2009 CA540 instructions

8/7/2019 2009 CA540 instructions

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Forms&Instructions California 540 & 540A

2009PersonalIncomeTaxBooklet

Members of the

Franchise Tax Board

JohnChiang,ChairBettyT.Yee,Member

MichaelC.Genest,Member

COVERGRAPHICSOMITTEDFORDOWNLOADINGSPEED

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Page Personal Income Ta Booklet 2009

Important Due Dates 2Do I Have to File? 3Whats New and Other Important Inormation or 2009 4Which Form Should I Use? 5Instructions or Form 540/540A 7Sales and Use Ta Rates by County 18Additional Inormation 19Frequently Asked Questions 20Credit Chart 21Voluntary Contribution Fund Descriptions 22How To Get Caliornia Ta Inormation 23Privacy Notice 23Form 540A, Caliornia Resident Income Ta Return 25Form 540, Caliornia Resident Income Ta Return 27

Table of Contents

Important Due DatesWhen the due date alls on a weekend or holiday, the deadline to fle and pay without penalty is etended to the net business day

April 15, 2010 Last day to fle and pay the 2009 amount you owe to avoid penalties and interest* See orm FTB 3519 on page 37 or more inormation

*I you are living or traveling outside the United States on April 15, 2010, the due dates or fling your return and paying your ta aredierent See orm FTB 3519 on page 37 or more inormation

October 15, 2010 Last day to fle or e-fle your 2009 return to avoid penalties and interest computed rom the original due date o April 15, 2010

April 15, 2010June 15, 2010September 15, 2010January 18, 2011

Due dates or 2010 estimated ta payments Generally, you do not have to make estimated ta payments i your Caliornia withholding ineach payment period totals 90% o your required annual payment Also, you do not have to make estimated ta payments i you will payenough through withholding to keep the amount you owe with your return under $500 ($250 i married/registered domestic partner (RDP)fling separately) However, i you do not pay enough ta either through withholding or by making estimated ta payments, you may have anunderpayment penalty See Form 540-ES instructions on page 41 or more inormation

Schedule CA (540), Caliornia Adjustments Residents 31Schedule D (540), Caliornia Capital Gain or Loss Adjustment 33FTB 3885A, Depreciation and Amortization Adjustments 35FTB 3519, Payment or Automatic Etension or Individuals 37Form 540-ES, Estimated Ta or Individuals 38Instructions or Form 540-ES 41Instructions or Schedule CA (540) 43Nonreundable Renters Credit Qualifcation Record 50FTB 3506, Child and Dependent Care Epenses Credit 51Instructions or FTB 3506 532009 Caliornia Ta Table 572009 Caliornia Ta Rate Schedules 62Automated Phone Service 63

$$$ for YouEarned Income Tax Credit (EITC) EITC reduces your ederal taobligation, or allows a reund i no ederal ta is due You may qualiy i: You earned less than $43,279 ($48,279 i married fling jointly) and

have qualiying children You have no qualiying children and you earned less than $13,440

($18,440 i married fling jointly)

Call the IRS at 8008294477, when instructed enter topic 601, seeyour ederal income ta booklet, or go to the IRS website at irs.gov andsearch or eitc assistant Currently, no comparable state credit eists

Reund o Excess State Disability Insurance (SDI) I you worked orat least two employers during 2009 who together paid you more than$90,669 in wages, you may qualiy or a reund o ecess SDI See theinstructions on page 13

Common Errors and How to Prevent ThemHelp us process your return quickly and accurately When we fnd anerror, it requires us to stop to veriy the inormation on the return, whichslows processing The most common errors consist o:

Claiming the wrong amount o estimated ta payments Claiming the wrong amount o standard deduction or itemized

deductions Making ta computation errors Calculating the wrong amount o total credits

To avoid errors and help process your return aster, use these helpulhints when preparing your return

Claiming estimated tax payments:

Veriy the amount o estimated ta payments claimed on your returnmatches what you sent to the Franchise Ta Board (FTB) or that yearGo to tb.ca.gov and search or mytb account to view your totalestimated ta payments beore you fle your return

Veriy the overpayment amount rom your 2008 ta return yourequested to be applied to your 2009 estimated ta

I the FTB records do not match the amount o estimated ta pay-ments claimed, a Return Inormation Notice will be sent eplainingthe dierence

Claiming standard deduction or itemized deductions: See Form 540/540A, line 18 instructions and worksheets or the

amount o standard deduction or itemized deductions you can claim

Computing your tax: Veriy the total ta amount on Form 540/540A, line 64 is calculated

correctly Go to tb.ca.gov and search or tax calculator to compute your ta

with the ta calculator or with the ta tables Locate the correct ta amount rom the ta table (page 57) and

transer it to your return correctly Veriy any aected schedule to ensure that the total ta amount is

correctly transerred over

Calculating total credits:

Veriy the total credits on Form 540/540A, line 47 to ensure theamount is calculated correctly

By using the helpul hints above, you assist in preventing delays inprocessing your return and unnecessary account adjustments

Census Day is April 1, 2010 The 2010 Census is a count o everyone living in the United States. This count ismandated by the U.S. Constitution. You should receive your 2010 Census questionnaire in mid-March. The 2010questionnaire is one o the shortest in history. Its just 10 questions and it takes about 10 minutes to complete.

Every year Caliornians pay taxes to the Federal government. Every decade Caliornianshave an opportunity to receive money back rom the Federal government through thecensus. Dont let Caliornia go undercounted.

For more inormation, visit www.census.gov and www.caliorniacompletecount.org.


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Personal Income Ta Booklet 2009 Page 3

Requirements for Children withInvestment IncomeFederal law allows parents election to report a childs interest anddividend income rom a child 18 and under or a student under age 24on their return Caliornia allows you to report your childs interest anddividend income on your return i they are under age 14 For each childunder age 14 who received more than $1,900 o investment incomein 2009, complete Form 540 and orm FTB 3800, Ta Computation orChildren Under Age 14 with Investment Income, to fgure the ta on aseparate Form 540 or your child

I you qualiy, you may elect to report your childs income o $9,500or less (but not less than $950) on your return by completing ormFTB 3803, Parents Election to Report Childs Interest and Dividends Tomake this election, your childs income must beonly rom interest and/ordividends To get orm FTB 3800 or FTB 3803, see Order Forms andPublications on page 63 or go to tb.ca.gov.

Other Situations When You Must FileI you have a ta liability or 2009 or owe any o the ollowing taes or2009, you must fle Form 540

Ta on a lump-sum distribution Ta on a qualifed retirement plan including an Individual Retirement

Arrangement (IRA) or an Archer Medical Savings Account (MSA) Ta or children under age 14 who have investment income greater

than $1,900 (see paragraph above) Alternative minimum ta Recapture taes Deerred ta on certain installment obligations Ta on an accumulation distribution rom a trust

Filing StatusUse the same fling status or Caliornia that you used or your ederalincome tax return, unless you are in a same-sex marriage (explainedunder Whats New on page 6) or a registered domestic partnership (RDP)I you are a same-sex married individual or an RDP and fle single orederal, you must fle married/RDP fling jointly or married/RDP fling

separately or Caliornia I you are a same-sex married individual or anRDP and fle head o household or ederal purposes, you may fle head ohousehold or Caliornia purposes only i you meet the requirements to beconsidered unmarried or considered not in a domestic partnership

Exception: I you fle a joint return or ederal purposes, you may fleseparately or Caliornia i either spouse was:

An active member o the United States armed orces or any auiliarymilitary branch during 2009

A nonresident or the entire year and had no income rom Caliorniasources during 2009

Community Property States: I the spouse earning the Caliorniasource income is domiciled in a community property state,community income will be split equally between the spouses Bothspouses will have Caliornia source income and they will not qualiyor the nonresident spouse eception

I you had no ederal fling requirement, use the same fling status orCaliornia that you would have used to fle a ederal income ta return

I you fled a joint return and either you or your spouse/RDP was anonresident or 2009, fle the Long or Short Form 540NR, CaliorniaNonresident or Part-Year Resident Income Ta Return

Registered Domestic Partners (RDP) RDPs under Caliornia law mustfle their Caliornia income ta return using either the married/RDP flingjointly or married/RDP fling separately fling status RDPs have thesame legal benefts, protections, and responsibilities as married couples

unless otherwise specifedI you entered into a same sex legal union in another state, other thana marriage, and that union has been determined to be substantiallyequivalent to a Caliornia registered domestic partnership, you arerequired to fle a Caliornia income tax return using either the married/RDP fling jointly or married/RDP fling separately fling status Formore inormation on what states have legal unions that are consideredsubstantially equivalent, go to tb.ca.gov and search or attorney general

For purposes o Caliornia income tax, reerences to a spouse, husband,or wie also reer to a Caliornia registered domestic partner (RDP),unless otherwise specifed When we use the initials RDP they reer to

On 12/31/09,my fling status was:

and on 12/31/09,my age was:(I your 65th birthday is on January 1,2010, you are considered to be age 65 onDecember 31, 2009)

Caliornia Gross Income Caliornia Adjusted Gross Income

Dependents Dependents

0 12

or more 0 12

or more

Single orHead o household

Under 6565 or older

14,62219,522

17,88921,972

20,33923,932

11,69816,598

14,96519,048

17,41521,008

Married/RDP fling jointlyMarried/RDP fling separately(The income o both spouses/RDPs mustbe combined; both spouses/RDPs may berequired to fle a tax return even i only onespouse/RDP had income over the amountslisted.)

Under 65 (both spouses/RDPs)65 or older (one spouse/RDP)65 or older (both spouses/RDPs)

29,245

34,145

39,045

32,512

36,595

41,495

34,962

38,555

43,455

23,396

28,296

33,196

26,663

30,746

35,646

29,113

32,706

37,606

Qualiying widow(er) Under 6565 or older 17,88921,972 20,33923,932 14,96519,04817,41521,008

Dependent o another personAny fling status

Any age More than your standard deduction (Use the Caliornia Standard Deduction Worksheet orDependents on page 9 to fgure your standard deduction.)

(continued on next page

Steps to Determine Filing RequirementStep 1: Is your gross income (all income received rom all sources in theorm o money, goods, property, and services that are not eempt romta) more than the amount shown in the Caliornia Gross Income chartbelow or your fling status, age, and number o dependents? I yes, youhave a fling requirement I no, go to Step 2

Step : Is your adjusted gross income (ederal adjusted grossincome rom all sources reduced or increased by all Caliornia income

adjustments) more than the amount shown in the Caliornia Adjusted

Gross Income chart below or your fling status, age, and number odependents? I yes, you have a fling requirement I no, go to Step 3

Step 3: I your income is less than the amounts on the chart you maystill have a fling requirement See Requirements or Children withInvestment Income and Other Situations When You Must File onthis page Do those instructions apply to you? I yes, you have a flingrequirement I no, go to Step 4

Step 4: Are you married/RDP fling separately with separate property

income? I no, you do not have a fling requirement I yes, prepare areturn I you owe ta, you have a fling requirement

Do I Have to File?


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Page 4 Personal Income Ta Booklet 2009

Whats New and Other Important Information for 2009Differences between California and Federal LawIn general, Caliornia law conorms to the Internal Revenue Code (IRC)as o January 2005 However, there are continuing dierences betweenCaliornia and ederal law When Caliornia conorms to ederal tax lawchanges, we do not always adopt all o the changes made at the ederallevel For more inormation, go to tb.ca.gov and search or conormityAdditional inormation can be ound in FTB Pub 1001, SupplementalGuidelines to Caliornia Adjustments, the instructions or CaliorniaSchedule CA (540 or 540NR), and the Business Entity tax booklets

The instructions provided with Caliornia ta orms are a summary oCaliornia ta law and are only intended to aid tapayers in preparingtheir state income ta returns We include inormation that is mostuseul to the greatest number o tapayers in the limited space availableIt is not possible to include all requirements o the Caliornia Revenueand Taation Code (R&TC) in the ta booklets Tapayers should notconsider the ta booklets as authoritative law

2009 Tax Law Changes/Whats NewTax Increase Beginning on January 1, 2009, the tax rate increased by025%

Dependent Exemptions Credits Beginning on January 1, 2009, thedependent exemption credit decreased rom $309 to $98 per dependentexemption.

Home Credit For taxable years beginning on or ater March 1, 2009,and beore March 1, 2010, a home credit against net tax will be allowedor the purchase o a never been occupied home in an amount equal tothe lesser o fve percent o the purchase price o a qualifed principalresidence or ten thousand dollars ($10,000) For more inormation, go

Do I Have to File? (continued)

(continued on page 6)

both a Caliornia registered domestic partner and a Caliornia registereddomestic partnership, as applicable For more inormation on RDPs,get FTB Pub 737, Tax Inormation or Registered Domestic Partners

Single I any o the ollowing was true on December 31, 009:

You were not married or an RDP You were divorced under a fnal decree o divorce, legally separated

under a fnal decree o legal separation, or terminated your registereddomestic partnership

You were widowed beore January 1, 2009, and did not remarry orenter into another registered domestic partnership in 2009

Married/RDP Filing Jointly I any o the ollowing is true:

You were married or an RDP as o December 31, 2009, even i youdid not live with your spouse/RDP at the end o 2009

Your spouse/RDP died in 2009 and you did not remarry or enter intoanother registered domestic partnership in 2009

Your spouse/RDP died in 2010 beore you fled a 2009 return

Married/RDP Filing Separately

Community property rules apply to the division o income i youuse the married/RDP fling separately status For more inormation,get FTB Pub 1031, Guidelines or Determining Resident Status,FTB Pub 737, Ta Inormation or Registered Domestic Partners,FTB Pub 776, Ta Inormation or Same-Se Married Couples, FTB

Pub 1051A, Guidelines or Married/RDP Filing Separate Returns, orFTB Pub 1032, Ta Inormation or Military Personnel See OrderForms and Publications on page 63

You cannot claim a personal eemption credit or your spouse/RDPeven i your spouse/RDP had no income, is not fling a return, and isnot claimed as a dependent on another persons return

You may be able to fle as head o household i your child lived with youand you lived apart rom your spouse/RDP during the entire last sixmonths o 2009

Head o HouseholdFor the specifc requirements that must be met to qualiy or head ohousehold fling status, get FTB Pub 1540, Caliornia Head o HouseholdFiling Status Inormation In general, head o household fling status isor unmarried individuals and certain married individuals or RDPs livingapart who provide a home or a specifed relative You may be entitled touse head o household fling status i all o the ollowing apply:

You were unmarried and not in a registered domestic partnership, or

you met the requirements to be considered unmarried or considerednot in a registered domestic partnership on December 31, 2009 You paid more than one-hal the cost o keeping up your home or the

year in 2009 For more than hal the year, your home was the main home or you

and one o the specifed relatives who by law can qualiy you or heado household fling status

You were not a nonresident alien at any time during the year

For a child to qualiy as your oster child or head o householdpurposes, the child must either be placed with you by an authorizedplacement agency or by order o a court

For more inormation, get FTB Pub 1540 at tb.ca.gov or see code 934on page 63 to order FTB Pub1540 by telephone

Qualiying Widow(er) with Dependent ChildFill in the circle on Form 540/540A, line 5 and use the joint return tarates or 2009 i all fve o the ollowing apply:

Your spouse/RDP died in 2007 or 2008 and you did not remarry orenter into another registered domestic partnership in 2009

You have a child, stepchild, adopted child, or oster child whom youcan claim as a dependent

This child lived in your home or all o 2009 Temporary absences,such as or vacation or school, count as time lived in the home

You paid over hal the cost o keeping up your home or this child You could have fled a joint return with your spouse/RDP the year he

or she died, even i you actually did not do so

to tb.ca.gov and search or home credit or get FTB Pub 3528, New

Home CreditCaliornia Film and Television Tax Credit For taxable years beginningon or ater January 1, 2011, a flm and television credit against the nettax will be allowed The credit, which is allocated and certifed by theCaliornia Film Commission, is 20% o expenditures attributable to aqualifed motion picture and 25% o production expenditures attributableto an independent flm or a TV series that relocates to Caliornia TheCaliornia Film Commission will accept applications on a frst come, frstserved basis beginning on July 1, 2009 For more inormation, go toflm.ca.gov and search or incentives

New Jobs Credit For taxable years beginning on or ater January 1,2009, a new jobs credit against net tax will be allowed or a qualifedemployer in the amount o $3,000 or each qualifed ull-time employeehired during the taxable year that increases the employers number oull-time employees over the previous year This is determined on anannual ull-time equivalent basis Any credits not used in the taxable yearmay be carried orward up to eight years For more inormation go totb.ca.gov and search or new jobs or get orm FTB 3527, New JobsCredit

Natural Heritage Preservation Credit The unding or the NaturalHeritage Preservation Credit is available beginning January 1, 2010, untilJune 30, 2015 Currently there is no unding available to award or claimcredits or the period rom July 1, 2008, to December 31, 2009 Howevercarryover is not aected or previously awarded credits

Mandatory Electronic Payments You are required to remit all yourpayments electronically once you make an estimate or extension payment


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Which Form Should I Use?

Form 540 2EZ Form 540A Form 540

Personal Income Tax Booklet 2009 Page 5

Tip

Tip

Form not included in this booklet. Ifyou qualify to use Form 540 2EZ, seeWhere To Get Income Tax Forms and

Publications on page 23 to download ororder this form.

Filing Status Single, married/RDP fling jointly, heado household, qualiying widow(er)

Any fling status Any fling status

Dependents 0-3 allowed All dependents you are entitled to claim All dependents you are entitled toclaim

Amount o Income Total income o: $100,000 or less i single or head o

household $200,000 or less i married/RDP flingjointly or qualiying widow(er)

You cannot use Form 540 2EZ i you (oryour spouse/RDP) can be claimed asa dependent by another taxpayer, andyour TOTAL income is less than or equalto $11,187 i single; $22,324 i marr ied/RDP fling jointly or qualiying widow(er);

or $15,124 i head o household.

Any amount o income Any amount o income

Sources o Income Only income rom: Wages, salaries, and tips Taxable interest, dividends, and

pensions Taxable scholarship and fellowship

grants (only if reported on Form(s) W-2) Capital gains rom mutual unds

(reported on Form 1099DIV, box 2aonly)

Unemployment compensation reportedon Form 1099-G

Paid Family Leave Insurance U.S. social security benefts Tier 1 and tier 2 railroad retirement

payments

Only income rom: Wages, salaries, and tips Interest and dividends Taxable scholarship and ellowship grants Capital gains rom mutual unds (reported

on Form 1099DIV, box 2a only) Unemployment compensation

reported on Form 1099-G Paid Family Leave Insurance U.S. social security benefts Tier 1 and tier 2 railroad

retirement payments Fully and partially taxable IRA

distributions, pensions, and annuities Alimony

All sources o income

Adjustments to

Income

No adjustments to income Allowed i the amount is the same as yourederal adjustments to income.

I you claimed educator expenses or thetuition and ees deduction, do not fleForm 540A. Instead fle Form 540.

All adjustments to income

Standard Deduction Allowed Allowed Allowed

Itemized Deductions No itemized deductions Allowed i the amount is the same as yourederal itemized deductions (except orstate, local, and oreign taxes paid)

All itemized deuctions

Payments Only withholding shown onForm(s) W-2 and 1099-R

Withholding shown on Form(s) W-2and 1099-R

Estimated tax payments Payments made with extension

voucher Excess State Disability Insurance

(SDI) or Voluntary Plan DisabilityInsurance (VPDI)

Withholding shown onForm(s) W-2, W-2G, 1099, 592-B, and 593

Estimated tax payments Payments made with

extension voucher Excess State Disability

Insurance (SDI) or VoluntaryPlan Disability Insurance (VPDI)

Tax Credits Personal exemption credit Senior exemption credit Up to three dependent exemption

credits Nonreundable renters credit

Personal exemption credit Senior exemption credit Blind exemption credit Dependent exemption credit Nonreundable renters credit Child and Dependent Care Expenses

Credit

All tax credits

Other Taxes Only tax computed using the540 2EZ Table

Tax computed using the tax table Mental Health Services Tax

All taxes

I you qualiy to use 540 2EZ or 540A, you may be eligible to use CalFile.Visit tb.ca.gov and search or calfle. Its ast, easy, and ree.

I you dont qualiy or CalFile, you qualiy or e-fle.Go to tb.ca.gov and search or efle.

e-fle and you wont have todecide which orm to use!The sotware will select thecorrect orm or you.

Were you and your spouse/RDP residents during the entire year 2009?Yes. Check the chart below to see which orm to use.No. Use the Long or Short Form 540NR. To download or order the Caliornia Nonresident or Part-Year Resident

Income Tax Booklet, go to ftb.ca.gov or see page 23, Where to Get Income Tax Forms and Publications.


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Page 6 Personal Income Ta Booklet 2009

Other Important InformationNet Operating Loss For taable years beginning in 2008 and 2009,Caliornia has suspended the net operating loss (NOL) carryoverdeduction Tapayers may continue to compute and carryover an NOLduring the suspension period However, tapayers with net businessincome o less than $500,000 or with disaster loss carryovers are notaected by the NOL suspension rules

The carryover period or suspended losses is etended by:

Two years or losses incurred in taxable years beginning beore January1, 2008

One year or losses incurred in taable years beginning on or aterJanuary 1, 2008, and beore January 1, 2009

Also, NOL carryovers and the number o taable years to which the lossmay be carried are modifed For more inormation, see orm FTB 3805VNet Operating Loss (NOL) Computation and NOL and Disaster LossLimitations Individuals

NOL carrybacks shall not be allowed or any net operating lossesattributable to taable years beginning beore January 1, 2011 For moreinormation on NOL carrybacks, see orm FTB 3805V

Business Tax Credit Limitation For taxable years beginning on or aterJanuary 1, 2008, and beore January 1, 2010, there is a limitation onthe application o business tax credits or taxpayers whose net businessincome is $500,000 or more The limitation is equal to 50 percent o the nettax beore the application o any credits

Round Cents to Dollars Round cents to the nearest whole dollar Forexample, round $5050 up to $51 or round $2549 down to $25 I youdo not round, the FTB will disregard the cents

Direct Deposit Reund You can request a direct deposit reund on youta return whether you e-fle or fle a paper return Be sure to fll in therouting and account numbers careully and double-check the numbersor accuracy to avoid it being rejected by your bank

ReadyReturn I you are single and your income is only rom wages,you may qualiy or ReadyReturn It simplifes the fling process bypre-flling a ta return with inormation the state already has For moreinormation and to see i you qualiy, go to tb.ca.gov and search orreadyreturn or call 8003380505

Withholding on Caliornia Real Estate For transactions occurring onor ater January 1, 2007, that require withholding, a seller o Caliorniareal estate may elect an alternative to withholding 3 1/3 percent o thetotal sales price The seller may elect an alternative withholding amountbased on the maimum ta rate or individuals, corporations, or banksand fnancial corporations, as applied to the gain on the sale The selleris required to certiy under penalty o perjury the alternative withholdingamount to the FTB For taable years beginning on or ater January 1,2009, the buyer is required to withhold on each installment sale paymeni the sale o Caliornia real property is structured as an installment sale

Tax Shelter I the individual was involved in a reportable transaction,including a listed transaction, the individual may have a disclosurerequirement Attach ederal Form 8886, Reportable TransactionDisclosure Statement, to the back o the Caliornia return along withany other supporting schedules I this is the frst time the reportable

transaction is disclosed on the return, send a duplicate copy o theederal Form 8886 to the address below The FTB may impose penaltiesi the individual ails to fle ederal Form 8886, or ails to provide anyother required inormation A material advisor is required to provide areportable transaction number to all tapayers and material advisors orwhom the material advisor acts as a material advisor

ATSU 398 MS F385FRANCHISE TAx BOARDPO BOx 1673SACRAMENTO CA 95812-9900

For more inormation, go to tb.ca.gov and search or tax shelters

exceeding $20,000 or you fle an original return with a total tax liabilityover $80,000 or any taxable year that begins on or ater January 1, 2009Once you meet this threshold, all subsequent payments regardless oamount, tax type, or taxable year must be remitted electronically The frstpayment that would trigger the mandatory e-pay requirement does nothave to be made electronically Individuals that do not send the paymentelectronically will be subject to a one percent noncompliance penalty

You can request a waiver rom mandatory e-pay i one or more o the

ollowing is true: You have not made an estimated tax or extension payment in excess

o $20,000 during the current or previous taxable year Your total tax liability reported or the previous taxable year did not

exceed $80,000 The amount you paid is not representative o your total tax liability

Electronic payments can be made using Web Pay on FTBs website,electronic unds withdrawal (EFW) as part o the e-fle return, or yourcredit card For more inormation or to obtain the waiver orm, go to tb.ca.gov and search or mandatory epay

Conormity For updates regarding the ollowing ederal act, go to tb.ca.gov and search or conormity

American Recovery and Reinvestment Act o 2009

Estimated Tax Payments Installments due or each taable year

beginning on or ater January 1, 2010, shall be 30% o the requiredannual payment or the 1st required installment, 40% o the requiredannual payment or the 2nd required installment, no installment isdue or the 3rd required installment, and 30% o the required annualpayment or the 4th required installment

Tapayers with a ta liability less than $500 ($250 or married/RDP flingseparately) do not need to make estimated ta payments

Same-Sex Married Couples Married couples must fle their Caliorniaincome ta returns using either the married/RDP fling jointly or married/RDP fling separately fling status On May 26, 2009, the CaliorniaSupreme Court ruled that the Proposition 8 constitutional amendmentis valid and only marriage between a man and a woman is recognized inCaliornia However, the court also held that same-se couple marriagesperormed in Caliornia ater 5:00 pm on June 16, 2008, and beoreNovember 5, 2008, are valid marriages or Caliornia purposes For moreinormation, get FTB Pub 776, Ta Inormation or Same-Se MarriedCouples or go to tb.ca.gov and search or same sex married couples

Same-Sex Marriages Outside the State o Caliornia On October 11,2009, the Governor signed Senate Bill 54, which provides that amarriage between two persons who have entered into a same-semarriage outside the State o Caliornia prior to November 5, 2008,that was valid by the laws o the jurisdiction in which the marriage wascontracted, is valid in Caliornia The bill also provides that a marriagebetween two persons who have entered into a same-se marriageoutside the State o Caliornia on or ater November 5, 2008, that wasvalid by the laws o the jurisdiction in which the marriage was contractedhave the same rights and responsibilities as spouses with the soleeception o the designation o marriage

Consequently, beginning in taable year 2010, persons who have

entered into a same-se marriage outside the State o Caliornia that isvalid according to the laws o the jurisdiction in which the marriage wascontracted must fle their Caliornia income ta return using either thejoint or separate fling status

Southern Caliornia Wildfres 008 For ta treatment inormationor victims o wildfres in Los Angeles and Ventura counties thatcommenced in October 2008 or November 2008 and wildfres in Orange,Riverside, San Bernardino, and Santa Barbara counties that commencedin November 2008, get FTB Pub 1034, Disaster Loss How to Claim aState Ta Deduction

Santa Barbara Wildfres For ta treatment inormation or victims othe Santa Barbara county wildfres that commenced in May 2009, getFTB Pub 1034

Whats New and Other Important Information for 2009 (continued from page4)


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Personal Income Tax Booklet 2009 Page

Instructions for Form 540/540A California Resident Income Tax ReturnReferences in these instructions are to the Internal Revenue Code (IRC) as of January 1, 2005, and the California Revenue and Taxation Code (R&TC).

Beore You BeginComplete your ederal income tax return (Form 1040, Form 1040A, orForm 1040EZ) beore you begin your Caliornia Form 540/540A. Use inormationrom your ederal income tax return to complete your Form 540/540A. Completeand mail Form 540/540A by April 15, 2010. I unable to mail your tax return bythe due date, see page 2.

TipYou may qualiy or the ederal earned income credit. Seepage 2 or more inormation. No comparable state credit

exists.Note: The lines on Form 540/540A have been renumbered with gaps in theline number sequence. For example, lines 20 through 30 do not appear onForm 540/540A, so the line number that ollows line 19 on Form 540/540Ais line 31.

Filling in Your Tax Return Use black or blue ballpoint pen on the tax return you send to the

Franchise Tax Board (FTB). Enter your social security number(s) (SSN) or individual taxpayer

identifcation number(s) (ITIN) at the top o Form 540/540A, Side 1. Print numbers and CAPITAL LETTERS between the combed lines. Be sure

to line up dollar amounts. Round cents to the nearest whole dollar. For example, round $50.50 up

to $51 or round $25.49 down to $25. I you do not have an entry or a line, leave it blank unless the

instructions or a line specifcally tell you to enter -0-. Do not enter adash, or the word NONE.

Name(s) and AddressPrint your frst name, middle initial, last name, and address in the spacesprovided at the top o Form 540/540A.

Private Mail BoxInclude the Private Mail Box (PMB) in the address feld. Write PMB frst,then the box number. Example: 111 Main Street PMB 123.

Foreign AddressEnter the inormation in the ollowing order: City, Country, Province/Region,and Postal Code. Follow the countrys practice or entering the postal code.Do not abbreviate the country name.

Principal Business Activity (PBA) Code (Form 540 only)For ederal Schedule C (Form 1040) business flers, enter the numericprincipal business activity code rom ederal Schedule C (Form 1040), line B.

Prior NameI you or your spouse/RDP fled your 2008 tax return under a dierent lastname, write the last name only rom the 2008 tax return.

Social Security Number (SSN) or IndividualTaxpayer Identifcation Number (ITIN)Enter your SSN in the spaces provided. To protect your privacy, your SSN isnot printed on the tax booklet with your name and address. I fling a joint taxreturn, enter the SSNs in the same order as the names.

I you do not have an SSN because you are a nonresident or resident alienor ederal tax purposes, and the IRS issued you an ITIN, enter the ITIN inthe space or the SSN. An ITIN is a tax processing number issued by the IRSto oreign nationals and others who have a ederal tax fling requirement anddo not qualiy or an SSN. It is a nine-digit number that always starts withthe number 9.

Filing Status

Line 1 through Line 5 Filing StatusFill in only one o the circles or line 1 through line 5. Enter the requiredadditional inormation i you flled in the circle on line 3 or line 5. For flingstatus requirements, see page 3.

Use the same fling status or Caliornia that you used or your ederalincome tax return.

Exception: I you fle a joint tax return or ederal, you may fle separately orCaliornia i either spouse was:

An active member o the United States armed orces or any auxiliarymilitary branch during 2009.

A nonresident or the entire year and had no income rom Caliorniasources during 2009.

Caution Community Property States: I the spouse earning theCaliornia source income is domiciled in a community property state,community income will be split equally between the spouses. Bothspouses will have Caliornia source income and they will not qualiy orthe nonresident spouse exception.

I you had no ederal fling requirement, use the same fling status or

Caliornia you would have used to fle a ederal income tax return.Same-sex married individuals or registered domestic partners (RDPs) whofle single or ederal must fle married/RDP fling jointly or married/RDPfling separately or Caliornia.

I you fled a joint tax return and either you or your spouse/RDP wasa nonresident or 2009, you must fle the Long or Short Form 540NR,Caliornia Nonresident or Part-Year Resident Income Tax Return.

Exemptions

Line 6 Can be Claimed as Dependent

601

Fill in the circle on line 6 i someone else can claim you oryour spouse/RDP as a dependent on his or her tax return,even i he or she chooses not to.

Line Personal ExemptionsDid you fll in the circle on line 6?

No Follow the instructions on Form 540/540A, line 7.

Yes Ignore the instructions on Form 540/540A, line 7. Instead, enter in thebox on line 7 the amount shown below or your fling status: Single or married/RDP fling separately, enter -0-. Head o household, enter -0-. Married/RDP fling jointly and both you and your spouse/RDP can

be claimed as dependents, enter -0-. Married/RDP fling jointly and only one spouse/RDP can be claimed

as a dependent, enter 1.

Do not claim this credit i someone else can claim you as a dependent on hisor her tax return.

Line 8 Blind ExemptionsThe frst year you claim this exemption credit, attach a doctors statement tothe back o Form 540/540A indicating you or your spouse/RDP are visually

impaired. Visually impaired means not capable o seeing better than 20/200while wearing glasses or contact lenses, or i your feld o vision is not morethan 20 degrees.

Do not claim this credit i someone else can claim you as a dependent ontheir tax return.

Line 9 Senior ExemptionsI you were 65 years o age or older by December 31, 2009,* you should claiman additional exemption credit on line 9. I you are married or an RDP, eachspouse/RDP 65 years o age or older should claim an additional credit. Youmay contribute all or part o this credit to the Caliornia Seniors Special Fund.See page 22 or inormation about this und.

*I your 65th birthday is on January 1, 2010, you are considered to be age65 on December 31, 2009.

Do not claim this credit i someone else can claim you as a dependent ontheir tax return.

Line 10 Dependent ExemptionsTo claim an exemption credit or each o your dependents, write eachdependents name and relationship to you in the space provided. I you areclaiming more than three dependents, attach a separate schedule. Countthe number o dependents listed and enter the total in the box on line 10.Multiply the number you entered by the pre-printed dollar amount and enterthe result.

Line 11 Exemption AmountAdd line 7 through line 10 and enter the total dollar amount o all exemptionsor personal, blind, senior, and dependent.

Taxable IncomeReer to your completed ederal income tax return to complete this section.


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Page 8 Personal Income Tax Booklet 2009

Instructions: Form 540/540A e-fle at tb.ca.gov

Line 12 State Wages

204

Eeaa

nter the total amount o your state wages rom all states romch o your Form(s) W-2, Wage and Tax Statement. This

mount appears on Form W-2, box 16.

I you received wages and do not have a Form W-2, see Attachments toyour tax return on page 17.

Line 13 Federal Adjusted Gross Income (AGI) romForm 1040, line 3; 1040A, line 21; or 1040EZ, line 4Same-sex married couples (SSMCs) or RDPs who fle a Caliornia tax return asmarried/RDP fling jointly and have no SSMC adjustments or RDP adjustmentsbetween ederal and Caliornia, combine their individual AGIs rom their ederaltax returns fled with the Internal Revenue Service (IRS). Enter the combinedAGI on Form 540/540A, line 13.

SSMC adjustments and RDP adjustments include but are not limited to theollowing:

Transer o property between spouses/RDPs Capital loss Transactions between spouses/RDPs Sale o residence Dependent care assistance Investment interest Qualifed residence interest acquisition loan & equity loan Expense depreciation property limits Individual Retirement Account

Interest education loan Rental real estate passive loss Rollover o publicly traded securities gain into specialized small business

investment companies

Same-sex married individuals fling as married/RDP fling separately, ormerspouses o a same-sex marriage fling separately, and SSMCs with SSMCadjustments will use the Caliornia SSMC Adjustment Worksheet in FTBPub. 776, Tax Inormation or Same-Sex Married Couples, or complete aederal pro orma Form 1040. Transer the amount rom the Caliornia SSMCAdjustments Worksheet, line 37, column D, or ederal pro orma Form 1040,line 37, to Form 540/540A, line 13.

RDPs fling as married/RDP fling separately, ormer RDPs fling separately,and RDPs with RDP adjustments will use the Caliornia RDP AdjustmentsWorksheet in FTB Pub. 737, Tax Inormation or Registered Domestic Partners,or complete a ederal pro orma Form 1040. Transer the amount rom theCaliornia RDP Adjustments Worksheet, line 37, column D, or ederal pro orma

Form 1040, line 37, to Form 540/540A, line 13.Line 14 (Form 540) Caliornia Adjustments Subtractions [rom Schedule CA (540), line 3, column B]I there are no dierences between your ederal and Caliornia incomeor deductions, do not fle a Schedule CA (540), Caliornia Adjustments Residents.

I there are dierences between your ederal and Caliornia income ordeductions, complete Schedule CA (540). Follow the instructions or ScheduleCA (540) beginning on page 43. Enter on line 14 the amount rom Schedule CA(540), line 37, column B. I a negative amount, see Schedule CA (540), line 37instructions, page 48.

Line 14a (Form 540A) State Income Tax ReundEnter the amount o any state income tax reund shown on your ederal Form1040, line 10. I you fled ederal Forms 1040A or 1040EZ, enter -0-.

Line 14b (Form 540A) Unemployment CompensationEnter the total o any unemployment compensation and/or Paid Family LeaveInsurance benefts reported on ederal Form(s) 1099-G, Certain GovernmentPayments, and shown on your ederal return. These types o income are nottaxed by Caliornia and should be included on line 14b and in the total orline 14g.

Line 14c (Form 540A) Social Security Benefts (andTier 1 or Tier 2 Railroad Retirement Benefts) Enter the amount o U.S. social security benefts or equivalent tier 1

railroad retirement benefts reported on ederal Form 1040A, line 14b orForm 1040, line 20b.

Enter the amount o tier 1 (non-social security equivalent) andtier 2 railroad retirement benefts included in the amount on ederalForm 1040A, line 12b or Form 1040, line 16b.

Do not include any other pension amounts on this line. I you fledForm 1040EZ, enter -0-.

Line 14d (Form 540A) Caliornia Nontaxable Interest orDividend IncomeCaliornia does not tax interest earned rom:

United States savings bonds. United States Treasury bills, notes, and bonds. Bonds or obligations o United States territories, and government agency

obligations specifcally exempted by ederal law.

Enter only the amount o interest that you received rom these sourcesand that you included in the amount reported on your ederal Form 1040A,line 8a; Form 1040, line 8a; or Form 1040EZ, line 2.

Interest rom municipal or state bonds rom a state other than Caliornia:This interest is taxed by Caliornia. You may not use Form 540A. UseForm 540, e-fle, or CalFile.

Interest rom Federal National Mortgage Association (Fannie Mae) Bonds,Government National Mortgage Association (Ginnie Mae) Bonds, andFederal Home Loan Mortgage Corporation (FHLMC) securities: This interesis taxed by Caliornia. Do not enter it on line 14d.

Exempt-interest dividends rom mutual unds: Certain mutual unds arequalifed to pay exempt-interest dividends i at least 50% o their assetsconsist o tax-exempt government obligations. The portion o the dividendsthat are tax-exempt will be shown on your annual statement rom themutual und. I the amount o Caliornia tax-exempt interest is more than the

amount o ederal tax-exempt interest, enter the dierence on line 14d. I theamount o Caliornia tax-exempt interest is less than the amount o ederaltax-exempt interest, you may not use Form 540A. Use Form 540, e-fle, orCalFile.

Line 14e (Form 540A) Caliornia Individual RetirementAccount (IRA) DistributionsDierences may exist between the taxable amounts o ederal and CaliorniaIRA distributions, pensions, and annuities. Enter any dierences on line 14eand line 14.

You cannot use Form 540A i you have Roth IRA conversions ordistributions. Use Form 540, e-fle, or CalFile.

The method o taxing IRA distributions is generally the same or Caliornia andederal purposes. However, there may be signifcant dierences in the taxableamount depending on when you made your contributions.

The maximum IRA contribution allowed as a deduction or Caliornia was less

than the maximum amount allowed or ederal or years 1975 and 1982 through1986. I you made contributions during these years, report the dierencebetween the deduction you took or ederal and the deduction you took orCaliornia on this line. For more inormation, get FTB Pub. 1005, Pension andAnnuity Guidelines. See Order Forms and Publications on page 63.

Report the dierence between your Caliornia and your ederal taxable IRAdistributions on line 14e. Attach Form 1099-R to your Form 540A i tax waswithheld.

Line 14 (Form 540A) Non-taxable Pensions andAnnuitiesGenerally, you will not make any adjustments on this line. You should notmake an adjustment solely because the pension was earned in another state.Federal and State tax laws require Caliornia residents to pay state incometax on all taxable pensions, regardless o where they were earned. However,Caliornia law treats railroad retirement benefts dierently. I you receivedtier 2 railroad retirement benefts, tier 1 (non-social security equivalent)

(included in the amount on ederal Form 1040A, line 12b or Form 1040,line 16b), or partially taxable distributions rom a pension plan, you may needto make the adjustment described on this page.

I you received a ederal Form RRB-1099-R, Annuities or Pensions by theRailroad Retirement Board, or railroad retirement benefts and included allor part o these benefts in ederal AGI on line 13, enter the taxable beneftamount on line 14.

I you began receiving a retirement annuity between July 1, 1986, andJanuary 1, 1987, and you elected to use the three-year recovery rule orCaliornia, make an adjustment because your ederal taxable amount isless than your Caliornia taxable amount. Figure the dierence betweenthe gross distribution shown on your Form 1099-R, box 1 and the taxableamount shown in box 2a. Enter the dierence in parentheses on line 14. Forexample: (12,325).


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e-fle is ast, easy, and secure! Instructions: Form 540/540A

I you received a lump-sum distribution rom a proft sharing or retirementplan and choose the 10-year averaging method you may pay less tax onthe distribution. To use this method fle Form 540. See the instructions orForm 540 and get Schedule G-1, Tax on Lump-Sum Distributions (not inthis booklet), or more inormation. See Order Forms and Publications onpage 63.

Caliornia law now conorms to certain provisions o the Internal RevenueCode (IRC) related to pension plans and deerred compensation, as thoseprovisions apply or ederal purposes including amendments to the IRC thatmay be enacted in the uture.

Line 14g (Form 540A) Total Caliornia IncomeAdjustmentsCombine line 14a through line 14. I the result is less than zero, enter theamount in parentheses. For example, (13,325).

Line 15 (Form 540) SubtotalSubtract the amount on line 14 rom the amount on line 13. Enter the resulton line 15. I the amount on line 13 is less than zero, combine the amountson line 13 and line 14 and enter the result in parentheses. For example:(12,325).

Line 16 (Form 540) Caliornia Adjustments Additions[rom Schedule CA (540), line 3, column C]I there are dierences between your ederal and Caliornia income ordeductions, complete Schedule CA (540). Follow the instructions orSchedule CA (540) beginning on page 43. Enter on line 16 the amount rom

Schedule CA (540), line 37, column C. I a negative amount, see Schedule CA(540), line 37 instructions, page 48.

Line 18 Caliornia Itemized Deductions or CaliorniaStandard DeductionDecide whether to itemize your charitable contributions, medical expenses,interest paid, taxes, etc., or take the standard deduction. Your Caliorniaincome tax will be less i you take the larger o:

Your Caliornia itemized deductions. Your Caliornia standard deduction.

Caliornia itemized deductions may be limited based on ederal AGI. Tocompute limitations, use Schedule CA (540). RDPs use your recalculatedederal AGI to fgure your itemized deductions.

On ederal tax returns, individual taxpayers who claim the standarddeduction are allowed an additional deduction or state and local real estatetaxes paid, new motor vehicle taxes, and disaster losses. For Caliornia,

deductions or state and local real estate taxes paid, new motor vehicletaxes, and disaster losses are only allowed or those individual taxpayerswho itemized their deductions.

I married or an RDP and fling separate tax returns, you and your spouse/RDP must either both itemize your deductions or both take the standarddeduction.

Form 540 I someone else can claim you as a dependent, you may claimthe greater o the standard deduction or your itemized deductions. To fgureyour standard deduction, use the Form 540 Caliornia Standard DeductionWorksheet or Dependents on this page.

Form 540A I someone else can claim you as a dependent, you may claimthe greater o the standard deduction or your itemized deductions. To fgureyour standard deduction, use the Form 540A Caliornia Standard DeductionWorksheet or Dependents on this page.

Form 540 Itemized deductions. Figure your Caliornia itemized deductionsby completing Schedule CA (540), Part II, line 38 through line 44. Enter the

result on Form 540, line 18.I you did not itemize deductions on your ederal income tax return butwill itemize deductions or your Form 540, frst complete a sample ederalSchedule A (Form 1040), Itemized Deductions. Then complete Schedule CA(540), Part II, line 38 through line 44. Attach both the ederal Schedule A(Form 1040) and Caliornia Schedule CA (540) to the back o your tax return.

Form 540A Itemized deductions. Figure your Caliornia itemized deductionsby completing the Form 540A Caliornia Itemized Deductions Worksheet onthe next page. Enter the result on Form 540A, line 18.

I you did not itemize deductions on your ederal income tax return but willitemize deductions or your Form 540A, frst complete a ederal Schedule A(Form 1040), Itemized Deductions. Then complete the Form 540A Caliornia Itemized Deductions Worksheet on the next page. Do not attachederal Schedule A (Form 1040) to your Form 540A.

Standard deduction. Find your standard deduction on the CaliorniaStandard Deduction Chart or Most People on this page. I you flled in thecircle on Form 540/540A, line 6, use the Caliornia Standard DeductionWorksheet or Dependents on this page.

Caliornia Standard Deduction Chart or Most PeopleDo not use this chart i your parent, or someone else, can claim you(or your spouse/RDP) as a dependent on his or her tax return.

Your Filing Status Enter On Line 18

1 Single . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,6372 Married/RDP fling jointly . . . . . . . . . . . . . . . . . . . . . . . . . . . . $7,2743 Married/RDP fling separately . . . . . . . . . . . . . . . . . . . . . . . . . $3,6374 Head o household . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $7,2745 Qualiying widow(er) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $7,274

The Caliornia standard deduction amounts are less than the ederal stan-dard deduction amounts.

Form 540 Caliornia Standard Deduction Worksheet or DependentsUse this worksheet only i your parent, or someone else, can claim you(or your spouse/RDP) as a dependent on his or her tax return. Use wholedollars only.

1. Enter your earned income rom: line 3 o theStandard Deduction Worksheetin the instructions or ederal Form 1040;

Form 1040A; or rom line A o the worksheeton the back o Form 1040EZ. . . . . . . . . . . . . . . . . . . 1

2. Minimum standard deduction . . . . . . . . . . . . . . . . . . 2 $950.00

3. Enter the larger o line 1 or line 2 here . . . . . . . . . . . 3

4. Enter the amount shown or your fling status Single or married/RDP fling separately,

enter $3,637 4____________ Married/RDP fling jointly, head o household,

or qualiying widow(er), enter $7,274

5. Standard deduction. Enter the smaller oline 3 or line 4 here and on Form 540, line 18. . . . . . . 5____________

Form 540A I you flled in the circle on Form 540A, line 6, enter your wages,salaries, and tips on the Form 540A - Caliornia Standard Deduction Worksheetor Dependents, line 1 on this page. I you have earned income other thanwages, then fle Form 540 and use the standard deduction worksheet or thatorm.

Form 540A Caliornia Standard Deduction Worksheet or DependentsUse this worksheet only i someone else can claim you (or yourspouse/RDP) as a dependent on his or her tax return. Use whole dollarsonly.

1. Enter your total wages, salaries, and tips romall your Form(s) W-2, box 1.(You may alsoreer to ederal Form 1040EZ, line 1;Form 1040A, line 7; or Form 1040, line 7) . . . . . . 1

2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 $300.00

3. Add line 1 and line 2. Enter total here . . . . . . . . . . 3

4. Minimum standard deduction . . . . . . . . . . . . . . . . 4 $950.00

5. Enter the larger o l ine 3 or l ine 4 here . . . . . . . . . 56. Enter the amount shown or your fling status: Single or married/RDP fling separately,

enter $3,637 6 Married/RDP fling jointly, head o household,

or qualiying widow(er) enter $7,2747. Standard deduction. Enter the smaller o

line 5 or line 6 here and on Form 540A, line 18. . . 7

}

}


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Form 540A Caliornia Itemized Deductions WorksheetUse whole dollars only.

1. Federal itemized deductions: Add the amountson ederal Schedule A (Form 1040),l ines 4, 9, 15, 19, 20, 27, and 28 . . . . . . . . . . . . . . . . 1___________

2. Add the ollowing amounts rom ederalSchedule A (Form 1040) and enter on line 2

Line 5, state and localincome tax or general sales tax: ____________

State Disability Insurance (SDI):____________ Line 7, new motor vehicle tax: ____________

Line 8, oreign income taxes: ____________ 2___________3. Subtract line 2 rom line 1. This amount is your

total Caliornia itemized deductions . . . . . . . . . . . . . 3___________4. Is the amount on Form 540A, line 13, more than

the amount shown below or your fling status?Single or married/RDPfling separately . . . . . . . . . . . . . . . . . . . . . $160,739Married/RDP fling jointly orqualiying widow(er) . . . . . . . . . . . . . . . . . $321,483Head o household . . . . . . . . . . . . . . . . . . $241,113

Yes Continue to line 5 o this worksheetNo Enter on Form 540A, line 18, the larger o: The amount on line 3; or,

Your standard deduction* shown below:Single or married/RDPfling separately . . . . . . . . . . . . . . . . . . . . . $ 3,637Married/RDP fling jointly, head ohousehold, or qualiying widow(er) . . . . . . $7,274Do not complete the rest o this worksheet.

5. Using Caliornia amounts, add the amounts onederal Schedule A, (Form 1040) lines 4, 14, 20,and any gambling losses included on line 28. . . . . . . 5___________

6. Subtract line 5 rom line 3 . . . . . . . . . . . . . . . . . . . . . 6___________I zero, skip line 7 through line 12, enterthe amount rom line 3 on line 13 andcontinue to line 14.

7. Multiply l ine 6 by 80% (.80). . . . . . . . . . . . . . . . . . . . 7___________8. Amount rom Form 540A, line 13 . . . . . . . . . . . . . . . 8___________9. Enter the amount shown below or your

fling status . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9___________ Single or married/RDP fling separately . . . . $160,739

Married/RDP fling jointly orqualiying widow(er) . . . . . . . . . . . . . . . . . $321,483Head o household . . . . . . . . . . . . . . . . . . . $241,113

10. Subtract line 9 rom line 8 . . . . . . . . . . . . . . . . . . . . . 10___________I zero or less, skip line 11 and line 12,enter the amount rom line 3 on line 13 andcontinue to line 14.

11. Multiply l ine 10 by 6% (.06). . . . . . . . . . . . . . . . . . . . 11___________12. Compare line 7 and line 11. Enter the smaller

amount here. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12___________13. Total itemized deductions. Subtract line 12

rom line 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13___________14. Enter on Form 540A, line 18, the larger o:

The amount on line 13; or,Your standard deduction* shown below:Single or married/RDP fling separately. . . . . $3,637Married/RDP fling jointly, head ohousehold, or qualiying widow(er) . . . . . . . . $7,274

*Standard Deduction or DependentsI someone else can claim you as a dependent use the standard deductionamount rom line 7 o the Form 540A Caliornia Standard DeductionWorksheet or Dependents on the previous page instead o the standarddeduction amount shown above.

Line 19 (Form 540) Taxable IncomeCapital Construction Fund (CCF). I you claim a deduction on your ederalForm 1040, line 43 or the contribution made to a capital construction undset up under the Merchant Marine Act o 1936, reduce the amount youwould otherwise enter on line 19 by the amount o the deduction. Next toline 19, enter CCF and the amount o the deduction. For details, see ederalPublication 595, Capital Construction Fund or Commercial Fishermen.

TaxWhen fguring your tax, use the correct fling status and taxable income

amount.

Line 31 (Form 540A) TaxI your taxable income on line 19 is:

$100,000 or less, use the tax table beginning on page 57. Use the correctcolumn or your fling status.

Over $100,000, use the tax rate schedules on page 62. Use the correcttax rate schedule or your fling status.

Line 31 (Form 540) TaxTo fgure your tax, use one o the ollowing methods and fll in the matchingcircle on line 31:

Tax Table. I your taxable income on line 19 is $100,000 or less, use thetax table beginning on page 57. Use the correct fling status column inthe tax table.

Tax Rate Schedules. I your taxable income on line 19 is over $100,000,

use the tax rate schedule or your fling status on page 62. FTB 3800. Generally, use orm FTB 3800, Tax Computation or ChildrenUnder Age 14 with Investment Income, to fgure the tax on a separateForm 540 or your child who was under age 14 on January 1, 2010, andwho had more than $1,900 o investment income. Attach orm FTB 3800to the childs Form 540.

FTB 3803. I, as a parent, you elect to report your childs interest anddividend income o $9,500 or less (but not less than $950) on your taxreturn, complete orm FTB 3803, Parents Election to Report ChildsInterest and Dividends. File a separate orm FTB 3803 or each child whoseincome you elect to include on your Form 540. Add the amount o tax, iany, rom each orm FTB 3803, line 9, to the amount o your tax rom thetax table or tax rate schedules and enter the result on Form 540, line 31.Attach orm(s) FTB 3803 to your tax return.

To prevent possible delays in processing your tax return or reund, enter thecorrect tax amount on this line. To automatically fgure your tax or to veriyyour tax calculation, use our online tax calculator. Go to tb.ca.gov and

search or tax calculator.

Tip CalFile or e-fle and you wont have to do the math. Go totb.ca.gov.

Line 32 Exemption CreditsExemption credits reduce your tax. I your ederal adjusted gross income(AGI) on line 13 is more than the amount shown below or your fling status,your credits will be limited.

For purposes o computing limitations based upon AGI, SSMCs and RDPsrecalculate their AGI using a ederal pro orma, Caliornia SSMC AdjustmentsWorksheet (located in FTB Pub. 776), or Caliornia RDP AdjustmentsWorksheet (located in FTB Pub. 737). I your recalculated ederal AGI ismore than the amount shown below or your fling status, your credits willbe limited.

Is Form 540/540A

I your fling status is: line 13 more thanSingle or married/RDP fling separately . . . . . . . . . . . . . . . . . . . . . $160,739Married/RDP fling jointly or qualiying widow(er) . . . . . . . . . . . . . $321,483Head o household . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $241,113

Yes Complete the AGI Limitation Worksheet on the next page.No Follow the instructions on Form 540/540A, line 32.


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AGI Limitation WorksheetUse whole dollars only.

a Enter the amount rom Form 540/540A, line 13 . . . . . . . . . . . a______b Enter the amount or your fling status on line b:

Single or married/RDP fling separately. . . . . $160,739 Married/RDP fling jointly or

qualiying widow(er) . . . . . . . . . . . . . . . . . . . $321,483 b______ Head o household. . . . . . . . . . . . . . . . . . . . . $241,113

c Subtract line b rom line a . . . . . . . . . . . . . . . . . . . . . . . . . . . . c______

d Divide line c by $2,500 ($1,250 i married/RDP flingseparately). I the result is not a whole number, round itto the next higher whole number . . . . . . . . . . . . . . . . . . . . . . . d______

e Multiply line d by $6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . e______ Add the numbers rom the boxes on Form 540/540A,

lines 7, 8, and 9 (not the dollar amounts) . . . . . . . . . . . . . . . . ______g Multiply line e by line . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . g______h Enter the total dollar amount or l ines 7, 8, and 9.. . . . . . . . . h______i Subtract line g rom line h. I zero or less, enter -0- . . . . . . . . i______j Enter the number rom the box on Form 540/540A,

line 10 (not the dollar amount) . . . . . . . . . . . . . . . . . . . . . . . . j______k Multiply line e by line j. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . k______l Enter the dollar amount rom Form 540/540A, line 10 . . . . . . l______m Subtract line k rom line l. I zero or less, enter -0- . . . . . . . . m______n Add line i and line m. Enter the result here and on

Form 540/540A, line 32. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n______

Line 34 (Form 540) Tax rom Schedule G-1 andFTB 580AI you received a qualifed lump-sum distribution in 2009 and you wereborn beore January 2, 1936, get Schedule G-1, to fgure your tax by specialmethods that may result in less tax.

I you received accumulation distributions rom oreign trusts or rom certaindomestic trusts, get orm FTB 5870A, Tax on Accumulation Distribution oTrusts, to fgure the additional tax.

To get these orms, see Order Forms and Publications on page 63.

Special Credits and Nonrefundable Renters CreditForm 540A Did you pay rent or at least six months in 2009 on yourprincipal residence located in Caliornia?

Yes You may qualiy to claim this credit which may reduce your tax.

Complete the qualifcation record on page 50.No Go to line 47.

Form 540 A variety o Caliornia tax credits are available to reduceyour tax i you qualiy. To fgure and claim most special credits, you mustcomplete a separate orm or schedule and attach it to your Form 540. (Note:I your net business income is $500,000 or more and you have businesstax credits, complete Schedule P (540), Alternative Minimum Tax and CreditLimitations Resident. See Order Forms and Publications on page 63.)

The Credit Chart on page 21 describes the credits and provides the name,credit code, and number o the required orm or schedule. Many credits arelimited to a certain percentage or a certain dollar amount. In addition, thetotal amount you may claim or all credits is limited by tentative minimumtax (TMT). Answer the ollowing questions beore you claim credits on yourtax return.

1. Do you qualiy to claim the nonreundable renters credit? Complete thequalifcation record on page 50.

Check Yes or No, then go to Question 2.2. Are you claiming any other special credit listed on the Credit Chart on

page 21?

No I you checked Yes or Question 1 and entered an amount onForm 540, line 46, go to line 47. I you checked No or Question 1,skip to the instructions or line 48.

Yes Figure your credit using the orm, schedule, worksheet, orcertifcate identifed on the Credit Chart. Then go to Box A tosee i the total amount you may claim or all credits is limited byTMT. I you checked Yes or Question 1, veriy you entered yournonreundable renters credit on line 46.

Box A Did you complete ederal Schedule C, D, E, or F and claim or receiveany o the ollowing (Note: I your business gross receipts are lessthan $1,000,000 rom all trades or businesses, you do not have toreport alternative minimum tax (AMT). For more inormation, seeline 61 instructions, on page 12.):

Accelerated depreciation in excess o straight-line Intangible drilling costs Depletion Circulation expenditures Research and experimental expenditures Mining exploration/development costs Amortization o pollution control acilities Income/loss rom tax shelter arm activities Income/loss rom passive activities Income rom long-term contracts using the percentage o

completion method Pass-through AMT adjustment rom an estate or trust

reported on Schedule K-1 (541) Excluded gain on the sale o qualifed small business stock

Yes Complete Schedule P (540). See Order Forms andPublications on page 63.

No Go to Box B.

Box B Did you claim or receive any o the ollowing:

Investment interest expense 226 Income rom incentive stock options in excess o the amount

reported on your tax return 225 Income rom installment sales o certain property


No Go to Box C.

Box C I your fling status is: Is Form 540, line 17 more than:

Single or head o household . . . . . . . . . . . . . . . . . . . . . . . . $221,674Married/RDP fling jointly or qualiying widow(er) . . . . . . . $295,564Married/RDP fling separately . . . . . . . . . . . . . . . . . . . . . . .$147,781


No Your credits are not limited. Go to the instructions orForm 540, line 41.

Line 41 and Line 42 (Form 540) - New Jobs CreditQualifed employers who had a net increase o qualifed employees duringthe current taxable year or qualifed employers who frst commencedbusiness in Caliornia during the current taxable year may be eligible to claimthis credit. Use orm FTB 3527, New Jobs Credit, to determine the amount othe credit available. Enter on line 41 the amount o the credit generated romorm FTB 3527, line 12.

Answer the ollowing question to determine the amount o the credit you canclaim. Are you required to complete Schedule P (540)?

Yes Enter on line 42 the amount o the New Jobs credit claimed romSchedule P (540), Part III.

No Use this worksheet to fgure the credit.

1. Enter the amount rom Form 540, line 35. . . . . . . . . . .1_____________

2. Enter the amount rom orm FTB 3527, line 14 . . . . . . . 2_____________

3. Enter the smaller o line 1 or line 2 here and onForm 540, line 42* and orm FTB 3527, line 15 . . . . . .3_____________

* I you have other credits with limited carryovers, you may want to applythose credits frst on line 43 through line 45 beore claiming the New Jobscredit on line 42.

Important: Attach orm FTB 3527 and Schedule P (540) to your Form 540.

Line 43 through Line 45 (Form 540) Additional SpecialCreditsA code number identifes each credit. To claim only one or two credits, enterthe credit name, code number, and amount o the credit on line 43 andline 44.

To claim more than two credits, use Schedule P (540), Part III. SeeSchedule P (540) instructions, How to Claim Your Credits.

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Do not claim the New Jobs credit on line 43, line 44, or line 45. Only useline 42 to claim the New Jobs credit.

Important: Attach Schedule P (540) and any supporting schedules orstatements to your Form 540.

Carryovers: I you claim a credit with carryover provisions and the amounto the credit available this year exceeds your tax, carry over any excesscredit to uture years until the credit is used (unless the carryover periodis a fxed number o years). I you claim a credit carryover or an expiredcredit, use orm FTB 3540, Credit Carryover Summary, to fgure the amounto the credit. Otherwise, enter the amount o the credit on Schedule P (540),

Part III, and do not attach orm FTB 3540.

Credit or Joint Custody Head o Household Code 10You may not claim this credit i you used the married/RDP fling jointly, heado household, or qualiying widow(er) fling status.

Claim the credit i unmarried and not an RDP at the end o 2009 (or imarried/or an RDP, you lived apart rom your spouse/RDP or all o 2009and you used the married/RDP fling separately fling status); and i youurnished more than one-hal the household expenses or your home thatalso served as the main home o your child, step-child, or grandchild or atleast 146 days but not more than 219 days o the taxable year. I the childis married or an RDP, you must be entitled to claim a dependent exemptioncredit or the child.

Also, the custody arrangement or the child must be part o a decree odissolution or legal separation or part o a written agreement between theparents where the proceedings have been initiated, but a decree o dissolutionor legal separation has not yet been issued.

Use the worksheet below to fgure the Joint Custody Head o Householdcredit using whole dollars only.

1. Enter the amount rom Form 540, line 35. . . . . . . . . . . 12. Credit percentage 30%. . . . . . . . . . . . . . . . . . . . . . . 2 x .303. Credit amount. Multiply line 1 by line 2.

Enter the result or $387, whichever is less . . . . . . . . . . 3

I you qualiy or the Credit or Joint Custody Head o Household and theCredit or Dependent Parent, claim only one credit. Select the credit thatallows the maximum beneft.

Credit or Dependent Parent Code 13You may not claim the Credit or Dependent Parent i you used the single,head o household, qualiying widow(er), or married/RDP fling jointly flingstatus.

Claim this credit only i all o the ollowing apply:

You were married/or an RDP at the end o 2009 and you used themarried/RDP fling separately fling status. Your spouse/RDP was not a member o your household during the last

six months o the year. You urnished over one-hal the household expenses or your dependent

mothers or athers home, whether or not she or he lived in your home.

To fgure the amount o this credit, use the worksheet above or the Creditor Joint Custody Head o Household. I you qualiy or the Credit or JointCustody Head o Household and the Credit or Dependent Parent, claim onlyone. Select the credit that will allow the maximum beneft.

Credit or Senior Head o Household Code 163You may claim this credit i you:

Were 65 years o age or older on December 31, 2009.* Qualifed as a head o household in 2007 or 2008 by providing a

household or a qualiying individual who died during 2007 or 2008. Did not have AGI over $62,874 or 2009.

* I your 65th birthday is on January 1, 2010, you are considered to beage 65 on December 31, 2009.

I you meet all the conditions listed above, you do not need to qualiy to usethe head o household fling status or 2009 in order to claim this credit.

Use this worksheet to fgure this credit using whole dollars only.

1. Enter the amount rom Form 540, line 19. . . . . . . . . . . .12. Credit percentage 2%. . . . . . . . . . . . . . . . . . . . . . . . .2 x .023. Credit amount. Multiply line 1 by line 2.

Enter the result or $1,185, whichever is less. . . . . . . . . .3

Credit or Child Adoption Costs Code 19For the year in which an adoption decree or an order o adoption is entered(e.g., adoption is fnal), claim a credit or 50% o the cost o adopting a childwho was both:

A citizen or legal resident o the United States. In the custody o a Caliornia public agency or a Caliornia political

subdivision.

Treat a prior unsuccessul attempt to adopt a child (even when the costs wereincurred in a prior year) and a later successul adoption o a dierent child asone eort when computing the cost o adopting the child. Include the ollowingcosts i directly related to the adoption process: Fees or Department o Social Services or a licensed adoption agency. Medical expenses not reimbursed by insurance. Travel expenses or the adoptive amily.

Note:

This credit does not apply when a child is adopted rom another countryor another state, or was not in the custody o a Caliornia public agencyor a Caliornia political subdivision.

Any deduction or the expenses used to claim this credit must be reducedby the amount o the child adoption costs credit claimed.

Use the worksheet below to fgure this credit using whole dollars only.I more than one adoption qualifes or this credit, complete a separateworksheet or each adoption. The maximum credit is limited to $2,500 perminor child.

1. Enter qualiying costs or the child . . . . . . . . . . . . . . . .1

2. Credit percentage 50%. . . . . . . . . . . . . . . . . . . . . . . 2 x .503. Credit amount. Multiply line 1 by line 2.Do not enter more than $2,500 . . . . . . . . . . . . . . . . . . . 3

Your allowable credit is limited to $2,500 or 2009. Carry over the excesscredit to uture years until the credit is used.

Line 46 Nonreundable Renters CreditDid you pay rent or at least six months in 2009 on your principal residencelocated in Caliornia?

Yes You may qualiy to claim this credit which may reduce your tax.Complete the qualifcation record on page 50.

No Go to line 47.

Line 48 (Form 540)Subtract the amount on line 47 rom the amount on line 40. Enter the resulton line 48. I the amount on line 47 is more than the amount on line 40, ente-0-. I you owe interest on deerred tax rom installment obligations, include

the additional tax, i any, in the amount you enter on line 48. Write IRCSection 453 interest or IRC Section 453A interest and the amount on thedotted line to the let o the amount on line 48.

Other TaxesAttach the specifc orm or statement required or each item below.

Line 61 (Form 540) Alternative Minimum Tax (AMT)I you claim certain types o deductions, exclusions, and credits, you mayowe AMT i your total income is more than:

$78,817 married/RDP fling jointly or qualiying widower(er) $59,114 single or head o household $39,407 married/RDP fling separately

A child under age 14 may owe AMT i the sum o the amount on line 19(taxable income) and any preerence items listed on Schedule P (540) andincluded on the return is more than the sum o $5,500 and the childs earned

income.AMT income does not include income, adjustments, and items o taxpreerence related to any trade or business o a qualifed taxpayer who hasgross receipts, less returns and allowances, during the taxable year o lessthan $1,000,000 rom all trades or businesses.

Get Schedule P (540) or more inormation. See Order Forms andPublications on page 63.

Line 62 Mental Health Services TaxI your taxable income is more than $1,000,000, compute the Mental HealthServices Tax on the next page using whole dollars only:


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A. Taxable income rom Form 540/540A, line 19 . . . . . .B. Less . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(1,000,000)C . S u b t o t a l . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .D. Multiply line C by 1% . . . . . . . . . . . . . . . . . . . . . . . . . x .01E. Mental Health Services Tax Enter this amount

here and on Form 540/540A, line 62 . . . . . . . . . . . . .

Line 63 (Form 540) Other Taxes and Credit RecaptureI you received an early distribution o a qualifed retirement plan and wererequired to report additional tax on your ederal tax return, you may also

be required to report additional tax on your Caliornia tax return. Get ormFTB 3805P, Additional Taxes on Qualifed Plans (including IRAs) and OtherTax-Favored Accounts. I required to report additional tax, report it on line 63and write FTB 3805P to the let o the amount.

Caliornia conorms to ederal law or income received under IRCSection 409A on a nonqualifed deerred compensation (NQDC) plan anddiscounted stock options and stock appreciation rights. Income receivedunder IRC Section 409A is subject to an additional 20% tax plus interest.Include the additional tax, i any, on line 63. Write NQDC on the dotted lineto the let o the amount.

I you used orm(s) FTB 3501, Employer Child Care Program/Contribution Credit FTB 3805Z, Enterprise Zone Deduction and Credit Summary FTB 3807, Local Agency Military Base Recovery Area Deduction and

Credit Summary FTB 3808, Manuacturing Enhancement Area Credit Summary

FTB 3809, Targeted Tax Area Deduction and Credit SummaryInclude the additional tax or credit recapture, i any, on line 63. Write theorm number on the dotted line to the let o the amount on line 63.

PaymentsTo avoid a delay in the processing o your tax return, enter the correctamounts on line 71 through line 78.

Line 1 Caliornia Income Tax WithheldEnter the total Caliornia income tax withheld rom your:

Form(s) W-2, Wage and Tax Statement, box 17 Form(s) W-2G, Certain Gambling Winnings, box 14 Form(s) 1099-MISC, Miscellaneous Income, box 16 Form(s) 1099-R, Distributions rom Pensions, Annuities, Retirement, or

Proft Sharing Plans, IRAs, Insurance Contracts, etc. box 10

Do not include city, local, or county tax withheld or tax withheld by

other states. Do not include withholding rom Forms 592-B, Residentand Nonresident Withholding Tax Statement, or Form 593, Real EstateWithholding Tax Statement, on this line. For more details, see instructionsor line 73 on this page.

Generally, tax should not be withheld on ederal Form 1099-MISC. I youwant to pre-pay tax on income reported on ederal Form 1099-MISC, useForm 540-ES, Estimated Tax or Individuals.

Line 2 2009 CA Estimated Tax and Other PaymentsEnter the total o any: Caliornia estimated tax payments you made using 2009 Form 540-ES or

Web Pay Overpayment rom your 2008 Caliornia income tax return that you

applied to your 2009 estimated tax Payment you sent with orm FTB 3519, Payment or Automatic Extension

or Individuals Caliornia estimated tax payments made on your behal by an estate, trust,

or S corporation on Schedule K-1 (541) or Schedule K-1 (100S)

TipTo view payments made or get your current account balance,go to tb.ca.gov and search or mytb account.

I you and your spouse/RDP paid joint estimated taxes but are now flingseparate income tax returns, either o you may claim the entire amount paid,or each may claim part o the joint estimated tax payments. I you want theestimated tax payments to be divided, notiy the FTB beore you fle the taxreturns so the payments can be applied to the proper account. The FTB willaccept in writing, any divorce agreement (or court-ordered settlement) ora statement showing the allocation o the payments along with a notarizedsignature o both taxpayers.

Send statements to:

JOINT ESTIMATED CREDIT ALLOCATION MS F225TAXPAYER SERVICES CENTERFRANCHISE TAX BOARDPO BOX 942840SACRAMENTO, CA 94240-0040

I you or your spouse/RDP made separate estimated tax payments, but arenow fling a joint income tax return, add the amounts you each paid. Attacha statement to the ront o Form 540/540A explaining that payments weremade under both SSNs.

You do not have to make estimated tax payments i you are a nonresident ornew resident o Caliornia in 2010 and did not have a Caliornia tax liability in2009.

Line 3 (Form 540) Real Estate and Other WithholdingEnter the total o Caliornia withholding rom Form 593, Real EstateWithholding Tax Statement, and Form 592-B, Resident and NonresidentWithholding Tax Statement. Attach a copy o Form(s) 593 and 592-B to thelower ront o Form 540, Side 1.

Caution: Do not include withholding rom ederal Form(s) W-2, W-2G, or1099 on this line.

Line 4 Excess Caliornia SDI (or VPDI) WithheldYou may claim a credit or excess State Disability Insurance (SDI) or VoluntaryPlan Disability Insurance (VPDI) i you meet all o the ollowing conditions: You had two or more Caliornia employers during 2009. You received more than $90,669 in wages. The amounts o SDI (or VPDI) withheld appear on your Form(s) W-2. Be

sure to attach your Form(s) W-2 to your Form 540/540A.

I SDI (or VPDI) was withheld rom your wages by a single employer, atmore than 1.1% o your gross wages, you may not claim excess SDI (orVPDI) on your Form 540/540A. Contact the employer or a reund.

To determine the amount to enter on line 74, complete the Excess SDI (orVPDI) Worksheet below. I married/RDP fling jointly, fgure the amount oexcess SDI (or VPDI) separately or each spouse/RDP.

Excess SDI (or VPDI) WorksheetUse whole dollars only.

Follow the instructions below to fgure the amount o income tax to enteron Form 540/540A, line 74. I you are married/RDP and fle a joint return,you must fgure the amount o excess SDI (or VPDI) separately or eachspouse/RDP.

You YourSpouse/RDP

1. Add amounts o SDI (or VPDI) withheldshown on your Forms W-2.Enter the total here . . . . . . . . . . . . . . . . . . . . . . . 1

2. 2009 SDI (or VPDI) limit . . . . . . . . . . . . . . . . . . . 2 $ 997.36 $997.36

3. Excess SDI (or VPDI) withheld. Subtractline 2 rom line 1. Enter the results here.Combine the amounts on line 3 and enterthe total, in whole dollars only onForm 540/540A, line 74 . . . . . . . . . . . . . . . . . . . 3

I zero or less, enter -0- on line 74.

Line 5 through Line 8 Child and Dependent Care

Expenses CreditClaim this credit i you paid someone to care or your qualiying child underthe age o 13, other dependent who is physically or mentally incapable ocaring or him or hersel, or spouse/RDP i physically or mentally incapableo caring or him or hersel. The care must be provided in Caliornia. Toclaim this credit, your ederal AGI must be $100,000 or less and you mustcomplete and attach orm FTB 3506, Child and Dependent Care ExpensesCredit, included in this booklet.

Line 5 and Line 6Enter the qualiying persons SSN. Do not enter more than one qualiyingpersons SSN on line 75 or line 76 rom orm FTB 3506, Part III, line 2. I youhave more than two qualiying persons, enter only the frst two qualiyingpersons listed on orm FTB 3506, Part III, line 2.


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Line Enter the amount rom orm FTB 3506, Part III, line 8.

Line 8Enter the credit amount rom orm FTB 3506, Part III, line 12.

Line 9 (Form 540)For the Claim o Right credit, ollow the reporting instructions inSchedule CA (540) under the Claim o Right.

Claim o Right: I you are claiming the tax credit on your Caliornia return,

include the amount o the credit in the total or this line. Write in IRC 1341and the amount o the credit to the let o the amount column.

To determine i you are entitled to this deduction, reer to your prior yearCaliornia 540/540A, 540NR Long Form, Schedule CA (540), or Schedule CA(540NR), column E, to veriy the amount was included in your CA taxableincome. I the amount repaid under a Claim o Right was not originallytaxed by Caliornia, you are not entitled to claim the deduction.

Overpaid Tax or Tax DueI you received a reund or 2008, you may receive a ederal Form 1099-G.The reund amount reported on your ederal Form 1099-G will be dierentrom the amount shown on your tax return i you claimed the Child andDependent Care Expenses Credit. This is because the credit is not part o thereund rom withholding or estimated tax payments.

To avoid delay in processing o your tax return, enter the correct amounts online 91 through line 94.

Line 91 Overpaid TaxForm 540 I the amount on line 79 is more than the amount on line 64,your payments and credits are more than your tax. Subtract the amount online 64 rom the amount on line 79. Enter the result on line 91.

Form 540A I the amount on line 79 is more than the amount on line 70,your payments and credits are more than your tax. Subtract the amount online 70 rom the amount on line 79. Enter the result on line 91.

Tip Choose e-fle and Direct Deposit and get your reund aster.

Line 92 Amount You Want Applied to Your 2010Estimated TaxApply all or part o the amount on line 91 to your estimated tax or 2010.Enter on line 92 the amount o line 91 that you want applied to your 2010estimated tax.

An election to apply an overpayment to estimated tax is binding. Once theelection is made, the overpayment cannot be applied to a defciency ater thedue date o the return.

Line 93 Overpaid Tax Available This YearI you entered an amount on line 92, subtract it rom the amount on line 91.Enter the result on line 93. Choose to have this entire amount reundedto you, make contributions to the Caliornia Seniors Special Fund (seepage 22), or make other voluntary contributions rom this amount. I youmake a contribution, skip line 94 and go to the Use Tax section o the taxreturn.

Line 94 Tax DueForm 540 I the amount on line 79 is less than the amount on line 64,subtract the amount on line 79 rom the amount on line 64. Enter the resulton line 94. Your tax is more than your payments and credits.

Form 540A I the amount on line 79 is less than the amount on line 70,subtract the amount on line 79 rom the amount on line 70. Enter the resulton line 94. Your tax is more than your payments and credits.

There is a penalty or not paying enough tax during the year. You may haveto pay a penalty i:

The tax due on line 94 is $500 or more ($250 or more i married/RDPfling separately).

The amount o state income tax withheld on line 71 is less than 90% othe amount o your total tax on line 64.

I this applies to you, see instructions on line 113.

Increasing your withholding could eliminate the need to make a largepayment with your tax return. To increase your withholding, complete EDDForm DE 4, Employees Withholding Allowance Certifcate, and g

Documents

2009 CA540 instructions