Form Help - California

This article is for state-specific form help. Use the table of contents to jump to the tax module you're working on, and then find the relevant form and line within that section.

Table of contents:

Individual

Form 5805

Page 3, Line 1

Long Form 540NR Instructions for Part III Use these Instructions only if you are filing Long Form CA 540NR. Line 1 Enter your total CA AGI for each period. Your total AGI is your AGI for the period from all sources. As a reminder, use 5805 Part III only if taxable income was earned at an uneven rate. Refer to examples provided on the form.

-Form 5805-

Form 3805V

1 AMT, Line 25

If Line 25 of the 3805V AMT is forcing an unwanted Form, enter an adjustment of the amount on screen 15.011 code 20 under the Miscellaneous Info section for the NOL in the AMT Nonbusiness Deductions(A) field. Enter additions as positive numbers or subtractions as negative numbers. or a -1 in screen 40 code 108 California Alternative Minimum Tax, AMT Exclusion (O) field.

-Form 3805V-

Form 540

Page 3, Line 73

-This entry comes from either a 592-B or a 593. Neither Form is supported in Lacerte, but both have input for the results on screen 55.012. Make sure to select the correct Form with 1= or 2= at the top of the page and complete the input for the selected Form. There is also input available on the dispositions screen 17 Individual… CA Real Estate Withholdings section

-In addition to Jump to Input on Screen 55.012, input can flow from: Screen 17 CA Real Estate Withholding (Form 593), Escrow or Exchange Information, Amount withheld from seller (code 171). Additionally, on Screen 22 under the Additional Disposition Information section, Real estate withholding {CA} (Code 121) can also flow to line 73 of the CA 540.

-Withholdings on this Line come from the 592/593 res/non-res withholding statements per form instructions such as a 1099 . Input on screen 55 in the CA withholding sections is where the withholding input can be made.

-Form 540, Real Estate withholding-

Form 540

Page 3, Line 74

Excess SDI will appear when there are 2 or more employers with CA SDI and the withholding is over the limit. If only one employer, Informational diagnostic ref #3461 may be present indicating excess SDI withholding should be refunded by the employer.

-Form 540, Pg. 3 Excess SDI-

Form 540

Page 5, Healthcare Coverage Info checkbox

Right click checkbox to Jump to Input or navigate to Screen 3, Miscellaneous Info/Direct Deposit, then select California Miscellaneous from the Section tab to the left. Near the top of this section is a "Taxpayer is interested in no-cost or low-cost health care coverage information 1=yes 2=no." Selecting Yes will check the Yes box on Page 5 of the CA 540. This will authorize the FTB to share limited information from your tax return with covered California. Depending upon the filing status of the return, this information will be sent to you or your spouse/RDP, if filing a joint return.

-Form 540, Pg.5, healthcare coverage info-

Schedule CA

Page 3, Section B, Line 10A

California doesn't treat passive income the same as the federal government when it comes to calculating taxes. For example, if a tax return includes income from pass-through entities, as well as Schedule C income marked as “did not materially participate,” the calculation of taxes may be more complex. Refer to the instructions for Form 3801 for details on the calculation.

-Schedule CA-

Form 3805E

How to generate:

Form 3805 E may not be generated in instances where there is no difference between the Federal and California versions for Installment Sale Income. Additionally make sure in Screen 17 Dispositions that "Nontaxable to state" is not checked. This is located in the Dispositions (Schedule D, 4797, etc) section. In this same section, under the State, if different input field, verify the input entered. As a recap, The CA 3805E is intended to generate only if there is a difference in gain between the Fed and state.

-CA 3805E-

Form 540-ES

Page 3, Payment Field

For CA quarterly estimated payments, these are the estimated payment percentages you will have to pay for each due date as directed by the state:
First Quarter - due in April 30%
Second Quarter - due in June 40%
Third Quarter - due in September - 0%
Fourth Quarter- due in January, the following year - 30%

-Form 540-ES-

Form 540NR Schedule D

Line 1a

CA FTB Form Instructions require ALL gains or losses to be reported as if the taxpayer is a full yr. resident, which includes capital gain or loss adjustments on Schedule D of the CA 540NR.

-540NR Schedule D, CA Capital Gain/Loss Adjustment-

Schedule S

Line 12

The credit for this state is computed automatically for mult-state returns where the state of residence for the entire year is California. Refer to this useful link for common questions on Other State Tax Credits. https://accountants.intuit.com/support/en-us/help-article/state-taxes/common-questions-state-tax-credit/L5Vf8p7aV_US_en_US

-Schedule S-

Form 5805

Page 4, Line 14

Calculation on 5805 page 4, Line 14 is a product of the worksheet attached to the 5805. Additional amounts showing for 3rd quarter penalty, resulting in amount we see on Line 14.

-Form 5805-

Schedule CA

Page 5, Line 4

If you received a tax-free HSA distribution for qualified medical expenses, enter the qualified expenses paid that exceed 7.5% of federal AGI on Line 4, column C. Line 1 + Screen 32.1, go to Distributions, then Qualified unreimbursed medical expenses paid using HSA distributions (and not entered elsewhere)

-Schedule CA-

Schedule CA

Page 2, Line 8c

California does not conform with Federal provisions for the cancelation of debt. As a result, this is one example where Column B or C Subtractions can appear. Please refer to CA Government Instructions for this form. Input for this line appears under the Alimony and Other Income section on Screen 14.1

-Schedule CA-

Schedule CA

Page 6, Part II Line 11

CA FTB Instructions for Line 11 includes: California limits the amount of your deduction to 50% of your federal adjusted gross income.

-Schedule CA, Gifts by cash or check-

Form 3840

How to Generate: Page 2, Schedule A

To generate California Form 3840, Schedule A for Annual or Final years, go to Screen 57.017, California Like-Kind Exchange (3840). Data on this screen will continue to proforma until the box is checked to indicate a final year. To generate this section for an initial year of exchange, use Screen 22, Depreciation (4562), by completing the California Like-Kind Exchanges (3840) section within the applicable asset or main asset in a bulk exchange. Note: Diagnostics will notify you if any required information is missing. However, the diagnostic will always take you to Screen 57.017. If this is the initial year of the exchange, check entries in Screen 22 instead.

-Form 3840 Schedule A-

Form 3840

Page 2, Line 8

Because there are differences between Federal and California law regarding like-kind exchanges, additional input areas are provided to account for these differences. Jump to input from line 8 goes to Screen 22 which provides input for Form 3840 which are Initial or Amended. The input is located in the Depreciation 4562 section, in the California Like Exchange selection. Use the "Total CA source deferred gain" input field. For a status other than Initial of Amended, use Screen 57 Other. In screen 57.017 for CA St Other, in the California Like Kind Exchange 3840 selection, input the "Total CA source deferred gain" amount. Note: An entry in either area should satisfy any diagnostics that may be generated. Since the JTI for diagnostics will usual take you to Screen 57, for the initial year of a like-kind exchange, go to Screen 22 instead.

-Form 3840, CA source deferred gain line 8-

Form 3840

Page 2, Line 11

To enter apportionment percentages that will appear on Page 2, Line 11 of the CA 3840 there are two input areas. For 3840's with a status of Initial or Amended, use Screen 22, Depreciation under the California Like-Kind Exchanges (3840) section and enter the Apportionment Percentage (xx.xxxx). For 3840's with a status of Annual or Final, use Screen 57.017 General Information to enter the Apportionment Percentage (xx.xxxx).

-Form 3840 Apportionment Percentage-

Form 3840

Page 1, Final FTB 3840 checkbox

To mark a Form 3840 as Final, go to Screen 57.017 California Like Kind Exchanges (3840) and check the "Final Form 3840 (annual box will be checked if no entry)". There is no direct Jump to Input from the form to this input field. Note: Fill in the appropriate fields here in the General Information section. For e-file purposes there is an explanation field to enter text to provide a reason for filing the 3840 Final form.

-Form 3840 Final designation-

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Form Sch CA

Page 2, Section B, Line 8b

For California taxpayers, column B of Screen 13.2 in the Other Information section should be marked 1 if they have received any state lottery winnings, which are nontaxable to the state.

-Form Sch CA-

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Form 540

Page 3, Line 75

If Federal Adjusted Gross Income (AGI) is negative, go to Screen 38.2 California Earned Income Credit and check the box "Calculate California EITC when federal AGI is negative". Note: This is intended for the specific instance where Federal AGI is negative. The preference with regard to Earned Income Credit (EIC) is to have the program generate the CA 3514 and that amount then appear on 540.

-Form 540-

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Form Sch CA

Page 1, Part I, Line 1a Columns B and C

For California Schedule CA Part 1 columns B and C, the inputs made adjust the differences between federal inputs and the inputs allowed in California. If the results are unexpected, refer to one of the five different publications available on FTB.ca.gov intended to support this section. Refer to the instructions for further details.

-Form Sch CA-

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Form 3805Z

Page 1, Part I, Line 1a

Refer to page two of Form 57.016 to determine the amount of Enterprise Zone credits to be entered on this line.

-Form 3805Z-

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Form 540NR

Page 1, Part II, Line 1(h)

For California W-2s, enter code W in the Wages section of Screen 10 to source company contributions to an HSA to California on Form 540NR, Line 16 and Schedule CA-NR, Line 1(h), Column C.

-Form 540NR-

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Form 3805V

Part III, Line 1

Losses in excess of $1,000,000 are suspended. This will result in certain columns being left blank if the amount exceeds this threshold. For further information on this change, please refer to the "What's New" section of the 3805V instructions on page 1.

-Form 3805V-

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Form 3805V

Prior Year NOL, column F

Losses in excess of $1,000,000 are suspended. This will result in certain columns being left blank if the amount exceeds this threshold. For further information on this change, please refer to the "What's New" section of the 3805V instructions on page 1.

-Form 3805V-

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Form 3523

Page 2, Section C, Line 45-46

To generate Form 53.013, use Screen 53.013, Code 108 to fill Lines 45 and 46 if there is a prior year credit carryover.

-Form 3523-

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Form 3523

Page Line 45

When inputting in Screen 53.011, ensure that you select a Form and Number of Form at the top of the input screen.

-Form 3523-

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Form Sch CA

Page 1, Line 3B

Dividend income from U.S. bonds that are nontaxable to the state should be entered as a percentage or dollar amount on Schedule CA, which will generate a subtraction.

-Form Sch CA-

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Form 3520-PIT - Form 3534

3520-PIT Page 1, Part II, CA CPA Field - 3534 Page 1, Part II, CA CPA Field

This field is for a California CPA License number (not to be confused with CalCPA Society membership number). The CA CPA number is issued by the California Board of Accountancy (CBA) and is a five or six digit number. Jump to input will take you to the input for this field.

-Form 3520-PIT : Form 3534 CA CPA-

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Partnership

Form 592-A Quarterly

Page 1-4, Amount of Payment Line

For the The Form 592-A Quarterly vouchers to display an "Amount of payment" on the form, an entry is required in Screen 7, Partner Information in the Miscellaneous Info section. Put a check in the "Foreign partner?" input field.

-Form 592-A Qtrly Foreign Partner-

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Form 568

Sch. IW Worksheet, Line 8b

Input is on Screen 20.1 - Partnership Information, CA SMLLC Other Items, "Gross rents as adjustment under California law (Line 2)." Jump to Input can take you directly to this input field.

-Form 568 Gross rents-

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Form 568

Sch. IW Worksheet, Line 9b

Input is on Screen 20.1 - Partnership Information, CA SMLLC Other Items, "Gross income (loss) from other rental activities (Line 3)." Jump to Input provides direct access to this input field.

-Form 568 Gross Income (loss) from Rental-

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S Corporation

Schedule R

Page 2, Line 15

Schedule R will only activate with multiple states. Sch. R will calculate the apportionment percentage. Percentage can also be overridden on screen 50.011 (Average apportionment percentage [O]).

-Schedule R-

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Form 3805Z

How to generate:

Form 3805Z will only generate if you have input in Screen 47.012 Enterprise Zones. Screen 47.011 is also a California credits screen but input here will not generate the form. The program also has a Diagnostic Ref# 19777 when the 3805Z is required to be part of the return as a reminder to enter input for this form in Screen 47.012.

-3805Z Enterprise Zone-

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Corporation

Sch. R

Page 4, Line 3

To enter input that will generate an X in the Yes Checkbox in the Sales and Questionnaire for R-2, go to Screen 52.011, and in the California Apportionment (Schedule R-1) section, enter a dollar amount in the Sales shipped from CA to the U.S. government (Code 113).

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Form 100

Corp name

Corporations and S-Corporations should leave the Sec of State File # field blank unless it is a partnership electing to be treated as a corporation.

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Fiduciary

Form 3520-PIT - Form 3534

3520-PIT Page 1, Part II, CA CPA Field - 3534 Page 1, Part II, CA CPA Field

This field is for a California CPA License number (not to be confused with CalCPA Society membership number). The CA CPA number is issued by the California Board of Accountancy (CBA) and is a five or six digit number. Jump to input will take you to the input for this field.

-Form 3520-PIT : Form 3534 CA CPA-

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