2020 Instructions for Schedule X California Explanation of Amended Return Changes
References in these instructions are to the Internal Revenue Code (IRC) as of January 1, 2015, and to the California Revenue and Taxation Code (R&TC).
Dependent Exemption Credit with No ID – For taxable years beginning on or after January 1, 2018, taxpayers claiming a dependent exemption credit for a dependent who is ineligible for a Social Security Number (SSN) and a federal Individual Taxpayer Identification Number (ITIN) may provide alternative information to the Franchise Tax Board (FTB) to identify the dependent. To claim the dependent exemption credit, taxpayers complete form FTB 3568, Alternative Identifying Information for the Dependent Exemption Credit, attach the form and required documentation to their tax return, and write “no id” in the SSN field of line 10, Dependents, on Form 540, California Resident Income Tax Return, or Form 540NR, California Nonresident or Part-Year Resident Income Tax Return, or of line 8, Dependents, on Form 540 2EZ, California Resident Income Tax Return. For each dependent being claimed that does not have an SSN and an ITIN, a form FTB 3568 must be provided along with supporting documentation.
Taxpayers may amend their 2018 and 2019 tax returns to claim the dependent exemption credit. For more information on how to amend your tax returns, see Schedule X, California Explanation of Amended Return Changes, Specific Line Instructions, Part II, Reason(s) for Amending, and get 540 or 540 2EZ, Personal Income Tax Booklet, or 540NR, Nonresident or Part-Year Resident Booklet.
Expansion for Credits Eligibility - For taxable years beginning on or after January 1, 2020, California expanded Earned Income Tax Credit (EITC) and Young Child Tax Credit (YCTC) eligibility to allow either the federal ITIN or SSN to be used by all eligible individuals, their spouses, and qualifying children. If an ITIN is used, eligible individuals must provide identifying documents upon request of the FTB. Any valid SSN can be used, not only those that are valid for work. Additionally, upon receiving a valid SSN, the individual should notify the FTB in the time and manner prescribed by the FTB. The YCTC is available if the eligible individual or spouse has a qualifying child younger than six years old. For more information, get form FTB 3514, California Earned Income Tax Credit, and go to ftb.ca.gov and search for eitc.
If you are an individual filing an amended personal income tax return, use Schedule X to determine any additional amount you owe or refund due to you, and to provide reason(s) for amending.
Attach Schedule X to your completed amended tax returns:
- Form 540, California Resident Income Tax Return,
- Form 540NR, California Nonresident or Part-Year Resident Income Tax Return,
- Form 540 2EZ, California Resident Income Tax Return, or
- Form 540NR (Long or Short), California Nonresident or Part-Year Resident Income Tax Return (for 2018 taxable year and prior taxable years).
For additional information, see Instructions for Filing Amended Returns in the personal income tax booklets for the applicable taxable year.
Specific Line Instructions
Part I – Financial Adjustments - Reconciliation
Line 1 – Amount You Owe
Enter the amount you owe from your amended tax return.
Line 2 – Overpaid Tax
Enter the overpaid tax (refund + amount applied to your estimated tax, if any) from your original tax return. If the FTB changed your original tax return and the result was an additional overpayment of tax, also include the amount on line 2. Do not include any interest you received on any refund.
Line 4 – Refund
Enter the refund from your amended tax return.
Line 5 – Tax Paid with Original Tax Return
Enter the amount actually paid with your original tax return. Also, include any additional payments of tax made after the original tax return was filed. Do not include payments of interest or penalties.
Line 7 – Amount You Owe
Pay online with Web Pay. Go to ftb.ca.gov/pay for more information.
You may also pay by credit card. Call 800-272-9829 or go to the Official Payments Corporation’s website at officialpayments.com and use the jurisdiction code 1555. Official Payments Corporation charges a convenience fee for this service.
Or, if you are not required to remit all your payments electronically, make a check or money order payable to the “Franchise Tax Board” for the full amount you owe. Write your SSN or ITIN and the taxable year you are amending. Enclose, but do not staple, your check or money order to your amended tax return.
Make all checks or money orders payable in U.S. dollars and drawn against a U.S. financial institution. A penalty may be imposed if your payment is returned by your bank for insufficient funds.
Mail your amended tax return and attached Schedule X to:
- Franchise Tax Board
PO Box 942867
Sacramento, CA 94267-0001
Line 8a – Penalties
If you are including penalties with your payment, enter the amount of penalties on line 8a. Also, attach a statement to your tax return that shows the following information for each type of penalty included on line 8a: type of penalty (description); the Internal Revenue Code (IRC) or California Revenue & Taxation Code (R&TC) section that provides for assessment of the penalty (if possible); and how you computed the penalty.
Line 8b – Interest
If you owe additional tax (line 7) and are including interest with your payment, enter the interest on line 8b. If you do not include interest with your payment or include only a portion of it, the FTB will figure the interest and bill you for it.
Line 8c – Total Interest and Penalties
Enter the total of line 8a and line 8b.
Line 10 – Amount You Want Applied to Your 2021 Estimated Tax
Enter on line 10 the amount from line 9 you want applied to your estimated tax for 2021. You can apply all or part of the amount on line 9 to your 2021 estimated tax.
You will be notified if any of your overpayment was used to pay past due debts so that you will know how much was applied to your estimated tax.
Line 11 – Refund
If you are entitled to a refund greater than the amount claimed or allowed on your original tax return, your Schedule X should show only the additional amount due to you. This amount will be refunded separately from the amount allowed on your original tax return. The FTB will figure any interest owed to you and include it in your refund.
Direct Deposit – You can use direct deposit on your amended return. When filing an amended return, only complete the amended form as follows:
- Amended Form 540 2EZ through line 36
- Amended Form 540 through line 115
- Amended Form 540NR through line 125
Next complete Schedule X. The refund amount on Schedule X, line 11 will be carried over to your amended tax return as your total direct deposit amount and will be entered as shown below:
- Amended Form 540 2EZ, line 37 and line 38
- Amended Form 540, line 116 and line 117
- Amended Form 540NR, line 126 and 127
The total direct deposit amount on the amended return of the lines listed above must equal the total amount of your refund on Schedule X, line 11. If they are not equal, the FTB will issue a paper check.
Adjusted Refunds – If there is a change made to your refund, you will still receive your refund via direct deposit. For more information on direct deposit of adjusted refunds, go to ftb.ca.gov and search for direct deposit.
Mail your amended tax return and attached Schedule X to:
- Franchise Tax Board
PO Box 942840
Sacramento, CA 94240-0001
Even after you receive a refund, the FTB may request additional information to substantiate your claim.
Part II – Reason(s) for Amending
Protective Claim – If you are filing a claim for refund for a taxable year where an audit is being conducted by another state’s taxing agency, litigation is pending or where a final determination by the IRS is pending, check box a for “Protective claim for refund” on Part II, line 1. Specify the pending litigation or reference to the federal determination on Part II, line 2 so we can properly process your claim.
Net Operating Loss (NOL) Carrybacks – For taxable years beginning on or after January 1, 2019, net operating loss carrybacks are not allowed. Do not check box f for "NOL carryback" on Part II, line 1, for taxable years beginning on or after January 1, 2019.
Dependent Exemption Credit with No ID – If you are amending a return to claim the dependent exemption credit for tax years 2018 and 2019, complete an amended Form 540, Form 540NR, or Form 540 2EZ, and write "no id" in the SSN field on the Dependents line, and attach Schedule X. To complete Schedule X, check box m for "Other" on Part II, line 1, and write the explanation “Claim dependent exemption credit with no id and form FTB 3568 is attached” on Part II, line 2. Make sure to attach form FTB 3568 and the required supporting documents in addition to the amended return and Schedule X. If you do not claim the dependent exemption credit on the original 2020 tax return, you may amend the 2020 tax return following the same procedure as for 2018 and 2019 amended tax returns.
Provide further explanation on line 2. Explain each change separately and in detail. Include:
- Item being changed.
- Reason the change was needed. Include in your explanation the documents you have attached to support the changes made.
Attach to amended tax return:
- Federal schedules if you made a change to your federal tax return.
- Documents supporting each change, such as corrected federal Form(s) W-2 or 1099, Schedule(s) K-1, escrow statements, court documents, contracts, etc.
Your refund may be denied or delayed if you did not explain in sufficient detail the changes made or did not attach the supporting documents and revised forms. Attach additional pages if needed to provide a clear, detailed explanation. Be sure to include your name and SSN or ITIN on each attachment.