2015, 540 Booklet -- Personal Income Tax Booklet

1 Forms & Instructions California 540 2015 Personal Income Tax BookletMembers of theFranchise Tax BoardBetty T. Yee, ChairJerome E. Horton, MemberMichael Cohen, MemberCOVER GRAPHICS OMITTED FOR DOWNLOADING SPEEDFRANCHISETAXBOARD ..Page 2 Personal Income Tax Booklet 2015 Table of ContentsImportant Dates 2Do I Have to File? 3 What s New and Other Important Information for 2015 4 Which Form Should I Use? 7 Instructions for Form 540 9 Nonrefundable Renter s Credit Qualification Record 21 Additional Information 22 Frequently Asked Questions 23 Credit Chart24 Voluntary Contribution Fund Descriptions 25 Form 540, California Resident Income Tax Return27 Schedule CA (540), California Adjustments Residents 33 Instructions for Schedule CA (540) 35 Schedule D (540), California Capital Gain or Loss Adjustment 43 Instructions for Schedule D (540)

2 45 FTB 3885A, Depreciation and Amortization Adjustments47 FTB 3519, Payment for Automatic Extension for Individuals 49 Form 540-ES, Estimated Tax for Individuals50 Instructions for Form 540-ES 53 FTB 3506, Child and Dependent Care Expenses Credit55 Instructions for Form FTB 3506 57 FTB 3514, California Earned Income Tax Credit 61 Instructions for Form FTB 351463 FTB 3532, Head of Household Filing Status Schedule 71 Instructions for Form FTB 3532732015 California Tax Table 752015 California Tax Rate Schedules 80 How To Get California Tax Information 82 Privacy Notice82 Automated Phone Service83 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.

3 April 18, 2016**Due to the Emancipation Day holiday on April 16, 2016, tax returns filed and payments mailed or submitted on April 18, 2016, will be considered timely .Last day to file and pay the 2015 amount you owe to avoid penalties and interest .** If you are living or traveling outside the United States on April 18, 2016, the dates for filing your tax return and paying your tax are different . See form FTB 3519 for more information . See form FTB 3519 for more information .October 17, 2016 Last day to file or e-file your 2015 tax return to avoid a late filing penalty and interest computed from the original due date of April 15, 2016.

4 April 18, 2016**Due to the Emancipation Day holiday on April 16, 2016, tax returns filed and payments mailed or submitted on April 18, 2016, will be considered timely .June 15, 2016 September 15, 2016 January 17, 2017 The dates for 2016 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).

5 However, if you do not pay enough tax either through withholding or by making estimated tax payments, you may have an underpayment penalty . See Form 540-ES instructions for more information .$$$ 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 $47,747 ($53,267 if married filing jointly) and have qualifying children or you have no qualifying children and you earned less than $14,820 ($20,330 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 and search for eitc assistant.

6 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 $13,870 . You do not need a child to qualify . For more information go to 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 2015 who together paid you more than $104,378 in wages, you may qualify for a refund of excess SDI . See the instructions on page 14 .Common Errors and How to Prevent ThemHelp us process your tax return quickly and accurately.

7 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 . Entering the amounts on the wrong line . Claiming the wrong amount of withholding by incorrectly totaling or transferring the amounts from your W-2 . Failing to transfer amounts correctly . Failing to enter all required information or attach required schedules . Claiming the wrong amount of withholding tax credit by incorrectly totaling or transferring the amounts from your withholding documents.

8 To avoid errors and 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 and search for myftb account to view your total estimated tax payments before you file your tax return . Verify the overpayment amount from your 2014 tax return you requested to be applied to your 2015 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.

9 Claiming state disability insurance: Verify the amount of State Disability Insurance (SDI) used to figure the amount of excess SDI claimed on Form 540, line 74, matches amounts from your W-2 s .Claiming standard deduction or itemized deductions: Verify the adjusted gross Income amount on Form 540, line 17 is calculated correctly . See Form 540, line 18 instructions and worksheets for the amount of standard deduction or itemized deductions you can claim .Computing your tax: Verify the total tax amount on Form 540, line 64 is calculated correctly . Go to and search for tax calculator to compute your tax with the tax calculator or with the tax tables.

10 Locate the correct tax amount from the tax table (page 75) and transfer it to your tax return correctly . Verify any affected schedule to ensure that the total tax amount is correctly transferred over .Use e-file: By using e-file, you can eliminate many common errors . Go to and search for efile options .By using the helpful hints above, you assist in preventing delays in processing your tax return and unnecessary account adjustments . Personal Income Tax Booklet 2015 Page 3Do I Have to File?Steps to Determine Filing RequirementStep 1: Is your gross Income (all Income received from all sources in the form of money, goods, property, and services that are not exempt from tax) more than the amount shown in the California Gross Income chart below for your filing status, age, and number of dependents?