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Changes to 1999 Forms

1999 Updates to Form 540NR Non Resident Booklet

Revision Date: 09/17/2004
Revision Details: Revision of 1999 Schedule CA (540NR), Instructions and the schedule and instructions for the 1999 Package X.

The Internet version of the form has been revised. A revised copy is available to download on the Internet. This revision is due to the California Legislature enactment of SB 615 (Stats. 2004 CH 388), which makes California law compatible with the Servicemembers Civil Relief Act (Public Law 108-189). ). Income exclusion may decrease total tax liability.

  • The revision is required on the Schedule CA (540NR) stand alone, page 1 and 6: Schedule CA (540NR) Booklet, page 29 and 34:and the 1999 Package X, page 307 and 312.

It should read, under What's Changed?, page 29:

The California legislature enacted SB 615 (Stats. 2004 CH. 688), which makes California law compatible with Servicemembers Civil Relief Act (Public Law 108-189). This means that servicemembers domiciled outside of California, and their spouses, may exclude the member's military compensation from gross income when computing the tax rate on nonmilitary income.

Requirements for military servicemembers domiciled in California remain unchanged. Military servicemembers domiciled in California must include their military pay in total income. In addition, they must include their military pay in California source income when stationed in California. However, military pay is not California source income when a servicemember is permanently stationed outside of California.

Amended Returns - If you are an active duty military member domiciled outside California and you included your military compensation in income from all sources, you may file an amended return for tax years with an open statute of limitations. Get FTB Publication 1032, Tax Information for Military Personnel and Form 540 X, Amended Individual Income Tax Return, for addition information.

It should read, under Taxable Income, page 29:

Military Pay Adjustment. Compensation for military service of a servicemember domiciled outside of California is exempt from California tax. It is excluded from adjusted gross income from all sources.

If you are an active duty military member domiciled outside of California, you may claim an adjustment for your active duty military pay.

To claim your adjustment, write "MPA" to the left of column A and enter the amount of your active duty military pay in column B.You will also exclude this amount form column E. Please attach a copy of your W-2, reflecting your military compensation, to your return.

It should read under Federal Itemized Deductions, page 34:

Note: If you are a nonresident military servicemember domiciled outside of California, refigure your federal Schedule A, line 4 and line 26 amounts, by excluding your military compensation from federal AGI before computing California Schedule A amounts. Include the refigured amounts for federal Schedule A, line 4 and line 26 in the amount entered on Schedule CA (540NR), line 35.


1999 Updates to Form 540NR (Long)

Revision Date: 09/17/2004
Revision Details: Form 540NR, Instructions and the form and instructions for the Package X.

The Internet version of the form has been revised. A revised copy is available to download on the Internet. This revision is due to the California Legislature enactment of SB 615 (Stats. 2004 CH 388), which makes California law compatible with the Servicemembers Civil Relief Act (Public Law 108-189). ). Income exclusion may decrease total tax liability.

  • The revision is required on the 540 NR Form Booklet, page 15 and the 1999 Package X, page 285.

It should read, under What's Changed?, page 15:

The California legislature enacted SB 615 (Stats. 2004 CH. 688), which makes California law compatible with Servicemembers Civil Relief Act (Public Law 108-189). This means that servicemembers domiciled outside of California, and their spouses, may exclude the member's military compensation from gross income when computing the tax rate on nonmilitary income.

Requirements for military servicemembers domiciled in California remain unchanged. Military servicemembers domiciled in California must include their military pay in total income. In addition, they must include their military pay in California source income when stationed in California. However, military pay is not California source income when a servicemember is permanently stationed outside of California.

Amended Returns - If you are an active duty military member domiciled outside California and you included your military compensation in income from all sources, you may file an amended return for tax years with an open statute of limitations. Get FTB Publication 1032, Tax Information for Military Personnel and Form 540 X, Amended Individual Income Tax Return, for addition information.

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