General Information

Complete and attach Schedule 1067A to the group nonresident return (Form 540NR). Attach additional sheets, if necessary. The additional sheets must contain the same columns in the same order as the Schedule 1067A.

Use this table to determine which parts of Schedule 1067A to complete.

Group Nonresident Return for: Complete
Shareholders/partners/members Side 1 – Part I
Directors Side 2 – Part II
Both S corporation directors and shareholders Side 1 and Side 2 – Part I and Part II

Instructions for Part I

Side 1 Entity Information

Enter the name, federal employer identification number (FEIN), doing business as (DBA), and the California corporation number or California Secretary of State (SOS) file number of the business entity that is filing the group nonresident return on behalf of its electing shareholders/partners/members.

Part I – Electing Nonresident Individuals (Shareholders/Partners/Members) Included in the Group Nonresident Return

Columns (a) and (b)
  • Enter the social security number (SSN) or individual taxpayer identification number (ITIN) and name of each electing individual. If the individual has a spouse/RDP, include the spouse’s/RDP’s information in both columns.
  • For a qualified grantor trust (described in IRC Sections 671-679 and not recognized as a separate taxable entity for income tax purposes), do not enter the name of the trust. Enter the grantor’s name and SSN.

Only individuals (and the grantor of a grantor trust not recognized as a separate taxable entity) can be included on the group nonresident return. Do not enter partnerships, LLCs, corporations, estates, trusts, or other entities.

Column (c)

Enter the individual’s distributive share of California source income. For example, if a partnership’s taxable year ends on June 30, 2017 then report on the 2017 group return the California source income from each electing partner’s Schedule K-1 (565) for the taxable year ending June 30, 2017.

Column (d)

Deferred compensation deductions are for partners and members only. S corporation shareholders do not qualify for this deduction. See FTB Pub. 1067, Section H, Return for Shareholders/Partners/Members, for more information.

Column (g)

Enter the allowable amount of credits. Only credits directly attributable to the business entity’s activities can be claimed. See FTB Pub. 1067, Section H, Return for Shareholders/Partners/Members, for more information.

If the credits exceed the amount of tax for a given year and credits are available for carryover, the business entity will properly account for such credit with respect to each individual included in the group nonresident return.

Column (h)

If the nonresident individual’s total CA taxable income from all sources is more than $1 million, then multiply the amount from column (e) by 1%.

If a taxpayer’s distributive share of California source income is over $1 million from a single business entity, then an additional 1% mental health services tax will be assessed on the entire California taxable income if the taxpayer elects to be part of the group return.

For individuals included in two or more group returns, the additional 1% tax applies if their combined California taxable income from all their group returns is more than $1 million. For example, a taxpayer is included in two group returns. The taxpayer’s distributive share on each group return (amount in column (c)) is less than $1 million, however, the combined taxable income from the two group returns is over $1 million. The taxpayer’s entire income reported on each group return is subject to the additional 1% mental health services tax.

Instructions for Part II

Side 2 Entity Information

Enter the name, FEIN, DBA, and the California corporation number or California SOS file number of the corporation that is filing the group nonresident return on behalf of its electing nonresident directors.

Part II – Electing Nonresident Directors Included in the Group Nonresident Return

Columns (c) and (d)

Report each director’s wages, salary, fees, or other compensation from the corporation for director services performed in California, including attendance of board of director meetings in California. Enter in Column (c) the California source amount the corporation reported on a Form 1099. Enter in Column (d) the California source amount the corporation reported on a Form W-2.

Column (e)

Enter in Column (e) the total of Column (c) and Column (d).

Column (h)

If the nonresident director’s total CA taxable income from all sources is more than $1 million, then multiply the amount from column (e) by 1%.

If a director’s compensation from California source is over $1 million from a single business entity, then an additional 1% mental health services tax will be assessed on the entire California taxable income if the director elects to be part of the group return.

For directors included in two or more group returns, the additional 1% tax applies if their combined California taxable income from all their group returns is more than $1 million. For example, a director is included in two group returns. The director’s compensation from California source on each group return is less than $1 million, however, the combined taxable income from the two group returns is over $1 million. The director’s entire income reported on each group return is subject to the additional 1% mental health services tax.

Column (j)

Enter your total California income tax withheld from your Form(s) W-2, box 17 or CA Sch. W-2, Wage and Tax Statement, box 17.