Fillable Printable Other State Tax Credit - California
Fillable Printable Other State Tax Credit - California
Other State Tax Credit - California
Schedule S 2014
For Privacy Notice, get FTB 1131 ENG/SP.
Part I Double-Taxed Income (Read specific line instructions for Part I before completing.)
(a)
Income item(s) description (b) Double-taxed income taxable by California (c) Double-taxed income taxable by other state
1 Total double-taxed income
Part II Figure Your Other State Tax Credit (Read specific line instructions for Part II before completing.)
2 California tax liability. See instructions ............................................................. 2 00
3 Double-taxed income taxable by California. Enter the amount from Part I, line 1, column (b).................... 3 00
4 California adjusted gross income. See instructions .................................................... 4 00
5 Divide line 3 by line 4. Do not enter more than 1.0000 ................................................. 5 .
6 Multiply line 2 by line 5 ......................................................................... 6 00
7 Income tax liability paid to name of other state (use state’s abbreviation) See instructions .............
7 00
8 Double-taxed income taxable by other state. Enter the amount from Part I, line 1, column (c) ................... 8 00
9 Adjusted gross income taxable by other state. See instructions .......................................... 9 00
10 Divide line 8 by line 9. Do not enter more than 1.0000 .................................................
10 .
11 Multiply line 7 by line 10 ........................................................................
11 00
12 Other state tax credit. Enter the smaller of line 6 or line 11. Use Credit Code 187. See instructions ...............
12 00
Other State Tax Credit
TAXABLE YEAR
2014
CALIFORNIA SCHEDULE
S
Attach to Form 540, Long Form 540NR, or Form 541.
General Information
For taxes paid to another state on or after
January 1, 2009, a claim for credit or refund
of an overpayment of income tax attributable
to taxes paid to another state may be filed
within one year from the date tax is paid to
the other state or within the general statute of
limitations, whichever period expires later.
Taxpayers may qualify for a credit for income
taxes paid to another state when the same
income that is taxed by the other state is
also taxed by California. Other state income
taxes which are paid to the other state do not
necessarily have to be in the same year, as long
as the taxes relate to the same transaction.
You must attach Schedule S, Other State Tax
Credit, and a copy of your tax return(s) filed
with the other state(s) to your California tax
return. If you e-file, do not submit tax returns
filed with other states to California. Retain a
copy of other state tax returns, along with a
copy of this form for your records.
Shareholders of S corporations, partners of
partnerships, and members of limited liability
companies (LLCs) classified as partnerships
for tax purposes, see Section G, Pass-Through
Entities, for more information.
A Purpose
If you are an individual filing a California
personal income tax return or an estate or
trust filing a California fiduciary income tax
return, use Schedule S to claim a credit against
California tax for net income taxes imposed by
and paid to another state or U.S. possession.
Residents of California may claim a credit only
if the income taxed by the other state has a
source within the other state under California
law. No credit is allowed if the other state
allows California residents a credit for net
income taxes paid to California.
Nonresidents of California may claim a credit
only for net income taxes imposed by and paid
to their states of residence and only if such
states do not allow their residents a credit for
net income taxes paid to California.
Important: See Sections C, California
Residents, and D, California Nonresidents,
for a list of states and U.S. possessions for
which the other state tax credit is allowed. See
Section H, Income from Sources Within the
Other State, for a description of the source of
various types of income.
Beneficiaries of estates or trusts, partners
of partnerships, members of LLCs classified
as partnerships, and shareholders of
S corporations that paid a net income tax to
another state on income that must be reported
to California may also claim the other state tax
credit. See Sections F, Dual-Resident Estates
and Trusts, and G, Pass-Through Entities, for
more information.
8021143
Name(s) as shown on your California tax return SSN, ITIN, or FEIN
Page 2 Schedule S Instructions 2014
B Application of the Credit
Credit is allowed for net income taxes paid to
another state (not including any tax comparable
to California’s alternative minimum tax) on
income that is also subject to California tax.
The credit is applied against California net tax,
less other credits. The credit cannot be applied
against California alternative minimum tax.
When a joint tax return is filed in California,
the entire amount of tax paid to the other state
may be used in figuring the credit, regardless
of which spouse/RDP paid the other state tax
or whether a joint or separate tax return is filed
in the other state.
When a joint tax return is filed in the other
state and separate California tax returns are
filed, the credit is allowed in proportion to the
income reported on each California tax return.
If, after paying tax to the other state, you
get a refund or credit due to an amended tax
return, computation error, audit, etc., you must
report the refund or credit immediately to the
Franchise Tax Board (FTB). Prepare a revised
Schedule S and attach it to any of the following:
• Form 540X, Amended Individual Income
Tax Return, if you filed Form 540, California
Resident Income Tax Return, or Long Form
540NR, California Nonresident or Part-Year
Resident Income Tax Return.
•
Form 541, California Fiduciary Income
Tax Return, if you filed Form 541. Check
“Amended tax return” box below fiduciary
address area on Side 1.
C California Residents
California resident individuals, estates, or
trusts that derived income from sources within
any of the following states or U.S. possessions
and paid a net income tax to that state or U.S.
possession on income that is also taxed by
California may claim the other state tax credit:
Alabama (AL), American Samoa (AS),
Arkansas (AR), Colorado (CO),
Connecticut (CT), Delaware (DE),
District of Columbia (DC) (unincorporated
business tax and income tax, the latter
for dual residents only), Georgia (GA),
Hawaii (HI), Idaho (ID), Illinois (IL),
Iowa (IA), Kansas (KS), Kentucky (KY),
Louisiana (LA), Maine (ME), Maryland (MD),
Massachusetts (MA), Michigan (MI),
Minnesota (MN), Mississippi (MS),
Missouri (MO), Montana (MT),
Nebraska (NE), New Hampshire (NH)
(business profits tax), New Jersey (NJ),
New Mexico (NM), New York (NY),
North Carolina (NC), North Dakota (ND),
Ohio (OH), Oklahoma (OK),
Pennsylvania (PA), Puerto Rico (PR),
Rhode Island (RI), South Carolina (SC),
Utah (UT), Vermont (VT),
Virgin Islands (VI),Virginia (VA) (dual
residents*), West Virginia (WV), and
Wisconsin (WI).
California residents who are included in a
group nonresident tax return similar to the
tax return described in California Revenue &
Taxation Code (R&TC) Section 18535, filed
with the states listed in this section, as well
as Arizona (AZ), Indiana (IN), Oregon (OR),
or Virginia (VA) may also claim a credit for
their share of income taxes paid to these
states, unless any of these states allow a
credit for taxes paid to California on the group
nonresident tax return.
Attach a statement and schedule showing
your share of the net income tax paid to the
other state.
*A dual resident is any taxpayer who is defined
as a California resident under California law and
a Virginia resident under Virginia law. If you are
a dual resident, you are allowed to claim the
other state tax credit for taxes paid to Virginia on
Virginia source income. Dual residents who are
elected or appointed officials and staff as defined
in R&TC Section 17014(b) may claim the other
state tax credit for taxes paid to Virginia on all
income taxed by Virginia whether or not it has a
source in Virginia. (See Section H, Income from
Sources Within the Other State.)
D California Nonresidents
California nonresident individuals, estates, or
trusts that are residents of one of the following
states or U.S. possessions and paid a net
income tax to that state or U.S. possession
on income that is also taxed by California may
claim the other state tax credit:
Arizona (AZ), Guam (GU), Indiana (IN),
Oregon (OR), and Virginia (VA).
California nonresidents who are residents of
any state or U.S. possession not listed may not
claim this credit. This credit is not allowed on a
California group nonresident tax return.
E California Part-Year Residents
California part-year residents:
•
Follow the instructions for residents for the
part of the year that you were a California
resident.
•
Follow the instructions for nonresidents
for the part of the year that you were a
nonresident.
F Dual-Resident Estates and
Trusts
An estate or trust may claim a credit if it is
treated as a “resident” of California and also as
a “resident” of another state. For this purpose
an estate or trust is considered a resident of
any state that taxes the trust or estate based
on its net income. An estate or trust will not
be considered a resident where the other state
is taxing the entity solely because of income
sourced in the other taxing state. The credit is
limited to:
1. The proportion of the tax paid to the other
state by the estate or trust that the double-
taxed income bears to the total income taxed
by the other state.
2. The proportion of the estate’s or trust’s
California tax that the double-taxed income
bears to the total income taxed by California.
Beneficiary of an Estate or Trust
A beneficiary of an estate or trust who is a
California resident and pays California tax on
income that has been taxed to the estate or
trust in another state may also claim the credit.
The credit is limited to both of the following:
1. The proportion of the tax paid to the other
state by the estate or trust that income taxed
to the beneficiary in California and also to
the estate or trust in the other state bears to
the total income taxed by the other state.
2. The proportion of the beneficiary’s California
tax that the income taxed to the beneficiary
in California and also to the estate or trust
in the other state bears to the beneficiary’s
total income taxed by California.
Attach a copy of Schedule K-1 (541),
Beneficiary’s Share of Income, Deductions,
Credits, etc., and a schedule showing your share
of the net income tax paid to the other state.
G Pass-Through Entities
A shareholder of an S corporation is allowed a
credit for the shareholder’s share of net income
taxes paid by the S corporation to another
state that either does not allow S corporation
elections or imposes tax on S corporations
and the S corporation elected to be treated as
an S corporation in the other state. A partner
is allowed a credit for the partner’s share of
net income taxes paid by the partnership to
another state. A member of an LLC classified
as a partnership is allowed a credit for the
member’s distributive share of net income
taxes paid by the LLC to another state.
Attach a copy of Schedule K-1 (100S, 565, or
568), Share of Income, Deductions, Credits,
etc., and a schedule showing your share of the
net income tax paid to the other state.
H Income from Sources Within
the Other State
Residents of California may claim a credit
for net income taxes imposed by and paid
to another state only on income which has a
source within the other state.
For this purpose, California’s sourcing
principles apply even though the results may
be contrary to the other states’ principles. The
following describes the sources of various
types of income:
•
Compensation for services rendered by
employees or independent contractors has a
source where the services are performed.
•
Income from tangible personal property and
real estate has a source where the property
is located.
•
Income from intangible personal property
(such as interest and dividends) generally
has a source where the owner resides.
•
Business income has a source where the
business is conducted.
Schedule S Instructions 2014 Page 3
Those persons subject to tax as California
residents solely by reason of the R&TC
Section 17014(b) (holders of federal elective
offices, certain Presidential appointees, and
Congressional staff members) may base their
credit computation on income taxed by the
other state, regardless of its source.
Get FTB Pub. 1031, Guidelines for Determining
Resident Status, for additional information
concerning source income.
•
Internet – You can download, view, and print
California tax forms and publications at
ftb.ca.gov.
•
Phone – Call 800.338.0505, select
“Personal Income Tax,” then select “Forms
and Publications.” Enter code 941 when
instructed to do so. Allow two weeks to
receive your order. If you live outside
California, please allow three weeks to
receive your order.
•
Mail –
TAX FORMS REQUEST UNIT
FRANCHISE TAX BOARD
PO BOX 307
RANCHO CORDOVA CA 95741-0307
Specific Line Instructions
Credit from more than one state – If you have a
credit from more than one state, figure the credit
separately by completing a separate Schedule S
for each state. Add the credits from each state’s
Schedule S, line 12 and enter the total on your
tax return. See instructions for line 12. You must
attach the schedules to your tax return.
Part I – Double-Taxed Income
Double-taxed income is income taxed by
California and the other state. In Part I, provide
a breakdown of your double-taxed income
by income item and amount. In column (a),
identify the income item, such as wages earned
in another state while a California resident, gain
on sale of real estate, ABC Partnership ordinary
income, etc. In column (b), enter the amount
of income from that item taxed by California. In
column (c), enter the amount of income from
that item taxed by the other state.
For residents of California, the income that is
taxed by the other state must also have a source
in the other state. See Section H, Income from
Sources Within the Other State, for a description
of the source of various types of income.
Nonresidents of California should enter in
column (b) only the amount of double- taxed
income that is included in Schedule CA (540NR),
California Adjustments — Nonresidents or Part-
Year Residents, line 37, column E. In column (c),
enter only the amount of double-taxed income
that is included in adjusted gross income taxed
by your state of residence.
Line 1 – Combine the amounts in column (b)
and column (c). Enter the totals on this line
and in Part II, line 3, and line 8 respectively.
Part II – Figure Your Other State
Tax Credit
Line 2 – Enter your California tax liability from:
• Residents – Form 540, line 48 (without other
state tax credit).
•
Nonresidents – Long Form 540NR, line 63
(without other state tax credit).
•
Estates and Trusts – Form 541, line 25
(without other state tax credit).
Line 4 –
Enter your California adjusted gross
income from:
•
Residents – Form 540, line 17, and any
lump-sum distribution from Schedule G-1.
•
Nonresidents – Long Form 540NR, line
32, and any California source lump-sum
distribution from Schedule G-1.
•
Estates and Trusts – Enter your adjusted
gross income determined for purposes of
the 2% limitation of your miscellaneous
itemized deductions. See Form 541, line 15b
instructions.
Line 7 – Enter the income tax liability net of all
credits (R&TC Section 17039) paid to the other
state. Do not include any of the following:
•
Taxes paid to any local government, such as
a city or county.
•
Taxes paid to the federal government.
• Taxes paid to any foreign country.
• Any tax comparable to California’s alternative
minimum tax paid to another state.
•
Tax on net passive income, built in gains tax,
gross income tax, and any special tax paid
to another state (S corporation).
Line 9 – Adjusted gross income taxed by the
other state:
•
Residents – Enter only those items of
total adjusted gross income taxed by the
other state.
• Nonresidents – Enter total adjusted gross
income taxed by the other state.
•
Estates and Trusts – Enter only those items
of total adjusted gross income taxed by the
other state.
Generally, adjusted gross income includes all
items of income and loss but does not include
itemized deductions, standard deduction,
deductions for federal income taxes, or
personal exemptions.
Line 12 – Refer to the credit instructions in
your California Tax booklet for an explanation
of how to:
•
Claim this credit on your tax return.
• See if there are further limitations on the
amount of credit you may claim.
Use credit code 187 when you claim this credit.
