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Changes to 2012 Forms

Updates to the 540/540A Instructions on 01/15/2013 –– Instructions for Form 540/540A — California Resident Income Tax Return

We replaced text on Page 10, Column 1, Form 540A - California Itemized Deduction Worksheet, on:

  1. Line 1
  2. Line 2

Previous Version

  1. Federal itemized deductions: Enter the amount from federal Schedule A (Form 1040), line 29.
  2. Add the following amounts from federal Schedule A (Form 1040) and enter on line 2
    • Line 5, state and local income tax:
    • State Disability Insurance (SDI):
    • Line 8, foreign income taxes:

Revised Version

  1. Federal itemized deductions: Enter the amount from federal Schedule A (Form 1040), lines 4, 9, 15, 19, 20, 27, and 28.
  2. Add the following amounts from federal Schedule A (Form 1040) and enter on line 2
    • Line 5, state and local income tax or general sales tax:
    • State Disability Insurance (SDI):
    • Line 8, foreign income taxes:

Reason for the changes

The American Taxpayer Relief Act of 2012 (H.R. 8) was signed into law which extended the Sales Tax deduction and reinstated the itemized deduction phase-out. This revision is being done to breakout the line items for total federal itemized deductions on line 1 and to add general sales tax to line 2.

Impact

The addition of general sales tax may cause a minor increase to tax liability.

Back to Tax Form Changes for 2012