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Changes to 2001 Forms

2001 Updates to Form 540NR Non Resident Booklet

Revision Date: 09/17/2004

Revision Details: Revision of 2001 Schedule CA (540NR), Instructions and the schedule and instructions for the 2001 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, 2 and 6: Schedule CA (540NR) Booklet, page 31, 32 and 36: and the 2001 Package X, page 325, 326 and 330.

It should read, under What's Changed?, page 31:

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 32:

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 36:

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.


2001 Updates to Form 540NR (Long)

Revision Date: 09/17/2004

Revision Details: Long 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 Long Form Booklet, page 17 and the 2001 Package X, page 313.

It should read, under What's Changed?, page 17:

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.


2001 Updates to Form 540NR (Short)

Revision Date: 09/17/2004

Revision Details: Revision of 2001 Short Form 540NR, Instructions and the form and instructions for the 2001 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 Short Form Booklet, page 11 and the 2001 Package X, page 311.

It should read, under What's Changed?, page 11:

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 11:

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" on the dotted line to the left of line 14. Add this amount to any unemployment compensation and enter on line 14. You will also exclude this amount from adjusted gross income on line 21. Please attach a copy of your W-2, reflecting your military compensation to your return.

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