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Form 540X Instructions 2000 Page 1
Instructions for Form 540X
Amended Individual Income Tax Return
General Information
Protective Claim. If you are filing a claim for refund on Form 540X for a tax year where litigation is pending or where a final determination by the Internal Revenue Service (IRS) is pending, you must write “PROTECTIVE CLAIM” in red ink at the top of your completed Form 540X. Also, specify the pending litigation or reference the federal determination on Side 2, Part II. This will assist in the proper processing of your claim.
Installment Payments. If you cannot pay the full amount that you owe with your amended return, you may request approval to make monthly installment payments. You will be charged interest and may be charged a late payment penalty even if your request to pay in installments is granted. To limit interest and penalty charges, pay as much of the tax as possible with your amended return. To ask for an installment agreement, use form FTB 3567, Installment Agreement Request. To order the form by phone, call (800) 338-0505, select personal income tax, then select forms and publications, and enter code 949 when instructed.
Educational Assistance Exclusion. If you are filing Form 540X only to claim a refund related to the exclusion for employer-provided educational assistance, please attach the state copy of Form W-2c issued by your employer and write “IRC 127” in red ink at the top of your completed Form 540X.
Military Pay Exclusion. If you were a member of the military and served in Bosnia, Herzegovina, Croatia, or Macedonia after November 20, 1995, and are filing Form 540X to claim the military pay exclusion, please attach the state copy of Form W-2c.
A Purpose
Use Form 540X to correct your 1990 through 2000 California personal income tax return (Form 540, 540A, 540EZ, 540 2EZ, 540TEL, 540-ADS, or 540NR), whether originally filed via paper, TeleFile, or e-file.
B When to File
Generally, if you filed federal Form 1040X, Amended U.S. Individual Income Tax Return, you must file Form 540X within six months unless the changes do not affect your California tax liability. File Form 540X only after you have filed your original return. If your original return was for a refund, do not file Form 540X until you receive that refund or notice of the action taken on the return.
California Statute of Limitation
Original return was filed on or before April 15th: If you are making a claim for refund, file an amended return within four years from the original due date of the return, or within one year from the date of overpayment, whichever period expires later.
Original return was filed within the extension period (April 16th - October 15th): If you are making a claim for refund, file an amended return within four years from the date the original return was filed, or within one year from the date of overpayment, whichever period expires later.
Original return was filed after October 15th: If you are making a claim for refund, file an amended return within four years from the original due date of the return (April 15th), or within one year from the date of overpayment, whichever period expires later.
If you are filing your amended return after the normal statute of limitation period (four years after the due date of the original return), attach a statement explaining why the normal statute of limitations does not apply.
If you are filing your amended return in response to a billing notice you received, you will continue to receive billing notices until your amended return is accepted. In addition, you must pay the assessed tax before you can claim a refund for any part of the assessed tax.
C Information on Income, Deductions, etc.
If you have questions, such as what income is taxable or what expenses are deductible, refer to the income tax booklet for the year you are amending. Be sure to use the proper tax table or tax rate schedule to figure your corrected tax. The related schedules and forms may also help you. If you amended your federal income tax return and made changes to your medical expense deduction, charitable contributions, or miscellaneous itemized deductions, you must also make adjustments on Form 540X if you itemized your deductions for California. You must use your revised federal adjusted gross income (AGI) to compute the percentage limitations.
D Part-Year Residents and Nonresidents
If you were a part-year resident or a nonresident of California, you must complete a corrected Form 540NR, California Nonresident or Part-Year Resident Income Tax Return, and a corrected Schedule CA (540NR), California Adjustments — Nonresidents or Part-Year Residents (tax years 1993 and later), showing any changes to your income. (For tax years 1990, 1991, and 1992, complete a corrected Schedule SI, Nonresident or Part-Year Resident California Adjusted Gross Income.) You must write “AMENDED” at the top of Form 540NR. Then, skip line 1 through line 14 of Form 540X and start with line 15, Total Tax. See the instructions for line 15. Attach the corrected Form 540NR and Schedule CA (540NR) to your Form 540X. Also complete and attach any other schedules that may be affected by this change, such as Schedule P (540NR), Alternative Minimum Tax and Credit Limitations — Nonresidents or Part-Year Residents.
E Federal Notices
If you were notified of an error on your federal income tax return that changed your AGI, you may need to amend your California income tax return for that year. If the IRS examines and changes your federal income tax return, and you owe additional tax, report these changes to the FTB within six months. You do not need to inform the FTB if the changes do not increase your California tax liability. If the changes made by the IRS result in a refund due, you must file a claim within two years. Use Form 540X to make any changes to your California income tax returns already filed, or send copies of the changes together with your recomputation of California tax to: ATTN: RAR/VOL AUDIT SECTION FRANCHISE TAX BOARD PO BOX 1998 RANCHO CORDOVA CA 95741- You must include a copy of the final federal determination, along with all underlying data and schedules that explain or support the federal adjustment. Please note that most penalties assessed by the IRS also apply under California law. If you are including penalties in a payment with your amended return, see the instructions for line 30a.
F Children Under Age 14
If your child was required to file form FTB 3800, Tax Computation for Children Under Age 14 with Investment Income, and your taxable income has changed, review your child’s return to see if you need to file an amended return. Get form FTB 3800 for more information.
Page 2 Form 540X Instructions 2000
G Contacting the Franchise Tax Board
If you have not received a refund within six months of filing Form 540X, do not file a duplicate amended return for the same year. For informa- tion on the status of your refund, you may write to:
FRANCHISE TAX BOARD PO BOX 942840 SACRAMENTO CA 94240-
Or, you may call our general toll-free phone service Monday through Friday between 7 a.m. and 8 p.m.:
Within the United States....................... (800) 852-
Outside the United States (not toll-free)........... (916) 845-
Asistencia bilingüe en español Para obtener servicios en español y asistencia para completar su declaración de impuestos/formularios, llame al número de teléfono (anotado arriba) que le corresponde.
Assistance for Persons with Disabilities The FTB complies with the provisions of the Americans with Disabilities Act. Persons with a hearing or speech impairment call:
From voice phone (California Relay Service)........ (800) 735-
From TTY/TDD (Direct line to FTB customer service).. (800) 822-
For all other assistance or special accommodations... (800) 852-
H Where To Get Tax Forms and Publications
By Internet – Visit our website to get 1994 through 2000 California tax forms: www.ftb.ca.gov
By Phone – To order 1998-2000 California tax forms and publications, call our automated toll-free phone service at (800) 338-0505, select personal income tax, then select forms and publications, and follow the recorded instructions.
By Mail – Write to:
TAX FORMS REQUEST UNIT FRANCHISE TAX BOARD PO BOX 307 RANCHO CORDOVA CA 95741-
To get California tax forms for years prior to 1994 , call our general toll-free phone service. See General Information G, Contacting the Franchise Tax Board, for the telephone numbers.
Specific Instructions
Please fill out Form 540X as completely as possible. Incomplete information could delay the processing of your amended return.
Name and Address
Above your name on Side 1, fill in the boxes for the calendar year or write in your fiscal year end (month and year) of the return you are amending. Print or type your name and address as follows:
- If you are amending a joint return, list your names and social security numbers in the same order as shown on your original return. - If you are amending from a separate return to a joint return and your spouse did not file an original return, enter your name and social security number on the first line and your spouse’s name and social security number on the second line. - If you are married, enter social security numbers for both you and your spouse whether you file joint or separate returns.
If you lease a private mailbox (PMB) from a private business rather than a PO box from the United States Postal Service, include the box number in the field labeled “PMB no.” in the address area.
Filing Status
Your filing status for California must be the same as the filing status you used on your federal income tax return. If you changed your filing
status on your federal amended return, you must also change your filing status for California by filing Form 540X. Exception: Married taxpayers who filed a joint federal tax return may file separate state tax returns if either spouse was:
- An active member of the United States armed forces (or any auxiliary military branch) during the year being amended; or - A nonresident for the entire year and had no income from California sources during the year being amended. Generally, you cannot change from joint to separate filing status. However, for tax returns due on or after January 1, 2000, married taxpayers who could have filed separate tax returns under one of the above exceptions after filing a joint federal tax return may change from joint to separate filing status on their state tax return. Married taxpayers who filed separate tax returns but were eligible to file a joint tax return may change to a joint tax return, provided a joint federal tax return is also filed. If you filed a joint tax return and either you or your spouse was a nonresident or part-year resident during the year being amended, you must file Form 540NR. See General Information D, Part-Year Residents and Nonresidents, for more information.
Column A Enter the amounts from your original return. However, if you previously amended that return or if the FTB examined or adjusted your return, enter the adjusted amounts.
Column B Enter the net increase (+) or net decrease (-) for each line you are changing. Show all decreases in parentheses. Explain each change in Part II and attach any related schedule or form. If you need more space, attach a statement. Be sure to include your name and social security number on any attachments.
Column C Add the increase (+) in column B to column A, or subtract the decrease (-) in column B from column A. For any amount you do not change, enter the amount from column A in column C.
Line 1 through Line 6 Residents: Be sure to complete line 1a, line 1b, line 3, line 4, line 5, and line 6 in column A and line 6 in column C even if you are not amending amounts on line 1a through line 5. Exception: If you originally filed Form 540 2EZ and need to amend your tax return, complete Form 540A or Form 540 with the new and correct information and write “Amended” in the top left margin. Attach a statement explaining what changed and the reason for the change. Skip line 1 through line 14 of Form 540X and start with line 15. See the instructions for line 15. Attach the corrected return to your Form 540X. Nonresidents or part-year residents: See General Information D before you make any entries on Form 540X. Line 1a – State Wages On line 1a, column A, enter your state wages from your Form 540, line 12; or Form 540-ADS, line 12; or Form 540A, line 12a; or Form 540EZ, line 12a. If you used TeleFile, enter your total state wages from all Form(s) W-2, box 17. If you are amending state wages, attach Copy 2 of any additional or corrected Form(s) W-2 that you received after you filed your original return. Line 1b – Federal AGI On line 1b, column A, enter your federal AGI from your Form 540, Form 540A, Form 540EZ, or Form 540-ADS. If you filed federal Form 1040X or received an adjustment notice from the IRS, refigure your federal AGI and enter the revised amount in column C. Explain the adjustment in Part II.
Page 4 Form 540X Instructions 2000
- Enter the amount from federal Form 2441, line 9, or federal Form 1040A, Schedule 2, line 9....... 1 ___________ ( Exception: If your federal credit was limited by the federal tax amount, enter the federal credit amount you computed before applying the limitation.)
- Enter the percentage for your adjusted gross income Form 540X, line 4 (Form 540NR, line 20)....... 2 ___________ - $40,000 or less................... 63% - Over $40,000 but not over $70,000.... 53% - Over $70,000 but not over $100,000... 42%
- Multiply the amount on line 1 by the amount on line 2. Enter here and on line 19 of Form 540X........ 3 ___________ Note : Do not enter the amount from line 3, on line 19 of Form 540X, if you are amending Form 540NR (Nonresident or Part-year Resident tax return). Instead, compute lines 4 and 5 to figure your credit.
- Enter the ratio from Form 540NR, line 25a, up to 1.00. (If your ratio is more than 1.00, enter 1.00. Do not enter more than 1.00. )...... 4 ___________
- Multiply the amount on line 3 by the ratio on line 4. Enter here and on line 19 of Form 540X... 5 ___________
Refundable Renter’s Credit (tax years prior to 1993 only)
Caution: Due to a tax law change, the refundable renter’s credit was eliminated and may not be claimed on tax returns for 1993 or later years. However, if you are claiming this credit for the first time for a year prior to 1993, or changing the amount of your credit, complete and attach Schedule H (540 or 540NR). Note: In 1998 the renter’s credit provision was amended so that it is no longer refundable. If you are filing a 1998, 1999, or 2000 amended return to claim the nonrefundable renter’s credit, do not use line 19. Instead, use line 12.
Please note: You may not claim both credits on the same amended tax return, because the refundable Renter’s credit applies to tax years prior to 1993 and the Child and Dependent Care Expense Credit applies to tax years 2000 and after.
Lines 20 and 21 Enter the qualifying person’s social security number. If you have more than two qualifying persons, attach a copy of the statement you included with the federal Form 2441 or federal Form 1040A, Sched- ule 2, listing the additional names and social security numbers.
Line 22 Enter the amount from the federal Form 2441, line 9, or Form 1040A, Schedule 2, line 9.
Line 23 – Tax Paid with Original Return You must complete Side 2, Part I before completing line 23. Enter on line 23 the amount actually paid as shown on the “amount you owe” line on your original return. Also, include any additional payments made on assessments of tax that resulted from examination of your original return. Do not include payments of interest or penalties.
Line 25 through Line 31
Line 25 – Overpaid Tax Enter the amount of refund received from your original return. Also, include the amount of payment that was applied to another year and any additional overpaid tax you received as a result of an examination of your original return.
Do not include any interest you received on any refund.
Line 26 – Subtotal If line 25 is more than line 24:
- Enter the difference as a positive number on line 26.
- Enter the total voluntary contribution amount from your original return, if any, on line 27.
- Skip line 28.
- Add line 15 (column C), line 26, and line 27. Enter the result on line 29.
Line 27 – Voluntary Contributions Enter total voluntary contributions as shown on your original return. If you did not make a voluntary contribution on your original return, enter -0-. Line 29 – Amount You Owe Make a check or money order payable to the “Franchise Tax Board” for the full amount you owe. Write your social security number and the tax year you are amending on your check or money order and attach it to Form 540X, Side 1. You may also pay by credit card if you prefer to do so. Call (800) 338-0505, select personal income tax, then select general information, and enter code number 610 when instructed. Mail Form 540X to: FRANCHISE TAX BOARD PO BOX 942867 SACRAMENTO CA 94267- Note: Interest is due on the amount on line 29 from the original due date of the return to the date of payment. See line 30b for more information. Line 30a – Penalties If you are including penalties with your payment, enter the amount of penalties on line 30a. Also, attach a statement to your return that shows the following information for each type of penalty included on line 30a: type of penalty (description); the Internal Revenue Code (IRC) or California Revenue & Taxation Code (R&TC) section that provides for assessment of the penalty (if possible); and a schedule showing how you computed the penalty. Line 30b – Interest If you owe additional tax (line 29) and are including interest with your payment, enter the interest on line 30b. If you do not include interest with your payment or include only a portion of it, the FTB will figure the interest and bill you for it. Line 30c – Total Interest and Penalties Add line 30a and line 30b. Enter the total on line 30c. Line 31 – Refund If you are entitled to a refund greater than the amount claimed or allowed on your original return, your Form 540X should show only the additional amount due to you. This amount will be refunded separately from the amount allowed on your original return. The FTB will figure any interest owed to you and include it in your refund. Mail Form 540X to: FRANCHISE TAX BOARD PO BOX 942840 SACRAMENTO CA 94240- Note: Even after you receive a refund check, the FTB may request additional information to substantiate your claim.
Part II Explanation of Changes For each change you make to a line on Side 1, provide the line number and your detailed explanation of reasons for the change. Attach all supporting forms and schedules for items changed. Include federal forms and schedules if you made a change to your federal return. Sign Your Return Sign your return in the space provided. Please provide the name and the phone number of the person to contact if we have any questions about your amended return. Also include the best time of day to call. This information will allow us to provide better service in processing your amended return. Paid Preparer’s Information If you pay a person to prepare your Form 540X, that person must sign and complete the area at the bottom of Side 2, including an identifica- tion number (social security number/PTIN, or FEIN). A paid preparer must give you two copies of your Form 540X, one copy to file with the Franchise Tax Board and one to keep for your records.
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