Skip to Main Content
State of California Franchise Tax Board

Changes to 2013 Forms

Updates to the 540NR Booklet on 07/31/2014 — Nonresident or Part-Year Resident Booklet

We replaced text on:

  1. Page 4, Column 2, Mortgage Forgiveness Debt Relief paragraph.
  2. Page 4, Column 1, below 2013 Tax Law Changes/What’s New section.

Previous Version

  1. Mortgage Forgiveness Debt Relief – California law does not conform to federal law regarding the discharge of indebtedness from the disposition of your principal residence occurring on or after January 1, 2013. For more information, get Schedule CA (540NR).
  2. Note: new text added.

Revised Version

  1. Mortgage Forgiveness Debt Relief Extended – California law conforms, with modifications, to federal mortgage forgiveness debt relief for discharges occurring on or after January 1, 2009 through 2013. Federal law limits the amount of qualified principal residence indebtedness to $2,000,000 ($1,000,000 for married filing separate). See federal Publication 544, Sales and Other Dispositions of Assets, and federal Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments, for more information. California law limits the amount of qualified principal residence indebtedness to $800,000 ($400,000 for married/RDP filing separate) and debt relief to $500,000 ($250,000 for married/RDP filing separate).
  2. Philippine Disaster - California does not conform to the federal Philippines Charitable Giving Assistance Act, enacted March 25, 2014. For federal, taxpayers can choose to treat cash contributions for the relief of victims in areas affected by Typhoon Haiyan made on or after March 26, 2014, and before midnight on Monday, April 14, 2014, as if made on December 31, 2013. Eligible contributions can be claimed on either a 2013 or 2014 tax return, but not both. Contributions made after April 14, 2014, but on or before December 31, 2014, can only be claimed on a 2014 tax return. For California purposes, contributions may only be claimed on your 2014 tax return. If you claimed contributions under the Philippines Charitable Giving Assistance Act on your 2013 federal tax return, make an adjustment to remove the contribution on your 2013 California tax return.

Reason for the changes

  1. AB 1393, signed by the Governor on July 21, 2014, retroactively allows the exclusion of the discharge of qualified principal residence indebtedness, as defined, from an individual’s income if that debt is discharged on or after January 1, 2007, and before January 1, 2014.
  2. California does not conform to the federal Philippines Charitable Giving Assistance Act enacted March 25, 2014.

Impact

  1. This revision will decrease the tax liability for taxpayers who exclude the discharge of qualified principal residence indebtedness.
  2. This revision may increase the tax liability for taxpayers who erroneously claimed a contribution for the Philippines Charitable Giving Assistance on their 2013 California tax return.

Back to Tax Form Changes for 2013


Updates to the 540NR Booklet on 03/17/2014 — Nonresident or Part-Year Resident Booklet

We replaced text on:

  1. Instructions, Page 39, Column 1, Part-Year Residents Paragraph
  2. Instructions, Page 44, Column 1, Column E – California Amounts, Bullet 3, Part-Year Resident Paragraph

Previous Version

  1. Part-Year Residents – Complete the Part-Year Resident Worksheet on page 9 to determine the amounts to enter on Part II, line 7 through line 22a, column E.
  2. Part-year resident: A part-year resident is taxed on all income from all sources while a resident and only on income derived from California sources while a nonresident. Follow the instructions as stated in the Part-Year Resident Worksheet instructions on page 9.

Revised Version

  1. Part-Year Residents – Complete the Part-Year Resident Worksheet on page 47 to determine the amounts to enter on Part II, line 7 through line 22a, column E.
  2. Part-year resident: A part-year resident is taxed on all income from all sources while a resident and only on income derived from California sources while a nonresident. Follow the instructions as stated in the Part-Year Resident Worksheet instructions on page 47.

Reason for the changes

The page reference was incorrect and had to be changed to reflect the correct page.

Impact

No tax impact.

Back to Tax Form Changes for 2013

Chat with an FTB Representative