2016 540 NR Nonresident or Part-Year Resident Booklet .2016 Nonresident or Part-Year Resident...

download 2016 540 NR Nonresident or Part-Year Resident Booklet .2016 Nonresident or Part-Year Resident Booklet

of 84

  • date post

    11-Feb-2019
  • Category

    Documents

  • view

    225
  • download

    1

Embed Size (px)

Transcript of 2016 540 NR Nonresident or Part-Year Resident Booklet .2016 Nonresident or Part-Year Resident...

Forms & Instructions California 540NR 2016 Nonresident or Part-Year Resident Booklet

Members of theFranchise Tax Board

Betty T. Yee, ChairFiona Ma, CPA, MemberMichael Cohen, Member

COVER GRAPHICS OMITTED FOR DOWNLOADING SPEED

FRANCHISE

TAX

BOARD

Page 2 540NR Tax Booklet 2016

Important Dates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2Do I Have to File? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3Whats New and Other Important Information for 2016 . . . . . . . . . . . . 4How Nonresidents and Part-Year Residents are Taxed . . . . . . . . . . . . . 6Which Form Should I Use? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7Frequently Asked Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8Instructions for Short Form 540NR . . . . . . . . . . . . . . . . . . . . . . . . . . . 9Nonrefundable Renters Credit Qualification Record . . . . . . . . . . . . . . .13Additional Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15Credit Chart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16Voluntary Contribution Fund Descriptions . . . . . . . . . . . . . . . . . . . . . .17Short Form 540NR, California Nonresident or Part-Year Resident Income Tax Return . . . . . . . . . . . . . . . . . . . . .19Instructions for Long Form 540NR . . . . . . . . . . . . . . . . . . . . . . . . . . . .23Long Form 540NR, California Nonresident or Part-Year Resident Income Tax Return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35

Table of Contents

$$$ for YouEarned Income Tax Credit Federal Earned Income Tax Credit (EIC) EIC reduces your federal tax

obligation, or allows a refund if no federal tax is due . You may qualify if you earned less than $47,955 ($53,505 if married filing jointly) and have qualifying children or you have no qualifying children and you earned less than $14,880 ($20,430 if married filing jointly) . Call the Internal Revenue Service (IRS) at 800 .829 .4477 and when instructed enter topic 601, see the federal income tax booklet; or go to the IRS website at irs.gov and search for eitc assistant .

California Earned Income Tax Credit (EITC) EITC reduces your California tax obligation, or allows a refund if no California tax is due . You may qualify if you have wage income earned in California of less than $14,162 . You do not need a child to qualify . For more information go to ftb.ca.gov and search for EITC or get form FTB 3514 California Earned Income Tax Credit .

Refund of Excess State Disability Insurance (SDI) If you worked for at least two employers during 2016 who together paid you more than $106,742 in wages, you may qualify for a refund of excess SDI . See the instructions on page 29 .

Common Errors and How to Prevent ThemHelp us process your tax return quickly and accurately . When we find an error, it requires us to stop to verify the information on the tax return, which slows processing . The most common errors consist of: Claiming the wrong amount of estimated tax payments Claiming the wrong amount of standard deduction or itemized deductions Making tax computation errors Claiming the wrong amount of real estate and other withholding Claiming the wrong amount of withholding tax credit by incorrectly totaling or

transferring the amounts from your withholding documents .To avoid errors and to help process your tax return faster, use these helpful hints when preparing your tax return .

Claiming estimated tax payments: Verify the amount of estimated tax payments claimed on your tax return

matches what you sent to the Franchise Tax Board (FTB) for that year . Go to ftb.ca.gov and search for myftb account to view your total estimated tax payments before you file your tax return .

Verify the overpayment amount from your 2015 tax return you requested to be applied to your 2016 estimated tax .

If the FTB records do not match the amount of estimated tax payments claimed, a Return Information Notice will be sent explaining the difference .

Claiming state disability insurance: Verify the amount of State Disability Insurance (SDI) used to figure the

amount of excess SDI claimed on Form 540NR, line 84, matches amounts from your W-2s .

Claiming standard deduction or itemized deductions: Verify the adjusted gross income amount on Form 540NR, line 17 is

calculated correctly See Form 540NR, line 18 instructions and worksheets for the amount of

standard deduction or itemized deductions you can claim .

Computing your tax: Carry all percentages out four digits to the right of the decimal . Verify the total tax amount on Form 540NR, line 74 is calculated correctly . Go to ftb.ca.gov and search for tax calculator to compute your tax with the

tax calculator or with the tax tables . Locate the correct tax amount from the tax table and transfer it to your tax

return correctly . Verify any affected schedule to ensure that the total tax amount is correctly

transferred over .

Claiming real estate and other withholding: Only claim withholding from Forms 592-B and 593 for tax year 2016 . Claim withholding from Forms 592-B and 593 on Form 540NR Long, line 83 . Do

not include withholding from Form W-2 or estimated tax payments on line 83 .By using the helpful hints above, you assist in preventing delays in processing your tax return and unnecessary account adjustments .

Schedule CA (540NR), California Adjustments Nonresidents or Part-Year Residents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39Instructions for Schedule CA (540NR) . . . . . . . . . . . . . . . . . . . . . . . . .41Schedule D (540NR), California Capital Gain or Loss Adjustment . . . .51Instructions for Schedule D (540NR) . . . . . . . . . . . . . . . . . . . . . . . . . .53Paying Your Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .56FTB 3519, Payment for Automatic Extension for Individuals . . . . . . . .57FTB 3885A, Depreciation and Amortization Adjustments . . . . . . . . . . .59FTB 3514, California Earned Income Tax Credit . . . . . . . . . . . . . . . . . .61Instructions for Form FTB 3514 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .63FTB 3532, Head of Household Filing Status Schedule . . . . . . . . . . . . .71Instructions for Form FTB 3532 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .732016 California Tax Table . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .752016 California Tax Rate Schedules . . . . . . . . . . . . . . . . . . . . . . . . . . .80How To Get California Tax Information . . . . . . . . . . . . . . . . . . . . . . . . .82Privacy Notice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .82Automated Phone Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .83

Important DatesWhen the due date falls on a weekend or holiday, the deadline to file and pay without penalty is extended to the next business day .

April 18, 2017** Last day to file and pay the 2016 amount you owe to avoid penalties and interest .* See form FTB 3519 for more information .* If you are living or traveling outside the United States on April 18, 2017, the dates for filing your tax return and paying your tax are different .

See form FTB 3519 for more information .**Due to the federal Emancipation Day holiday observed on April 17, 2017, tax returns filed and payments mailed or submitted on April 18,

2017, will be considered timely .

October 16, 2017 Last day to file or e-file your 2016 tax return to avoid a late filing penalty and interest computed from the original due date of April 15, 2017 .

April 18, 2017*June 15, 2017September 15, 2017January 16, 2018

The dates for 2017 estimated tax payments . Generally, you do not have to make estimated tax payments if your California withholding in each payment period totals 90% of your required annual payment . Also, you do not have to make estimated tax payments if you will pay enough through withholding to keep the amount you owe with your tax return under $500 ($250 if married/registered domestic partner (RDP) filing separately) . However, if you do not pay enough tax either through withholding or by making estimated tax payments, you may have an underpayment of estimated tax penalty . For more information call 800 .338 .0505, select personal income tax, then select frequently asked questions, and enter code 208 .* Due to the federal Emancipation Day holiday observed on April 17, 2017, tax returns filed and payments mailed or submitted on April 18,

2017, will be considered timely .

540NR Tax Booklet 2016 Page 3

Do I Have to File? Steps to Determine Filing RequirementIf you are a nonresident of Californi