Enter that amount on line 5a, column B. Enter the difference as a negative number on line 27. Financial Incentive for Seismic Improvement. Generally, California law conforms with federal law and no adjustment is needed. This is your excess tax which may be offset by credits. Enter the amount of ridesharing benefits received and included in federal income on line 1, column B.
You may have to pay an additional tax if you received a taxable distribution from a qualified retirement plan before reaching age 59½ and the distribution was not rolled over into another qualified plan. California does not conform to federal law regarding the election to defer the recognition of income attributable to qualified stock. Native American earned income exemption. However, if you received Tier 2 railroad retirement benefits or partially taxable distributions from a pension plan, you may need to make the following adjustments. Column B and Column C — Subtractions and Additions Use these columns to enter subtractions and additions to the federal amounts in column A that are necessary because of differences between California and federal law.
Gambling Losses — California lottery losses are not deductible for California. Add column e amounts of line 1, line 2, and line 3. Citizens and Residents Going Abroad Tax Highlights for Commercial Fishermen Earned Income Credit Information on the United States-Canada Income Tax Treaty Tax Guide to U. If the amount was excluded for federal purposes, make an adjustment on line 21f, column C. Therefore, you may have to adjust the amount of other gains or losses. If you reported settlement payments on line 21, column A, enter the amount of settlement payments in column B.
Line 12 — Business Income or Loss Adjustments to federal business income or loss you reported in column A generally are necessary because of the difference between C alifornia and federal law relating to depreciation methods, special credits, and accelerated write-offs. Enter all amounts as positive numbers unless instructed otherwise. Sick pay received under the Federal Insurance Contributions Act and Railroad Retirement Act. Military personnel include the California National Guard, State Military Reserve, or the Naval Militia. California does not conform to federal law regarding the exclusion from gross income of certain discharges of student loans due to death or total and permanent disability of the student. No special rate for long term capital gains exists. Generally, you will not make any adjustments on this line.
As a result, the recovery period or basis you use to figure California depreciation may be different from the amount used for federal purposes, and you may need to make an adjustment to your farm income or loss. Enter in column B the amount of recycling income included in the amount on line 21, column A. Interest on Loans from Utility Companies — Taxpayers are allowed a tax deduction for interest paid or incurred on a public utility company financed loan that is used to purchase and install energy efficient equipment or products, including zone-heating products for a qualified residence located in California. California excludes this item from income. When California conforms to federal tax law changes, we do not always adopt all of the changes made at the federal level. Combat zone foreign earned income exclusion. Enter the amount of generation skipping tax included in line 6, column A on line 6, column B.
Native American Earned Income Exemption. Multiply line 35 by line 38. Enter the difference on line 12, column B. If there is more than one item to report on line 21f, attach a statement that lists each item and enter the total of all individual items in column B or column C as instructed below. Subtract line 6 from line 5.
Carryover Deduction of Appreciated Stock Contributed to a Private Foundation prior to January 1, 2002 — If deducting a charitable contribution carryover of appreciated stock donated to a private operating foundation prior to January 1, 2002, and the fair market value allowed for federal purposes is larger than the basis allowed for California purposes, enter the difference on line 13, column B. Line 19 - Unreimbursed Employee Expenses Prepare federal Form 2016 reflecting your employee business expense using California amounts i. If you elected to defer income for federal purposes, make an adjustment on line 21f, column C. California does not conform to federal law regarding the disallowance of excess business loss. Enter the amount from Schedule K-1 541 , line 12a. If you are a nonresident alien and did not deduct alimony on your federal tax return, enter the amount you paid in column C.
If the amount was excluded from federal income, make an adjustment on line 21f, column C. Enter in column B the amount of this type of income included in the amount on line 21, column A. California does not tax federally recognized tribal members living in California Indian country who earn income from any federally recognized California Indian country. Line 9 — Investment Interest Expense Your California deduction for investment interest expense may be different from your federal deduction. Enter the difference on line 12, column B or column C.
You can download other reference material such as instructions and publications from this page. Multiply line 3 by 80%. Use the Student Loan Interest Deduction Worksheet to compute the amount to enter on line 33. Divide line 41 by amount from Part I, line 21. Subtract line 9 from line 2.