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State of California Franchise Tax Board

Return Information Notice - Code MH

We revised the amount of Mental Health Services Tax claimed on your return because:

  • You did not claim Mental Health Services Tax and based on the taxable income on your return the tax should have been assessed, or
  • You did not correctly compute the tax amount on your return. We used information provided on your return, schedules, forms, and other attachments.

Why did I receive this notice code?

If your taxable income is more than $1,000,000 you must claim Mental Health Services Tax. To compute the tax, use the following steps or you can refer to the 540 instructions, page 16.

Step 1. Take your taxable income from your tax form
Step 2. Subtract one million dollars (1,000,000) from that amount
Step 3. Take the subtotal amount
Step 4. Multiply the subtotal by 1 percent. (.01)

This amount is your Mental Health Services Tax.

What do I need to do?

If you agree with our revisions, you do not need to contact us. Please update your records. If your notice shows a revised balance due, please pay the amount due.

If you do not agree with our revisions, please contact us.

General Information about your notice.

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