Correction to the 2007 California Schedule CA (540)
FTB printed version only
An error on a printed California tax form may lead some California taxpayers who file paper returns to understate their home mortgage interest deductions. The error is on early versions of Schedule CA (540), California Adjustments, which is used to make adjustments to federal adjusted gross income and federal itemized deductions.
On Side 2, line 38, there is an incorrect reference to federal Schedule A, Itemized Deductions. Line 38 of the Schedule CA incorrectly states: "Enter the total amount of itemized deductions from your federal form 1040, Schedule A, lines 4, 9, 13, 19, 20, 27, and 28." It should have listed line number 15 instead of 13. This error could lead taxpayers to miss claiming their home mortgage interest, points, and investment interest.
In December, FTB mailed 1.1 million California 540 and 540A booklets to taxpayers, and another 1.3 million were sent to public distribution sites including libraries, post offices, and FTB field offices.
The instructions on page 56 of the Resident Booklet (540 and 540A) contain the correct line number reference.
All other versions of Schedule CA (540) are correct, including Package X, online forms, CalFile and e-file.
Taxpayers can use the form containing the error, and simply follow the instructions and include the figure from Schedule A line 15 rather than line 13.
Taxpayers who want a corrected form may download it from FTB's Website, may request one by calling FTB at (800) 852-5711, or can wait until later this month when the corrected forms will be available at public distribution sites. Taxpayers may also use CalFile, or any of the approved electronic filing products listed on FTB's Website.
We encourage taxpayers who already have filed a paper tax return and followed the incorrect line numbers to call (800) 852-5711.
We updated our online forms, and notified tax software developers when the error was discovered in December. Tax booklets were already in the distribution process, however, and could not be recalled or corrected.
We expect slightly more than one percent of the 15 million personal income tax returns projected to be filed this year will be affected by the error.
Visit the FTB Website to find tax forms, answers to frequently asked questions, e-file, CalFile, and other information.
IRS Schedule A - Itemized Deductions and other federal tax information can be found on the IRS Website.