Tax form changes

Some tax forms and instructions get revised after their initial release.

Final revision details

Tax year Form Revision date Location of change in form, booklet, or publication Tax form change Reason
2022 FTB 3893, Pass-Through Entity Elective Tax Payment Voucher 05/10/2022 PDF
  1. Page 1, Column 2, Amount of Payment section, Payment table, Payment 1, Amount box.
  1. Language modified.
  1. To clarify the amount of payment language for elective tax payment.
2022 FTB 3893, Pass-Through Entity Elective Tax Payment Voucher 02/28/2022 PDF
  1. Page 1, Column 1, Electronic Payment section, First Paragraph.
  1. Electronic Payment section, First Paragraph added.
  1. To add electronic payment language for S corporations.
2022 FTB 3893, Pass-Through Entity Elective Tax Payment Voucher 02/22/2022 PDF
  1. Page 1, Column 1, General Information, Second and Third paragraphs, Elective Tax for Pass-Through Entities (PTE) and Credit for Owners.
  2. Page 1, Column 2, Instructions, Fifth paragraph, Amount of Payment.
  1. General Information, Second and Third paragraphs updated.
  2. Instructions, Fifth paragraph updated.
  1. SB 113, chaptered on February 9, 2022, expands the pass-through entity elective tax benefits for taxable years beginning on or after January 1, 2021 and before January 1, 2026.
2021 541 Fiduciary Income Tax Booklet 07/26/2022 PDF
  1. Page 3, Column 1, What’s New, Reporting Requirements paragraph.
  2. Page 3, Column 2, What’s New, Paycheck Protection Program (PPP) Loans Forgiveness paragraph.
HTML
  1. Under “What’s New” ("Reporting Requirements " paragraph).
  2. Under “What’s New” (“Paycheck Protection Program (PPP) Loans Forgiveness” paragraph).
  1. Page 3, Column 1, What’s New, Reporting Requirements, first paragraph revised.
  2. Page 3, Column 2, What’s New, Paycheck Protection Paragraph (PPP) Loans Forgiveness, first paragraph revised.
  1. Assembly Bill 194, which chaptered on June 30, 2022, requires a Section 41 reporting requirement for taxpayers that benefited from gross income exclusion from the PPP Extension Act of 2021. As a result, we have updated the existing language under What’s New.
  2. Assembly Bill 194, which chaptered on June 30, 2022, modified Revenue and Taxation Code Sections 17131.8 and 24308.6 to exclude from gross income any covered loan amounts forgiven pursuant to the Paycheck Protection Program Extension Act of 2021. As a result, California now conforms to the federal extension period covered after March 31, 2021, to June 30, 2021.
2021 109 Booklet – Exempt Organization Business Income Tax Booklet 07/20/2022 PDF
  1. Page 2, Column 3, What’s New, Paycheck Protection Paragraph (PPP) Loans Forgiveness, first paragraph.
  2. Page 2, Column 3, What’s New, Reporting Requirements, first paragraph.
HTML
  1. Under “What’s New” (“Paycheck Protection Paragraph (PPP) Loans Forgiveness” paragraph).
  2. Under “What’s New” (“Reporting Requirements” paragraph).
  1. Page 2, Column 3, What’s New, Paycheck Protection Paragraph (PPP) Loans Forgiveness, first paragraph revised.
  2. Page 2, Column 3, What’s New, Reporting Requirements, first paragraph revised.
  1. Assembly Bill 194, which chaptered on June 30, 2022, modified Revenue and Taxation Code Section 24308.6 to exclude from gross income any covered loan amounts forgiven pursuant to the Paycheck Protection Program Extension Act of 2021. As a result, California now conforms to the federal extension period covered after March 31, 2021, to June 30, 2021.
  2. Assembly Bill 194, which chaptered on June 30, 2022, requires a Section 41 reporting requirement for taxpayers that benefited from gross income exclusion from the PPP Extension Act of 2021. As a result, we have updated the existing language under What’s New.
2021 540NR, Nonresident or Part-Year Resident Booklet, and Instructions for Schedule CA (540NR), California Adjustments – Nonresidents or Part-Year Residents 07/20/2022 PDF
  1. 540NR Booklet, page 4, 2021 Tax Law Changes/What’s New, column 2, paragraph 6, Paycheck Protection Program (PPP) Loans Forgiveness
  2. 540NR Booklet, page 5, 2021 Tax Law Changes/What’s New, column 1, paragraph 5, Reporting Requirements.
  3. 540NR Booklet, page 41 / Instructions for Sch. CA (540NR) (flat), page 1, What’s New, column 1, paragraph 1, Reporting Requirements.
  4. 540NR Booklet, page 41 / Instructions for Sch. CA (540NR) (flat), page 1, What’s New, column 2, paragraph 5, Paycheck Protection Program (PPP) Loans Forgiveness.
  5. 540NR Booklet, page 45 / Instructions for Sch. CA (540NR) (flat), page 5, line 3, Business Income or (Loss), column 2, Paycheck Protection Program loans forgiveness instructions, paragraph 2.
540NR Booklet HTML Instructions:
  1. What’s New and Other Important Information for 2021, 2021 Tax Law Changes/What’s New, paragraph 11, Paycheck Protection Program (PPP) Loans Forgiveness.
  2. What’s New and Other Important Information for 2021, 2021 Tax Law Changes/What’s New, paragraph 18, Reporting Requirements.
Sch. CA (540NR) HTML Instructions:
  1. What’s New, paragraph 1, Reporting Requirements.
  2. What’s New, paragraph 13, Paycheck Protection Program (PPP) Loans Forgiveness.
  3. Specific Line Instructions, Part II – Income Adjustment Schedule; Section B – Additional Income, Line 3 – Business Income or (Loss), Paycheck Protection Program loans forgiveness instructions, paragraph 2.
  1. We modified existing instructions.
  2. We modified existing instructions.
  3. We modified existing instructions.
  4. We modified existing instructions.
  5. We removed existing instructions.
1 – 5.

AB 194, chaptered on June 30, 2022, conforms state tax law to the federal tax treatment for covered loan amounts forgiven pursuant to the PPP Extension Act of 2021.

As part of FTB’s reporting requirements, taxpayers who benefited from the PPP loans forgiveness should file form FTB 4197, Information on Tax Expenditure Items.

2021 Instructions for Form FTB 4197, Information on Tax Expenditure Items 07/20/2022 PDF
  1. Page 1, What’s New, column 1, Paycheck Protection Program (PPP) Loans Forgiveness paragraph.
  2. Page 1, What’s New, column 1, Reporting Requirements paragraph.
HTML
  1. No HTML instructions.
1 – 2.

We modified existing instructions.

1 – 2.

AB 194, chaptered on June 30, 2022, conforms to federal law by excluding from gross income any covered loan amounts forgiven pursuant to the PPP Extension Act of 2021.

As part of the Franchise Tax Board’s reporting requirements, taxpayers who benefitted from the exclusion from gross income for covered loan amounts should file form FTB 4197, Information on Tax Expenditure Items.

2021 540, Personal Income Tax Booklet, and Instructions for Schedule CA (540), California Adjustments – Residents 07/19/2022 PDF
  1. 540 Booklet, page 5, 2021 Tax Law Changes/What’s New, column 1, paragraph 2, Paycheck Protection Program (PPP) Loans Forgiveness.
  2. 540 Booklet, page 5, 2021 Tax Law Changes/What’s New, column 1, paragraph 9, Reporting Requirements.
  3. 540 Booklet, page 43 / Instructions for Sch. CA (540) (flat), page 1, What’s New, column 1, paragraph 1, Reporting Requirements.
  4. 540 Booklet, page 43 / Instructions for Sch. CA (540) (flat), page 1, What’s New, column 2, paragraph 6, Paycheck Protection Program (PPP) Loans Forgiveness.
  5. 540 Booklet, page 47 / Instructions for Sch. CA (540) (flat), page 5, line 3, Business Income or (Loss), column 2, Paycheck Protection Program loans forgiveness instructions, paragraph 2.
540 Booklet HTML Instructions:
  1. What’s New and Other Important Information for 2021, 2021 Tax Law Changes/What’s New, paragraph 11, Paycheck Protection Program (PPP) Loans Forgiveness
  2. What’s New and Other Important Information for 2021, 2021 Tax Law Changes/What’s New, paragraph 18, Reporting Requirements
Sch. CA (540) HTML Instructions:
  1. What’s New, paragraph 1, Reporting Requirements.
  2. What’s New, paragraph 13, Paycheck Protection Program (PPP) Loans Forgiveness.
  3. Specific Line Instructions, Part I – Income Adjustment Schedule; Section B – Additional Income, Line 3 – Business Income or (Loss), Paycheck Protection Program loans forgiveness instructions, paragraph 2.
  1. We modified existing instructions.
  2. We modified existing instructions.
  3. We modified existing instructions.
  4. We modified existing instructions.
  5. We removed existing instructions.
1 – 5.

AB 194, chaptered on June 30, 2022, conforms state tax law to the federal tax treatment for covered loan amounts forgiven pursuant to the PPP Extension Act of 2021.

As part of FTB’s reporting requirements, taxpayers who benefited from the PPP loans forgiveness should file form FTB 4197, Information on Tax Expenditure Items.

2021 Form FTB 3461, California Limitation on Business Losses, and Instructions 07/15/2022 PDF
  1. Form, Side 1, Part III, line 15.
  2. Instructions, Page 2, column 1, Part III – Limitation on Losses, line 14b instructions.
  3. Instructions, Page 2, column 1, Part III – Limitation on Losses, after line 14c instructions.
HTML
  1. No HTML instructions.
  1. We added new instructions.
  2. We added new instructions.
  3. We added new instructions.
1.

For clarification.

2 – 3.

We are adding instructions to clarify that in some cases taxpayers are able to utilize the excess business loss carryover from the prior year and report it on Schedule CA.

2021 Form 568, Limited Liability Company Tax Booklet 07/15/2022 PDF
  1. Page 3, Column 2, What’s New, Reporting Requirements paragraph.
  2. Page 3, Column 2, What’s New, Paycheck Protection Program (PPP) Loans Forgiveness paragraph.
  3. Page 18, Column 2, Schedule K (568) and Schedule K-1 (568) – Member’s Share of Income, Deductions, Credits, etc., Paycheck Protection Program Loans Forgiveness second paragraph.
HTML
  1. What’s New, Reporting Requirements paragraph.
  2. What’s New, Paycheck Protection Program (PPP) Loans Forgiveness paragraph.
  3. Schedule K (568) and Schedule K-1 (568) – Member’s Share of Income, Deductions, Credits, etc.; Paycheck Protection Program Loans Forgiveness second paragraph.
  1. What’s New, Reporting Requirements paragraph modified.
  2. What’s New, Paycheck Protection Program (PPP) Loans Forgiveness paragraph modified.
  3. Schedule K (568) and Schedule K-1 (568) – Member’s Share of Income, Deductions, Credits, etc.; Paycheck Protection Program Loans Forgiveness second paragraph deleted.
1 – 3.

AB 194, chaptered on June 30, 2022, conforms state tax law to the federal tax treatment for covered loan amounts forgiven pursuant to the PPP Extension Act of 2021.

As part of FTB’s reporting requirements, taxpayers who benefited from the PPP loans forgiveness should file form FTB 4197, Information on Tax Expenditure Items.

2021 Form 565, Partnership Tax Booklet 07/14/2022 PDF
  1. Page 3, Column 2, What’s New, Reporting Requirements paragraph.
  2. Page 4, Column 1, What’s New, Paycheck Protection Program (PPP) Loans Forgiveness paragraph.
  3. Page 16, Column 1, Schedule K (565) and Schedule K-1 (565) – Partner’s Shares of Income, Deductions, Credits, etc., Paycheck Protection Program Loans Forgiveness second paragraph.
HTML
  1. What’s New, Reporting Requirements paragraph.
  2. What’s New, Paycheck Protection Program (PPP) Loans Forgiveness paragraph.
  3. Schedule K (565) and Schedule K-1 (565) – Partner’s Shares of Income, Deductions, Credits, etc.; Paycheck Protection Program Loans Forgiveness second paragraph.
  1. What’s New, Reporting Requirements paragraph modified.
  2. What’s New, Paycheck Protection Program (PPP) Loans Forgiveness paragraph modified.
  3. Schedule K (565) and Schedule K-1 (565) – Partner’s Shares of Income, Deductions, Credits, etc.; Paycheck Protection Program Loans Forgiveness second paragraph deleted.
1 – 3.

AB 194, chaptered on June 30, 2022, conforms state tax law to the federal tax treatment for covered loan amounts forgiven pursuant to the PPP Extension Act of 2021.

As part of FTB’s reporting requirements, taxpayers who benefited from the PPP loans forgiveness should file form FTB 4197, Information on Tax Expenditure Items.

2021 Form 100W Corporation Tax Booklet 07/15/2022 PDF
  1. Page 3, Column 3, What’s New/Tax Law Changes, Reporting Requirements paragraph revised.
  2. Page 4, Column 1, What’s New/Tax Law Changes, Paycheck Protection Program (PPP) Loans Forgiveness, first paragraph revised.
  3. Page 17, Column 2, Line 8 – Other additions, Paycheck Protection Program Loans Forgiveness, second paragraph deleted
HTML
  1. What’s New/Tax Law Changes, seventh paragraph, Reporting Requirements.
  2. What’s New/Tax Law Changes, twelfth paragraph, Paycheck Protection Program (PPP) Loans Forgiveness.
  3. Specific Line Instructions, Line 1 through Line 41, Line 8, Other Additions, Paycheck Protection Program Loans Forgiveness, second paragraph
  1. Page 3, Column 3, What’s New/Tax Law Changes, Reporting Requirements paragraph revised.
  2. Page 4, Column 1, What’s New/Tax Law Changes, Paycheck Protection Program (PPP) Loans Forgiveness, first paragraph revised.
  3. Page 17, Column 2, Line 8 – Other additions, Paycheck Protection Program Loans Forgiveness, second paragraph deleted.
1.

Assembly Bill 194, which chaptered on June 30, 2022 requires a Section 41 reporting requirement for taxpayers that benefited from gross income exclusion from the PPP Extension Act of 2021. As a result we have updated the existing language under What’s New.

2 – 4.

AB 194 also modified Revenue and Taxation Code Section 24308.6 to exclude from gross income any covered loan amounts forgiven pursuant to the Paycheck Protection Program Extension Act of 2021. As a result, California now conforms to the federal extension period covered after March 31, 2021, to June 30, 2021.

2021 Form 100S S Corporation Tax Booklet 07/14/2022 PDF
  1. Page 3, Column 3, What’s New/Tax Law Changes, Fourth Paragraph, Reporting Requirements.
  2. Page 4, Column 1, What’s New/Tax Law Changes, Fourth Paragraph, Paycheck Protection Program (PPP) Loans Forgiveness.
  3. Page 18, Specific Line Instructions, Line 1 through Line 44, Line 7 – Other Additions, Seventh Paragraph.
  4. Page 23, Column 2, Schedule K and Schedule K-1 (100S), Sixth Paragraph.
HTML
  1. What’s New/Tax Law Changes, Tenth Paragraph, Reporting Requirements.
  2. What’s New/Tax Law Changes, Fifteenth Paragraph, Paycheck Protection Program (PPP) Loans Forgiveness.
  3. Specific Line Instructions, Line 1 through Line 44, Line 7, Seventh Paragraph.
  4. Schedule K and Schedule K-1 (100S), Seventh Paragraph.
  1. What’s New/Tax Law Changes, paragraph updated.
  2. What’s New/Tax Law Changes, paragraph updated.
  3. Specific Line Instructions, Line 7, Seventh Paragraph deleted.
  4. Schedules, Schedule K and Schedule K-1 (100S), Seventh Paragraph deleted.
1.

Assembly Bill 194, which chaptered on June 30, 2022 requires a Section 41 reporting requirement for taxpayers that benefited from gross income exclusion from the PPP Extension Act of 2021. As a result we have updated the existing language under What’s New.

2 – 4.

AB 194 also modified Revenue and Taxation Code Section 24308.6 to exclude from gross income any covered loan amounts forgiven pursuant to the Paycheck Protection Program Extension Act of 2021. As a result, California now conforms to the federal extension period covered after March 31, 2021, to June 30, 2021.

2021 Form 100 Corporation Tax Booklet 07/21/2022 PDF
  1. Page 3, Column 2, What’s New/Tax Law Changes, Reporting Requirements paragraph.
  2. Page 3, Column 3 and Page 4, Column 1, What’s New/Tax Law Changes, Paycheck Protection Program (PPP) Loans Forgiveness paragraph.
  3. Page 16, Column 3, Line 8 – Other additions, Paycheck Protection Program Loans Forgiveness paragraph.
HTML
  1. What’s New/Tax Law Changes, Tenth Paragraph, Reporting Requirements.
  2. What’s New/Tax Law Changes, Fifteenth Paragraph, Paycheck Protection Program (PPP) Loans Forgiveness.
  3. Specific Line Instructions, Line 1 through Line 41, Line 8, Other Additions, Paycheck Protection Program Loans Forgiveness, second paragraph.
  1. Page 3, Column 2, What’s New/Tax Law Changes, Reporting Requirements paragraph revised.
  2. Page 3, Column 3 and Page 4, Column 1, What’s New/Tax Law Changes, Paycheck Protection Program (PPP) Loans Forgiveness, first paragraph revised.
  3. Page 16, Column 3, Line 8 – Other additions, Paycheck Protection Program Loans Forgiveness, second paragraph deleted
1.

Assembly Bill 194, which chaptered on June 30, 2022 requires a Section 41 reporting requirement for taxpayers that benefited from gross income exclusion from the PPP Extension Act of 2021. As a result we have updated the existing language under What’s New.

2 – 3.

Assembly Bill 194, which chaptered on June 30, 2022, modified Revenue and Taxation Code Section 24308.6 to exclude from gross income any covered loan amounts forgiven pursuant to the Paycheck Protection Program Extension Act of 2021. As a result, California now conforms to the federal extension period covered after March 31, 2021, to June 30, 2021.

2021 FTB Publication 1067, Guidelines for Filing a Group Form 540NR 07/14/2022 PDF
  1. Page 3, Column 1, What’s New, Reporting Requirements paragraph.
HTML
  1. What's New, Reporting Requirements paragraph.
  1. What's New, Reporting Requirements paragraph updated.

AB 194, chaptered on June 30, 2022, conforms state tax law to the federal tax treatment for covered loan amounts forgiven pursuant to the PPP Extension Act of 2021.

As part of FTB’s reporting requirements, taxpayers who benefited from the PPP loans forgiveness should file form FTB 4197, Information on Tax Expenditure Items.

2021 FTB PUB 1034, Disaster Loss How to Claim a State Tax Deduction 05/12/2022 PDF
  1. Page 5, Column 1, When to Claim Your Disaster Loss, Individual Tax Returns table.
  2. Page 5, Column 2, When to Claim Your Disaster Loss, Corporation Tax Returns table.
  1. Language modified.
  2. Language modified.
  1. To clarify the due date if disaster loss was claimed on prior year tax returns.
2021 FTB 3541, California Motion Picture and Television Production Credit 03/15/2022 PDF
  1. Instructions, Page 2, column 1, Sales and Use Taxes Section, 2nd paragraph.
HTML
  1. Under Important Information, last paragraph and above General Information.
  1. FTB 3541 instructions, Page 2, Column 1, last paragraph under Important Information being updated to include the $5,000,000 cap only applies to years 2020 and 2021 plus allowing taxpayers to elect to obtain a refund for California Motion Picture and Television Production Credit.
  1. Senate Bill 113, chaptered on February 9, 2022, makes a variety of changes one of which provides that the $5,000,000 cap applies only to the years 2020 and 2021. This bill also allows taxpayers who make the irrevocable election with CDTFA to apply their movie credit against qualified sales and use taxes, to elect to obtain a refund for amounts that exceeds $5,000,000 subject to certain limitations, during the reporting period that occur during the 2021 calendar year.
2021 FTB Publication 1067, Guidelines for Filing a Group Form 540NR 03/14/2022 PDF
  1. Page 3, Column 1, What’s New, Reporting Requirements paragraph.
HTML
  1. What's New, Reporting Requirements paragraph.
  1. What's New, Reporting Requirements paragraph updated.
  1. SB 113 requires a Section 41 reporting requirement for taxpayers that benefited from gross income exclusion and expense deductions from Shuttered Venue Operator Grant and Restaurant Revitalization Grants. As a result we have updated the existing language under What’s New.
2021 Form 565, Partnership Tax Booklet 03/11/2022 PDF
  1. Page 3, Column 1, What’s New, Restaurant Revitalization Grants paragraph.
  2. Page 3, Column 1, What’s New, Shuttered Venue Operator Grants paragraph.
  3. Page 3, Column 2, What's New, Elective Tax for Pass-Through Entities (PTE) and Credit for Owners paragraph.
  4. Page 3, Column 2, What’s New, Reporting Requirements paragraph.
  5. Page 6, Column 1, Federal/State Differences, second paragraph.
  6. Page 16, Column 1, Schedule K (565) and Schedule K-1 (565) – Partner’s Shares of Income, Deductions, Credits, etc., after Paycheck Protection Program Loans Forgiveness paragraph.
  7. Page 18, Column 2, Income, Restaurant Revitalization Grants paragraph.
  8. Page 18, Column 2, Income, Shuttered Venue Operator Grants paragraph.
HTML
  1. What’s New, Restaurant Revitalization Grants paragraph.
  2. What’s New, Shuttered Venue Grants paragraph.
  3. What's New, Elective Tax for Pass-Through Entities (PTE) and Credit for Owners paragraph.
  4. What's New, Reporting Requirements paragraph.
  5. Federal/State Differences, Second Paragraph.
  6. Schedule K (565) and Schedule K-1 (565) – Partner’s Shares of Income, Deductions, Credits, etc., after Paycheck Protection Program Loans Forgiveness paragraph.
  7. Schedule K (565) and Schedule K-1 (565) Specific Line Instructions, Income, Restaurant Revitalization Grants paragraph.
  8. Schedule K (565) and Schedule K-1 (565) Specific Line Instructions, Income, Shuttered Venue Grants paragraph.
  1. What’s New, Restaurant Revitalization Grants paragraph deleted.
  2. What’s New, Shuttered Venue Operator Grants paragraph replaced.
  3. What's New, Elective Tax for Pass-Through Entities (PTE) and Credits for Owners paragraph updated.
  4. What's New, Reporting Requirements paragraph updated.
  5. Federal/State Differences, Second Paragraph deleted.
  6. Schedule K (565) and Schedule K-1 (565) – Partner’s Shares of Income, Deductions, Credits, etc.; Shuttered Venue Operator Grants paragraph added.
  7. Schedule K (565) and Schedule K-1 (565) Specific Line Instructions, Income, Restaurant Revitalization Grants paragraph deleted.
  8. Schedule K (565) and Schedule K-1 (565) Specific Line Instructions, Income, Shuttered Venue Operator Grants paragraph deleted.

1, 7.
SB 113, chaptered on February 9, 2022, conforms state tax law to the federal tax treatment for Restaurant Revitalization Grants. For taxable years beginning on or after January 1, 2020, California law fully conforms to this federal provision to exclude this pandemic-related financial assistance program from gross income. As a result, we have deleted verbiage that previously stated that California did not conform.

2, 6, 8.
In addition, for taxable years beginning on or after January 1, 2019, SB 113 provides conformity to the federal Shuttered Venue Operator Grant provision which allows a gross income exclusion and provides modified conformity in regards to an eligible expense deduction. As a result, we have revised the existing Shuttered Venue Operator Grants language under What’s New and Specific Instructions.

3.
SB 113 expands the pass-through entity elective tax benefits for taxable years beginning on or after January 1, 2021 and before January 1, 2026. As the result, we have updated the existing language under What’s New.

4.
SB 113 also requires a Section 41 reporting requirement for taxpayers that benefited from gross income exclusion and expense deductions from Shuttered Venue Operator Grant and Restaurant Revitalization Grants. As a result we have updated the existing language under What’s New.

5.
To remove duplicate language.

2021 Form 568, Limited Liability Company Tax Booklet 03/11/2022 PDF
  1. Page 3, Column 1, What’s New, Restaurant Revitalization Grants paragraph.
  2. Page 3, Column 1, What’s New, Shuttered Venue Operator Grants paragraph.
  3. Page 3, Column 1, What's New, Elective Tax for Pass-Through Entities (PTE) and Credit for Owners paragraph.
  4. Page 3, Column 1, What’s New, Reporting Requirements paragraph.
  5. Page 5, Column 1, Federal/State Differences, second paragraph.
  6. Page 18, Column 2, Schedule K (568) and Schedule K 1 (568) – Member’s Share of Income, Deductions, Credits, etc., after Paycheck Protection Program Loans Forgiveness paragraph.
  7. Page 20, Column 2, Specific Line Instructions, Restaurant Revitalization Grants paragraph.
  8. Page 20, Column 2, Specific Line Instructions, Shuttered Venue Operator Grants paragraph.
HTML
  1. What’s New, Restaurant Revitalization Grants.
  2. What’s New, Shuttered Venue Grants.
  3. What's New, Elective Tax for Pass-through Entities (PTE) and Credit for Owners.
  4. What's New, Reporting Requirements paragraph.
  5. Federal/State Differences, Second Paragraph.
  6. Schedule K (568) and Schedule K 1 (568) – Member’s Share of Income, Deductions, Credits, etc., after Paycheck Protection Program Loans Forgiveness paragraph.
  7. Schedule K (568) and Schedule K-1 (568) Specific Line Instructions, Income, Restaurant Revitalization Grants paragraph.
  8. Schedule K (568) and Schedule K-1 (568) Specific Line Instructions, Income, Shuttered Venue Grants paragraph.
  1. What’s New, Restaurant Revitalization Grants paragraph deleted.
  2. What’s New, Shuttered Venue Operator Grants paragraph replaced.
  3. What's New, Elective Tax for Pass-Through Entities (PTE) and Credits for Owners paragraph updated.
  4. What's New, Reporting Requirements paragraph updated.
  5. Federal/State Differences, Second Paragraph deleted.
  6. Schedule K (568) and Schedule K 1 (568) – Member’s Share of Income, Deductions, Credits, etc.; Shuttered Venue Operator Grants paragraph added.
  7. Schedule K (568) and Schedule K-1 (568) Specific Line Instructions, Income, Restaurant Revitalization Grants paragraph deleted.
  8. Schedule K (568) and Schedule K-1 (568) Specific Line Instructions, Income, Shuttered Venue Operator Grants paragraph deleted.

1, 7.
SB 113, chaptered on February 9, 2022, conforms state tax law to the federal tax treatment for Restaurant Revitalization Grants. For taxable years beginning on or after January 1, 2020, California law fully conforms to this federal provision to exclude this pandemic-related financial assistance program from gross income. As a result, we have deleted verbiage that previously stated that California did not conform.

2, 6, 8.
In addition, for taxable years beginning on or after January 1, 2019, SB 113 provides conformity to the federal Shuttered Venue Operator Grant provision which allows a gross income exclusion and provides modified conformity in regards to an eligible expense deduction. As a result, we have revised the existing Shuttered Venue Operator Grants language under What’s New and Specific Instructions.

3.
SB 113 expands the pass-through entity elective tax benefits for taxable years beginning on or after January 1, 2021 and before January 1, 2026. As the result, we have updated the existing language under What’s New.

4.
SB 113 also requires a Section 41 reporting requirement for taxpayers that benefited from gross income exclusion and expense deductions from Shuttered Venue Operator Grant and Restaurant Revitalization Grants. As a result we have updated the existing language under What’s New.

5.
To remove duplicate language.

2021 Form 100W Corporation Tax Booklet, Water’s-Edge Filers 03/09/2022 PDF
  1. Page 3, Column 2, What’s New/Tax Law Changes, Second Paragraph, Restaurant Revitalization Grants.
  2. Page 3, Column 2, What’s New/Tax Law Changes, Fourth Paragraph, Shuttered Venue Operator Grants.
  3. Page 3, Column 3, What’s New/Tax Law Changes, Eighth Paragraph, Reporting Requirements.
  4. Page 17, Column 2, Line 8, Other Additions, Third Paragraph, Restaurant Revitalization Grants.
  5. Page 17, Column 2, Line 8, Other Additions, Fourth Paragraph, Shuttered Venue Operator Grants.
HTML
  1. What’s New/Tax Law Changes, Second Paragraph, Restaurant Revitalization Grants.
  2. What’s New/Tax Law Changes, Fourth Paragraph, Shuttered Venue Grants.
  3. What’s New/Tax Law Changes, Eighth Paragraph, Reporting Requirements.
  4. Specific Line Instructions, Line 1 through Line 41, Line 8, Other Additions, Third Paragraph, Restaurant Revitalization Grants.
  5. Specific Line Instructions, Line 1 through Line 41, Line 8, Other Additions, Fourth Paragraph, Shuttered Venue Grants.
  1. Page 3, Column 2, What’s New/Tax Law Changes, Second Paragraph deleted.
  2. Page 3, Column 2, What’s New/Tax Law Changes, Fourth Paragraph replaced.
  3. Page 3, Column 3, What’s New/Tax Law Changes, Eighth Paragraph verbiage added.
  4. Page 17, Column 2, Line 8, Other Additions, Third Paragraph, deleted.
  5. Page 17, Column 2, Line 8, Other Additions, Fourth Paragraph replaced.

SB 113, chaptered on February 9, 2022, conforms state tax law to the federal tax treatment for Restaurant Revitalization Grants. For taxable years beginning on or after January 1, 2020, California law fully conforms to this federal provision to exclude this pandemic-related financial assistance program from gross income. As a result, we have deleted verbiage that previously stated that California did not conform.

In addition, for taxable years beginning on or after January 1, 2019, SB 113 provides conformity to the federal Shuttered Venue Operator Grant provision which allows a gross income exclusion and provides modified conformity in regards to an eligible expense deduction, except for an ineligible entity. If an ineligible entity deducted eligible expenses for federal purposes, then an adjustment is needed on Form 100, line 8 – Other Additions. As a result, we have revised the existing Shuttered Venue Operator Grants language under What’s New and Specific Line Instructions.

SB 113 also requires a Section 41 reporting requirement for taxpayers that benefited from gross income exclusion and expense deductions from Shuttered Venue Operator Grant and Restaurant Revitalization Grants. As a result we have updated the existing language under What’s New.

2021 Instructions for Schedule P (540NR), Alternative Minimum Tax and Credit Limitations – Nonresidents or Part-Year Residents 03/08/2022 PDF
  1. Page 1, What’s New, column 1, Elective Tax for Pass-Through Entities (PTE) and Credit for Owners paragraph.
  2. Page 9, Credit Table, Current Credits, row 19, Code 242, Pass-Through Entity Elective Tax, Column 4 – Offset Tax in Section.
HTML
  1. Under What’s New, Elective Tax for Pass-Through Entities (PTE) and Credit for Owners paragraph.
  2. Credit Table, Current Credits, row 19, Code 242, Pass-Through Entity Elective Tax, Column 4 – Offset Tax in Section.
  1. We modified existing instructions.
  2. We modified existing instructions.
1 – 2.

SB 113, chaptered on February 9, 2022, expands the Pass-Through Entity (PTE) elective tax benefits by:

  • Repealing the tentative minimum tax (TMT) limitation on the PTE elective tax credit;
  • Allowing partnerships/S corporations/LLCs with owners that are partnerships to make the election (although the tax can’t be paid on behalf of the partnership owner);
  • Allowing single member limited liability companies (SMLLCs) that are PTE owners to claim the PTE elective tax credit.
2021 540, Personal Income Tax Booklet, and Instructions for Schedule CA (540), California Adjustments – Residents 03/04/2022 PDF
  1. 540 Booklet, page 4, 2021 Tax Law Changes/What’s New, column 2, paragraph 3, Shuttered Venue Operator Grants.
  2. 540 Booklet, page 4, 2021 Tax Law Changes/What’s New, column 2, paragraph 5, Restaurant Revitalization Grants.
  3. 540 Booklet, 2021 Tax Law Changes/What’s New, page 5, column 1, paragraph 9, Reporting Requirements.
  4. 540 Booklet, 2021 Tax Law Changes/What’s New, page 5, column 2, paragraph 2, Elective Tax for Pass-Through Entities (PTE) and Credit for Owners.
  5. 540 Booklet, page 43 / Instructions for Sch. CA (540) (flat), page 1, What’s New, column 1, paragraph 1, Reporting Requirements.
  6. 540 Booklet, page 43 / Instructions for Sch. CA (540) (flat), page 1, What’s New, column 2, paragraphs 2 and 3, Shuttered Venue Operator Grants and Restaurant Revitalization Grants.
  7. 540 Booklet, page 47 / Instructions for Sch. CA (540) (flat), page 5, line 3, Business income or (Loss), column 2, after the Paycheck Protection Program loans forgiveness paragraphs.
  8. 540 Booklet, page 49 / Instructions for Sch. CA (540) (flat), page 7, column 2, line 8z, Other income, Shuttered venue operator grants and Restaurant revitalization grants paragraphs.
HTML
  1. What’s New and Other Important Information for 2021, 2021 Tax Law Changes/What’s New, paragraph 7.
  2. What’s New and Other Important Information for 2021, 2021 Tax Law Changes/What’s New, paragraph 9.
  3. What’s New and Other Important Information for 2021, 2021 Tax Law Changes/What’s New, paragraph 19.
  4. What’s New and Other Important Information for 2021, 2021 Tax Law Changes/What’s New, paragraph 23.
  5. HTML page for Sch. CA (540) instructions, What’s New, paragraph 1.
  6. HTML page for Sch. CA (540) instructions, What’s New, paragraphs 10 and 11.
  7. HTML page for Sch. CA (540) instructions, Specific Line Instructions, Part I – Income Adjustment Schedule; Section B – Additional Income, Line 3 – Business Income or (Loss), after Paycheck Protection Program loans forgiveness paragraphs.
  8. HTML page for Sch. CA (540) instructions, Specific Line Instructions, Part I – Income Adjustment Schedule, Section B – Additional Income, Line 8 – Other Income, z. Other income, paragraphs 8 and 9.
  1. We modified existing instructions.
  2. We removed existing instructions.
  3. We modified existing instructions.
  4. We modified existing instructions.
  5. We modified existing instructions.
  6. We modified existing instructions.
  7. We added new instructions.
  8. We removed existing instructions.

1 – 8.
SB 113, chaptered on February 9, 2022, conforms state tax law to the federal tax treatment for Restaurant Revitalization Grants. For taxable years beginning on or after January 1, 2020, California law fully conforms to this federal provision to exclude this pandemic-related financial assistance program from gross income. As a result, we have deleted verbiage that previously stated that California did not conform.

In addition, for taxable years beginning on or after January 1, 2019, SB 113 provides conformity to the federal Shuttered Venue Operator Grant provision which allows a gross income exclusion and provides modified conformity in regards to an eligible expense deduction.

SB 113 also expands the pass-through entity elective tax benefits for taxable years beginning on or after January 1, 2021 and before January 1, 2026.

As part of FTB’s reporting requirements, taxpayers who benefited from the Restaurant Revitalization Grant and the Shuttered Venue Operator Grant should file form FTB 4197, Information on Tax Expenditure Items.

2021 Instructions for Schedule P (540), Alternative Minimum Tax and Credit Limitations – Residents 03/04/2022 PDF
  1. Page 1, What’s New, column 1, Elective Tax for Pass-Through Entities (PTE) and Credit for Owners paragraph.
  2. Page 8, Credit Table, Current Credits, row 19, Code 242, Pass-Through Entity Elective Tax, Column 4 – Offset Tax in Section.
HTML
  1. Under What’s New, Elective Tax for Pass-Through Entities (PTE) and Credit for Owners paragraph.
  2. Credit Table, Current Credits, row 19, Code 242, Pass-Through Entity Elective Tax, Column 4 – Offset Tax in Section.
  1. We modified existing instructions.
  2. We modified existing instructions.

1 – 2.
SB 113, chaptered on February 9, 2022, expands the Pass-Through Entity (PTE) elective tax benefits by:

  • Repealing the tentative minimum tax (TMT) limitation on the PTE elective tax credit;
  • Allowing partnerships/S corporations/LLCs with owners that are partnerships to make the election (although the tax can’t be paid on behalf of the partnership owner);
  • Allowing single member limited liability companies (SMLLCs) that are PTE owners to claim the PTE elective tax credit.
2021 FTB 3804-CR, Pass-Through Entity Elective Tax Credit 03/04/2022 PDF
  1. Form 3804-CR, Under the title of the form on the left side of the form, Entity section in the Name field.
  2. Instructions, Page 1, Column 1, What’s New, 2nd paragraph, 1st sentence, 5th line.
  3. Instructions, Page 1, Column 1, What’s New, 2nd paragraph, 2nd sentence.
  4. Instructions, Page 1, Column 1, What’s New, 4th paragraph, new.
  5. Instructions, Page 1, Column 1, General Information, Business Credit Limitation, 2nd paragraph, last sentence.

6 – 7.

Instructions, Page 1, Column 1, Purpose, 1st paragraph, 1st sentence.

8 – 9.

Instructions, Page 1, Column 1, Definitions, Electing qualified PTE, 3rd sentence and 4th sentence.

  1. Instructions, Page 1, Column 2, Definitions, PTE elective tax.

11 – 12.

Instructions, Page 1, Column 2, Definitions, Qualified taxpayer.

13 – 14.

Instructions, Page 1, Column 2, Definitions, Qualified amount, 1st paragraph.

15 – 17.

Instructions, Page 1, Column 2, Definitions, Qualified net income.

  1. Instructions, Page 1, Column 2, Description, 1st sentence.
  2. Instructions, Page 1, Column 2, Limitations, new 4th paragraph.

20 – 21.

Instructions, Page 1, Column 2, Limitations, 6th paragraph.

  1. Instructions, Page 2, Column 1, Carryover, 1st paragraph.
  2. Instructions, Page 2, Column 1, Specific Line Instructions, under the title.
  3. Instructions, Page 2, Column 1, Specific Line Instructions, Line 1, column (c) PTE elective tax credit(s), 1st paragraph.
  4. Instructions, Page 2, Column 1, Specific Line Instructions, Line 1, column (c) PTE elective tax credit(s), new 2nd paragraph.
HTML
  1. N/A

2 – 3.

What’s New, 2nd paragraph.

  1. New, new 4th paragraph
  2. General Information, Business Credit Limitation, 2nd paragraph, last sentence.

6 – 7.

Purpose, 1st paragraph, 1st sentence.

8 – 9.

Definitions, Electing qualified PTE, 3rd sentence and 4th sentence.

  1. Definitions, PTE elective tax.

11 – 12.

Definitions, Qualified taxpayer.

13 – 14.

Definitions, Qualified amount, 1st paragraph.

15 – 17.

Definitions, Qualified net income.

  1. Description, 1st sentence.
  2. Limitations, new 4th paragraph.

20 – 21.

Limitations, 6th paragraph.

  1. Carryover, 1st paragraph.
  2. Specific Line Instructions, under the title, new.
  3. Specific Line Instructions, Line 1, column (c) PTE elective tax credit(s), 1st paragraph.
  4. Specific Line Instructions, Line 1, column (c) PTE elective tax credit(s), new 2nd paragraph.
  1. Name field updated on the form.

2 – 4.

What’s New updated.

  1. General Information, Business Credit Limitation updated.

6 – 7.

Purpose updated.

8 – 9.

Definitions, Electing qualified PTE updated.

  1. Definitions, PTE elective tax updated.

11 – 12.

Definitions, Qualified taxpayer updated.

13 – 14.

Definitions, Qualified amounts updated.

15 – 17.

Definitions, Qualified net income updated.

  1. Description updated
  2. Limitations updated.

20 – 21.

Limitations section updated.

  1. Carryover updated

23 – 25.

Specific Line Instructions updated.

SB 113, chaptered on February 9, 2022, expands the pass-through entity elective tax benefits for taxable years beginning on or after January 1, 2021 and before January 1, 2026.
2021 Form 100 Corporation Tax Booklet 03/04/2022 PDF
  1. Page 3, Column 1, What’s New/Tax Law Changes, First Paragraph, Restaurant Revitalization Grants.
  2. Page 3, Column 1, What’s New/Tax Law Changes, Third Paragraph, Shuttered Venue Operator Grants.
  3. Page 3, Column 2, What’s New/Tax Law Changes, Fifth Paragraph, Reporting Requirements.
  4. Page 16, Columns 2 and 3, Line 8, Other Additions, Third Paragraph, Restaurant Revitalization Grants.
  5. Page 16, Columns 2 and 3, Line 8, Other Additions, Fourth Paragraph, Shuttered Venue Operator Grants.
HTML
  1. What’s New/Tax Law Changes, First Paragraph, Restaurant Revitalization Grants.
  2. What’s New/Tax Law Changes, Third Paragraph, Shuttered Venue Grants.
  3. What’s New/Tax Law Changes, Fifth Paragraph, Reporting Requirements.
  4. Specific Line Instructions, Line 1 through Line 43, Line 8, Other Additions, Third Paragraph, Restaurant Revitalization Grants.
  5. Specific Line Instructions, Line 1 through Line 43, Line 8, Other Additions, Fourth Paragraph, Shuttered Venue Grants.
  1. Page 3, Column 1, What’s New/Tax Law Changes, First Paragraph deleted.
  2. Page 3, Column 1, What’s New/Tax Law Changes, Third Paragraph replaced.
  3. Page 3, Column 2, What’s New/Tax Law Changes, Fifth Paragraph, verbiage added.
  4. Page 16, Columns 2 and 3, Specific Line Instructions, Line 8, Other additions, Third Paragraph deleted.
  5. Page 16, Columns 2 and 3, Specific Line Instructions, Line 8, Other additions, Fourth Paragraph replaced.

SB 113, chaptered on February 9, 2022, conforms state tax law to the federal tax treatment for Restaurant Revitalization Grants. For taxable years beginning on or after January 1, 2020, California law fully conforms to this federal provision to exclude this pandemic-related financial assistance program from gross income. As a result, we have deleted verbiage that previously stated that California did not conform.

In addition, for taxable years beginning on or after January 1, 2019, SB 113 provides conformity to the federal Shuttered Venue Operator Grant provision which allows a gross income exclusion and provides modified conformity in regards to an eligible expense deduction. If an ineligible entity deducted eligible expenses for federal purposes, then an adjustment is needed on Form 100, line 8 – Other Additions. As a result, we have revised the existing Shuttered Venue Operator Grants language under What’s New and Specific Line Instructions.

SB 113 also requires a Section 41 reporting requirement for taxpayers that benefited from gross income exclusion and expense deductions from Shuttered Venue Operator Grant and Restaurant Revitalization Grants. As a result we have updated the existing language under What’s New.

2021 Form 100S Corporation Tax Booklet 03/03/2022 PDF
  1. Page 3, Column 1, What’s New/Tax Law Changes, Second Paragraph, Elective Tax for Pass-Through Entities (PTE) and Credits for Owners.
  2. Page 3, Column 1-2, What’s New/Tax Law Changes, Third Paragraph, Restaurant Revitalization Grants.
  3. Page 3, Column 2, What’s New/Tax Law Changes, Second Paragraph, Shuttered Venue Operator Grants.
  4. Page 3, Column 3, What’s New/Tax Law Changes, Fourth Paragraph, Reporting Requirements.
  5. Page 18, Specific Line Instructions, Line 1 through Line 44, Line 7, Other Additions, Fifth Paragraph, Restaurant Revitalization Grants.
  6. Page 18, Specific Line Instructions, Line 1 through Line 44, Line 7, Other Additions, Sixth Paragraph, Shuttered Venue Operator Grants.
  7. Page 23, Column 3, Schedule K and Schedule K-1 (100S), Second Paragraph after Other Loan Forgiveness.
  8. Page 24, Specific Line Instructions, Line 10b, Other income (loss), Fifth Paragraph, Restaurant Revitalization Grants.
  9. Page 24, Specific Line Instructions, Line 10b, Other income (loss), Sixth Paragraph, Shuttered Venue Operator Grants.
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  1. What’s New/Tax Law Changes, Second Paragraph, Elective Tax for Pass-Through Entities (PTE) and Credits for Owners.
  2. What’s New/Tax Law Changes, Third Paragraph, Restaurant Revitalization Grants.
  3. What’s New/Tax Law Changes, Fifth Paragraph, Shuttered Venue Operator Grants.
  4. What’s New/Tax Law Changes, Eleventh Paragraph, Reporting Requirements.
  5. Specific Line Instructions, Line 1 through Line 44, Line 7, Fifth Paragraph, Restaurant Revitalization Grants.
  6. Specific Line Instructions, Line 1 through Line 44, Line 7, Sixth Paragraph, Shuttered Venue Operator Grants.
  7. Schedule K and Schedule K-1 (100S), Tenth Paragraph.
  8. Specific Line Instructions, Line 10b, Other income (loss), Fifth Paragraph, Restaurant Revitalization Grants.
  9. Specific Line Instructions, Line 10b, Other income (loss), Sixth Paragraph, Shuttered Venue Operator Grants.
  1. What’s New/Tax Law Changes, Second Paragraph updated.
  2. What’s New/Tax Law Changes, Third Paragraph deleted.
  3. What’s New/Tax Law Changes, Fifth Paragraph replaced.
  4. What’s New/Tax Law Changes, Eleventh Paragraph updated.
  5. Specific Line Instructions, Line 7, Fifth Paragraph deleted.
  6. Specific Line Instructions, Line 7, Sixth Paragraph replaced.
  7. Schedules, Schedule K and Schedule K-1 (100S), Tenth Paragraph added.
  8. Specific Line Instructions, Line 10b, Fifth Paragraph deleted.
  9. Specific Line Instructions, Line 10b, Sixth Paragraph deleted.

1.
SB 113, chaptered on February 9, 2022, expands the pass-through entity elective tax benefits for taxable years beginning on or after January 1, 2021 and before January 1, 2026. As the result, we have updated the existing language under What’s New.

2, 5, 8.
SB113 also conforms state tax law to the federal tax treatment for Restaurant Revitalization Grants. For taxable years beginning on or after January 1, 2020, California law fully conforms to this federal provision to exclude this pandemic-related financial assistance program from gross income. As a result, we have deleted verbiage that previously stated that California did not conform.

3, 6, 7, 9.
In addition, for taxable years beginning on or after January 1, 2019, SB 113 provides conformity to the federal Shuttered Venue Operator Grant provision which allows a gross income exclusion and provides modified conformity in regards to an eligible expense deduction. If an ineligible entity deducted eligible expenses for federal purposes, then an adjustment is needed on Form 100S, line 7 – Other Additions, and on applicable line(s) on Schedule K/ K-1 (100S), column (c). As a result, we have revised the existing Shuttered Venue Operator Grant language under What’s New and Specific Line Instructions.

4.
SB 113 also requires a Section 41 reporting requirement for taxpayers that benefited from gross income exclusion and expense deductions from Shuttered Venue Operator Grant and Restaurant Revitalization Grants. As a result we have updated the existing language under What’s New.

2021 Instructions for Form FTB 3514, California Earned Income Tax Credit;
540, Personal Income Tax Booklet;
540 2EZ, Personal Income Tax Booklet;
540NR, Nonresident or Part-Year Resident Booklet
03/03/2022 PDF
  1. 540 Booklet, page 72/540 2EZ Booklet, page 50/540NR Booklet, page 70/Instructions for Form FTB 3514 (flat), page 2, Specific Instructions, Step 1 Qualifications for All Filers, columns 1-2, Question d. Is your filing status married filing separately?
  2. 540 Booklet, pages 77 – 84/540 2EZ Booklet, pages 55 – 62/540NR Booklet, pages 75 – 82/Instructions for Form FTB 3514 (flat), pages 7 – 14, 2021 Earned Income Tax Credit Table, first sentence directly below the title.
HTML
  1. HTML page for 2021 Instructions for Form FTB 3514, Specific Instructions, Step 1 – Qualifications for All Filers, Question d. Is your filing status married filing separately?
  2. HTML page for 2021 Instructions for Form FTB 3514, 2021 Earned Income Tax Credit Table, first sentence directly below the title.
  1. We added new instructions.
  2. We modified existing instructions.

1 – 2.
The American Rescue Plan Act (ARPA) of 2021 was enacted on March 11, 2021 (Public Law 117-2). The ARPA of 2021 included some changes to the federal Earned Income Tax Credit (EITC) that impacted R&TC Section 17052. This federal law change would allow those that are married and file married filing separately for federal purposes and meet all the requirements stipulated in Public Law 117-2, to qualify for the Federal EITC. California law conforms to these changes considering that California has the same rules pertaining to married individuals (filing status).

2021 FTB 3893, Pass-Through Entity Elective Tax Payment Voucher 03/03/2022 PDF
  1. Page 1, Column 1, Electronic Payment section.
  1. Electronic Payment section, First Paragraph added.
To add electronic payment language for S corporations.
2021 Publication 1095D, Tax Practitioner Guidelines for Computer Prepared Returns 03/02/2022 PDF
  1. Page 3, Column 2, What’s New for 2021, Sixth Paragraph, Elective Tax for Pass-Through Entities (PTE) and Credit for Owners.
What’s New for 2021, Sixth Paragraph updated. SB 113, chaptered on February 9, 2022, expands the pass-through entity elective tax benefits for taxable years beginning on or after January 1, 2021 and before January 1, 2026.
2021 Instructions for Form FTB 4197, Information on Tax Expenditure Items 03/02/2022 PDF
  1. Page 1, What’s New, column 1, after paragraph 4.
  2. Page 1, What’s New, column 1, Reporting Requirements paragraph.
  3. Page 1, General Information, Who Should File, column 2, paragraph 4, Taxpayers that Benefited from the Paycheck Protection Program/Other Loan Forgiveness/Economic Injury Disaster Loan.
  4. Page 1, Specific Line Instructions, column 2, paragraph 1.
  5. Pages 1 – 2, Specific Line Instructions, Part I – Deductions, Credits, Exemptions, and Exclusions, Taxpayers that Benefited from the Paycheck Protection Program/Other Loan Forgiveness/Economic Injury Disaster Loan.
  6. Page 2, Specific Line Instructions, Part I – Deductions, Credits, Exemptions, and Exclusions, column 1, Column (a) – Code, Chart and first paragraph directly below.
  1. We added new instructions.
  2. We modified existing instructions.
  3. We modified existing instructions.
  4. We modified existing instructions.
  5. We modified existing instructions.
  6. We modified existing instructions.

1 – 6.
SB 113, chaptered on February 9, 2022, conforms state tax law to the federal tax treatment for Restaurant Revitalization Grants. For taxable years beginning on or after January 1, 2020, California law fully conforms to this federal provision to exclude this pandemic-related financial assistance program from gross income.

In addition, for taxable years beginning on or after January 1, 2019, SB 113 provides conformity to the federal Shuttered Venue Operator Grant provision which allows a gross income exclusion and provides modified conformity in regards to an eligible expense deduction.

As part of FTB’s reporting requirements, taxpayers who benefited from the Restaurant Revitalization Grant and the Shuttered Venue Operator Grant should file form FTB 4197, Information on Tax Expenditure Items.

2021 Instructions for Schedule P (541), Alternative Minimum Tax and Credit Limitations 03/02/2022 PDF
  1. Page 1, Column 1, What’s New, Second Paragraph, Elective Tax for Pass-Through Entities (PTE) and Credit for Owners.
  2. Page 7, Credit Table, Code 242, Pass-Through Entity Elective Tax, Column 4 – Offset Tax in Section.
HTML
  1. Under What’s New, Second Paragraph, Elective Tax for Pass-Through Entities (PTE) and Credit for Owners.
  2. Credit Table, Code 242, Pass-Through Entity Elective Tax, Column 4 – Offset Tax in Section.
  1. What’s New, Second Paragraph modified.
  2. Replaced Section “A2” with “B1” in the Credit Table.

1 – 2.
SB 113, chaptered on February 9, 2022, expands the Pass-Through Entity (PTE) elective tax benefits by:

  • Repealing the tentative minimum tax (TMT) limitation on the PTE elective tax credit;
  • Allowing partnerships/S corporations/LLCs with owners that are partnerships to make the election (although the tax can’t be paid on behalf of the partnership owner);
  • Allowing single member limited liability companies (SMLLCs) that are PTE owners to claim the PTE elective tax credit.
2021 541 Fiduciary Income Tax Booklet 03/01/2022 PDF
  1. Page 2, Column 2, What’s New, Restaurant Revitalization Grants paragraph.
  2. Page 2, Column 2, What’s New, Shuttered Venue Operator Grants paragraph.
  3. Page 2, Column 3, What’s New, second paragraph, Elective Tax for Pass-Through Entities (PTE) and Credit for Owners.
  4. Page 3, Column 1, What’s New, Reporting Requirements paragraph.
HTML
  1. Under “What’s New” ("Restaurant Revitalization Grants" paragraph).
  2. Under “What’s New” (“Shuttered Venue Operator Grants” paragraph).
  3. Under “What’s New,” second paragraph, (“Elective Tax for Pass-Through Entities (PTE) and Credit for Owners” paragraph).
  4. Under “What’s New” (“Reporting Requirements” paragraph).
  1. Existing What’s New paragraph removed.
  2. Existing What’s New paragraph modified.
  3. Existing What’s New paragraph modified.
  4. Existing What’s New paragraph modified.
  1. SB 113, chaptered on February 9, 2022, conforms state tax law to the federal tax treatment for Restaurant Revitalization Grants. For taxable years beginning on or after January 1, 2020, California law fully conforms to this federal provision to exclude this pandemic-related financial assistance program from gross income. As a result, we have deleted verbiage that previously stated that California did not conform.
  2. In addition, for taxable years beginning on or after January 1, 2019, SB 113 provides conformity to the federal Shuttered Venue Operator Grant provision which allows a gross income exclusion and provides modified conformity in regards to an eligible expense deduction. As a result, we have revised the existing Shuttered Venue Operator Grants language under What’s New.
  3. SB 113 expands the pass-through entity elective tax benefits for taxable years beginning on or after January 1, 2021 and before January 1, 2026. As the result, we have updated the existing language under What’s New.
  4. SB 113 also requires a Section 41 reporting requirement for taxpayers that benefited from gross income exclusion and expense deductions from Shuttered Venue Operator Grant and Restaurant Revitalization Grants. As a result we have updated the existing language under What’s New.
2021 540NR, Nonresident or Part-Year Resident Booklet, and Instructions for Schedule CA (540NR), California Adjustments – Nonresidents or Part-Year Residents 03/01/2022 PDF
  1. 540NR Booklet, page 4, 2021 Tax Law Changes/What’s New, column 2, paragraph 2, Shuttered Venue Operator Grants.
  2. 540NR Booklet, page 4, 2021 Tax Law Changes/What’s New, column 2, paragraph 4, Restaurant Revitalization Grants.
  3. 540NR Booklet, 2021 Tax Law Changes/What’s New, page 5, column 1, paragraph 5, Reporting Requirements.
  4. 540NR Booklet, 2021 Tax Law Changes/What’s New, page 5, column 1, paragraph 8, Elective Tax for Pass-Through Entities (PTE) and Credit for Owners.
  5. 540NR Booklet, page 41 / Instructions for Sch. CA (540NR) (flat), page 1, What’s New, column 1, paragraph 1, Reporting Requirements.
  6. 540NR Booklet, page 41 / Instructions for Sch. CA (540NR) (flat), page 1, What’s New, column 2, paragraphs 2 and 3, Shuttered Venue Operator Grants and Restaurant Revitalization Grants.
  7. 540NR Booklet, page 46 / Instructions for Sch. CA (540NR) (flat), line 3, Business income or (Loss), after the Paycheck Protection Program loans forgiveness paragraphs, page 6, column 1, top of the page.
  8. 540NR Booklet, page 47 / Instructions for Sch. CA (540NR) (flat), page 7, column 2, line 8z, Other income, Shuttered venue operator grants and Restaurant revitalization grants paragraphs.
HTML
  1. What’s New and Other Important Information for 2021, 2021 Tax Law Changes/What’s New, paragraph 7.
  2. What’s New and Other Important Information for 2021, 2021 Tax Law Changes/What’s New, paragraph 9.
  3. What’s New and Other Important Information for 2021, 2021 Tax Law Changes/What’s New, paragraph 19.
  4. What’s New and Other Important Information for 2021, 2021 Tax Law Changes/What’s New, paragraph 23.
  5. HTML page for Sch. CA (540NR) instructions, What’s New, paragraph 1.
  6. HTML page for Sch. CA (540NR) instructions, What’s New, paragraphs 10 and 11.
  7. HTML page for Sch. CA (540NR) instructions, Specific Line Instructions, Part II – Income Adjustment Schedule; Section B – Additional Income, Line 3 – Business Income or (Loss), after Paycheck Protection Program loans forgiveness paragraphs.
  8. HTML page for Sch. CA (540NR) instructions, Specific Line Instructions, Part II – Income Adjustment Schedule, Section B – Additional Income, Line 8 – Other Income, z. Other income, paragraphs 8 and 9.
  1. We modified existing instructions.
  2. We removed existing instructions.
  3. We modified existing instructions.
  4. We modified existing instructions.
  5. We modified existing instructions.
  6. We modified existing instructions.
  7. We added new instructions.
  8. We removed existing instructions.

1 – 8.
SB 113, chaptered on February 9, 2022, conforms state tax law to the federal tax treatment for Restaurant Revitalization Grants. For taxable years beginning on or after January 1, 2020, California law fully conforms to this federal provision to exclude this pandemic-related financial assistance program from gross income. As a result, we have deleted verbiage that previously stated that California did not conform.

In addition, for taxable years beginning on or after January 1, 2019, SB 113 provides conformity to the federal Shuttered Venue Operator Grant provision which allows a gross income exclusion and provides modified conformity in regards to an eligible expense deduction.

SB 113 also expands the pass-through entity elective tax benefits for taxable years beginning on or after January 1, 2021 and before January 1, 2026.

As part of FTB’s reporting requirements, taxpayers who benefited from the Restaurant Revitalization Grant and the Shuttered Venue Operator Grant should file form FTB 4197, Information on Tax Expenditure Items.

2021 FTB 3804, Pass-Through Entity Elective Tax Calculation 02/25/2022 PDF
  1. Form, Page 1, Part II, Schedule of Qualified Taxpayers, header.

2 – 17.

Form, Page 1 – 2, Part II, Schedule of Qualified Taxpayers, line 1 to line 16, box a, description.

  1. Instructions, Page 1, Column 1, What’s New, Second paragraph, Elective Tax for Pass-Through Entities (PTE) and Credit for Owners.
  2. Instructions, Page 1, Column 1, General Information, Third Paragraph.
  3. Instructions, Page 1, Column 1, Purpose, First Paragraph.
  4. Instructions, Page 1, Column 2, Purpose, Second Paragraph.
  5. Instructions, Page 1, Column 2, Definitions, First Paragraph, Electing qualified PTE.
  6. Instructions, Page 1, Column 2, Definitions, Second Paragraph, PTE Elective Tax.
  7. Instructions, Page 1, Column 2, Definitions, Third Paragraph, Qualified taxpayer.
  8. Instructions, Page 1, Column 2, Definitions, Fourth Paragraph, Qualified amount.
  9. Instructions, Page 1, Column 2, Definitions, Fifth Paragraph, Qualified net income.
  10. Instructions, Page 2, Column 1, Part II Schedule of Qualified Taxpayers, Sixth Paragraph, Qualified Taxpayer Name and TIN.
  11. Instructions, Page 2, Column 2, Part II Schedule of Qualified Taxpayers, First Paragraph, Pro-rata or distributive share of qualified net income
  12. Instructions, Page 2, Column 2, Part II Schedule of Qualified Taxpayers, Third Paragraph, Elective tax credit amount.
HTML
  1. Instructions, What’s New, Second paragraph, Elective Tax for Pass-Through Entities (PTE) and Credit for Owners.
  2. Instructions, General Information, Third Paragraph.
  3. Instructions, Purpose, First Paragraph.
  4. Instructions, Purpose, Third Paragraph.
  5. Instructions, Definitions, First Paragraph, Electing qualified PTE.
  6. Instructions, Definitions, Second Paragraph, PTE Elective Tax.
  7. Instructions, Definitions, Third Paragraph, Qualified taxpayer.
  8. Instructions, Definitions, Fourth Paragraph, Qualified amount.
  9. Instructions, Definitions, Fifth Paragraph, Qualified net income.
  10. Instructions, Part II Schedule of Qualified Taxpayers, Sixth Paragraph, Qualified Taxpayer Name and TIN.
  11. Instructions, Part II Schedule of Qualified Taxpayers, Seventh Paragraph, Pro-rata or distributive share of qualified net income.
  12. Instructions, Part II Schedule of Qualified Taxpayers, Ninth Paragraph, Elective tax credit amount.
  1. Form, Page 1, Part II, Schedule of Qualified Taxpayers, added text to header.

2 – 17.

Form, Page 1 – 2, Part II, Schedule of Qualified Taxpayers, line 1 to line 16, replaced box a description.

  1. Instructions, Page 1, Column 1, What’s New, Second paragraph, updated text.
  2. Instructions, Page 1, Column 1, General Information, Third paragraph, added text.
  3. Instructions, Page 1, Column 1, Purpose, First Paragraph, added text.
  4. Instructions, Page 1, Column 2, Purpose, Second Paragraph, updated text.
  5. Instructions, Page 1, Column 2, Definitions, First Paragraph, Electing qualified PTE, updated text.
  6. Instructions, Page 1, Column 2, Definitions, Second Paragraph, PTE Elective Tax, added text.
  7. Instructions, Page 1, Column 2, Definitions, Third Paragraph, Qualified taxpayer, updated text.
  8. Instructions, Page 1, Column 2, Definitions, Fourth Paragraph, Qualified amount, added text.
  9. Instructions, Page 1, Column 2, Definitions, Fifth Paragraph, Qualified net income, updated text.
  10. Instructions, Page 2, Column 1, Part II Schedule of Qualified Taxpayers, Sixth Paragraph, Qualified Taxpayer Name and TIN, updated text.
  11. Instructions, Page 2, Column 2, Part II Schedule of Qualified Taxpayers, First Paragraph, Pro-rata or distributive share of qualified net income, updated text.
  12. Instructions, Page 2, Column 2, Part II Schedule of Qualified Taxpayers, Third Paragraph, Elective tax credit amount, added text.

1 – 29.
SB 113, chaptered on February 9, 2022, expands the pass-through entity elective tax benefits for taxable years beginning on or after January 1, 2021 and before January 1, 2026.

2021 109 Booklet – Exempt Organization Business Income Tax Booklet 02/25/2022 PDF
  1. Page 2, Column 1, What’s New, Restaurant Revitalization Grants paragraph.
  2. Page 2, Column 1, What’s New, Shuttered Venue Operator Grants paragraph.
  3. Page 2, Column 3, What’s New, Paycheck Protection Paragraph (PPP) Loans Forgiveness second paragraph.
  4. Page 2, Column 3, What’s New, Reporting Requirements paragraph.
HTML
  1. Under “What’s New” ("Restaurant Revitalization Grants" paragraph).
  2. Under “What’s New” (“Shuttered Venue Operator Grants” paragraph).
  3. Under “What’s New” (“Paycheck Protection Paragraph (PPP) Loans Forgiveness” paragraph).
  4. Under “What’s New” (“Reporting Requirements” paragraph).
  1. Existing What’s New paragraph removed.
  2. Existing What’s New paragraph modified.
  3. Existing What’s New paragraph modified.
  4. Existing What’s New paragraph modified.
  1. SB 113, chaptered on February 9, 2022, conforms state tax law to the federal tax treatment for Restaurant Revitalization Grants. For taxable years beginning on or after January 1, 2020, California law fully conforms to this federal provision to exclude this pandemic-related financial assistance program from gross income. As a result, we have deleted verbiage that previously stated that California did not conform.
  2. In addition, for taxable years beginning on or after January 1, 2019, SB 113 provides conformity to the federal Shuttered Venue Operator Grant provision which allows a gross income exclusion and provides modified conformity in regards to an eligible expense deduction. As a result, we have revised the existing Shuttered Venue Operator Grants language under What’s New.
  3. The acronym for the ARPA has to be expanded since it was removed in item #1.
  4. SB 113 also requires a Section 41 reporting requirement for taxpayers that benefited from gross income exclusion and expense deductions from Shuttered Venue Operator Grant and Restaurant Revitalization Grants. As a result we have updated the existing language under What’s New.
2021 Form 568, Limited Liability Company Return of Income 02/24/2022 PDF
Side 5, Schedule K, Line 21a.

Schedule K, Line 21a updated.

To clarify the instructions to ensure guaranteed payments will not be double counted.

2021 Form 565, Partnership Return of Income 02/24/2022 PDF
Side 4, Schedule K, Line 21a.

Schedule K, Line 21a updated.

To clarify the instructions to ensure guaranteed payments will not be double counted.

2021 FTB 3893, Pass-Through Entity Elective Tax Payment Voucher 02/22/2022 PDF
  1. Page 1, Column 1, What’s New, Second Paragraph, Elective Tax for Pass-through Entities (PTE) and Credit for Owners.
  2. Page 1, Column 1, General Information, First paragraph.
  3. Page 1, Column 2, Instructions, Fifth paragraph, Amount of Payment.
  1. What’s New, Second paragraph updated.
  2. General Information, First paragraph updated.
  3. Instructions, Fifth paragraph updated.

SB 113, chaptered on February 9, 2022, expands the pass-through entity elective tax benefits for taxable years beginning on or after January 1, 2021 and before January 1, 2026.

2021 FTB 8453-LLC, California e-file Return Authorization for Limited Liability Companies 02/11/2022 PDF
  1. Part I, Tax Return Information, Line 3.
  2. Part I, Tax Return Information, Line 4.
  3. Part I, Tax Return Information, Line 5.

1 – 3.
Changing the line references.

1 – 3.
Changing the line references.

2021 FTB 8453-P, California e-file Return Authorization for Partnership 02/11/2022 PDF
  1. Part I, Tax Return Information, Line 3.
  2. Part I, Tax Return Information, Line 4.

1 – 2.
Changing the line references

1 – 3.
Changing the line references.

2020 100S Booklet, S Corporation Tax Booklet 04/13/2022 PDF
  1. Page 2, Table of Contents, Entry lines 5 through 22.

2 – 5.

Page 3, Column 1, What’s New/Tax Law Changes, before Small Business COVID-19 Relief Grant Program paragraph.

  1. Page 3, Column 1, What’s New/Tax Law Changes, Second and Third paragraphs, Paycheck Protection Program (PPP) Loans Forgiveness.
  2. Page 3, Column 2, What’s New/Tax Law Changes, Second paragraph, Advance Grant Amount.
  3. Page 13, Column 3, BB Tax Credits, Second paragraph.
  4. Page 17, Column 2, Line 7 – Other additions, before Paycheck Protection Program Loans Forgiveness.
  5. Page 17, Column 2, Line 7 – Other additions, Fifth paragraph.
  6. Page 17, Column 3, Line 7 – Other additions, before Penalty Assessed by Professional Sports League.

12 – 13.

Page 18, Column 1, Line 12 – Other deductions, before Small Business COVID-19 Relief Grant Program.

  1. Page 19, Column 2, Line 22 through Line 24 – Tax Credits, Sixth paragraph.
  2. Page 22, Column 1, Schedule K and Schedule K-1 (100S), First paragraph.

16 – 17.

Page 22, Column 1, Schedule K and Schedule K-1 (100S), before Special Reporting for R&TC Section 41.

  1. Page 22, Column 1, Schedule K and Schedule K-1 (100S), Specific Line Instructions, First Paragraph.

19 – 20.

Page 22, Column 3, Schedule K and Schedule K-1 (100S), Specific Line Instructions, Line 10b – Other income (loss), before Small Business COVID-19 Relief Grant Program.

  1. Page 25, Column 3, Schedule L – Balance Sheet, First paragraph
  2. Page 27 and Page 28, new blank pages added.
HTML
  1. Not applicable.

2 – 5.

What’s New/Tax Law Changes, Paragraphs added before Small Business COVID-19 Relief Grant Program.

  1. What’s New/Tax Law Changes, Second and Third paragraphs updated.
  2. What’s New/Tax Law Changes, Fifth paragraph updated.
  3. BB Tax Credits, Second paragraph updated.
  4. Line 7 – Other additions, Paragraph added before Paycheck Protection Program Loans Forgiveness.
  5. Line 7 – Other additions, Fifth paragraph updated.
  6. Line 7 – Other additions, Paragraph added before Penalty Assessed by Professional Sports League.

12 – 13.

Line 12 – Other deductions, Paragraphs added before Small Business COVID-19 Relief Grant Program.

  1. Line 22 through Line 24 – Tax Credits, Sixth paragraph updated.
  2. Schedule K and Schedule K-1 (100S), Sixth paragraph updated.

16 – 17.

Schedule K and Schedule K-1 (100S), Paragraphs added before Special Reporting for R&TC Section 41.

  1. Schedule K and Schedule K-1 (100S), Specific Line Instructions, First paragraph updated.

19 – 20.

Schedule K and Schedule K-1 (100S), Specific Line Instructions, Line 10b – Other income (loss) Paragraphs added before Small Business COVID-19 Relief Grant Program.

  1. Schedule L – Balance Sheet, First paragraph updated.
  2. Not applicable.
  1. Page numbers updated.
  2. New paragraph added.
  3. New paragraph added.
  4. New paragraph added.
  5. New paragraph added.
  6. Updated to use abbreviation.
  7. Updated to use abbreviation.
  8. Page reference updated.
  9. New paragraph added.
  10. Updated to use abbreviation.
  11. New paragraph added.
  12. New paragraph added.
  13. New paragraph added.
  14. Page reference updated.
  15. Updated to use abbreviation.
  16. New paragraph added.
  17. New paragraph added.
  18. Page reference updated.
  19. New paragraph added.
  20. New paragraph added.
  21. Page reference updated.
  22. Blank pages added.

1, 8, 14, 18, 21.
Updated to correct the page references.

2, 11, 16.
AB 80, which chaptered on April 29, 2021, provides modified conformity to this federal provision under the Consolidated Appropriations Act, 2021, which allows taxpayers to deduct eligible expenses paid for with covered loan amounts, except for an ineligible entity. If an ineligible entity deducted eligible expenses for federal purposes, then an adjustment is needed on Form 100S, line 7 – Other additions, and on applicable line(s) on Schedule K/K-1(100S), column (c).

3, 4, 12, 13, 19, 20.
AB 176, which chaptered on September 23, 2021, allows an exclusion from gross income grant allocations received by a taxpayer pursuant the California Microbusiness COVID-19 Relief Program and California Venues Grant Program. Federal law has no similar exclusion. If an adjustment is needed, enter on Form 100S, line 12 – other deductions the amount of this type of income, and on applicable line(s) on Schedule K/K-1(100S), line 10b, column (c).

5, 9, 17.
SB 113, chaptered on February 9, 2022, provides conformity to the federal Shuttered Venue Operator Grant provision for taxable years beginning on or after January 1, 2019, which allows a gross income exclusion and provides modified conformity in regards to an eligible expense deduction. If an ineligible entity deducted eligible expenses for federal purposes, then an adjustment is needed on Form 100S, line 7 – Other Additions, and on applicable line(s) on Schedule K/ K-1 (100S), column (c).

6, 7, 10, 15 have been updated to add the abbreviation.

22. Add blank pages.

2020 Form 100W California Corporation Tax Return Booklet – Water’s Edge Filers 04/12/2022 PDF
  1. Page 3, Column 2, What’s New/Tax Law Changes, First through Fourth Paragraph positions.
  2. Page 16, Column 3, Line 8 – Other additions, Third Paragraph position.
  3. Page 16, Column 3, Line 8 – Other additions, Fifth Paragraph position.
  4. Page 17, Column 2, Line 15 – Other deductions, Third Paragraph position.
  5. Page 17, Column 2, Line 15 – Other deductions, Fourth Paragraph position.
HTML
  1. What’s New/Tax Law Changes, First through Fourth Paragraph positions.
  2. Specific Line Instructions, Line 1 through Line 43, Line 8 – Other additions, Third Paragraph position.
  3. Specific Line Instructions, Line 1 through Line 43, Line 8 – Other additions, Fifth Paragraph position.
  4. Specific Line Instructions, Line 1 through Line 43, Line 15 – Other deductions, Third Paragraph position.
  5. Specific Line Instructions, Line 1 through Line 43, Line 15 – Other deductions, Fourth Paragraph position.
  1. Page 3, Column 2, What’s New/Tax Law Changes, First through Fourth Paragraph positions, new paragraphs added.
  2. Page 16, Column 3, Line 8 – Other additions, Third Paragraph position, new paragraph added.
  3. Page 16, Column 3, Line 8 – Other additions, Fifth Paragraph position, new paragraph added.
  4. Page 17, Column 2, Line 15 – Other deductions, Third Paragraph position, new paragraph added.
  5. Page 17, Column 2, Line 15 – Other deductions, Fourth Paragraph position, new paragraph added.
  1. Added What’s New/Tax Law Changes paragraphs for the Shuttered Venue Operator Grant, Other Loan Forgiveness, California Microbusiness COVID-19 Relief Grant and California Venues Grant as a result of Assembly Bills 80 and 176, and Senate Bill 113 for the reasons explained in Items 2 through 5, below.
  2. Senate Bill 113, which chaptered on February 9, 2022, provides modified conformity to the federal shuttered venue operator grant provision under the Consolidated Appropriations Act, 2021, which allows taxpayers to deduct eligible expenses paid for with covered loan amounts, except for an ineligible entity. If an ineligible entity deducted eligible expenses for federal purposes, then an adjustment is needed on Form 100W, line 8 – Other additions.
  3. Assembly Bill 80, which chaptered on April 29, 2021, provides modified conformity to the federal other loan forgiveness provisions under the Consolidated Appropriations Act, 2021, which allows taxpayers to deduct eligible expenses paid for with covered loan amounts, except for an ineligible entity. If an ineligible entity deducted eligible expenses for federal purposes, then an adjustment is needed on Form 100W, line 8 – Other additions.
  4. Assembly Bill 176, which chaptered on September 23, 2021, allows an exclusion from gross income grant allocations received by a taxpayer pursuant to the California Microbusiness COVID-19 Relief Program. Federal law has no similar exclusion. If an adjustment is needed, enter the amount of this type of income on Form 100W, line 15 – Other Deductions.
  5. Assembly Bill 176, which chaptered on September 23, 2021, allows an exclusion from gross income grant allocations received by a taxpayer pursuant to the California Venues Grant Program. Federal law has no similar exclusion. If an adjustment is needed, enter the amount of this type of income on Form 100W, line 15 – Other Deductions.
2020 540, Personal Income Tax Booklet, and Instructions for Schedule CA (540), California Adjustments – Residents 03/22/2022 PDF
  1. 540 Booklet, page 2, Table of Contents, page numbers starting from “Which Form Should I Use?” through “Automated Phone Service”.
  2. 540 Booklet, page 2, column 1, $$$ for You, paragraph 4, Refund of Excess State Disability Insurance (SDI) paragraph.
  3. 540 Booklet, page 3, Do I Have to File?, California Gross Income/California Adjusted Gross Income chart, last row, Dependent of another person, column 3.
  4. 540 Booklet, page 4, What’s New and Other Important Information for 2020, column 1, after the American Rescue Plan Unemployment Compensation paragraph.
  5. 540 Booklet, page 4, What’s New and Other Important Information for 2020, column 2, paragraph 2 within the Dependent Exemption Credit with No ID issue.
  6. 540 Booklet, page 5, column 1, after the Advance Grant Amount paragraph.
  7. 540 Booklet, page 6, column 2, Schedule X, California Explanation of Amended Return Changes paragraph.
  8. 540 Booklet, between page 8 and page 9.
  9. 540 Booklet, page 9, column 1, Before You Begin, paragraph 5.
  10. 540 Booklet, page 11, column 2, Tax, Line 31 instructions, bullet points 1 and 2.
  11. 540 Booklet, page 12, column 2, Special Credits and Nonrefundable Credits, paragraph 1.
  12. 540 Booklet, page 13, column 2, Line 46 instructions.
  13. 540 Booklet, page 15, column 2, paragraph 8, immediately before Use Tax Worksheet.
  14. 540 Booklet, page 23, Credit Chart, rows 2, 3, 5, 11, 17 and 23 (header row is not counted), column 1.
  15. 540 Booklet, page 24, Frequently Asked Questions, #6 – How can I check on the status of my refund?, paragraph 2.
  16. 540 Booklet, page 25, Additional Information, column 1, California Use Tax General Information, paragraph 8.
  17. 540 Booklet, page 28, Contacting the Franchise Tax Board, last sentence.
  18. 540 Booklet, page 39 / Instructions for Sch. CA (flat), page 1, column 1, immediately under What’s New.
  19. 540 Booklet, page 42 / Instructions for Sch. CA (flat), page 4, column 2, Line 3 – Business Income or (Loss), bullet point 2.
  20. 540 Booklet, page 42 / Instructions for Sch. CA (flat), page 4, column 2, Line 3 – Business Income or (Loss), before the Paycheck Protection Program loans forgiveness paragraph.
  21. 540 Booklet, page 43 / Instructions for Sch. CA (flat), page 5, column 2, under the Business deductions related to list, after 5th bullet.
  22. 540 Booklet, page 44 / Instructions for Sch. CA (flat), page 6, column 1, Line 8 – Other income, f. Other, after the Unemployment compensation exclusion paragraph.
  23. 540 Booklet, between page 48 and page 49.
  24. 540 Booklet, page 61, 2021 California Estimated Tax Worksheet within Form 540-ES instructions, line 17.
HTML
  1. N/A
  2. N/A
  3. N/A
  4. What's New and Other Important Information for 2020, 2020 Tax Law Changes/What's New, after the American Rescue Plan Unemployment Compensation paragraph.
  5. N/A
  6. What's New and Other Important Information for 2020, 2020 Tax Law Changes/What's New, after the Advance Grant Amount paragraph.
  7. N/A
  8. N/A
  9. N/A
  10. N/A
  11. N/A
  12. N/A
  13. N/A
  14. N/A
  15. N/A
  16. N/A
  17. N/A
  18. HTML page for Sch. CA (540) instructions, immediately under What's New.
  19. N/A
  20. HTML page for Sch. CA (540) instructions, Specific Line Instructions, Column B and Column C – Subtractions and Additions, Section B – Additional Income, Line 3 – Business Income or (Loss), before the Paycheck Protection Program loan forgiveness paragraph.
  21. HTML page for Sch. CA (540) instructions, Specific Line Instructions, Column B and Column C – Subtractions and Additions, Section B – Additional Income, Line 3 – Business Income or (Loss), under the Business deductions related to list, after 5th bullet.
  22. HTML page for Sch. CA (540) instructions, Specific Line Instructions, Column B and Column C – Subtractions and Additions, Section B – Additional Income, Line 8 – Other Income, f. Other, after the Unemployment compensation exclusion paragraph.
  23. N/A
  24. N/A

1, 2, 3, 5, 7, 9 – 17, 24.
We updated page number references.

4, 6, 8, 20 – 22.
We added new instructions.

8 & 23.
We inserted intentional blank pages.

19.
We modified existing instructions.

1, 2, 3, 5, 7, 9 – 17, 24.
Additional text from this revision results in additional pages to the booklet and renumbering of pages throughout the booklet.

4, 6, 18, 20, 22.
AB 80, chaptered on April 29, 2021, provides modified conformity to the federal provision under the Consolidated Appropriations Act, 2021, which allows taxpayers to deduct eligible expenses paid for with covered loan amounts, except for an ineligible entity. If an ineligible entity deducted eligible expenses for federal purposes, then an adjustment is needed on Schedule CA (540) for personal income taxpayers, or on applicable line(s) of applicable tax returns.

SB 151, chaptered on July 12, 2021, provides an exclusion from gross income for grant allocations received pursuant to the California Microbusiness COVID-19 Relief Grant Program administered by the Office of Small Business Advocate. Since federal law has no similar exclusion, an adjustment is needed on Schedule CA (540).

AB 176, chaptered on September 23, 2021, provides technical and clarifying changes to the California Microbusiness COVID-19 Relief Grant Program and the California Venues Grant Program.

Additionally, AB 176 provides an exclusion from gross income for grant allocations received pursuant to the California Venues Grant Program, and for grant allocations received pursuant to the California Microbusiness COVID-19 Relief Program for corporate taxpayers. Since federal law has no similar exclusion, an adjustment is needed on Schedule CA (540) for personal income taxpayers, or on applicable line(s) of applicable tax returns.

SB 113, chaptered on February 9, 2022, provides conformity to the federal Shuttered Venue Operator Grant provision which allows a gross income exclusion and provides modified conformity in regards to an eligible expense deduction.

8 & 23.
We inserted intentional blank pages so that forms start on odd-numbered pages.

19.
Additional text resulted in text movement and a reference to text position needed to be updated.

21.
The federal Coronavirus Aid, Relief, and Economic Security Act (CARES Act) created Employee Retention Credit, which has since been extended by the federal Taxpayer Certainty and Disaster Relief Act of 2020 and by the federal American Rescue Plan Act of 2021. Employers who claim these credits for federal purposes must reduce their wage expense by the amount of the credits. Since California has no similar credits, an adjustment is needed on Schedule CA (540) for employers to fully claim the deduction.

2020 Form 100 California Corporation Tax Return Booklet 03/30/2022 PDF
  1. Page 2, Table of Contents, Entry Lines 5 through 17.
  2. Page 3, Column 1, What’s New/Tax Law Changes, First through Fourth Paragraph positions.
  3. Page 13, Section Y, California Use Tax, Column 3, Seventh Paragraph position.
  4. Page 15, Column 3, Line 8 – Other additions, Third Paragraph position.
  5. Page 16, Column 1, Line 8 – Other additions, Fifth Paragraph position.
  6. Page 16, Column 2, Line 15 – Other deductions, Third Paragraph position.
  7. Page 16, Column 2, Line 15 – Other deductions, Fourth Paragraph position.
  8. Page 17, Column 2, Line 24 through Line 26 – Tax credits, Eighth Paragraph position.
  9. Page 17, Column 3, Line 36 – Use tax, Third Paragraph position.
  10. Page 17, Column 3, Line 36 – Use tax, Fourth Paragraph position.
  11. Page 19, Column 2, Schedule G – Bad Debts Reserve Method, First Paragraph position.
  12. Page 20, Column 3, Schedule M-1 – Reconciliation of Income (Loss) per Books with Income (Loss) per Return, Second Paragraph position, Reporting Requirements.
  13. Page 22, This Page Left Intentionally Blank.
HTML
  1. Not Applicable.
  2. What’s New/Tax Law Changes, First through Fourth Paragraph positions.
  3. Not Applicable.
  4. Specific Line Instructions, Line 1 through Line 43, Line 8 – Other additions, Third Paragraph position.
  5. Specific Line Instructions, Line 1 through Line 43, Line 8 – Other additions, Fifth Paragraph position.
  6. Specific Line Instructions, Line 1 through Line 43, Line 15 – Other deductions, Third Paragraph position
  7. Specific Line Instructions, Line 1 through Line 43, Line 15 – Other deductions, Fourth Paragraph position
  8. Not Applicable.
  9. Not Applicable.
  10. Not Applicable.
  11. Not Applicable.
  12. Not Applicable.
  13. Not Applicable.
  1. Page 2, Table of Contents, Entry Lines 5 through 17, page references updated.
  2. Page 3, Column 1, What’s New/Tax Law Changes, First through Fourth Paragraph positions, new paragraphs added.
  3. Page 13, Section Y, California Use Tax, Column 3, Seventh Paragraph position, page reference updated.
  4. Page 15, Column 3, Line 8 – Other additions, Third Paragraph position, new paragraph added.
  5. Page 16, Column 1, Line 8 – Other additions, Fifth Paragraph position, new paragraph added.
  6. Page 16, Column 2, Line 15 – Other deductions, Third Paragraph position, new paragraph added.
  7. Page 16, Column 2, Line 15 – Other deductions, Fourth Paragraph position, new paragraph added.
  8. Page 17, Column 2, Line 24 through Line 26 – Tax credits, Eighth Paragraph position, page reference updated.
  9. Page 17, Column 3, Line 36 – Use tax, Third Paragraph position, location reference updated.
  10. Page 17, Column 3, Line 36 – Use tax, Fourth Paragraph position, location reference updated.
  11. Page 19, Column 2, Schedule G – Bad Debts Reserve Method, First Paragraph position, location reference updated.
  12. Page 20, Column 3, Schedule M-1 – Reconciliation of Income (Loss) per Books with Income (Loss) per Return, Second Paragraph position, Reporting Requirements, page reference updated.
  13. Page 22, This Page Left Intentionally Blank, new blank page added.
  1. Updated page references.
  2. Added What's New/Tax Law Changes paragraphs for the Shuttered Venue Operator Grant, Other Loan Forgiveness, California Microbusiness COVID-19 Relief Grant and California Venues Grant as a result of Assembly Bills 80 and 176, and Senate Bill 113 for the reasons explained in Items 4 through 7, below.
  3. Updated Page references.
  4. Senate Bill 113, which chaptered on February 9, 2022, provides modified conformity to the federal shuttered venue operator grant provision under the Consolidated Appropriations Act, 2021, which allows taxpayers to deduct eligible expenses paid for with covered loan amounts, except for an ineligible entity. If an ineligible entity deducted eligible expenses for federal purposes, then an adjustment is needed on Form 100, line 8 – Other additions.
  5. Assembly Bill 80, which chaptered on April 29, 2021, provides modified conformity to the federal other loan forgiveness provisions under the Consolidated Appropriations Act, 2021, which allows taxpayers to deduct eligible expenses paid for with covered loan amounts, except for an ineligible entity. If an ineligible entity deducted eligible expenses for federal purposes, then an adjustment is needed on Form 100, line 8 – Other additions.
  6. Assembly Bill 176, which chaptered on September 23, 2021, allows an exclusion from gross income grant allocations received by a taxpayer pursuant to the California Microbusiness COVID-19 Relief Program. Federal law has no similar exclusion. If an adjustment is needed, enter the amount of this type of income on Form 100, line 15 – Other Deductions.
  7. Assembly Bill 176, which chaptered on September 23, 2021, allows an exclusion from gross income grant allocations received by a taxpayer pursuant to the California Venues Grant Program. Federal law has no similar exclusion. If an adjustment is needed, enter the amount of this type of income on Form 100, line 15 – Other Deductions.
  8. Updated page reference.
  9. Location reference updated.
  10. Location reference updated.
  11. Location reference updated.
  12. Page reference updated.
  13. Added a blank page to ensure correct page flow in the 2020 Form 100 booklet.
2020 Form 568, Limited Liability Company Tax Booklet 03/30/2022 PDF
  1. Page 2, Table of Contents.
  2. Page 3, Column 1, What’s New, before Small Business COVID-19 Relief Grant Program paragraph.
  3. Page 3, Column 1, What’s New, before Small Business COVID-19 Relief Grant Program paragraph.
  4. Page 3, Column 1, What’s New, before Small Business COVID-19 Relief Grant Program paragraph.
  5. Page 3, Column 1, What’s New, before Small Business COVID-19 Relief Grant Program paragraph.
  6. Page 19, Column 1, Schedule K (568) and Schedule K-1 (568) – Partner’s Shares of Income, Deductions, Credits, etc., before Paycheck Protection Program Loans Forgiveness paragraph.
  7. Page 19, Column 1, Schedule K (568) and Schedule K-1 (568) – Partner’s Shares of Income, Deductions, Credits, etc., after Paycheck Protection Program Loans Forgiveness paragraph.
  8. Page 21, Column 1, Specific Line Instructions, before Qualified Opportunity Zone paragraph.
  9. Page 21, Column 1, Specific Line Instructions, before Qualified Opportunity Zone paragraph.
  1. Table of Contents, page references updated.
  2. What’s New, Other Loan Forgiveness paragraph added.
  3. What’s New, California Microbusiness COVID-19 Relief Grant paragraph added.
  4. What’s New, California Venues Grant paragraph added.
  5. What’s New, Shuttered Venue Operator Grant paragraph added.
  6. Schedule K (568) and Schedule K-1 (568) – Member's Shares of Income, Deductions, Credits, etc., Other Loan Forgiveness paragraph added.
  7. Schedule K (568) and Schedule K-1 (568) – Member’s Shares of Income, Deductions, Credits, etc., Shuttered Venue Operator Grant paragraph added.
  8. Schedule K (568) and Schedule K-1 (568), Specific Line Instructions, California Microbusiness COVID-19 Relief Grant paragraph added.
  9. Schedule (568) and Schedule K-1 (568), Specific Line Instructions, California Venues Grant paragraph added.

1.
Updated page references.

2 & 7.
AB 80, which chaptered on April 29, 2021, provides modified conformity to this federal provision under the Consolidated Appropriations Act, 2021, which allows taxpayers to deduct eligible expenses paid for with covered loan amounts, except for an ineligible entity. For California purposes, if you are an ineligible entity and deducted eligible expenses for federal purposes, enter that amount on the applicable line(s) as a column (c) adjustment.

3, 4, 8, 9.
AB 176, which chaptered on September 23, 2021, allows an exclusion from gross income grant allocations received by a taxpayer pursuant the California Microbusiness COVID-19 Relief Program and California Venues Grant Program. Federal law has no similar exclusion. Enter on Schedule K/K-1 (565), line 11b – Total Other Income.

5 & 6.
SB 113, chaptered on February 9, 2022, provides conformity to the federal Shuttered Venue Operator Grant provision for taxable years beginning on or after January 1, 2019, which allows a gross income exclusion and provides modified conformity in regards to an eligible expense deduction. For California purposes, if you are an ineligible entity and deducted eligible expenses for federal purposes, enter that amount on the applicable line(s) as a column (c) adjustment.

2020 Form 565, Partnership Tax Booklet 03/29/2022 PDF
  1. Page 2, Table of Contents.
  2. Page 3, Column 1, What’s New, before Small Business COVID-19 Relief Grant Program paragraph.
  3. Page 3, Column 1, What’s New, before Small Business COVID-19 Relief Grant Program paragraph.
  4. Page 3, Column 1, What’s New, before Small Business COVID-19 Relief Grant Program paragraph.
  5. Page 3, Column 1, What’s New, before Small Business COVID-19 Relief Grant Program paragraph.
  6. Page 16, Column 2, Schedule K (565) and Schedule K-1 (565) – Partner’s Shares of Income, Deductions, Credits, etc., before Paycheck Protection Program Loans Forgiveness paragraph.
  7. Page 16, Column 2 Schedule K (565) and Schedule K-1 (565) – Partner’s Shares of Income, Deductions, Credits, etc., after Paycheck Protection Program Loans Forgiveness paragraph.
  8. Page 19 Column 1 Income, before Qualified Opportunity Zone funds paragraph.
  9. Page 19, Column 1 Income, before Qualified Opportunity Zone funds paragraph.
  1. Table of Contents, page references updated.
  2. What’s New, Other Loan Forgiveness paragraph added.
  3. What’s New, California Microbusiness COVID-19 Relief Grant paragraph added.
  4. What’s New, California Venues Grant paragraph added.
  5. What’s New, Shuttered Venue Operator Grant paragraph added.
  6. Schedule K (565) and Schedule K-1 (565) – Partner’s Shares of Income, Deductions, Credits, etc., Other Loan Forgiveness paragraph added.
  7. Schedule K (565) and Schedule K-1 (565) – Partner’s Shares of Income, Deductions, Credits, etc., Shuttered Venue Operator Grant paragraph added.
  8. Schedule K (565) and Schedule K-1 (565), Specific Line Instructions, Income, California Microbusiness COVID-19 Relief Grant paragraph added.
  9. Schedule K (565) and Schedule K-1 (565), Specific Line Instructions, Income, California Venues Grant paragraph added.

1.
Updated page references.

2 & 7.
AB 80, which chaptered on April 29, 2021, provides modified conformity to this federal provision under the Consolidated Appropriations Act, 2021, which allows taxpayers to deduct eligible expenses paid for with covered loan amounts, except for an ineligible entity. For California purposes, if you are an ineligible entity and deducted eligible expenses for federal purposes, enter that amount on the applicable line(s) as a column (c) adjustment.

3, 4, 8, 9.
AB 176, which chaptered on September 23, 2021, allows an exclusion from gross income grant allocations received by a taxpayer pursuant the California Microbusiness COVID-19 Relief Program and California Venues Grant Program. Federal law has no similar exclusion. Enter on Schedule K/K-1 (565), line 11b – Total Other Income.

5 & 6.
SB 113, chaptered on February 9, 2022, provides conformity to the federal Shuttered Venue Operator Grant provision for taxable years beginning on or after January 1, 2019, which allows a gross income exclusion and provides modified conformity in regards to an eligible expense deduction. For California purposes, if you are an ineligible entity and deducted eligible expenses for federal purposes, enter that amount on the applicable line(s) as a column (c) adjustment.

2020 109 Booklet – Exempt Organization Business Income Tax Booklet 03/28/2022 PDF
  1. Page 2, Column 1, What’s New.
  2. Page 2, Column 1, What’s New.
  3. Page 2, Column 1, What’s New.
  4. Page 2, Column 1, What’s New.
  5. Page 2, Column 1, What’s New, Excess Business Loss Limitation paragraph.
  6. Page 2, Column 2, What’s New, Paycheck Protection Program paragraph.
  7. 109 Booklet, between page 10 and page 11.
HTML

1 – 4.

Under “What’s New,” First through Fourth paragraph positions.

  1. Under “What’s New,” Excess Business Loss Limitation paragraph.
  2. Under “What’s New,” Paycheck Protection Program (PPP) Loans Forgiveness paragraph.
  3. N/A
  1. What’s New, First paragraph added.
  2. What’s New, Second paragraph added.
  3. What’s New, Third paragraph added.
  4. What’s New, Fourth paragraph added.
  5. Existing What’s New paragraph modified.
  6. Existing What’s New paragraph modified.
  7. We inserted an intentional blank page.

1.
AB 80, which chaptered on April 29, 2021, provides modified conformity to this federal provision under the Consolidated Appropriations Act, 2021, which allows taxpayers to deduct eligible expenses paid for with covered loan amounts, except for an ineligible entity.

2 & 3.
AB 176, which chaptered on September 23, 2021, allows an exclusion from gross income grant allocations received by a taxpayer pursuant the California Microbusiness COVID-19 Relief Program and California Venues Grant Program. Federal law has no similar exclusion.

4.
SB 113, chaptered on February 9, 2022, provides conformity to the federal Shuttered Venue Operator Grant provision for taxable years beginning on or after January 1, 2019, which allows a gross income exclusion and provides modified conformity in regards to an eligible expense deduction.

5.
The CARES acronym was expanded in Item #1 added.

6.
The CAA acronym was expanded in Item #1 added.

2020 541 Booklet – Fiduciary Income Tax Booklet 03/21/2022 PDF
  1. Page 2, Column 1, What’s New.
  2. Page 2, Column 1, What’s New.
  3. Page 2, Column 1, What’s New.
  4. Page 2, Column 1, What’s New.
  5. Page 2, Column 3, What’s New, Excess Business Loss Limitation paragraph.
  6. Page 3, Column 1, What’s New, Paycheck Protection Program paragraph.
  7. Page 3, Column 1, What’s New, Advance Grant Amount paragraph.
HTML

1 – 4.

Under “What’s New,” First through Fourth paragraph positions.

  1. Under “What’s New,” Excess Business Loss Limitation paragraph.
  2. Under “What’s New,” Paycheck Protection Program (PPP) Loans Forgiveness paragraph.
  3. Under “What’s New,” Advance Grant Amount paragraph.
  1. What’s New, First paragraph added.
  2. What’s New, Second paragraph added.
  3. What’s New, Third paragraph added.
  4. What’s New, Fourth paragraph added.
  5. Existing What’s New paragraph modified.
  6. Existing What’s New paragraph modified.
  7. Existing What’s New paragraph modified.

1.
AB 80, which chaptered on April 29, 2021, provides modified conformity to this federal provision under the Consolidated Appropriations Act, 2021, which allows taxpayers to deduct eligible expenses paid for with covered loan amounts, except for an ineligible entity.

2 & 3.
AB 176, which chaptered on September 23, 2021, allows an exclusion from gross income grant allocations received by a taxpayer pursuant the California Microbusiness COVID-19 Relief Program and California Venues Grant Program. Federal law has no similar exclusion.

4.
SB 113, chaptered on February 9, 2022, provides conformity to the federal Shuttered Venue Operator Grant provision for taxable years beginning on or after January 1, 2019, which allows a gross income exclusion and provides modified conformity in regards to an eligible expense deduction.

2020 540NR, Nonresident or Part-Year Resident Booklet, and Instructions for Schedule CA (540NR), California Adjustments – Nonresidents or Part-Year Residents 03/12/2022 PDF
  1. 540NR Booklet, page 4, What’s New and Other Important Information for 2020, column 1, after the American Rescue Plan Unemployment Compensation paragraph.
  2. 540NR Booklet, page 4, What’s New and Other Important Information for 2020, column 2, after the Advance Grant Amount paragraph.
  3. 540NR Booklet, page 39 / Instructions for Sch. CA (540NR) (flat), page 1, column 1, immediately under What’s New.
  4. 540NR Booklet, page 42 / Instructions for Sch. CA (540NR) (flat), page 4, column 2, Section B – Additional Income, Line 3 – Business Income or (Loss), bullet point 2.
  5. 540NR Booklet, page 43 / Instructions for Sch. CA (540NR) (flat), page 5, column 1, before the Paycheck Protection Program loans forgiveness paragraph.
  6. 540NR Booklet, page 43 / Instructions for Sch. CA (540NR) (flat), page 5, column 2, under the Business deductions related to list, after 5th bullet.
  7. 540NR Booklet, page 44 / Instructions for Sch. CA (540NR) (flat), page 6, column 2, Line 8 – Other income, f. Other, after the Unemployment compensation exclusion paragraph.
HTML
  1. What’s New and Other Important Information for 2020, 2020 Tax Law Changes/What’s New, after the American Rescue Plan Unemployment Compensation paragraph.
  2. What’s New and Other Important Information for 2020, 2020 Tax Law Changes/What’s New, after the Advance Grant Amount paragraph.
  3. HTML page for Sch. CA (540NR) instructions, immediately under What’s New.
  4. N/A
  5. HTML page for Sch. CA (540NR) instructions, Specific Line Instructions, Column B and Column C – Subtractions and Additions, Section B – Additional Income, Line 3 – Business Income or (Loss), before the Paycheck Protection Program loan forgiveness paragraph.
  6. HTML page for Sch. CA (540NR) instructions, Specific Line Instructions, Column B and Column C – Subtractions and Additions, Section B – Additional Income, Line 3 – Business Income or (Loss), under the Business deductions related to list, after 5th bullet.
  7. HTML page for Sch. CA (540NR) instructions, Specific Line Instructions, Column B and Column C – Subtractions and Additions, Section B – Additional Income, Line 8 – Other Income, f. Other, after the Unemployment compensation exclusion paragraph.

1 – 3 & 5 – 7.
We added new instructions.

4:
We modified existing instructions.

1 – 3, 5 & 7.
AB 80, chaptered on April 29, 2021, provides modified conformity to the federal provision under the Consolidated Appropriations Act, 2021, which allows taxpayers to deduct eligible expenses paid for with covered loan amounts, except for an ineligible entity. If an ineligible entity deducted eligible expenses for federal purposes, then an adjustment is needed on Schedule CA (540NR) for personal income taxpayers, or on applicable line(s) of applicable tax returns.

SB 151, chaptered on July 12, 2021, provides an exclusion from gross income for grant allocations received pursuant to the California Microbusiness COVID-19 Relief Grant Program administered by the Office of Small Business Advocate. Since federal law has no similar exclusion, an adjustment is needed on Schedule CA (540NR).

AB 176, chaptered on September 23, 2021, provides technical and clarifying changes to the California Microbusiness COVID-19 Relief Grant Program and the California Venues Grant Program.

Additionally, AB 176 provides an exclusion from gross income for grant allocations received pursuant to the California Venues Grant Program, and for grant allocations received pursuant to the California Microbusiness COVID-19 Relief Program for corporate taxpayers. Since federal law has no similar exclusion, an adjustment is needed on Schedule CA (540NR) for personal income taxpayers, or on applicable line(s) of applicable tax returns.

SB 113, chaptered on February 9, 2022, provides conformity to the federal Shuttered Venue Operator Grant provision which allows a gross income exclusion and provides modified conformity in regards to an eligible expense deduction.

4.
Additional text resulted in text movement and a reference to text position needed to be updated.

6.
The federal Coronavirus Aid, Relief, and Economic Security Act (CARES Act) created Employee Retention Credit, which has since been extended by the federal Taxpayer Certainty and Disaster Relief Act of 2020 and by the federal American Rescue Plan Act of 2021. Employers who claim these credits for federal purposes must reduce their wage expense by the amount of the credits. Since California has no similar credits, an adjustment is needed on Schedule CA (540NR) for employers to fully claim the deduction.

2020 Sch. P (540NR), Alternative Minimum Tax and Credit Limitations – Nonresidents or Part-Year Residents 02/16/2022 PDF

Sch. P (540NR) instructions, page 8, Section C Instructions, Column Instructions paragraph, column (b).

HTML

Specific Line Instructions, Part III, Column Instructions (below Section C Instructions for Line 22 and Line 23), column (b).

Removed instructions related to the business credit limitation from column (b) instructions.

The instructions were removed for clarity since the business credit limitation only applies to Part III, Sections A and B, column (b), and it does not apply to Section C, column (b).

2020 Sch. P (540), Alternative Minimum Tax and Credit Limitations – Residents 02/16/2022 PDF

Sch. P (540) instructions, page 7, column 2, Section C Instructions, Column Instructions paragraph, column (b).

HTML

Specific Line Instructions, Part III, Column Instructions (below Section C Instructions for Line 22 and Line 23), column (b).

Removed instructions related to the business credit limitation from column (b) instructions.

The instructions were removed for clarity since the business credit limitation only applies to Part III, Sections A and B, column (b), and it does not apply to Section C, column (b).

2020 Publication 1001 – Supplemental Guidelines to California Adjustments 11/30/2021 PDF
  1. Page 3, column 1, after American Rescue Plan Unemployment Compensation paragraph and before Small Business COVID-19 Relief Grant Program paragraph.
  2. Business Income or (Loss) – Adjustment to Basis or Business Deductions section, Page 13, above the Employer wage expenses for Work Opportunity Credit bullet, columns 1 through 3.
  1. Added new instructions.
  2. Added new instructions.

1 – 2.
The federal Coronavirus Aid, Relief, and Economic Security Act (CARES Act) created Employee Retention Credit, which has since been extended by the federal Taxpayer Certainty and Disaster Relief Act of 2020 and by the federal American Rescue Plan Act of 2021. Employers who claim these credits for federal purposes must reduce their wage expense by the amount of the credits. Since California has no similar credits, an adjustment is needed on Schedule CA (540 or 540NR) for employers to fully claim the deduction.

2020 Publication 1001 – Supplemental Guidelines to California Adjustments 09/30/2021 PDF
  1. Page 3, column 2, after CARES Act paragraphs and before Paycheck Protection Program (PPP) Loans Forgiveness paragraph.
  2. Page 11, Business Income or (Loss) – Adjustment to Basis or Business Deductions, bullet point 1, column 1.
  3. Page 15, Other Income/Loss, after bullet point 1, columns 1 through 3.
  1. Added new instructions.
  2. Modified existing instructions.
  3. Added new instructions.

1 – 3.
AB 80, chaptered on April 29, 2021, provides modified conformity to the federal provision under the Consolidated Appropriations Act, 2021, which allows taxpayers to deduct eligible expenses paid for with covered loan amounts, except for an ineligible entity. If an ineligible entity deducted eligible expenses for federal purposes, then an adjustment is needed on Schedule CA (540 or 540NR) for personal income taxpayers, or on applicable line(s) of applicable tax returns.

SB 151, chaptered on July 12, 2021, provides an exclusion from gross income for grant allocations received pursuant to the California Microbusiness COVID-19 Relief Grant Program administered by the Office of Small Business Advocate. Since federal law has no similar exclusion, an adjustment is needed on Schedule CA (540 or 540NR).

AB 176, chaptered on September 23, 2021, provides technical and clarifying changes to the California Microbusiness COVID-19 Relief Grant Program and the California Venues Grant Program.

Additionally, AB 176 provides an exclusion from gross income for grant allocations received pursuant to the California Venues Grant Program, and for grant allocations received pursuant to the California Microbusiness COVID-19 Relief Program for corporate taxpayers. Since federal law has no similar exclusion, an adjustment is needed on Schedule CA (540 or 540NR) for personal income taxpayers, or on applicable line(s) of applicable tax returns.

2020 540 2EZ Booklet – Personal Income Tax Booklet, Instructions for FTB 3514, California Earned Income Tax Credit 08/05/2021 PDF
  1. Page 29, Column 2, Step 5, Line 13.
  2. Page 30, column 1, Step 5, Line 14.

HTML

  1. FTB 3514 instructions (HTML), Line 13, first paragraph.
  2. FTB 3514 instructions (HTML), Line 14, first paragraph.
  1. Modified existing instructions.
  2. Modified existing instructions.
Taxpayers may elect to include or exclude Medicaid waiver payments or IHSS payments that are nontaxable for federal purposes as wages/CA earned income for purposes of qualifying for CA EITC.
2020 541 Booklet – Fiduciary Income Tax Booklet 06/07/2021 PDF
  1. Page 3, Column 1, What’s New, Paycheck Protection Program (PPP) Loan Forgiveness paragraphs.
  2. Page 3, Column 1, What’s New, after PPP Loan Forgiveness paragraphs.

HTML

  1. Under “What’s New” (below the "New Donated Fresh Fruits or Vegetables Credit" paragraph).
  2. Under “What’s New” (under the Paycheck Protection (PPP) Loan Forgiveness paragraphs).
  1. Existing What’s New paragraph modified.
  2. What’s New paragraph added.
AB 80, which chaptered on April 29, 2021, provides modified conformity to the federal provision under the Consolidated Appropriations Act, 2021, which allows taxpayers to deduct eligible expenses paid for with covered loan amounts, except for an ineligible entity.

Revenue Procedure 2021-20 allows taxpayers to make an election to report the eligible expense deductions related to a PPP loan on a timely filed original 2021 tax return including extensions. If a taxpayer makes an election for federal purposes, California will follow the federal treatment for California tax purposes.

Per AB 80, California law conforms to the federal law regarding the treatment for an emergency Economic Injury Disaster Loan (EIDL) grant under the federal CARES Act or a targeted EIDL advance under the Consolidated Appropriations Act, 2021.

2020 Form 565, Partnership Tax Booklet 06/04/2021 PDF
  1. Page 3, Column 2, What’s New, after “Exemption from First Taxable Year Annual Tax” and above “Pass-Through Entity Annual Withholding Return”.
  2. Page 3, Column 2, What’s New, after new “Paycheck Protection Program (PPP) Loan Forgiveness” paragraph.
  3. Page 16, Column 1, under “Schedule K (565) and Schedule K-1 (565) – Partner’s Shares of Income, Deductions, Credits, etc.”, below “Purpose of Schedules” and above “Special Reporting for R&TC Section 41” paragraph.

HTML

  1. Under “What’s New”, after “Special Reporting for R&TC Section 41” and above “Exemption from First Taxable Year Annual Tax”.
  2. Under “What’s New”, after new “Paycheck Protection Program (PPP) Loan Forgiveness” paragraph.
  3. Under “Schedule K (565) and Schedule K-1 (565) – Partner’s Shares of Income, Deductions, Credits, etc.”, above “Special Reporting for R&TC Section 41” paragraph.
  1. Existing What New’s paragraph modified.
  2. What’s New’s paragraph added.
  3. Existing instructions modified.
AB 80, which chaptered on April 29, 2021, provides modified conformity to the federal provision under the Consolidated Appropriations Act, 2021, which allows taxpayers to deduct eligible expenses paid for with covered loan amounts, except for an ineligible entity. If an ineligible entity deducted eligible expenses for federal purposes, then an adjustment is needed on the applicable line(s) on Schedule K/K-1(565), column (c).

Revenue Procedure 2021-20 allows taxpayers to make an election to report the eligible expense deductions related to a PPP loan on a timely filed original 2021 tax return including extensions. If a taxpayer makes an election for federal purposes, California will follow the federal treatment for California tax purposes.

Per AB 80, California law conforms to the federal law regarding the treatment for an emergency Economic Injury Disaster Loan (EIDL) grant under the federal CARES Act or a targeted EIDL advance under the Consolidated Appropriations Act, 2021.

2020 Form 568, Limited Liability Company Tax Booklet 06/04/2021 PDF
  1. Page 3, Column 1, What’s New, after “Special Reporting for R&TC Section 41” and above “Exemption from First Taxable Year Annual Tax”.
  2. Page 3, Column 1, What’s New, after new “Paycheck Protection Program (PPP) Loan Forgiveness” paragraph.
  3. Page 19, Column 1, under “Schedule K (565) and Schedule K-1 (565) – Partner’s Shares of Income, Deductions, Credits, etc.”, below “Purpose of Schedules” and above “Special Reporting for R&TC Section 41” paragraph.

HTML

  1. Under “What’s New”, after “Special Reporting for R&TC Section 41” and above “Exemption from First Taxable Year Annual Tax”.
  2. Under “What’s New”, after new “Paycheck Protection Program (PPP) Loan Forgiveness” paragraph.
  3. Under “Schedule K (565) and Schedule K-1 (565) – Partner’s Shares of Income, Deductions, Credits, etc.”, above “Special Reporting for R&TC Section 41” paragraph.
  1. Existing What New’s paragraph modified.
  2. What’s New’s paragraph added.
  3. Existing instructions modified.
AB 80, which chaptered on April 29, 2021, provides modified conformity to the federal provision under the Consolidated Appropriations Act, 2021, which allows taxpayers to deduct eligible expenses paid for with covered loan amounts, except for an ineligible entity. If an ineligible entity deducted eligible expenses for federal purposes, then an adjustment is needed on the applicable line(s) on Schedule K/K-1(568), column (c).

Revenue Procedure 2021-20 allows taxpayers to make an election to report the eligible expense deductions related to a PPP loan on a timely filed original 2021 tax return including extensions. If a taxpayer makes an election for federal purposes, California will follow the federal treatment for California tax purposes.

Per AB 80, California law conforms to the federal law regarding the treatment for an emergency Economic Injury Disaster Loan (EIDL) grant under the federal CARES Act or a targeted EIDL advance under the Consolidated Appropriations Act, 2021.

2020 Publication 1001, Supplemental Guidelines to California Adjustments 06/02/21 PDF
  1. Page 3, What’s New, Column 2, Paycheck Protection Program (PPP) Loan Forgiveness paragraphs.
  2. Page 3, What’s New, Column 2, after the Paycheck Protection Program (PPP) Loan Forgiveness paragraphs.
  3. Page 9, Business Income or (Loss) – Depreciation, Amortization, and Property Expensing.
  4. Page 11, Business Income or (Loss) – Adjustments to Basis or Business Deductions, First bullet, Paycheck protection program loan forgiveness, Column 2 and Column 3.
  1. Modified existing instructions.
  2. Added new instructions.
  3. Added new instructions.
  4. Modified existing instructions.

1 & 4.
AB 80, which chaptered on April 29, 2021, provides modified conformity to the federal provision under the Consolidated Appropriations Act, 2021, which allows taxpayers to deduct eligible expenses paid for with covered loan amounts, except for an ineligible entity. If an ineligible entity deducted eligible expenses for federal purposes, then an adjustment is needed on Schedule CA (540 or 540NR).

Revenue Procedure 2021-20 allows taxpayers to make an election to report the eligible expense deductions related to a PPP loan on a timely filed original 2021 tax return including extensions. If a taxpayer makes an election for federal purposes, California will follow the federal treatment for California tax purposes.

2.
Per AB 80, California law conforms to the federal law regarding the treatment for an emergency Economic Injury Disaster Loan (EIDL) grant under the federal CARES Act or a targeted EIDL advance under the Consolidated Appropriations Act, 2021.

3.
For federal purposes, under the Consolidated Appropriations Act, 2021, the recovery period, for taxable years beginning after 12/31/2017, is 30 years for residential rental property held by an electing real property trade or business that was placed in service prior to 01/01/2018, but that was not subject to ADS prior to that date. California does not conform to the federal change in the recovery period. As a result, a federal/state difference may exist and an adjustment may be needed on Schedule CA (540 or 540NR).

2020 100W Booklet, California Corporation Tax Booklet Water’s-Edge Filers 06/02/21
  1. Page 3, Column 2, What’s New/Tax Law Changes, first paragraph.
  2. 100W Booklet, Page 3, Column 2, What’s New/Tax Law Changes, above “R&TC Section 41 Reporting Requirements”.
  3. 100W Booklet, Page 16, Column 3, Line 8 – Other Additions, third paragraph.
  1. 100W Instructions, What’s New/Tax Law Changes, first paragraph.
  2. 100W Instructions, What’s New/Tax Law Changes, above “R&TC Section 41 Reporting Requirements”.
  3. 100W Instructions, Specific Line Instructions, Line 8, Other Additions, above “California Ordinary Net Gain or Loss”.
AB 80, which chaptered on April 29, 2021, provides modified conformity to the federal provision under the Consolidate Appropriations Act, 2021, which allows taxpayers to deduct eligible expenses paid for with covered loan amounts, except for an ineligible entity. If an ineligible entity deducted eligible expenses for federal purposes, then an adjustment is needed on Form 100W, Line 8, Other additions.
2020 100S Booklet, S Corporation Tax Booklet 05/28/2021
  1. Page 3, Column 1, What’s New/Tax Law Changes, second paragraph.
  2. Page 3, Column 2, What’s New/Tax Law Changes, above “Main Street Small Business Tax Credit”.
  3. Page 15, Column 3, Line 8 – Other Additions, third paragraph.
  1. What’s New/Tax Law Changes, second paragraph.
  2. What’s New/Tax Law Changes, above “Main Street Small Business Tax Credit” paragraph.
  3. Specific Line Instructions, Line 8 – Other Additions, third paragraph.

AB 80, which chaptered on April 29, 2021, provides modified conformity to the federal provision under the Consolidate Appropriations Act, 2021, which allows taxpayers to deduct eligible expenses paid for with covered loan amounts, except for an ineligible entity. If an ineligible entity deducted eligible expenses for federal purposes, then an adjustment is needed on Form 100, Line 8, Other additions.

Revenue Procedure 2021-20 allows taxpayers to make an election to report the eligible expense deductions related to a PPP loan on a timely filed original 2021 tax return including extensions. If a taxpayer makes an election for federal purposes, California will follow the federal treatment for California tax purposes.

2020 100S Booklet, S Corporation Tax Booklet 05/26/21 PDF
  1. Page 3, Column 1, What’s New/Tax Law Changes, Second paragraph.
  2. Page 3, Column 2, What’s New/Tax Law Changes.
  3. Page 17, Column 2, Line 7 – Other additions.
  4. Page 22, Column 1, Schedule K and Schedule K-1 (100S).
HTML
  1. Under “What’s New/Tax Law Changes”, Second paragraph.
  2. Under “What’s New/Tax Law Changes” (above the “Main Street Small Business Tax Credit” paragraph).
  3. Under “Line 7 – Other additions” (above the “Penalty Assessed by Professional Sports League” paragraph).
  4. Under “Schedule K and Schedule K-1 (100S)” section, (below the “Substitute Forms” paragraph).
  1. Existing What’s New/Tax Law Changes paragraph modified.
  2. What’s New/Tax Law Changes paragraph added.
  3. Existing line instructions modified.
  4. Existing instructions modified to the Schedule K and Schedule K-1 (100S).

AB 80, which chaptered on April 29, 2021, provides modified conformity to the federal provision under the Consolidated Appropriations Act, 2021, which allows taxpayers to deduct eligible expenses paid for with covered loan amounts, except for an ineligible entity. If an ineligible entity deducted eligible expenses for federal purposes, then an adjustment is needed on Form 100S, line 7 – Other additions, and on applicable line(s) on Schedule K/K-1(100S), column (c).

Revenue Procedure 2021-20 allows taxpayers to make an election to report the eligible expense deductions related to a PPP loan on a timely filed original 2021 tax return including extensions. If a taxpayer makes an election for federal purposes, California will follow the federal treatment for California tax purposes.

Per AB 80, California law conforms to the federal law regarding the treatment for an emergency Economic Injury Disaster Loan (EIDL) grant under the federal CARES Act or a targeted EIDL advance under the Consolidated Appropriations Act, 2021.

2020 540 Booklet – Personal Income Tax Booklet, Instructions for Schedule CA (540), California Adjustments – Residents, & Instructions for FTB 3514, California Earned Income Tax Credit 05/25/21 PDF
  1. Page 4 of 540 booklet, column 2, 2020 Tax Law Changes/What’s New, Paycheck Protection Program (PPP) Loan Forgiveness paragraphs.
  2. Page 4 of 540 booklet, column 2, 2020 Tax Law Changes/What’s New, after PPP Loan Forgiveness paragraphs.
  3. Page 39 of 540 booklet/Page 1 of flat Sch. CA (540) instructions, column 1, What’s New, Paycheck Protection Program (PPP) Loan Forgiveness paragraphs.
  4. Page 39 of 540 booklet/Page 1 of flat Sch. CA (540) instructions, column 1, What’s New, after PPP Loan Forgiveness paragraphs.
  5. Page 42 of 540 booklet/Page 4 of flat Sch. CA (540) instructions, column 2, Line 3.
  6. Page 75 of 540 booklet/Page 3 of flat FTB 3514 instructions, column 2, Step 5, Line 13.
  7. Page 76 of 540 booklet/Page 4 of flat FTB 3514 instructions, column 1, Step 5, Line 14.
HTML
  1. Paycheck Protection Program (PPP) Loan Forgiveness paragraphs.
  2. Added a new paragraph after PPP Loan Forgiveness paragraphs.
  3. Paycheck Protection Program (PPP) Loan Forgiveness paragraphs.
  4. Added a new paragraph after PPP Loan Forgiveness paragraphs.
  5. Paycheck Protection Program loan forgiveness paragraph.
  6. Line 13, first paragraph.
  7. Line 14, first paragraph.
  1. Modified existing instructions.
  2. Added a new paragraph.
  3. Modified existing instructions.
  4. Added a new paragraph.
  5. Modified existing instructions.
  6. Modified existing instructions.
  7. Modified existing instructions.

1 – 5.
AB 80, which chaptered on April 29, 2021, provides modified conformity to the federal provision under the Consolidated Appropriations Act, 2021, which allows taxpayers to deduct eligible expenses paid for with covered loan amounts, except for an ineligible entity. If an ineligible entity deducted eligible expenses for federal purposes, then an adjustment is needed on Schedule CA (540), line 3, column C (Additions).

Revenue Procedure 2021-20 allows taxpayers to make an election to report the eligible expense deductions related to a PPP loan on a timely filed original 2021 tax return including extensions. If a taxpayer makes an election for federal purposes, California will follow the federal treatment for California tax purposes.

Per AB 80, California law conforms to the federal law regarding the treatment for an emergency Economic Injury Disaster Loan (EIDL) grant under the federal CARES Act or a targeted EIDL advance under the Consolidated Appropriations Act, 2021.

6 – 7.
Taxpayers may elect to include or exclude Medicaid waiver payments or IHSS payments that are nontaxable for federal purposes as wages/CA earned income for purposes of qualifying for CA EITC.

2020 540NR Booklet – Nonresident or Part-Year Resident Booklet, Instructions for Schedule CA (540NR), California Adjustments – Nonresidents or Part-Year Residents, & Instructions for FTB 3514, California Earned Income Tax Credit 05/24/21 PDF
  1. Page 4 of 540NR booklet, column 2, 2020 Tax Law Changes/What’s New, Paycheck Protection Program (PPP) loan forgiveness paragraphs.
  2. Page 4 of 540NR booklet, column 2, 2020 Tax Law Changes/What’s New, after PPP loan forgiveness paragraphs.
  3. Page 39 of 540NR booklet/Page 1 of flat Sch. CA (540NR) instructions, column 1, What’s New, Paycheck Protection Program (PPP) Loan Forgiveness paragraphs.
  4. Page 39 of 540NR booklet/Page 1 of flat Sch. CA (540NR) instructions, column 1, What’s New, after PPP Loan Forgiveness paragraphs.
  5. Page 43 of 540NR booklet/Page 5 of flat Sch. CA (540NR) instructions, column 1, Line 3.
  6. Page 67 of 540NR booklet/Page 3 of flat FTB 3514 instructions, column 2, Step 5, Line 13.
  7. Page 68 of 540NR booklet/Page 4 of flat FTB 3514 instructions, column 1, Step 5, Line 14.

HTML

  1. Paycheck Protection Program (PPP) Loan Forgiveness paragraphs.
  2. Added a new paragraph after PPP Loan Forgiveness paragraphs.
  3. Paycheck Protection Program (PPP) Loan Forgiveness paragraphs.
  4. Added a new paragraph after PPP Loan Forgiveness paragraphs.
  5. Paycheck Protection Program loan forgiveness paragraph.
  6. Line 13, first paragraph.
  7. Line 14, first paragraph.
  1. Modified existing instructions.
  2. Added a new paragraph.
  3. Modified existing instructions.
  4. Added a new paragraph.
  5. Modified existing instructions.
  6. Modified existing instructions.
  7. Modified existing instructions.

1 – 5.
AB 80, which chaptered on April 29, 2021, provides modified conformity to the federal provision under the Consolidated Appropriations Act, 2021, which allows taxpayers to deduct eligible expenses paid for with covered loan amounts, except for an ineligible entity. If an ineligible entity deducted eligible expenses for federal purposes, then an adjustment is needed on Schedule CA (540NR), line 3, column C (Additions).

Revenue Procedure 2021-20 allows taxpayers to make an election to report the eligible expense deductions related to a PPP loan on a timely filed original 2021 tax return including extensions. If a taxpayer makes an election for federal purposes, California will follow the federal treatment for California tax purposes.

Per AB 80, California law conforms to the federal law regarding the treatment for an emergency Economic Injury Disaster Loan (EIDL) grant under the federal CARES Act or a targeted EIDL advance under the Consolidated Appropriations Act, 2021.

6 – 7.
Taxpayers may elect to include or exclude Medicaid waiver payments or IHSS payments that are nontaxable for federal purposes as wages/CA earned income for purposes of qualifying for CA EITC.

2020 109 Booklet, Exempt Organization Business Income Tax Booklet 05/18/2021 PDF
  1. Page 2, Column 2, What’s New, Paycheck Protection Program (PPP) Loan Forgiveness paragraphs.
  2. Page 2, Column 3, What’s New, after PPP Loan Forgiveness paragraphs.
  1. The existing What’s New paragraph, Paycheck Protection Program (PPP) Loan Forgiveness, was modified.
  2. A What’s New paragraph, Advance Grant Amount, was added.

1.
AB 80, which chaptered on April 29, 2021, provides modified conformity to the federal provision under the Consolidated Appropriation Act, 2021, which allows taxpayer to deduct eligible expenses paid for with covered loan amounts, except for an ineligible entity. As a result, adjustments may be needed for eligible expenses under the PPP.

Revenue Procedure 2021-20 allows taxpayers to make an election to report the eligible expense deductions related to a PPP loan on a timely filed original 2021 tax return including extensions. If a taxpayer makes an election for federal purposes, California will follow the federal treatment for California tax purposes.

2.

Per AB 80, California law conforms to the federal law regarding the treatment for an emergency Economic Injury Disaster Loan (EIDL) grant under the federal CARES Act or a targeted EIDL advance under the Consolidated Appropriations Act, 2021.

2020 Form 3853 Instructions, Health Coverage Exemptions and Individual Shared Responsibility Penalty 04/29/2021 Page 4, Types of Minimum Essential Coverage table, Individual market coverage, Bullet #4. We are replacing the language for catastrophic plans to reflect that all catastrophic plans are considered as Minimum Essential Coverage. Prior language for catastrophic plans is incorrect because all catastrophic plans are considered as Minimum Essential Coverage.
2020 Publication 3895B, California Instructions for Filing Federal Forms 1094-B and 1095-B 04/23/2021 PDF
  1. Page 2 of Pub. 3895B, column 2, Who Must File, paragraph 2.
  2. Page 2 of Pub. 3895B, column 2, Who Must File, end of paragraph 4.
  3. Page 3 of Pub. 3895B, column 1, Coverage Designated as MEC, item #3.

1 – 3.

Existing instructions modified.

  1. Correcting the requirement for reporting catastrophic health plans.
  2. Defining the Marketplace since the definition in an earlier paragraph has been deleted.
  3. Adding clarifications that catastrophic health plans are minimum essential coverage.
2020 540NR Schedule CA, Instructions for Schedule CA (540NR), California Adjustments – Nonresidents or Part-Year Residents 04/23/2021 PDF
  1. Page 6 of flat Sch. CA (540NR) instr., column 2, Line 8f Other (describe).
  2. Page 6 of flat Sch. CA (540NR) instr., column 2, Line 8f Other (describe).
  3. Page 6 of flat Sch. CA (540NR) instr., column 2, Line 8f Other (describe).
HTML

1 – 3.

Under Line 8 – Other Income, f. Other (describe), first three paragraphs (above IRC Section 965 deferred foreign income paragraph).

1 – 3.

New line instructions added.

1.
H.R. 1319, the American Rescue Plan Act of 2021, provides for the exclusion of up to $10,200 of unemployment compensation for each taxpayer, if modified AGI is less than $150,000. For federal purposes, the income is excluded on Schedule 1 (Form 1040), line 8, Other income. For California purposes, all unemployment compensation is excluded from income on Schedule CA (540NR), line 7, Unemployment compensation, column B (Subtractions). Therefore, to prevent double exclusion of this income, the amount excluded for federal purposes is entered on Schedule CA (540NR), line 8f, Other, column C (Additions).

2.
SB 87, which chaptered on February 23, 2021, added Section 17158 to the California Revenue and Taxation Code. This bill provides that gross income does not include specified grant allocations, including grant allocations received by a taxpayer pursuant to a grant program funded by Executive Order No. E 20/21-182 and pursuant to the California Small Business COVID-19 Relief Grant Program established by Government Code Section 12100.83. If the grant allocations were included in gross income for federal purposes, then an adjustment is needed to exclude the amount which is done on Schedule CA (540NR), line 8f, Other, column B (Subtractions).

3.
SB 91/AB 81, which chaptered on January 29, 2021, and February 23, 2021, respectively, provide that gross income shall not include a tenant’s rent liability that is forgiven by a landlord or rent forgiveness provided through funds grantees received as a direct allocation from the Secretary of the Treasury based on the federal Consolidated Appropriations Act, 2021. If the amount forgiven was included in gross income for federal purposes, then an adjustment is needed to exclude the amount which is done on Schedule CA (540NR), line 8f, Other, column B (Subtractions).

2020 540NR Booklet, Nonresident or Part-Year Resident Booklet & Instructions for Schedule CA (540NR), California Adjustments – Nonresidents or Part-Year Residents 04/23/2021 PDF
  1. Page 4 of 540NR booklet, column 1, 2020 Tax Law Changes/What’s New.
  2. Page 4 of 540NR booklet, column 1, 2020 Tax Law Changes/What’s New.
  3. Page 4 of 540NR booklet, column 1, 2020 Tax Law Changes/What’s New.
  4. Page 44 of 540NR booklet/Page 6 of flat Sch. CA (540NR) instr., column 2, Line 8f Other (describe).
  5. Page 44 of 540NR booklet/Page 6 of flat Sch. CA (540NR) instr., column 2, Line 8f Other (describe).
  6. Page 44 of 540NR booklet/Page 6 of flat Sch. CA (540NR) instr., column 2, Line 8f Other (describe).
HTML

1 – 3.

Under Tax Law Changes/What’s New, first three paragraphs (above Dependent Exemption Credit with No ID paragraph).

4 – 6.

Under Line 8 – Other Income, f. Other (describe), first three paragraphs (above IRC Section 965 deferred foreign income paragraph).

1 – 3.

What's New paragraph added.

4 – 6.

New line instructions added.

1 & 4.
H.R. 1319, the American Rescue Plan Act of 2021, provides for the exclusion of up to $10,200 of unemployment compensation for each taxpayer, if modified AGI is less than $150,000. For federal purposes, the income is excluded on Schedule 1 (Form 1040), line 8, Other income. For California purposes, all unemployment compensation is excluded from income on Schedule CA (540NR), line 7, Unemployment compensation, column B (Subtractions). Therefore, to prevent double exclusion of this income, the amount excluded for federal purposes is entered on Schedule CA (540NR), line 8f, Other, column C (Additions).

2 & 5.
SB 87, which chaptered on February 23, 2021, added Section 17158 to the California Revenue and Taxation Code. This bill provides that gross income does not include specified grant allocations, including grant allocations received by a taxpayer pursuant to a grant program funded by Executive Order No. E 20/21-182 and pursuant to the California Small Business COVID-19 Relief Grant Program established by Government Code Section 12100.83. If the grant allocations were included in gross income for federal purposes, then an adjustment is needed to exclude the amount which is done on Schedule CA (540NR), line 8f, Other, column B (Subtractions).

3 & 6.
SB 91/AB 81, which chaptered on January 29, 2021, and February 23, 2021, respectively, provide that gross income shall not include a tenant’s rent liability that is forgiven by a landlord or rent forgiveness provided through funds grantees received as a direct allocation from the Secretary of the Treasury based on the federal Consolidated Appropriations Act, 2021. If the amount forgiven was included in gross income for federal purposes, then an adjustment is needed to exclude the amount which is done on Schedule CA (540NR), line 8f, Other, column B (Subtractions).

2020 540 Schedule CA, Instructions for Schedule CA (540), California Adjustments – Residents 04/22/2021
  1. Page 6 of flat Sch. CA (540) instr., column 1, Line 8f Other (describe).
  2. Page 6 of flat Sch. CA (540) instr., column 1, Line 8f Other (describe).
  3. Page 6 of flat Sch. CA (540) instr., column 1, Line 8f Other (describe).

HTML

1 – 3.

Under Line 8 – Other Income, f. Other (describe), first three paragraphs (above IRC Section 965 deferred foreign income paragraph).

New line instructions added.

1.
H.R. 1319, the American Rescue Plan Act of 2021, provides for the exclusion of up to $10,200 of unemployment compensation for each taxpayer, if modified AGI is less than $150,000. For federal purposes, the income is excluded on Schedule 1 (Form 1040), line 8, Other income. For California purposes, all unemployment compensation is excluded from income on Schedule CA (540), line 7, Unemployment compensation, column B (Subtractions). Therefore, to prevent double exclusion of this income, the amount excluded for federal purposes is entered on Schedule CA (540), line 8f, Other, column C (Additions).

2.
SB 87, which chaptered on February 23, 2021, added Section 17158 to the California Revenue and Taxation Code. This bill provides that gross income does not include specified grant allocations, including grant allocations received by a taxpayer pursuant to a grant program funded by Executive Order No. E 20/21-182 and pursuant to the California Small Business COVID-19 Relief Grant Program established by Government Code Section 12100.83. If the grant allocations were included in gross income for federal purposes, then an adjustment is needed to exclude the amount which is done on Schedule CA (540), line 8f, Other, column B (Subtractions).

3.
SB 91/AB 81, which chaptered on January 29, 2021, and February 23, 2021, respectively, provide that gross income shall not include a tenant’s rent liability that is forgiven by a landlord or rent forgiveness provided through funds grantees received as a direct allocation from the Secretary of the Treasury based on the federal Consolidated Appropriations Act, 2021. If the amount forgiven was included in gross income for federal purposes, then an adjustment is needed to exclude the amount which is done on Schedule CA (540), line 8f, Other, column B (Subtractions).

2020 540 Booklet, Personal Income Tax Booklet & Instructions for Schedule CA (540), California Adjustments – Residents 04/22/2021 PDF
  1. Page 4 of 540 booklet, column 1, 2020 Tax Law Changes/What’s New.
  2. Page 4 of 540 booklet, column 1, 2020 Tax Law Changes/What’s New.
  3. Page 4 of 540 booklet, column 1, 2020 Tax Law Changes/What’s New.
  4. Page 44 of 540 booklet/Page 6 of flat Sch. CA (540) instr., column 1, Line 8f Other (describe).
  5. Page 44 of 540 booklet/Page 6 of flat Sch. CA (540) instr., column 1, Line 8f Other (describe).
  6. Page 44 of 540 booklet/Page 6 of flat Sch. CA (540) instr., column 1, Line 8f Other (describe).
HTML

1 – 3.

Under Tax Law Changes/What’s New, first three paragraphs (above Resident State Tax Filers List paragraph).

4 – 6.

Under Line 8 – Other Income, f. Other (describe), first three paragraphs (above IRC Section 965 deferred foreign income paragraph).

1 – 3.

What’s New paragraph added.

4 – 6.

New line instructions added.

1 & 4.
H.R. 1319, the American Rescue Plan Act of 2021, provides for the exclusion of up to $10,200 of unemployment compensation for each taxpayer, if modified AGI is less than $150,000. For federal purposes, the income is excluded on Schedule 1 (Form 1040), line 8, Other income. For California purposes, all unemployment compensation is excluded from income on Schedule CA (540), line 7, Unemployment compensation, column B (Subtractions). Therefore, to prevent double exclusion of this income, the amount excluded for federal purposes is entered on Schedule CA (540), line 8f, Other, column C (Additions).

2 & 5.
SB 87, which chaptered on February 23, 2021, added Section 17158 to the California Revenue and Taxation Code. This bill provides that gross income does not include specified grant allocations, including grant allocations received by a taxpayer pursuant to a grant program funded by Executive Order No. E 20/21-182 and pursuant to the California Small Business COVID-19 Relief Grant Program established by Government Code Section 12100.83. If the grant allocations were included in gross income for federal purposes, then an adjustment is needed to exclude the amount which is done on Schedule CA (540), line 8f, Other, column B (Subtractions).

3 & 6.
SB 91/AB 81, which chaptered on January 29, 2021, and February 23, 2021, respectively, provide that gross income shall not include a tenant’s rent liability that is forgiven by a landlord or rent forgiveness provided through funds grantees received as a direct allocation from the Secretary of the Treasury based on the federal Consolidated Appropriations Act, 2021. If the amount forgiven was included in gross income for federal purposes, then an adjustment is needed to exclude the amount which is done on Schedule CA (540), line 8f, Other, column B (Subtractions).

2020 Publication 1005, Pension and Annuity Guidelines 04/20/2021 Pub. 1005, Page 5, Column 2, under the IRA Deduction section, paragraph 1. Providing additional clarifying instructions for completing Schedule CA (540NR). Clarifying instructions is added for completing Schedule CA (540NR), Part II, Section C, line 22 related to SECURE Act repeal of maximum age of 70½ for IRA contributions.
2020 Form 565, Partnership Tax Booklet 04/14/2021 PDF
  1. Page 3, Column 1, What’s New, above first paragraph.
  2. Page 18, Column 2, under “Income, Line 1 through Line 11c”, above “Line 10” paragraph.
HTML
  1. Under “What’s New”, above first paragraph.
  2. Under “Income, Line 1 through Line 11c”, above “Line 10” paragraph.
  1. What’s New paragraph added.
  2. New instructions added.
SB 87, which chaptered on February 23, 2021, added Sections 17158 and 24312 to the California Revenue and Taxation Code. This bill provides that for taxable years beginning on or after January 1, 2020, and before January 1, 2030, gross income does not include specified grant allocations, including grant allocations received by a taxpayer pursuant to a grant program funded by Executive Order No. E 20/21-182 and pursuant to the California Small Business COVID-19 Relief Grant Program established by Government Code Section 12100.83.
2020 Form 568, Limited Liability Company Tax Booklet 04/14/2021 PDF
  1. Page 3, Column 1, What’s New, above first paragraph.
  2. Page 21, Column 1, under “Specific Line instructions, Line 1 through Line 11” and above “Line 1, column c” paragraph.
HTML
  1. Under “What’s New”, above first paragraph.
  2. Under “Specific Line instructions, Line 1 through Line 11” and above “Line 1, column c” paragraph.
  1. What’s New paragraph added.
  2. New instructions added.
SB 87, which chaptered on February 23, 2021, added Sections 17158 and 24312 to the California Revenue and Taxation Code. This bill provides that for taxable years beginning on or after January 1, 2020, and before January 1, 2030, gross income does not include specified grant allocations, including grant allocations received by a taxpayer pursuant to a grant program funded by Executive Order No. E 20/21-182 and pursuant to the California Small Business COVID-19 Relief Grant Program established by Government Code Section 12100.83.
2020 100 Booklet, California Corporation Tax Booklet 04/14/2021 PDF
  1. 100 Booklet, Page 3, Column 1, What’s New/Tax Law Changes, First paragraph.
  2. 100 Booklet, Page 16, Column 2, Specific Line Instructions, Line 15 – Other Deductions, Third Paragraph.
  1. What’s New/Tax Law Changes, first paragraph.
  2. Specific Line Instructions, Line 15 – Other Deductions, third paragraph.
SB 87, which chaptered on February 23, 2021, added Sections 17158 and 24312 to the California Revenue and Taxation Code. These new laws provide that for taxable years beginning on or after January 1, 2020, and before January 1, 2030, gross income does not include specified grant allocations, which are grant allocations received by a taxpayer pursuant to a grant program funded by Executive Order No. E 20/21-182 and pursuant to the California Small Business COVID-19 Relief Grant Program established by Government Code Section 12100.83.
2020 100S Booklet, S Corporation Tax Booklet 04/13/2021 PDF
  1. Page 3, Column 1, What’s New/Tax Law Changes, First paragraph.
  2. Page 18, Column 1, Line 12 – Other deductions.
  3. Page 22, Column 3, Line 10b – Other income (loss).
HTML
  1. Under “What’s New/Tax Law Changes”, First paragraph.
  2. Under “Line 12 – Other deductions” (above the “Financial Incentive for Seismic Improvement” paragraph).
  3. Under “Line 10b – Other income (loss)” (above the “Deductions” header).
  1. What’s New/Tax Law Changes paragraph added.

2 – 3.

New line instructions added.

SB 87, which chaptered on February 23, 2021, added Sections 17158 and 24312 to the California Revenue and Taxation Code. This bill provides that for taxable years beginning on or after January 1, 2020, and before January 1, 2030, gross income does not include specified grant allocations, including grant allocations received by a taxpayer pursuant to a grant program funded by Executive Order No. E 20/21-182 and pursuant to the California Small Business COVID-19 Relief Grant Program established by Government Code Section 12100.83.
2020 541 Booklet, Fiduciary Income Tax Booklet 04/12/2021 Page 2 of 541 booklet,column1, What's new. Under "what's New, First Paragraph. SB 87, which chaptered on February 23, 2021, added Sections 17158 and 24312 to the California Revenue and Taxation Code. This bill provides that for taxable years beginning on or after January 1, 2020, and before January 1, 2030, gross income does not include specified grant allocations, including grant allocations received by a taxpayer pursuant to a grant program funded by Executive Order No. E 20/21-182 and pursuant to the California Small Business COVID-19 Relief Grant Program established by Government Code Section 12100.83.
2020 Form FTB 3461, California Limitation on Business Losses 02/23/2021
  1. Form, Side 1, line 16.
  2. Instructions, Line 16, after bulleted list.
  1. New instructions added within existing instructions.
  2. New instructions added following existing instructions.

1 – 2.
The reason for this revision is to add instructions for carryover excess business loss to clarify that the amount reported as an adjustment on the current year Schedule CA will only include the amount of excess business loss generated for the current year and does not include the excess business loss adjustment included as income from prior year.

2020 541-QFT, California Limitation on Business Losses 02/23/2021 PDF
  1. Page 1 of the 541-QFT instructions, column 1, What's New.
  2. Page 3 of the 541-QFT instructions, column 3, Credit name and form number (if any).

HTML

  1. Under "What's New" section, below the Program 3.0 California Motion Picture and Television Production Credit paragraph.
  2. Under "Credit name and form number (if any)" section.
  1. What's new paragraph modified.
  2. Credit name modified.

1 – 2.
FTB's external partners have asked FTB and CDTFA to update references to the credit to consistently reflect the title to be, "Main Street Small Business Tax Credit"; SB 1447.

2020 Pub. 1005, Pension and Annuity Guidelines 02/19/2021 Page 5, Column 2, under the IRA Deduction section. Adding a paragraph regarding SECURE Act repeal of maximum age of 70½ for IRA contributions. A paragraph is added to clarify how taxpayers should make the adjustment in Schedule CA (540 and 540NR) related to SECURE Act repeal of maximum age of 70½ for IRA contributions.
2020 Pub. 3895C, California Instructions for Filing Federal Forms 1094-C and 1095-C 02/18/2021 Page 2, column 2, Who Must File section, paragraph 4 (Note paragraph). Existing instructions modified. Removing an incorrect federal form number.
2020 568 Booklet, Limited Liability Company Tax Booklet 02/08/2021 Page 15 of 568 booklet, column 2, Form 568, Line 3 instructions.
Form 568 line instructions between Line 2 and Line 4 instructions.
Modified the dollar amount. Changed the annual tax amount to the correct amount.
2020 FTB 3805V, Net Operating Loss (NOL) Computation and NOL and Disaster Loss Limitations – Individuals, Estates, and Trusts 01/29/2021 PDF
  1. Side 3 of FTB 3805V, Part III, line 1.
  2. Page 3 of FTB 3805V instructions, column 2, line 1, paragraph 2.
  3. Page 5 of FTB 3805V instructions, NOL Carryover Table, Type of NOL and Description, row 1.

HTML

  1. N/A
  2. Under “Specific Line Instructions”, “Part III – Limitations”, Line 1 instructions, paragraph 2.
  3. Under “Specific Line Instructions”, NOL Carryover Table, immediately underneath “NOL Carryover”, Note paragraph.
  1. Existing line instructions modified.
  2. Existing line instructions modified.
  3. Existing instructions modified.
The instructions are revised to clarify that if modified AGI is $1,000,000 or more and net business income is $1,000,000 or more, NOL deduction is suspended.
2020 100 Booklet, California Corporation Tax Booklet 01/28/2021
  1. Page 3, Column 1, What’s New/Tax Changes, First Paragraph.
  2. Page 15, Column 3, Specific Line Instructions, Line 8 – Other Additions.
  1. What’s new paragraph modified.
  2. New line instructions added.

1 – 2.
California does not conform to the federal Consolidated Appropriations Act, 2021 with regard to the deductibility of eligible expenses under the Paycheck Protection Program (PPP). As a result, adjustments may be needed for eligible expenses under the PPP.

2020 100W Booklet, Corporation Tax Booklet 01/28/2021 Page 3, Column 2, What’s New/Tax Changes, First Paragraph.
Page 15, Column 3, Specific Line Instructions, Line 8 – Other Additions.
  1. What’s new paragraph modified.
  2. New line instructions added.

1 – 2.
California does not conform to the federal Consolidated Appropriations Act, 2021 with regard to the deductibility of eligible expenses under the Paycheck Protection Program (PPP). As a result, adjustments may be needed for eligible expenses under the PPP.

2020 100S Booklet, S Corporation Tax Booklet 01/27/2021
  1. Page 3, Column 1, What’s New/Tax Law Changes, First paragraph.
  2. Page 17, Column 2, Line 7 – Other additions.
  3. Page 21, Column 3, Schedule K and Schedule K-1 (100S).
  1. What’s New/Tax Law Changes paragraph modified.
  2. New line instructions added.
  3. New instructions added to the Schedule K and Schedule K-1 (100S).

1 – 3.
California does not conform to the federal Consolidated Appropriations Act, 2021 with regard to the deductibility of eligible expenses under the Paycheck Protection Program (PPP). As a result, adjustments may be needed for eligible expenses under the PPP.

2020 540NR Booklet, Schedule CA (540NR) 01/26/2021
  1. Page 4, of 540NR booklet, column 1, 2020 Tax Law Changes/What's new.
  2. Page 39 of 540NR booklet/Page 1 of flat Sch. CA (540NR) instr., column 1, What’s new.
  3. Page 43 of 540NR booklet/Page 5 of flat Sch. CA (540NR) instr., column 1, Line 3 – Business Income or (Loss).
  4. Page 40 of 540NR booklet/Page 2 of flat Sch. CA (540NR) instr., column 2, Line 22.
  5. Page 46 of 540NR booklet/Page 8 of flat Sch. CA (540NR) instr., column 1, Line 22.
  6. Page 48 of 540NR booklet/Page 10 of flat Sch. CA (540NR) instr., column 2, Line 11 – Gifts By Cash or Check.
New line instructions added.

1 – 3.
California does not conform to the federal Consolidated Appropriations Act, 2021 with regard to the deductibility of eligible expenses under the Paycheck Protection Program (PPP). As a result, adjustments may be needed for eligible expenses under the PPP.

4 – 6.
The charitable contribution is not a part of the standard deduction.

2020 541 Booklet – Fiduciary Income Tax Booklet 01/25/2021

PDF
Page 3 of 541 booklet, Column 1, What's New.

HTML
Under "What's New" section, between New Donated Fresh Fruits or Vegetables Credit and Main Street Small Business Tax Credit paragraphs.

What’s new paragraph modified. California does not conform to the federal Consolidated Appropriations Act, 2021 with regard to the deductibility of eligible expenses under the Paycheck Protection Program (PPP). As a result, adjustments may be needed for eligible expenses under the PPP.
2020 540 Booklet – Personal Income Tax Booklet & Instructions for Schedule CA (540), California Adjustments – Residents 01/21/2021
  1. Column 2, 2020 Tax Law Changes/What’s new.
  2. Page 39/Page 1 of flat Sch. CA (540) instr., column 1, What’s new.
  3. Page 42/Page 4 of flat Sch. CA (540) instr., column 2, Line 3 – Business Income or (Loss).
  4. Page 40/Page 2 of flat Sch. CA (540) instr., column 2, Line 22.
  5. Page 46/Page 8 of flat Sch. CA (540) instr., column 1, Line 22.
  6. Page 47/Page 9 of flat Sch. CA (540) instr., column 1, Line 11 – Gifts By Cash or Check.
  1. What’s new paragraph modified.
  2. New line instructions added.
  3. Existing instructions modified.
  4. Existing instructions modified.
  5. Existing instructions modified.
  6. Existing instructions modified.

1 – 3.
California does not conform to the federal Consolidated Appropriations Act, 2021 with regard to the deductibility of eligible expenses under the Paycheck Protection Program (PPP). As a result, adjustments may be needed for eligible expenses under the PPP.

4 – 6.
The charitable contribution is not a part of the standard deduction.

2019 540 2 EZ Booklet – Personal Income Tax Booklet, Instructions for FTB 3514, California Earned Income Tax Credit 08/14/2021 HTML
  1. FTB 3514 instructions (HTML), Line 13 instructions, first paragraph.
  2. FTB 3514 instructions (HTML), Line 14 instructions, first paragraph.

PDF

  1. Page 27 of 540 2EZ booklet, column 2, Step 5, Line 13.
  2. Page 27 of 540 2EZ booklet, column 2, Step 5, Line 14.
Modified existing instructions. Taxpayers may elect to include or exclude Medicaid waiver payments or IHSS payments that are nontaxable for federal purposes as wages/CA earned income for purposes of qualifying for EITC.
2019 540 Booklet – Personal Income Tax Booklet, Instructions for FTB 3514, California Earned Income Tax Credit 07/16/2021 HTML
  1. Line 13 instructions, first paragraph.
  2. Line 14 instructions, first paragraph.

PDF

  1. Page 75 of 540 booklet, column 2, Step 5, Line 13.
  2. Page 75 of 540 booklet, column 2, Step 5, Line 14.
Modified existing instructions. Taxpayers may elect to include or exclude Medicaid waiver payments or IHSS payments that are nontaxable for federal purposes as wages/CA earned income for purposes of qualifying for EITC.
2019 540NR Booklet – Nonresident or Part-Year Resident Booklet, Instructions for FTB 3514, California Earned Income Tax Credit 07/16/2021 HTML
  1. Line 13 instructions, first paragraph.
  2. Line 14 instructions, first paragraph.

PDF

  1. Page 69 of 540NR booklet, column 2, Step 5, Line 13.
  2. Page 69 of 540NR booklet, column 2, Step 5, Line 14.
Modified existing instructions. Taxpayers may elect to include or exclude Medicaid waiver payments or IHSS payments that are nontaxable for federal purposes as wages/CA earned income for purposes of qualifying for EITC.
2019 Publication 1001, Supplemental Guidelines to California Adjustments 06/16/21 PDF

Page 8, Business Income or (Loss) – Depreciation, Amortization, and Property Expensing, Columns 1 – 3.

HTML

New text to follow after the bullet for MACRS recovery period for nonresidential real property.

Added new instructions. For federal purposes, under the Consolidated Appropriations Act, 2021, the recovery period, for taxable years beginning after 12/31/2017, is 30 years for residential rental property held by an electing real property trade or business that was placed in service prior to 01/01/2018, but that was not subject to ADS prior to that date. California does not conform to the federal change in the recovery period. As a result, a federal/state difference may exist and an adjustment may be needed on Schedule CA (540 or 540NR).
2019 Instructions for FTB 3514, California Earned Income Tax Credit 04/30/2021 HTML
  1. Line 13 instructions, first paragraph.
  2. Line 14 instructions, first paragraph.

PDF

  1. Page 3 of flat FTB 3514 instructions, column 2, Step 5, Line 13.
  2. Page 3 of flat FTB 3514 instructions, column 2, Step 5, Line 14.

1 – 2.
Modified existing instructions.

Taxpayers may elect to include or exclude Medicaid waiver payments or IHSS payments that are nontaxable for federal purposes as wages/CA earned income for purposes of qualifying for EITC.
2019 FTB 8455, California e-file Payment Record for Individuals 05/15/2020 Part I, line 2. Refer to line 32 instead of line 31 on Form 540 2EZ. Line reference to Form 540 2EZ was incorrect. The correct line number reference for Form 540 2EZ is line 32.
2018 540 2EZ Booklet – Personal Income Tax Booklet, Instructions for FTB 3514, California Earned Income Tax Credit 08/14/2021 HTML
  1. FTB 3514 instructions (HTML), Line 13 instructions, first paragraph.
  2. FTB 3514 instructions (HTML), Line 14 instructions, first paragraph.

PDF

  1. Page 25 of 540 2EZ booklet, column 2, Step 5, Line 13.
  2. Page 25 of 540 2EZ booklet, column 2, Step 5, Line 14.
Modified existing instructions. Taxpayers may elect to include or exclude Medicaid waiver payments or IHSS payments that are nontaxable for federal purposes as wages/CA earned income for purposes of qualifying for EITC.
2018 540 Booklet – Personal Income Tax Booklet, Instructions for FTB 3514, California Earned Income Tax Credit 07/16/2021 HTML
  1. Line 13 instructions, first paragraph.
  2. Line 14 instructions, first paragraph.

PDF

  1. Page 73 of 540 booklet, column 2, Step 5, Line 13.
  2. Page 73 of 540 booklet, column 2, Step 5, Line 14.
Modified existing instructions. Taxpayers may elect to include or exclude Medicaid waiver payments or IHSS payments that are nontaxable for federal purposes as wages/CA earned income for purposes of qualifying for EITC.
2018 540NR Booklet – Nonresident or Part-Year Resident Booklet, Instructions for FTB 3514, California Earned Income Tax Credit 07/16/2021 HTML
  1. Line 13 instructions, first paragraph.
  2. Line 14 instructions, first paragraph.

PDF

  1. Page 73 of 540NR booklet, column 2, Step 5, Line 13.
  2. Page 73 of 540NR booklet, column 2, Step 5, Line 14.
Modified existing instructions. Taxpayers may elect to include or exclude Medicaid waiver payments or IHSS payments that are nontaxable for federal purposes as wages/CA earned income for purposes of qualifying for EITC.
2018 Publication 1001, Supplemental Guidelines to California Adjustments 06/16/2021 PDF

Page 8, Business Income or (Loss) – Depreciation, Amortization, and Property Expensing, Columns 1 – 3.

HTML

New text to follow after the bullet for MACRS recovery period for nonresidential real property.

Added new instructions. For federal purposes, under the Consolidated Appropriations Act, 2021, the recovery period, for taxable years beginning after 12/31/2017, is 30 years for residential rental property held by an electing real property trade or business that was placed in service prior to 01/01/2018, but that was not subject to ADS prior to that date. California does not conform to the federal change in the recovery period. As a result, a federal/state difference may exist and an adjustment may be needed on Schedule CA (540 or 540NR).
2018 Instructions for FTB 3514, California Earned Income Tax Credit 04/29/2021 HTML
  1. Line 13 instructions, first paragraph.
  2. Line 14 instructions, first paragraph.

PDF

  1. Page 3 of flat FTB 3514 instructions, column 2, Step 5, Line 13.
  2. Page 3 of flat FTB 3514 instructions, column 2, Step 5, Line 14.

1 – 2.
Modified existing instructions.

Taxpayers may elect to include or exclude Medicaid waiver payments or IHSS payments that are nontaxable for federal purposes as wages/CA earned income for purposes of qualifying for EITC.
2018 Partner’s Instructions for Schedule K-1 565 01/11/2019 HTML
Section: Line Instructions

PDF
Page: 38
Column: 2
Line: 13d

Refer to line 21, instead of line 27 in the Schedule CA 540 and Schedule CA 540 NR. The Tax Cuts and Jobs Act (TCJA) changed/modified Schedule A (Form 1040), which caused Schedule CA (540) and Schedule CA (540NR) to change.

The miscellaneous itemized deduction subject to the 2% of federal AGI is no longer allowed at the federal level. However, California allows the miscellaneous itemized deduction subject to the 2% of federal AGI. Miscellaneous deductions from pass-through entities are subject to the 2% of federal AGI.

2017 540 2EZ Booklet – Personal Income Tax Booklet, Instructions for FTB 3514, California Earned Income Tax Credit 08/13/2021

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FTB 3514 instructions (HTML), Line 13 instructions, first paragraph.

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Page 27 of 540 2EZ booklet, column 2, Step 5, Line 13.

Modified existing instructions. Taxpayers may elect to include or exclude Medicaid waiver payments or IHSS payments that are nontaxable for federal purposes as wages/CA earned income for purposes of qualifying for EITC.
2017 540 Booklet – Personal Income Tax Booklet, Instructions for FTB 3514, California Earned Income Tax Credit 07/09/2021 HTML
Line 13 instructions, first paragraph.

PDF
Page 75 of 540 booklet, column 2, Step 5, Line 13.

Modified existing instructions. Taxpayers may elect to include or exclude Medicaid waiver payments or IHSS payments that are nontaxable for federal purposes as wages/CA earned income for purposes of qualifying for EITC.
2017 540NR Booklet – Nonresident or Part-Year Resident Booklet, Instructions for FTB 3514, California Earned Income Tax Credit 07/09/2021 HTML
Line 13 instructions, first paragraph.

PDF
Page 71 of 540NR booklet, column 2, Step 5, Line 13.

Modified existing instructions. Taxpayers may elect to include or exclude Medicaid waiver payments or IHSS payments that are nontaxable for federal purposes as wages/CA earned income for purposes of qualifying for EITC.
2017 Instructions for FTB 3514, California Earned Income Tax Credit 04/29/2021 HTML
Line 13 instructions, first paragraph.

PDF
Page 3 of flat FTB 3514 instructions, Column 2 Step 5, Line 13.

Modified existing instructions. Taxpayers may elect to include or exclude Medicaid waiver payments or IHSS payments that are nontaxable for federal purposes as wages/CA earned income for purposes of qualifying for EITC.
2016 540 2EZ Booklet – Personal Income Tax Booklet, Instructions for FTB 3514, California Earned Income Tax Credit 08/06/2021 Page 30 of 540 2EZ booklet, column 1, Step 5, Line 13. Modified existing instructions. Taxpayers may elect to include or exclude Medicaid waiver payments or IHSS payments that are nontaxable for federal purposes as wages/CA earned income for purposes of qualifying for EITC.
2016 540 Booklet – Personal Income Tax Booklet, Instructions for FTB 3514, California Earned Income Tax Credit 07/9/2021 Page 70 of 540 booklet, column 1, Step 5, Line 13. Modified existing instructions. Taxpayers may elect to include or exclude Medicaid waiver payments or IHSS payments that are nontaxable for federal purposes as wages/CA earned income for purposes of qualifying for EITC.
2016 540NR Booklet – Nonresident or Part-Year Resident Booklet, Instructions for FTB 3514, California Earned Income Tax Credit 07/9/2021 Page 66 of 540NR booklet, column 1, Step 5, Line 13. Modified existing instructions. Taxpayers may elect to include or exclude Medicaid waiver payments or IHSS payments that are nontaxable for federal purposes as wages/CA earned income for purposes of qualifying for EITC.
2016 Instructions for FTB 3514, California Earned Income Tax Credit 04/29/2021 Page 4 of flat FTB 3514 instructions, column 1, Step 5, Line 13. Modified existing instructions. Taxpayers may elect to include or exclude Medicaid waiver payments or IHSS payments that are nontaxable for federal purposes as wages/CA earned income for purposes of qualifying for EITC.
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