540 2ez Instructions
540 2ez Instructions
540 2ez Instructions
References in these instructions are to the Internal Revenue Code (IRC) as of January 1, 2015, and the California Revenue and Taxation Code (R&TC).
Things you need to know before you complete Line 1 through Line 5 – Filing Status
Form 540 2EZ Check the box on Form 540 2EZ for the filing status that applies to you.
Determine if you qualify to use Form 540 2EZ. See “Qualifying to Use If your California filing status is different from your federal filing status,
Form 540 2EZ” on page 3. check the box under line 5.
You cannot use Form 540 2EZ if: Filing Status Checklist
• You file a joint tax return and either spouse/RDP was a nonresident Choose only one filing status. Your filing status for California must be
in 2017. Use Long or Short Form 540NR, California Nonresident or the same as the filing status you used on your federal income tax return.
Part-Year Resident Income Tax Return. These forms are available Exception:
online at ftb.ca.gov/forms or file online using e-file. Registered domestic partners (RDP) who file single for federal must file
• You are married/RDP and file a separate tax return. Get Form 540 married/RDP filing jointly or married/RDP filing separately for California.
online at ftb.ca.gov/forms or file online through CalFile or e-file. If you are an RDP and file head of household for federal, you may file
• You have income from a source outside of California. head of household for California only if you meet the requirements
• You have income from a source not listed on this form. to be considered unmarried or considered not in a registered
• You made estimate payments or have an estimated tax payment domestic partnership.
transfer from 2016. Single
• You have Real Estate or Other Withholding from Form 592-B or You are single if any of the following was true on December 31, 2017:
Form 593.
• You were not married or in an RDP.
Note: The lines on Form 540 2EZ are numbered with gaps in the line • You received a final decree of divorce or legal separation, or your
number sequence. For example, lines 14 through 15 do not appear on RDP was terminated.
Form 540 2EZ, so the line number that follows line 13 on Form 540 2EZ • You were widowed before January 1, 2017, and did not remarry or
is line 16. enter into another RDP in 2017 (see Qualifying Widow[er]).
If you need to amend your California resident income tax return, check
Married/RDP Filing Jointly
the box at the top of Form 540 2EZ indicating AMENDED return and
You may file married/RDP filing jointly if any of the following is true:
attach Schedule X, California Explanation of Amended Return Changes.
For specific instructions, see “Instructions for Filing a 2017 Amended • You were married/RDP as of December 31, 2017, even if you did not
Return” on page 15. live with your spouse/RDP at the end of 2017.
• Your spouse/RDP died in 2017 and you did not remarry or enter into
Social security benefits may be taxable for federal tax purposes but are another RDP in 2017.
not taxable for California tax purposes. • Your spouse/RDP died in 2018 before the 2017 tax return was filed.
Specific Line Instructions A married couple or RDPs may file a joint return even if only one had
income or if they did not live together all year. However, both must sign
Name(s) and Address the tax return.
Print your first name, middle initial, last name, and address in the
Head of Household
spaces provided at the top of the form.
For the specific requirements that must be met to qualify for head of
Suffix household filing status, get FTB Pub. 1540, California Head of Household
Use the Suffix field for generational name suffixes such as “SR”, “JR”, Filing Status. In general, head of household filing status is for unmarried
“III”, “IV”. Do not enter academic, professional, or honorary suffixes. individuals and certain married individuals or RDPs living apart who
Additional Information provide a home for a specified relative. You may be entitled to use head
Use the Additional Information field for “In-Care-Of” name and other of household filing status if all of the following apply:
supplemental address information only. • You were unmarried and not in an RDP, or you met the requirements
Foreign Address to be considered unmarried or considered not in an RDP on
If you have a foreign address, follow the country’s practice for entering December 31, 2017.
the city, county, province, state, country, and postal code, as applicable, • You paid more than one-half the cost of keeping up your home for
in the appropriate boxes. Do not abbreviate the country name. the year in 2017.
Social Security Number (SSN) or Individual Taxpayer • For more than half the year, your home was the main home for you
Identification Number (ITIN) and one of the specified relatives who by law can qualify you for head
Enter your SSN or ITIN in the spaces provided. If you file a joint tax of household filing status.
return, enter the SSN or ITIN in the same order as the names. • The relative who lived with you met the requirements to be a
qualifying child or qualifying relative.
If you do not have an SSN because you are a nonresident or a resident • You were not a nonresident alien at any time during the year.
alien for federal tax purposes, and the Internal Revenue Service (IRS)
issued you an ITIN, enter the ITIN in the space provided for the SSN. For a child to qualify as your foster child for head of household
purposes, the child must be placed with you by an authorized placement
An ITIN is a tax processing number issued by the IRS to foreign agency or by order of a court.
nationals and others who have a federal tax filing requirement and do
not qualify for an SSN. The ITIN is a nine-digit number that always starts California requires taxpayers who use head of household filing status to
with the number 9. file form FTB 3532, Head of Household Filing Status Schedule to report
how the head of household (HOH) filing status was determined.
Date of Birth (DOB)
Enter your DOB (mm/dd/yyyy) in the spaces provided. If your filing
status is married/RDP filing jointly or married/RDP filing separately,
enter the DOBs in the same order as the names.
}
If your filing status is: California Department of Tax and Fee Administration to report use
• Single, go to page 39. tax.
• Married/RDP filing jointly or Qualifying . . . . . . . . 1 Note: You may not report use tax on your income tax return for certain
widow(er), go to page 45. types of transactions. These types of transactions are described in detail
}
• Head of household, go to page 57 below in the instructions.
2. • If single or head of household, enter $114 The Use Tax Worksheet and Estimated Use Tax Lookup Table will help
• If married/RDP and both spouses/RDPs you determine how much use tax to report. If you owe use tax but you
can be claimed as a dependent by do not report it on your income tax return, you must report and pay
another taxpayer, enter $228 . . . . . . . . 2 the tax to the California Department of Tax and Fee Administration.
• If married/RDP and only one spouse/RDP For information on how to report use tax directly to the California
can be claimed, enter $114 Department of Tax and Fee Administration, go to their website at
• If qualifying widow(er), enter $228 cdtfa.ca.gov and type “Find Information About Use Tax” in the search
3. Add line 1 and line 2. Enter here and include bar.
on Form 540 2EZ, line 17. . . . . . . . . . . . . . . . . . . . . . . . . 3 Failure to report and pay timely may result in the assessment of interest,
Line 18 – Senior Exemption penalties, and fees.
If you entered 1 in the box on line 7, enter $114. If you entered 2 in the See page 12 for a general explanation of California use tax.
box on line 7, enter $228. Use Tax Worksheet
You cannot claim this exemption credit if someone else can claim you as You must use the Use Tax Worksheet to calculate your use tax liability, if
a dependent on their tax return. any of these apply:
Line 19 – Nonrefundable Renter’s Credit • You prefer to calculate the amount of use tax due based upon
If you were a resident of California and paid rent on property in California your actual purchases subject to use tax, rather than based on an
which was your principal residence, you may qualify for a credit that you estimate.
can use to reduce your tax. Answer the questions on page 11 to see if • You owe use tax on any item purchased for use in a trade or business
you qualify. and you are not registered or required to be registered with the
California Department of Tax and Fee Administration to report sales
Line 22 – Total Tax Withheld or use tax.
Enter the amount from federal Form(s) W-2, box 17, or Form 1099-R, • You owe use tax on purchases of individual items with a purchase
box 12. If you have more than one federal Form W-2, add all amounts price of $1,000 or more each.
shown in box 17. If you have more than one federal Form 1099-R, add Example 1: You purchased a television for $2,000 from an out-of-state
all amounts shown in box 12. The FTB verifies all withholding claimed retailer that did not collect tax. You must use the Use Tax Worksheet to
from federal Forms W-2 or 1099-R with the Employment Development calculate the tax due on the price of the television, since the price of the
Department (EDD). television is $1,000 or more.
Example 2: You purchased a computer monitor for $300, a rare coin
Line 23 – Earned Income Tax Credit (EITC) for $500, and designer clothing for $250 from out-of-state retailers that
Enter your Earned Income Tax Credit from form FTB 3514, California did not collect tax. Although the total price of all the items is $1,050, the
Earned Income Tax Credit. price of each item is less than $1,000. Since none of these individual
items are $1,000 or more, you are not required to use the Use Tax
Use Tax Worksheet and may choose to use the Estimated Use Tax Lookup Table.
If you have a combination of individual non-business items purchased
Line 25 – Use Tax for $1,000 or more each, and/or items purchased for use in a trade or
You are required to enter a number on this line. If the amount due is business in addition to individual, non-business items purchased for
zero, you must check the applicable box to indicate that you either owe less than $1,000, you may either:
no use tax, or you paid your use tax obligation directly to the California • Use the Use Tax Worksheet to compute use tax due on all purchases,
Department of Tax and Fee Administration (formerly known as the Board or
of Equalization). • Use the Use Tax Worksheet to compute use tax due on all individual
You may owe use tax if you make purchases from out-of-state retailers items purchased for $1,000 or more plus all items purchased for use
(for example, purchases made by telephone, online, by mail, or in in a trade or business. Use the Estimated Use Tax Lookup Table to
person) where sales or use tax was not paid and you use those items in estimate the use tax due on individual, non-business items purchased
California. for less than $1,000, then add the amounts and report the total use
If you have questions about whether a purchase is taxable, go to the tax on Line 25.
California Department of Tax and Fee Administration’s website at Example 3: The total price of the items you purchased from out-of-state
cdtfa.ca.gov, or call its Customer Service Center at 1.800.400.7115 or retailers that did not collect use tax is $2,300, which includes a $1,000
(TTY) 711 (for hearing and speech disabilities). television, a $900 painting, and a $400 table for your living room.
Some taxpayers are required to report business purchases subject • You may choose to calculate the use tax due on the total price of
to use tax directly to the California Department of Tax and Fee $2,300 using the Use Tax Worksheet, or
Administration. However, they may report certain personal purchases
subject to use tax on the FTB income tax return.