California Personal Income Tax Booklet (540-2EZ)

Personal Income Tax Booklet (540-2EZ)
2021 540 2ez personal income tax booklet
CALIFORNIA

540 2EZ

Forms & Instructions

2021

Personal Income Tax Booklet
Members of the Franchise Tax Board
Betty T. Yee, Chair
Antonio Vazquez, Member
Keely Bosler, Member

COVER GRAPHICS OMITTED FOR DOWNLOADING SPEED

Table of Contents
What’s New and Other Important Information for 2021 . . . . . . . . . . . .
Qualifying to Use Form 540 2EZ  . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Steps to Determine Filing Requirements . . . . . . . . . . . . . . . . . . . . . . .
Instructions for Form 540 2EZ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Filing Status Check List . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Paying Your Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Direct Deposit  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Assembling Your Tax Return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Mailing Your Tax Return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Nonrefundable Renter’s Credit Qualification Record  . . . . . . . . . . . . . 
Voluntary Contribution Fund Descriptions . . . . . . . . . . . . . . . . . . . . . 
Frequently Asked Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Additional Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

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15

California Use Tax General Information  . . . . . . . . . . . . . . . . . . . . . . . 
Instructions for Filing a 2021 Amended Return . . . . . . . . . . . . . . . . . 
Form 540 2EZ, California Resident Income Tax Return . . . . . . . . . . . 
2021 California 2EZ Single Tax Table . . . . . . . . . . . . . . . . . . . . . . . . . 
2021 California 2EZ Married/RDP Filing Jointly or Qualifying
  Widow(er) Tax Table  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
2021 California 2EZ Head of Household Tax Table . . . . . . . . . . . . . . . 
Form FTB 3514, California Earned Income Tax Credit . . . . . . . . . . . . .
Instructions for Form FTB 3514  . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
California Earned Income Tax Credit Table . . . . . . . . . . . . . . . . . . . . . .
Need Assistance? We’re Here to Help  . . . . . . . . . . . . . . . . . . . . . . . . 
Franchise Tax Board Privacy Notice on Collection . . . . . . . . . . . . . . . 

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What’s New and Other Important Information for 2021
Voluntary Contributions – You may contribute to the following new
funds:
•	 Mental Health Crisis Prevention Voluntary Tax Contribution Fund
•	 California Community and Neighborhood Tree Voluntary Tax
Contribution Fund
Dependent Exemption Credit with No ID – For taxable years beginning
on or after January 1, 2018, taxpayers claiming a dependent exemption
credit for a dependent who is ineligible for a Social Security Number
(SSN) and a federal Individual Taxpayer Identification Number (ITIN)
may provide alternative information to the Franchise Tax Board (FTB)
to identify the dependent. To claim the dependent exemption credit,
taxpayers complete form FTB 3568, Alternative Identifying Information
for the Dependent Exemption Credit, attach the form and required
documentation to their tax return, and write “no id” in the SSN field of
line 8, Dependents, on Form 540 2EZ, California Resident Income Tax
Return. For each dependent being claimed that does not have an SSN
and an ITIN, a form FTB 3568 must be provided along with supporting
documentation.
Taxpayers may amend their tax returns beginning with taxable year 2018
to claim the dependent exemption credit. For more information on how
to amend your tax returns, see “Instructions for Filing a 2021 Amended
Return” on page 16.
Expansion for Credits Eligibility – For taxable years beginning on or
after January 1, 2020, California expanded Earned Income Tax Credit
(EITC) and Young Child Tax Credit (YCTC) eligibility to allow either the
federal ITIN or SSN to be used by all eligible individuals, their spouses,
and qualifying children. If an ITIN is used, eligible individuals should
provide identifying documents upon request of the FTB. Any valid SSN
can be used, not only those that are valid for work. Additionally, upon
receiving a valid SSN, the individual should notify the FTB in the time
and manner prescribed by the FTB. The YCTC is available if the eligible
individual or spouse has a qualifying child younger than six years old.
For more information, get form FTB 3514, California Earned Income Tax
Credit, or go to ftb.ca.gov and search for eitc.
Resident State Tax Filers List – For taxable years beginning on or
after January 1, 2020, taxpayers will include on their Form 540 2EZ
the address and county of their principal residence as part of the FTB’s
annual reporting requirements to the jury commissioner. Taxpayers
that are required to provide this information include persons who are
18 years of age or older and have filed a California resident income
tax return for the preceding taxable year. The list of resident state
tax filers will be used as one of the source lists for jury selection by
the jury commissioner’s office. For more information, see specific
line instructions or California Revenue and Taxation Code (R&TC)
Sections 19548.4 and 19585.
Minimum Essential Coverage Individual Mandate – For taxable years
beginning on or after January 1, 2020, California law requires residents
and their dependents to obtain and maintain minimum essential
coverage (MEC), also referred to as qualifying health care coverage.

Page 2  Form 540 2EZ Tax Booklet  2021

Individuals who fail to maintain qualifying health care coverage for any
month during the taxable year will be subject to a penalty unless they
qualify for an exemption.
For more information, see Specific Line Instructions for Form 540 2EZ,
line 27 or get form FTB 3853, Health Coverage Exemptions and
Individual Shared Responsibility Penalty.
Young Child Tax Credit – For taxable years beginning on or after
January 1, 2019, the refundable YCTC is available to taxpayers who
also qualify for the California EITC and who have at least one qualifying
child who is younger than six years old as of the last day of the taxable
year. The maximum amount of credit allowable for a qualified taxpayer
is $1,000. The credit amount phases out as earned income exceeds the
threshold amount of $25,000, and completely phases out at $30,000.
For more information, see Specific Line Instructions for Form 540 2EZ,
line 24, and get form FTB 3514.
California Earned Income Tax Credit – For taxable years beginning on
or after January 1, 2018, the age limit for an eligible individual without a
qualifying child is revised to 18 years or older. For more information, go
to ftb.ca.gov and search for eitc, or get form FTB 3514.
For taxable years beginning on or after January 1, 2017, California
conforms to federal law to include in the definition of earned income net
earnings from self employment. If you have self-employment income,
you cannot use Form 540 2EZ. Get Form 540, California Resident
Income Tax Return at ftb.ca.gov/forms or e-file.
Earned income thresholds have also increased. You may now qualify for
the refundable EITC if you have earned income of less than $30,001.
Federal Earned Income Credit (EIC) – Go to the IRS website
at irs.gov/taxtopics and choose topic 601, get the federal income tax
booklet, or go to irs.gov and search for eitc assistant.
Real Estate Withholding Statement – Effective January 1, 2020, the
real estate withholding forms and instructions have been consolidated
into one new Form 593, Real Estate Withholding Statement. For more
information, get Form 593.
Schedule X, California Explanation of Amended Return Changes – For
taxable years beginning on or after January 1, 2017, use Schedule X to
determine any additional amount you owe or refund due to you, and to
provide reason(s) for amending your previously filed income tax return.
For additional information, see “Instructions for Filing a 2021 Amended
Return” on page 16.
Improper Withholding on Severance Paid to Veterans – The
Combat‑Injured Veterans Tax Fairness Act of 2016 gives veterans who
retired from the Armed Forces for medical reasons additional time
to claim a refund if they had taxes improperly withheld from their
severance pay. If you filed an amended return with the Internal Revenue
Service (IRS) on this issue, you have two years to file your amended
California return.
Electronic Funds Withdrawal (EFW) – Make extension payments
using tax preparation software. Check with your software provider to
determine if they support EFW for extension payments.

Payments and Credits Applied to Use Tax – For taxable years beginning
on or after January 1, 2015, if a taxpayer includes use tax on their
personal income tax return, payments and credits will be applied to
use tax first, then towards income tax, interest, and penalties. For more
information, see Specific Line Instructions for Form 540 2EZ, line 26.
MyFTB – Make tax time less taxing! Check MyFTB for information about
your FTB‑issued Form 1099-G, Report of State Income Tax Refund;
Form 1099-INT, Statement of Interest Income; California wage and
withholding data; and more! Go to ftb.ca.gov and login or register for
MyFTB.
Direct Deposit Refund – You can request a direct deposit refund on your
tax return whether you e-file or file a paper return. Be sure to fill in the
routing and account numbers carefully and d­ ouble‑check the numbers
for accuracy to avoid it being rejected by your bank.
Direct Deposit for ScholarShare 529 College Savings Plans – If you
have a ScholarShare 529 College Savings Plan account maintained
by the ScholarShare Investment Board, you may have your refund
directly deposited to your ScholarShare account. Please visit
scholarshare529.com for instructions.
Mandatory Electronic Payments – You are required to remit all your
payments electronically once you make an estimate or extension
payment exceeding $20,000 or you file an original tax return with
a total tax liability over $80,000. Once you meet this threshold, all
subsequent payments regardless of amount, tax type, or taxable year
must be remitted electronically. The first payment that would trigger the
mandatory e-pay requirement does not have to be made electronically.
Individuals who do not send the payment electronically will be subject to
a 1% noncompliance penalty.
You can request a waiver from mandatory e-pay if one or more of the
following is true:
•	 You have not made an estimated tax or extension payment in excess
of $20,000 during the current or previous taxable year.
•	 Your total tax liability reported for the previous taxable year did not
exceed $80,000.
•	 The amount you paid is not representative of your total tax liability.
For more information or to obtain the waiver form, go to
ftb.ca.gov/e‑pay. Electronic payments can be made using Web Pay on
the FTB’s website, EFW as part of the e-file tax return, or your credit
card.

Registered Domestic Partners (RDP) – Under California law, RDPs
must file their California income tax return using either the married/RDP
filing jointly or married/RDP filing separately filing status. RDPs have the
same legal benefits, protections, and responsibilities as married couples
unless otherwise specified.
If you entered into a same-sex legal union in another state, other than
a marriage, and that union has been determined to be substantially
equivalent to a California registered domestic partnership, you
are required to file a California income tax return using either the
married/RDP filing jointly or married/RDP filing separately filing status.
For purposes of California income tax, references to a spouse,
husband, or wife also refer to an RDP, unless otherwise specified.
When we use the initials RDP, they refer to both a California registered
domestic “partner” and a California registered domestic “partnership,”
as applicable. For more information on RDPs, get FTB Pub. 737, Tax
Information for Registered Domestic Partners.
Head of Household – California requires taxpayers who use head of
household (HOH) filing status to file form FTB 3532, Head of Household
Filing Status Schedule, to report how the HOH filing status was
determined.
If you do not attach a completed form FTB 3532 to your tax return, we
will deny your HOH filing status. For more information about the HOH
filing requirements, go to ftb.ca.gov and search for hoh. To get form
FTB 3532, see “Automated Phone Service” or go to ftb.ca.gov/forms.

Form 540 2EZ Tax Booklet  2021  Page 3

Qualifying to Use Form 540 2EZ
Check the table below to make sure you qualify to use Form 540 2EZ.
General
Filing Status
You May
Dependents
Types of Income

Total Income

Adjustments to
Income
Deduction
Payments
Exemptions

•	 California resident entire year	
•	 Not blind
•	Single	
•	 Head of household
•	 Married/RDP filing jointly	
•	 Qualifying widow(er)
•	 Be claimed as a dependent by another taxpayer (see Note below)
•	 Be 65 or older and claim the senior exemption. If your (or your spouse’s/RDP’s) 65th birthday is on January 1, 2022, you are
	 considered to be age 65 on December 31, 2021.
	 0 – 3 allowed
•	 Wages, salaries, and tips	
•	 Capital gains from mutual funds (reported
•	 Taxable interest, dividends, and pensions		 on federal Form 1099-DIV, box 2a only)
•	 Taxable scholarship and fellowship grants	
•	 Paid Family Leave Insurance
	 (only if reported on federal Forms(s) W-2)	
•	 U.S. social security benefits
•	 Unemployment compensation (reported on federal Form 1099-G)	
•	 Tier 1 and Tier 2 railroad retirement payments
•	 $100,000 or less (single or head of household)
•	 $200,000 or less (married/RDP filing jointly or qualifying widow[er])
	 Total income includes wages, salaries, tips, taxable scholarship or fellowship grants, interest, dividends, pensions,
	 and capital gains from mutual funds.
	 No adjustments to total income, such as student loan interest deduction, IRA deduction, etc.

	 Standard deduction only. If you use the modified standard deduction for dependents, see Note below.
	 Only withholding shown on federal Form(s) W-2 and 1099-R
•	 Personal exemption (see Note below)	
•	 Senior exemption
•	 Up to three dependent exemptions
Credits
•	 Nonrefundable Renter’s Credit
•	 Refundable California Earned Income Tax Credit
•	 Refundable Young Child Tax Credit
Note:	 You cannot use Form 540 2EZ if you can be claimed as a dependent and any of the following are true:
•	 You have a dependent of your own.
•	 You are single and your total income is less than or equal to $15,953.
•	 You are married/RDP filing jointly or a qualifying widow(er) and your total income is less than or equal to $31,856.
•	 You are head of household and your total income is less than or equal to $22,556.
•	 You are required to use a modified standard deduction for dependents. See Frequently Asked Questions, question 1, Do I have to file?
If you do not qualify, go to ftb.ca.gov for information about CalFile and e-file or download and print Form 540 at ftb.ca.gov/forms.
If you are a nonresident or part-year resident, get Form 540NR, California Nonresident or Part-Year Resident Income Tax Return. See “Automated Phone
Service”, or go to ftb.ca.gov/forms.

Steps to Determine Filing Requirements
Step 1: Is your gross income (all income you received in the form of money, goods, property, and services from all sources 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? If yes, you have a
filing requirement. If no, go to Step 2.
Step 2: Is your adjusted gross income (federal adjusted gross income from all sources reduced or increased by all California income adjustments)
more than the amount shown in the California Adjusted Gross Income chart below for your filing status, age, and number of dependents? If yes, you
have a filing requirement. If no, you do not have a filing requirement. If you do not have a filing requirement, you must file a tax return to claim your
withholding. You may be eligible for the federal Earned Income Credit; see What’s New and Other Important Information for more information.
On 12/31/21,
my filing status was:

and on 12/31/21,
my age was:

(If your 65th birthday is on January 1,
2022, you are considered to be age 65 on
December 31, 2021.)

California Gross Income
Dependents
0

1

2
or more

California Adjusted Gross Income
Dependents
2
0
1
or more

Single or Head of Household

Under 65
65 or older

19,310
25,760

32,643
35,760

42,643
43,760

15,448
21,898

28,781
31,898

38,781
39,898

Married/RDP filing jointly

Under 65 (both spouses/RDPs)
65 or older (one spouse/RDP)
65 or older (both spouses/RDPs)

38,624
45,074
51,524

51,957
55,074
61,524

61,957
63,074
69,524

30,901
37,351
43,801

44,234
47,351
53,801

54,234
55,351
61,801

Qualifying widow(er)

Under 65
65 or older

32,643
35,760

42,643
43,760

28,781
31,898

38,781
39,898

Dependent of another person –
Any filing status

Any age

(Get FTB Pub. 1540, Tax Information for
Head of Household Filing Status.)
(The income of both spouses/RDPs must
be combined.)

Page 4  Form 540 2EZ Tax Booklet  2021

More than your standard deduction, see Frequently Asked Questions,
question 1.

2021 Instructions for Form 540 2EZ

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
Form 540 2EZ
Determine if you qualify to use Form 540 2EZ. See “Qualifying to Use
Form 540 2EZ” on page 4.
You cannot use Form 540 2EZ if:
#	 You file a joint tax return and either spouse/RDP was a nonresident in
2021. Use Form 540NR, California Nonresident or Part-Year Resident
Income Tax Return. This form is available online at ftb.ca.gov/forms
or file online using e-file.
#	 You are married/RDP and file a separate tax return. Get Form 540
online at ftb.ca.gov/forms or file online through CalFile or e-file.
#	 You have income from a source outside of California.
#	 You have income from a source not listed on this form.
#	 You made estimate payments or have an estimated tax payment
transfer from 2020.
#	 You have real estate or other withholding from Form 592-B, Resident
and Nonresident Withholding Tax Statement, or Form 593, Real
Estate Withholding Statement.
Note: The lines on Form 540 2EZ are numbered with gaps in the line
number sequence. For example, lines 14 through 15 do not appear on
Form 540 2EZ, so the line number that follows line 13 on Form 540 2EZ
is line 16.
If you need to amend your California resident income tax return,
complete an amended Form 540 2EZ and check the box at the top
of Form 540 2EZ indicating AMENDED return. Attach Schedule X,
California Explanation of Amended Return Changes, to the amended
Form 540 2EZ. For specific instructions, see “Instructions for Filing a
2021 Amended Return” on page 16.
Social security benefits and unemployment compensation may be
taxable for federal tax purposes but are not taxable for California tax
purposes, and are not reported on Form 540 2EZ.

Specific Line Instructions
Name(s) and Address
Print your first name, middle initial, last name, and address in the spaces
provided at the top of the form.
Suffix
Use the Suffix field for generational name suffixes such as “SR”, “JR”,
“III”, “IV”. Do not enter academic, professional, or honorary suffixes.
Additional Information
Use the Additional Information field for “In-Care-Of” name and other
supplemental address information only.
Foreign Address
If you have a foreign address, follow the country’s practice for entering
the city, county, province, state, country, and postal code, as applicable,
in the appropriate boxes. Do not abbreviate the country name.
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.
Prior Name
If you filed your 2020 tax return under a different last name, write the
last name only from the 2020 tax return.

Social Security Number (SSN) or Individual
Taxpayer Identification Number (ITIN)
Enter your SSN in the spaces provided. If you file a joint tax return, enter
the SSNs in the same order as the names.
If you do not have an SSN because you are a nonresident or a resident
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.

An ITIN is a tax processing number issued by the IRS to foreign
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
with the number 9.

Principal Residence
If you are under 18 years old or have not filed a California resident
income tax return in the prior year, then leave the county and
principal/physical address fields blank.
Only complete this section if you are age 18 or older and you have filed a
California resident income tax return in the prior year.
#	 County – Enter the county where you have your principal/physical
residence on the date that you file your Form 540 2EZ. If you reside
in a foreign country at the time of filing, leave the county field blank.
#	 If your principal/physical residence address at the time of filing is the
same as the address you provided at the top of this form, check the
box provided on this line.
#	 If your principal/physical residence address at the time of filing is
different from the address at the top of this form, provide the address
of your principal/physical residence in the spaces provided.
#	 If you reside in a foreign country at the time of filing, enter the city,
province or state, and country in the city field. Follow the country’s
practice for entering the postal code. Do not abbreviate the country
name.

Line 1 through Line 5 – Filing Status
Check the box on Form 540 2EZ for the filing status that applies to you.
If your California filing status is different from your federal filing status,
check the box above the filing status.
Filing Status Checklist
Choose only one filing status. Your filing status for California must be
the same as the filing status you used on your federal income tax return.
Exception:
Registered domestic partners (RDP) who file single for federal must file
married/RDP filing jointly or married/RDP filing separately for California.
If you are an RDP and file head of household for federal, you may file
head of household for California only if you meet the requirements to
be considered unmarried or considered not in a registered domestic
partnership.
Single
You are single if any of the following was true on December 31, 2021:
#	 You were not married or in an RDP.
#	 You received a final decree of divorce or legal separation, or your
RDP was terminated.
#	 You were widowed before January 1, 2021, and did not remarry or
enter into another RDP in 2021 (see Qualifying Widow[er]).
Married/RDP Filing Jointly
You may file married/RDP filing jointly if any of the following is true:
#	 You were married/RDP as of December 31, 2021, even if you did not
live with your spouse/RDP at the end of 2021.
#	 Your spouse/RDP died in 2021 and you did not remarry or enter into
another RDP in 2021.
#	 Your spouse/RDP died in 2022 before the 2021 tax return was filed.
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
the tax return.
Head of Household
For the specific requirements that must be met to qualify for head of
household filing status, get FTB Pub. 1540, Tax Information for Head of
Household Filing Status. In general, head of household filing status is
for unmarried individuals and certain married individuals or RDPs living

Form 540 2EZ Tax Booklet  2021  Page 5

Instructions: Form 540 2EZ	

CalFile – California’s free, fast, easy, and secure e-file option

apart who provide a home for a specified relative. You may be entitled to
use head of household filing status if all of the following apply:
#	 You were unmarried and not in an RDP, or you met the requirements
to be considered unmarried or considered not in an RDP on
December 31, 2021.
#	 You paid more than one-half the cost of keeping up your home for
the year in 2021.
#	 For more than half the year, your home was the main home for you
and one of the specified relatives who by law can qualify you for head
of household filing status.
#	 The relative who lived with you met the requirements to be a
qualifying child or qualifying relative.
#	 You were not a nonresident alien at any time during the year.
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
agency or by order of a court.
California requires taxpayers who use head of household filing status
to file form FTB 3532, Head of Household Filing Status Schedule, to
report how the head of household (HOH) filing status was determined.
To get form FTB 3532, see “Automated Phone Service” or go to
ftb.ca.gov/forms.
Qualifying Widow(er)
You are a qualifying widow(er) if all of the items below apply:
#	 Your spouse/RDP died in 2019 or 2020, and you did not remarry or
enter into another RDP in 2021.
#	 You have a child, stepchild, or adopted child (not a foster child)
whom you can claim as a dependent or could claim as a dependent
except that, for 2021:
>	 The child had gross income of $4,300 or more;
>	 The child filed a joint return, or
>	 You could be claimed as a dependent on someone else’s return.
If the child isn’t claimed as your dependent, enter the child’s name in
the entry space under the “Qualifying widow(er)” filing status.
#	 This child lived in your home for all of 2021. Temporary absences,
such as for school, vacation, or medical care, count as time lived in
the home.
#	 You paid over half the cost of keeping up your home for this child.
#	 You could have filed a joint tax return with your spouse/RDP the year
he or she died, even if you actually did not do so.
Enter the year of your spouse’s/RDP’s death on your tax return.

Line 8 – Dependents

Line 6 – Can you be claimed as a dependent?
If someone else can claim you (or your spouse/RDP) as a dependent on
his or her tax return, even if they choose not to, and your total income is
less than or equal to the following amounts based on your filing status
or you have a dependent, you cannot use Form 540 2EZ. Get Form 540
online at ftb.ca.gov/forms or file online through CalFile or e-file.
Single
Married/RDP filing jointly or Qualifying widow(er)
Head of Household

$15,953
$31,856
$22,556

Note: You cannot use Form 540 2EZ if your total wages are less than the
following amounts based on your filing status:
Single . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $4,453
Married/RDP filing jointly, head of household,
or qualifying widow(er) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $9,256
If you can be claimed as a dependent and can use Form 540 2EZ, check
the box on line 6 and follow the instructions on line 17.

Line 7 – Senior
If you (or if married/RDP, your spouse/RDP) are 65 or older, enter 1; if
both are 65 or older, enter 2.
If your (or if married/RDP, your spouse’s/RDP’s) 65th birthday
is on January 1, 2022, you are considered to be age 65 on
December 31, 2021.

Page 6  Form 540 2EZ Tax Booklet  2021

You must enter the first name, last name, SSN or ITIN, and relationship
of each of the dependents you are allowed to claim.
If you claim more than three dependents, get Form 540 online at
ftb.ca.gov/forms or file online through CalFile or e-file.
For taxable years beginning on or after January 1, 2018, taxpayers
claiming a dependent exemption credit for a dependent who is ineligible
for an SSN and a federal ITIN may provide alternative information to the
Franchise Tax Board (FTB) to identify the dependent.
To claim the dependent exemption credit, taxpayers complete form
FTB 3568, Alternative Identifying Information for the Dependent
Exemption Credit, attach the form and required documentation to their
tax return, and write “no id” in the SSN field of line 8, Dependents, on
Form 540 2EZ. For each dependent being claimed that does not have
an SSN and an ITIN, a form FTB 3568 must be provided along with
supporting documentation. If you e-file, attach any requested forms,
schedules, and documents according to your software’s instructions.
Taxpayers may amend their tax returns beginning with taxable year
2018 to claim the dependent exemption credit. These taxpayers should
complete an amended Form 540 2EZ, write “no id” in the SSN field on
the Dependents line, and attach Schedule X. To complete Schedule X,
check box m for “Other” on Part II, line 1, and write the explanation
“Claim dependent exemption credit with no id and form FTB 3568 is
attached” on Part II, line 2. Make sure to attach form FTB 3568 and the
required supporting documents in addition to the amended tax return
and Schedule X. If taxpayers do not claim the dependent exemption
credit on their original 2021 tax return, they may amend their 2021 tax
return following the same procedures used to amend their previous
year amended tax returns beginning with taxable year 2018. For more
information, get FTB Notice 2021-01.
If your dependent child was born and died in 2021 and you do not
have an SSN or an ITIN for the child, write “Died” in the SSN field and
include a copy of the child’s birth certificate, death certificate, or hospital
records. The document must show the child was born alive. If you e-file
attach any requested forms, schedules, and documents according to
your software’s instructions.
Do you have Child and Dependent Care Expenses? If so, you may
qualify for a credit. For more information, get form FTB 3506, Child and
Dependent Care Expenses Credit. The easiest way to claim the credit is
to CalFile or e-file. This credit may not be claimed on Form 540 2EZ.

Line 9 – Total Wages
Enter the amount from federal Form W-2, Wage and Tax Statement,
box 16. If you have more than one federal Form W‑2, add all amounts
shown in box 16.
Generally, federal Form W-2, box 1 and box 16 should contain the same
amounts. If they are different because you had income from a source
outside California, you cannot file Form 540 2EZ. Get Form 540 or
Form 540NR at ftb.ca.gov/forms or file online through CalFile or e-file.

Line 10 – Total Interest Income
Enter interest income shown on federal Form 1099-INT, Interest Income,
box 1.
	 Do not include amounts shown on federal Form 1099-INT,
box 3, Interest on U.S. Savings Bonds and Treasury
Obligations. This interest is not taxed by California.

Line 11 – Total Dividend Income
Generally, the amount of dividend income taxable by California is the
same as the amount taxable under federal law. However, there may be
federal/state differences in the taxable amount of dividend income, if you
received it from any of the following sources:
#	 Exempt interest dividends from mutual funds.
#	 Non-cash patronage dividends from farmers’ cooperatives or
mutual associations.

FREE e-file at ftb.ca.gov	

Instructions: Form 540 2EZ

#	 Federal exempt interest dividends from other states or their
municipal obligations and/or from mutual funds.
#	 Controlled foreign corporation dividends in the year distributed.
#	 Regulated investment company capital gains in the year distributed.
#	 Distributions of pre-1987 earnings from an S corporation.
If you have a federal/state difference in the taxable amount of
dividend income, you cannot file Form 540 2EZ. Get Form 540 at
ftb.ca.gov/forms or file online through CalFile or e-file.

Line 12 – Total Pension Income
Generally, the amount of pension income taxable by California is the
same as the amount taxable under federal law. However, there may be
federal/state differences in the taxable amount of pension income, if you
received it from any of the following sources:
#	 Tier 2 railroad retirement benefits.
#	 Partially taxable distributions from a pension plan.
#	 Retirement annuity between July 1, 1986, and January 1, 1987, and
elected to use the three-year rule for California purposes and annuity
rules for federal purposes.
For more information regarding California tax treatment of distributions
from pension plans, annuities, or individual retirement arrangements,
get FTB Pub. 1005, Pension and Annuity Guidelines. If you have a
federal/state difference in the taxable amount of pension income, you
cannot file Form 540 2EZ. Get Form 540 at ftb.ca.gov/forms or e-file.

Line 13 – Total Capital Gain Distributions from
Mutual Funds
Generally, the amount of capital gains taxable by California is the same
as the amount taxable under federal law. If you received capital gain
distributions from a mutual fund, report them on line 13, if both of the
following apply:
#	 You received federal Form 1099-DIV, Dividends and Distributions,
with an amount in box 2a.
#	 The federal Form 1099-DIV does not have amounts in box 2b, 2c,
or 2d.
If you have other capital gains, you cannot use Form 540 2EZ. Get
Form 540 at ftb.ca.gov/forms or e-file.

Line 17 – Tax
The standard deduction and personal exemption credit are built into the
2EZ Tables and not reported on the tax return.
If you did not check the box on line 6 follow the
instructions below.
Use the California 2EZ Table for your filing status to complete line 17.
The 2EZ Tables in this booklet give you credit for the standard deduction
for your filing status, your personal exemption credit, and dependent
exemption credits. There are three different tables. Make sure you use
the right one. If your filing status is:
Single
Married/RDP filing jointly or Qualifying widow(er)
Head of Household

Go to page 23
Go to page 29
Go to page 40

If you checked the box on line 6, complete the Dependent Tax
Worksheet below.
Dependent Tax Worksheet
1.	Using the amount from Form 540 2EZ, line 16, and
your filing status, enter the tax from the 2EZ Table:
	 If your filing status is:
	 • 	 Single, go to page 23.
	 •	 Married/RDP filing jointly or Qualifying	 . . . . . . . . 1  	
			 widow(er), go to page 29.
 
	 •	 Head of household, go to page 40
2.	•	 If single or head of household, enter $129
	 •	 If married/RDP and both spouses/RDPs
can be claimed as a dependent by
another taxpayer, enter $258	
. . . . . . . . 2  	
	 •	 If married/RDP and only one spouse/RDP
can be claimed, enter $129
	 •	 If qualifying widow(er), enter $258
3.	Add line 1 and line 2. Enter here and include
on Form 540 2EZ, line 17. . . . . . . . . . . . . . . . . . . . . . . . . 3  	

}

} 

Line 18 – Senior Exemption
If you entered 1 in the box on line 7, enter $129. If you entered 2 in the
box on line 7, enter $258.
You cannot claim this exemption credit if someone else can claim you as
a dependent on their tax return.

Line 19 – Nonrefundable Renter’s Credit
If you were a resident of California and paid rent on property in California
which was your principal residence, you may qualify for a credit that you
can use to reduce your tax. Answer the questions on page 12 to see if
you qualify.

Line 22 – Total Tax Withheld
Enter the amount from federal Form(s) W-2, box 17, or federal
Form 1099-R, Distributions From Pensions, Annuities, Retirement
or Profit-Sharing Plans, IRAs, Insurance Contracts, etc., box 14. If
you have more than one federal Form W-2, add all amounts shown in
box 17. If you have more than one federal Form 1099-R, add all amounts
shown in box 14. The FTB verifies all withholding claimed from federal
Forms W-2 or 1099-R with the Employment Development Department
(EDD).

Line 23 – Earned Income Tax Credit (EITC)
Enter your Earned Income Tax Credit from form FTB 3514, California
Earned Income Tax Credit, line 20.

Line 24 – Young Child Tax Credit (YCTC)
Enter your Young Child Tax Credit from form FTB 3514, line 28.

Use Tax
Line 26 – Use Tax
You are required to enter a number on this line. If the amount due is
zero, you must check the applicable box to indicate that you either owe
no use tax, or you paid your use tax obligation directly to the California
Department of Tax and Fee Administration.
You may owe use tax if you make purchases from out-of-state retailers
(for example, purchases made by telephone, online, by mail, or in
person) where California sales or use tax was not paid and you use
those items in California.
If you have questions about whether a purchase is taxable, go to the
California Department of Tax and Fee Administration’s website at
cdtfa.ca.gov, or call its Customer Service Center at 1.800.400.7115
(CRS:711) (for hearing and speech disabilities).

Form 540 2EZ Tax Booklet  2021  Page 7

Instructions: Form 540 2EZ	

CalFile – California’s free, fast, easy, and secure e-file option

Some taxpayers are required to report business purchases subject
to use tax directly to the California Department of Tax and Fee
Administration. However, they may report certain personal purchases
subject to use tax on the FTB income tax return.
You may not report business purchases subject to use tax on your
income tax return if you:
#	 Have or are required to hold a California seller’s permit.
#	 Receive $100,000 or more per year in gross receipts from business
operations.
#	 Are otherwise registered or required to be registered with the
California Department of Tax and Fee Administration to report use
tax.
Note: You may not report use tax on your income tax return for certain
types of transactions. These types of transactions are described in detail
below in the instructions.
The Use Tax Worksheet and Estimated Use Tax Lookup Table will help
you determine how much use tax to report. If you owe use tax but you
do not report it on your income tax return, you must report and pay
the tax to the California Department of Tax and Fee Administration.
For information on how to report use tax directly to the California
Department of Tax and Fee Administration, go to their website at
cdtfa.ca.gov and type “Find Information About Use Tax” in the search
bar.
Failure to report and pay timely may result in the assessment of interest,
penalties, and fees.

#	 You may choose to calculate the use tax due on the total price of
$2,300 using the Use Tax Worksheet, or
#	 You may choose to calculate the use tax due on the $1,000 price of
the television using the Use Tax Worksheet and estimate your use
tax liability for the painting and table by using the Estimated Use Tax
Lookup Table, then add the amounts and report the total use tax on
Line 26.

See page 15 for a general explanation of California use tax.

Use Tax Worksheet
You must use the Use Tax Worksheet to calculate your use tax liability, if
any of these apply:
#	 You prefer to calculate the amount of use tax due based upon
your actual purchases subject to use tax, rather than based on an
estimate.
#	 You owe use tax on any item purchased for use in a trade or business
and you are not registered or required to be registered with the
California Department of Tax and Fee Administration to report sales
or use tax.
#	 You owe use tax on purchases of individual items with a purchase
price of $1,000 or more each.
Example 1: You purchased a television for $2,000 from an out-of-state
retailer that did not collect tax. You must use the Use Tax Worksheet to
calculate the tax due on the price of the television, since the price of the
television is $1,000 or more.
Example 2: You purchased a computer monitor for $300, a rare coin
for $500, and designer clothing for $250 from out-of-state retailers that
did not collect tax. Although the total price of all the items is $1,050, the
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
Worksheet and may choose to use the Estimated Use Tax Lookup Table.
If you have a combination of individual non-business items purchased
for $1,000 or more each, and/or items purchased for use in a trade or
business in addition to individual, non-business items purchased for
less than $1,000, you may either:
#	 Use the Use Tax Worksheet to compute use tax due on all purchases,
or
#	 Use the Use Tax Worksheet to compute use tax due on all individual
items purchased for $1,000 or more plus all items purchased for use
in a trade or business.
#	 Use the Estimated Use Tax Lookup Table to estimate the use tax due
on individual, non-business items purchased for less than $1,000,
then add the amounts and report the total use tax on Line 26.
Example 3: The total price of the items you purchased from out-of-state
retailers that did not collect use tax is $2,300, which includes a $1,000
television, a $900 painting, and a $400 table for your living room.

Page 8  Form 540 2EZ Tax Booklet  2021

Use Tax Worksheet (See instructions below)
Use whole dollars only
1.	 Enter purchases from out-of-state sellers made
without payment of California sales/use tax.
If you choose to estimate the use tax due on
individual, non-business items purchased for
less than $1,000 each, only enter purchases of
items with a purchase price of $1,000 or more
plus items purchased for use in a trade or
business not registered with the California
Department of Tax and Fee Administration. . . . . . . . $ 	
2.	 Enter the applicable sales and use tax rate. . . . . . . .   	
3.	 Multiply Line 1 by the tax rate on Line 2.
Enter result here . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 	
4.	 If you choose to estimate the use tax due on
individual, non-business items purchased for
less than $1,000 each, enter the use tax amount due
from the Estimated Use Tax Lookup Table. If all of
your purchases are included in Line 1, enter -0-.. . . $ 	
5.	 Add Lines 3 and 4. This is your total use tax . . . . . . $ 	
6.	 Enter any sales or use tax you paid to another state
for purchases included on Line 1. See worksheet
instructions below . . . . . . . . . . . . . . . . . . . . . . . . . . $ 	
7.	 Subtract Line 6 from Line 5. This is the total use
tax due. Enter the amount due on Line 26. If the
amount is less than zero, enter -0-. . . . . . . . . . . . . . $ 	

.00 
.00 

.00 
.00
.00
.00

Worksheet, Line 1, Purchases Subject to Use Tax
Report purchases of items that would have been subject to sales tax
if purchased from a California retailer unless your receipt shows that
California tax was paid directly to the retailer. For example, generally, you
would include purchases of clothing, but not exempt purchases of food
products or prescription medicine. For more information on nontaxable
and exempt purchases, you may visit the California Department of Tax
and Fee Administration’s website at cdtfa.ca.gov.
#	 Include handling charges.
#	 Do not include any other state’s sales or use tax paid on the purchases.
#	 Enter only purchases made during the year that corresponds with the
tax return you are filing.
#	 If you traveled to a foreign country and hand-carried items back
to California, generally use tax is due on the purchase price of the
goods you listed on your U.S. Customs Declaration less an $800 per
person exemption. For the hand carried items, you should report the
amount of purchases in excess of the $800 per-person exemption.
This $800 exemption does not apply to goods sent or shipped
to California by mail or other common carrier. For goods sent or
shipped, you should report the entire amount of the purchases.
#	 If your filing status is “married/RDP filing separately,” you may elect
to report one-half of the use tax due or the entire amount on your
income tax return. If you elect to report one-half, your spouse/RDP
may report the remaining half on his or her income tax return or on
the individual use tax return available from the California Department
of Tax and Fee Administration.
Note: You cannot report the following types of purchases on your
income tax return.
#	 Vehicles, vessels, and trailers that must be registered with the
Department of Motor Vehicles.

FREE e-file at ftb.ca.gov	
#	 Mobile homes or commercial coaches that must be registered
annually as required by the Health and Safety Code.
#	 Vessels documented with the U.S. Coast Guard.
#	 Aircraft.
#	 Rental receipts from leasing machinery, equipment, vehicles, and
other tangible personal property to your customers.
#	 Cigarettes and tobacco products when the purchaser is registered
with the California Department of Tax and Fee Administration as a
cigarette and/or tobacco products consumer.

Worksheet, Line 2, Sales and Use Tax Rate
Enter the sales and use tax rate applicable to the place in California
where the property was used, stored, consumed, or given away. To find
your sales and use tax rate, please go to the California Department of
Tax and Fee Administration’s website at cdtfa.ca.gov and type “City and
County Sales and Use Tax Rates” in the search bar. You may also call
their Customer Service Center at 800.400.7115 (CRS:711) (for hearing
and speech disabilities).

Worksheet, Line 6, Credit for Tax Paid to Another State
This is a credit for tax paid to other states on purchases reported on
Line 1. You cannot claim a credit for more than the amount of use tax
that is imposed on your use of property in this state. For example, if you
paid $8.00 sales tax to another state for a purchase, and would have
paid $6.00 in California, you can claim a credit of only $6.00 for that
purchase.

Estimated Use Tax Lookup Table
You may use the Estimated Use Tax Lookup Table to estimate and report
the use tax due on individual non-business items you purchased for
less than $1,000 each. This option is only available if you are permitted
to report use tax on your income tax return and you are not required
to use the Use Tax Worksheet to calculate the use tax owed on all your
purchases. Simply include the use tax liability that corresponds to your
California Adjusted Gross Income (found on Line 16) and enter it on
Line 26. You will not be assessed additional use tax on the individual
non business items you purchased for less than $1,000 each.
You may not use the Estimated Use Tax Lookup Table to estimate and
report the use tax due on purchases of items for use in your business
or on purchases of individual non-business items you purchased for
$1,000 or more each. See the instructions for the Use Tax Worksheet if
you have a combination of purchases of individual non-business items
for less than $1,000 each and purchases of individual non-business
items for $1,000 or more.
Adjusted Gross Income (AGI) Range
Use Tax Liability
  Less Than $10,000
$0
 $10,000	 to	
$19,999
$1
 $20,000	 to	
$29,999
$2
 $30,000	 to	
$39,999
$3
 $40,000	 to	
$49,999
$4
 $50,000	 to	
$59,999
$4
 $60,000	 to	
$69,999
$5
 $70,000	 to	
$79,999
$6
 $80,000	 to	
$89,999
$7
 $90,000	 to	
$99,999
$8
 $100,000	 to	
$124,999
$9
 $125,000	 to	
$149,999
$11
 $150,000	 to	
$174,999
$13
 $175,000	 to	
$199,999
$15
More than $199,999 – Multiply AGI by 0.008% (x 0.00008)
Enter your use tax liability on Line 4 of the worksheet, or if you are not
required to use the worksheet, enter the amount on Line 26 of your
income tax return.

Instructions: Form 540 2EZ

ISR Penalty
Line 27 – Individual Shared Responsibility (ISR)
Penalty
Check the box on Form 540 2EZ, line 27, if you, your spouse/RDP (if
filing a joint return), and anyone you can or do claim as a dependent
had minimum essential coverage (also referred to as qualifying health
care coverage) that covered all of 2021. Medicare Part A or C qualifies
as minimum essential coverage. If you check the box on Form 540 2EZ,
line 27, you do not owe the individual shared responsibility penalty and
do not need to file form FTB 3853, Health Coverage Exemptions and
Individual Shared Responsibility Penalty. For more information, get form
FTB 3853.
If you and your household did not have full-year health care coverage,
then go to form FTB 3853 to determine if you have an individual shared
responsibility penalty. Enter your individual shared responsibility penalty
from form FTB 3853, Part IV, line 1.

Overpaid Tax/Tax Due
Line 32 – Overpaid Tax
If the amount on line 30 is more than the amount on line 21, your
payments and credits are more than your tax. Subtract the amount on
line 21 from line 30. Enter the result on line 32.
Refund Intercept – The FTB administers the Interagency Intercept
Collection (IIC) program on behalf of the State Controller’s Office. The
IIC program intercepts (offsets) refunds when individuals and business
entities owe delinquent debts to government agencies including the IRS
and California colleges. All refunds are subject to interception. The FTB
only intercepts the amount owed.
Refunds from joint tax returns may be applied to the debts of the
taxpayer or spouse/RDP. After all tax liabilities are paid, any remaining
credit will be applied to requested voluntary contributions, if any, and the
remainder will be refunded.
If the debt was previously paid to the requestor and the FTB also
intercepted the refund, any overpayment will be refunded by the agency
that received the funds.
For more information, go to ftb.ca.gov and search for interagency
intercept collection.

Line 33 – Tax Due
If the amount on line 30 is less than the amount on line 21, subtract
the amount on line 30 from the amount on line 21. Enter the result on
line 33. Your tax is more than your credits and withholdings.
Increasing your withholding could eliminate the need to make a large
payment with your tax return. To increase your withholding, complete
EDD Form DE 4, Employee’s Withholding Allowance Certificate, and give
it to your employer’s appropriate payroll staff. You can get this form from
your employer or by calling the EDD at 888.745.3886. You can download
the DE 4 at edd.ca.gov or go to ftb.ca.gov and search for de 4. If you
did not pay enough through withholding, you may have an underpayment
penalty. The FTB will figure the underpayment penalty for you.

Contributions
You can make voluntary contributions to the funds listed on
Form 540 2EZ, Sides 3 and 4. See “Voluntary Contribution Fund
Descriptions” for more information.
You may also contribute any amount to the State Parks Protection
Fund/Parks Pass Purchase. To receive a single annual park pass, your
contribution must equal or exceed $195. When applicable, the FTB will
forward your name and address from your tax return to the Department
of Parks and Recreation (DPR) who will issue a single Vehicle Day
Use Annual Pass to you. Only one pass will be provided per tax return.

Form 540 2EZ Tax Booklet  2021  Page 9

Instructions: Form 540 2EZ	

CalFile – California’s free, fast, easy, and secure e-file option

You may contact DPR directly to purchase additional passes. If there
is an error on your tax return in the computation of total contributions
or if we disallow the contribution you requested because there is no
credit available for the tax year, your name and address will not be
forwarded to DPR. Any contribution less than $195 will be treated as a
voluntary contribution and may be deducted as a charitable contribution.
For more information, go to parks.ca.gov/annualpass/ or email
[email protected].

Check or Money Order (no cash please)

Line 34 – Total Contributions
Add amounts in code 400 through code 446. Enter the result on line 34.

Line 35 – Amount You Owe
If you do not have an amount on line 32, add the amount on line 29,
line 31, line 33, and line 34. Enter the result on line 35.
If you have an amount on line 32 and the amount on line 34 is more than
line 32, subtract line 32 from line 34. Enter the difference on line 35.

Paying Your Taxes
You must pay 100% of the amount you owe by April 18, 2022, to
avoid interest and underpayment penalties. (When the due date falls
on a weekend or holiday, the deadline to file and pay without penalty
is extended to the next business day. Due to the federal Emancipation
Day holiday observed on April 15, 2022, tax returns filed and payments
mailed or submitted on April 18, 2022, will be considered timely.)
However, the underpayment penalty will be waived if 90% of the tax
shown on the tax return is paid by the original due date of the tax return.
There are several ways to pay your tax:
#	 Electronic funds withdrawal (e-file only)
#	 Pay online/Web Pay
#	 Credit card
#	 Check or money order
#	 Monthly installments

Electronic Funds Withdrawal
If you CalFile or e-file, instead of paying by check, you can use this
convenient option. Simply provide your bank i­nformation, the amount
you want to pay, and the date you want the amount to be withdrawn
from your account. You can find the routing and account numbers on
your check or by contacting your financial institution. Use the check
­illustration on the next page to find your bank information. Your tax
preparation software will offer this option.

Web Pay
Enjoy the convenience of online payment with the FTB. This secure
service lets you pay the current amount you owe, extension payments,
estimated tax payments, and prior year balances. For more information,
go to ftb.ca.gov/pay.

Credit Card
Use your Discover, MasterCard, American Express, or Visa card to pay
your personal income taxes (including tax return balance due, extension
payments, estimated tax payments, and prior year balances). The FTB
has partnered with ACI Payments, Inc. (formerly Official Payments) to
offer you this service. ACI Payments, Inc. charges a convenience fee
based on the amount of your payment
Go to the ACI Payments, Inc. website at officialpayments.com and select
Payment Center, or call 800.2PAY.TAX or 800.272.9829 and follow the
recorded instructions. ACI Payments, Inc. provides customer assistance
at 877.297.7457 Monday through Friday, 5:00 a.m. to 5:00 p.m. PST.
	 Payment Date:		
	 Confirmation Number: 		

Page 10  Form 540 2EZ Tax Booklet  2021

Using black or blue ink, make your check or money order payable to the
“Franchise Tax Board.” Do not send cash or other items of value (such
as stamps, lottery tickets, foreign currency, and gift cards). Write your
SSN or ITIN and “2021 Form 540 2EZ” on the check or money order.
Enclose, but do not staple your check or money order to the tax return.
Make all checks or money orders payable in U.S. dollars and drawn
against a U.S. financial institution.
e-file: If you e-filed your tax return, mail your check or money order with
form FTB 3582, Payment Voucher for Individual e-filed Returns. Do not
mail a copy of your e-filed tax return.
A penalty may be imposed if your payment is returned by your bank
for insufficient funds.

Request Monthly Installments
Pay as much as you can when you file your tax return. If you cannot pay
your taxes in full, you can request approval to make monthly payments.
However, you will be charged interest and ­penalties. You will need to
complete form FTB 3567, Installment Agreement Request.
To submit your request electronically, go to ftb.ca.gov and search for
installment agreement. To submit your request by mail, go to
ftb.ca.gov/forms to download and print form FTB 3567 or call
800.338.0505, and follow the recorded instructions. Enter code 949
when instructed. Mail the completed form to the FTB at the address
shown on the form.

Line 36 – Refund or No Amount Due
Did you report an amount on line 34?
No	 Enter the amount from line 32 on line 36. This is your refund
amount. If it is less than $1, attach a written statement to your
Form 540 2EZ requesting the refund.
Yes	 If the amount on line 34 is:
#	 Less than the amount on line 32, subtract line 34 from line 32
and enter the difference on line 36. This is your refund amount.
#	 More than the amount on line 32, enter zero on line 36.

Direct Deposit
Direct deposit is fast, safe, and convenient. To have your refund directly
deposited into your bank account, fill in the account information on
Form 540 2EZ, Side 4, line 37 and line 38. Fill in the routing and account
numbers and indicate the account type. Verify routing and account
numbers with your financial institution. Do not attach a voided check or
deposit slip. See the illustration on the following page.
An individual taxpayer may request that his or her refund be
electronically deposited into more than one checking or savings account.
This allows more options for managing your refund. For example, you
can request part of your refund go to your checking account to use now
and the rest to your savings account to save for later.
The routing number must be nine digits. The first two digits must be
01 through 12 or 21 through 32. On the sample check, the routing
number is 250250025. The account number can be up to 17 characters
and can include numbers and letters. Include hyphens, but omit
spaces and special symbols. On the sample check, the account number
is 202020.
Check the appropriate box for the type of account. Do not check more
than one box for each line.
Enter the portion of your refund you want directly deposited into each
account. When filing an original return, the total of line 37 and line 38
must equal the total amount of your refund on line 36. If line 37 and
line 38 do not equal line 36, the FTB will issue a paper check.
When filing an amended return, only complete the amended
Form 540 2EZ through line 36. Next complete Schedule X. The amount
from Schedule X, line 11 is your additional refund amount. This amount

FREE e-file at ftb.ca.gov	

Instructions: Form 540 2EZ

will be carried over to your amended Form 540 2EZ and will be entered
on line 37 and line 38. The total of the amended Form 540 2EZ, line 37
and line 38 must equal the total amount of your refund on Schedule X,
line 11. If the total of the amended Form 540 2EZ, line 37 and line 38 do
not equal Schedule X, line 11, the FTB will issue a paper check.
Adjusted Refunds – If there is a change made to your refund, you will
still receive your refund via direct deposit. For more information on
direct deposit of adjusted refunds, go to ftb.ca.gov and search for direct
deposit.
Caution: Check with your financial institution to make sure your deposit
will be accepted and to get the correct routing and account numbers.
The FTB is not responsible for a lost refund due to incorrect account
information entered by you or your representative.
Prior to depositing the refund, the FTB may first verify with your financial
institution that the name on the account you designated to receive the
direct deposit refund matches the name provided on the tax return.
Some financial institutions will not allow a joint refund to be deposited to
an individual account. If the direct deposit is rejected, the FTB will issue
a paper check.
John Doe
Mary Doe
1234 Main Street
Anytown, CA 99999

1234
15-0000/0000

20

PAY TO THE
ORDER OF

$
DOLLARS

ANYTOWN BANK
Anytown, CA 99999

Routing
number

Account
number

Do not include
the check number

For

I:250250025 I:202020•1234

Direct Deposit for ScholarShare 529 College Savings Plans –­ If you
have a ScholarShare 529 College Savings Plan account maintained
by the ScholarShare Investment Board, you may have your refund
directly deposited to your ScholarShare account. Please visit
scholarshare529.com for instructions.

Sign Your Tax Return
Sign your tax return on Side 4. If you file a joint tax return, your
spouse/RDP must also sign it.
If you file a joint tax return, both you and your spouse/RDP are generally
responsible for tax and any interest or penalties due on the tax return. If
one spouse/RDP does not pay the tax, the other spouse/RDP may have
to. See “Innocent Joint Filer Relief” under Additional Information section
for more information.
Include your preferred phone number and email address in case the
FTB needs to contact you regarding your tax return. By providing this
information, the FTB will be able to provide you better customer service.

Third Party Designee
If you want to allow your preparer, a friend, family member, or any other
person you choose to discuss your 2021 tax return with the FTB, check
the “Yes” box in the signature area of your tax return. Also print the
designee’s name and telephone number.
If you check the “Yes” box, you, and your spouse/RDP if filing a joint
tax return, are authorizing the FTB to call the designee to answer any
questions that may arise during the processing of your tax return. You
are also authorizing the designee to:
•	 Give the FTB any information that is missing from your tax return.
•	 Call the FTB for information about the processing of your tax return
or the status of your refund or payments.
•	 Receive copies of notices or transcripts related to your tax return,
upon request.
•	 Respond to certain FTB notices about math errors, offsets, and
return preparation.
You are not authorizing the designee to receive any refund check, bind
you to anything (including any additional tax liability), or otherwise
represent you before the FTB. If you want to expand or change the
designee’s authorization, go to ftb.ca.gov/poa.
The authorization will automatically end no later than the due date
(without regard to extensions) for filing your 2022 tax return. This is
April 15, 2023, for most people. To revoke the authorization before it
ends, notify us by telephone at 800.852.5711 or in writing at Franchise
Tax Board, PO Box 942840, Sacramento CA 94240-0040. Include your
name, SSN (or ITIN), and the designee’s name.

­Assembling Your Tax Return
Assemble your tax return and mail it to the FTB.
To help with our processing costs, enclose, but do not staple, your
payment. Attach your federal Form(s) W-2 to the lower front of your
tax return. Include California supporting forms and schedules behind
Side 4 of Form 540 2EZ.
Do not enclose a copy of your federal tax return or any other document
with your Form 540 2EZ.

Mailing Your Tax Return
Mail your tax return to the following address if your tax return shows an
amount due:
	 FRANCHISE TAX BOARD
	 PO BOX 942867
	 SACRAMENTO CA 94267-0001
Mail your tax return to the following address if your tax return shows a
refund, or no amount due:
	 FRANCHISE TAX BOARD
	 PO BOX 942840
	 SACRAMENTO CA 94240-0001

Paid Preparer’s Information

If you pay a person to prepare your Form 540 2EZ, that person must
sign and complete the area at the bottom of Side 4 including an
identification number. The IRS requires a paid tax preparer to get and
use a preparer tax identification number (PTIN). If the preparer has a
federal employer identification number (FEIN), it should be entered only
in the space provided. A paid preparer must give you a copy of your tax
return to keep for your records.

Form 540 2EZ Tax Booklet  2021  Page 11

Nonrefundable Renter’s Credit Qualification Record
e-file and skip this page! The software you use to e-file will help you find out if you qualify for this credit and will figure the correct amount of the credit
automatically. You can claim the nonrefundable Renter’s Credit using CalFile.
If you were a resident of California and paid rent on property in California, which was your principal residence, you may qualify for a credit that you can use to reduce your
tax. Answer the questions below to see if you qualify. For purposes of California income tax, references to a spouse, husband, or wife also refer to a California Registered
Domestic Partnership (RDP), unless otherwise specified. When we use the initials RDP, they refer to both a California registered domestic “partner” and a California
registered domestic “partnership,” as applicable. For more information on RDPs, get FTB Pub. 737. Do not mail this record. Keep with your tax records.

1. Were you a resident of California for the entire year in 2021?
Military personnel: If you are not a legal resident of California, you do not qualify for this credit. However, your spouse/RDP may claim this credit if he or she was a
resident during 2021 and is otherwise qualified.
YES. Go to question 2.	
NO. Stop here. File Form 540NR. Go to ftb.ca.gov/forms for more information regarding this form.

2. Is your California adjusted gross income, the amount on Form 540 2EZ, line 16:

	

•	 $45,448 or less if single; or
	 •	 $90,896 or less if married/RDP filing jointly, head of household, or qualifying widow(er)?
YES. Go to question 3.	NO. Stop here. You do not qualify for this credit.

3. Did you pay rent, for at least half of 2021, on property (including a mobile home that you owned on rented land) in California, which was your
principal residence?
YES. Go to question 4.	NO. Stop here. You do not qualify for this credit.

4. Can you be claimed as a dependent by a parent, foster parent, legal guardian, or any other person in 2021?
NO. Go to question 6.	YES. Go to question 5.

5. For more than half the year in 2021, di