Principal business activity code – additional information January 2018 Tax News

If you answered “yes,” have you ever looked at your state income tax return and wondered:

  • What is the principal business activity (PBA) code?
  • Why do we need the PBA code?
  • Where do I get the PBA code?

Well, let us help answer those questions.

The 6-digit PBA code represents a specific category that best classifies the type of business being operated. The PBA code is captured on both the California income tax return and federal Schedule C (Form 1040), line B.

The PBA code is an essential element on the return because it allows us to track state income tax returns correctly, and is a critical component in the success of the City/County Business Tax (CCBT) program.

For instructions and to view a list of PBA codes, see federal form Instructions for Schedule C.