-735-2929 for persons with hearing or speaking limitations.
Asistencia En Español
Asistencia telefónica está disponible durante todo el año desde las 7 a.m. hasta las 5 p.m. de lunes a viernes, excepto días feriados. Las horas están sujetas a cambios.
Teléfono: 800-852-5711 dentro de los Estados Unidos 916-845-6500 fuera de los Estados Unidos 800-829-1040 para preguntas sobre impuestos federales, llame al IRS Servicio de Retransmisión de California: 711 o 800-735-2929 para personas con limitaciones auditivas o del habla.
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This Google™ translation feature, provided on the Franchise Tax Board (FTB) website, is for general information only. Consult with a translator for official business.
The web pages currently in English on the FTB website are the official and accurate source for tax information and services we provide. Any differences created in the translation are not binding on the FTB and have no legal effect for compliance or enforcement purposes. If you have any questions related to the information contained in the translation, refer to the English version.
We translate some pages on the FTB website into Spanish. These pages do not include the Google™ translation application. For a complete listing of the FTB’s official Spanish pages, visit La página principal en español (Spanish home page).
We cannot guarantee the accuracy of this translation and shall not be liable for any inaccurate information or changes in the page layout resulting from the translation application tool.
This tool will not translate FTB applications, such as MyFTB, or tax forms and other files that are not in HTML format. Some publications and tax form instructions are available in HTML format and can be translated. Visit our Forms and Publications search tool for a list of tax forms, instructions, and publications, and their available formats.
