California California Adjustments - Residents

California Adjustments - Residents
2023 Schedule CA (540) California Adjustments - Residents
TAXABLE YEAR

2023

SCHEDULE

CA (540)

California Adjustments — Residents

Important: Attach this schedule behind Form 540, Side 6 as a supporting California schedule.
Name(s) as shown on tax return

SSN or ITIN

Part I Income Adjustment Schedule
Section A – Income from federal Form 1040 or 1040-SR
1 a Total amount from federal
Form(s) W-2, box 1. See instructions . . . . . . . 1a

A

Federal Amounts

(taxable amounts from your
federal tax return)

B

Subtractions

See instructions

C

Additions

See instructions

b Household employee wages not reported
on federal Form(s) W-2 . . . . . . . . . . . . . . . . . . 1b
c Tip income not reported on line 1a . . . . . . . . . 1c
d Medicaid waiver payments not reported
on federal Form(s) W-2. See instructions . . . . 1d
e Taxable dependent care benefits
from federal Form 2441, line 26 . . . . . . . . . . . 1e
f Employer-provided adoption benefits
from federal Form 8839, line 29 . . . . . . . . . . . 1f
g Wages from federal Form 8919, line 6. . . . . . . 1g
h Other earned income. See instructions . . . . . . 1h
i Nontaxable combat pay election.
See instructions. . . . . . . . . . . . . . . . . . . . . . . . 1i
z Add line 1a through line 1i. . . . . . . . . . . . . . . . 1z
2 Taxable interest. a

2b

3 Ordinary dividends.
See instructions. a

3b

4 IRA distributions.
See instructions. a

4b

5 Pensions and
annuities. See
instructions.

a

5b

6 Social security
benefits.

a

6b

7 Capital gain or (loss). See instructions . . . . . . . . 7
Section B – Additional Income from federal Schedule 1 (Form 1040)
1 Taxable refunds, credits, or offsets of state
and local income taxes . . . . . . . . . . . . . . . . . . . . .1
2 a Alimony received. See instructions. . . . . . . . . 2a
3 Business income or (loss). See instructions. . . . .3
4 Other gains or (losses) . . . . . . . . . . . . . . . . . . . . .4
5 Rental real estate, royalties, partnerships,
S corporations, trusts, etc. . . . . . . . . . . . . . . . . . .5
6 Farm income or (loss) . . . . . . . . . . . . . . . . . . . . .6
7 Unemployment compensation . . . . . . . . . . . . . . .7

For Privacy Notice, get FTB 1131 EN-SP.

7731233

Schedule CA (540) 2023 Side 1

Section B – Additional Income
Continued

A

8 Other income:
a Federal net operating loss . . . . . . . . . . . . . . . . .8a

Federal Amounts

B

(taxable amounts from your
federal tax return)

(

)

(

)

(

)

b Gambling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8b
c Cancellation of debt . . . . . . . . . . . . . . . . . . . . . 8c
d Foreign earned income exclusion from
federal Form 2555 . . . . . . . . . . . . . . . . . . . . . . 8d
e Income from federal Form 8853 . . . . . . . . . . . 8e
f Income from federal Form 8889. . . . . . . . . . . . 8f
g Alaska Permanent Fund dividends . . . . . . . . . . 8g
h Jury duty pay. . . . . . . . . . . . . . . . . . . . . . . . . . 8h
i Prizes and awards . . . . . . . . . . . . . . . . . . . . . . 8i
j Activity not engaged in for profit income . . . . . 8j
k Stock options. . . . . . . . . . . . . . . . . . . . . . . . . . 8k
l Income from the rental of personal property
if you engaged in the rental for profit but were
not in the business of renting such property . . 8l
m Olympic and Paralympic medals and USOC
prize money. . . . . . . . . . . . . . . . . . . . . . . . . . . 8m
n IRC Section 951(a) inclusion . . . . . . . . . . . . . . 8n
o IRC Section 951A(a) inclusion. . . . . . . . . . . . . 8o
p IRC Section 461(l) excess business loss adjustment 8p
q Taxable distributions from an ABLE account . . 8q
r Scholarship and fellowship grants
not reported on federal Form(s) W-2 . . . . . . . . 8r
s Nontaxable amount of Medicaid waiver payments
included on federal Form 1040, line 1a or line 1d. .8s
t Pension or annuity from a nonqualified
deferred compensation plan or a
nongovernmental IRC Section 457 plan . . . . . . 8t
u Wages earned while incarcerated. . . . . . . . . . . 8u
z Other income. List type and amount.
8z

Side 2 Schedule CA (540) 2023

7732233

Subtractions

See instructions

C

Additions

See instructions

Section B – Additional Income
Continued

9 a

A

Federal Amounts

(taxable amounts from your
federal tax return)

B

Subtractions

See instructions

C

Additions

See instructions

Total other income. Add lines 8a through 8z. . 9a

b1 Disaster loss deduction from form FTB 3805V. . 9b1
b2 NOL deduction from form FTB 3805V . . . . . . 9b2
b3 NOL deduction from form FTB 3805Z,
3807, or 3809 . . . . . . . . . . . . . . . . . . . . . . . . 9b3
10 Total. Combine Section A, line 1z through line 7,
and Section B, line 1 through line 7, and line 9a
in column A and column C. Add Section A, line 1z
through line 7, and Section B, line 1 through line 7,
line 9a, and line 9b1 through line 9b3 in column B
(as applicable). See instructions. . . . . . . . . . . . . . . .10
Section C – Adjustments to Income
from federal Schedule 1 (Form 1040)
11 Educator expenses . . . . . . . . . . . . . . . . . . . . . . .11
12 Certain business expenses of reservists, performing
artists, and fee-basis government officials. . . . . . .12
13 Health savings account deduction . . . . . . . . . . .13
14 Moving expenses. Attach form FTB 3913.
See instructions . . . . . . . . . . . . . . . . . . . . . . . . .14
15 Deductible part of self-employment tax.
See instructions. . . . . . . . . . . . . . . . . . . . . . . . .15
16 Self-employed SEP, SIMPLE, and qualified plans. .16
17 Self-employed health insurance deduction.
See instructions. . . . . . . . . . . . . . . . . . . . . . . . .17
18 Penalty on early withdrawal of savings . . . . . . . .18
19 a Alimony paid. . . . . . . . . . . . . . . . . . . . . . . . .19a
b Recipient’s: SSN
Last Name
20 IRA deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
21 Student loan interest deduction . . . . . . . . . . . . . . 21
22 Reserved for future use . . . . . . . . . . . . . . . . . . . . 22
23 Archer MSA deduction. . . . . . . . . . . . . . . . . . . . . 23

7733233

Schedule CA (540) 2023 Side 3

Section C – Adjustments to Income
Continued

A

Federal Amounts

(taxable amounts from your
federal tax return)

24 Other adjustments:
a Jury duty pay . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24a
b Deductible expenses related to income reported
on line 8l from the rental of personal property
engaged in for profit. . . . . . . . . . . . . . . . . . . . . . . 24b
c Nontaxable amount of the value of Olympic and
Paralympic medals and USOC prize money
reported on line 8m . . . . . . . . . . . . . . . . . . . . . . . 24c
d Reforestation amortization and expenses. . . . . . . 24d
e Repayment of supplemental unemployment
benefits under the federal Trade Act of 1974 . . . . 24e
f Contributions to IRC Section 501(c)(18)(D)
pension plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24f
g Contributions by certain chaplains to
IRC Section 403(b) plans . . . . . . . . . . . . . . . . . . . 24g
h Attorney fees and court costs for actions involving
certain unlawful discrimination claims . . . . . . . . . 24h
i Attorney fees and court costs you paid in connection
with an award from the IRS for information you provided
that helped the IRS detect tax law violations. . . . . . . 24i
j Housing deduction from federal Form 2555 . . . . . 24j
k Excess deductions of IRC Section 67(e) expenses
from federal Schedule K-1 (Form 1041) . . . . . . . . 24k
z Other adjustments. List type and amount.
24z
25 Total other adjustments. Add line 24a through
line 24z . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
26 Add line 11 through line 23 and line 25 in
columns A, B, and C. See instructions . . . . . . . . . . . 26
27 Total. Subtract line 26 from line 10 in
columns A, B, and C. See instructions . . . . . . . . . . . 27

Side 4 Schedule CA (540) 2023

7734233

B

Subtractions

See instructions

C

Additions

See instructions

Part II

Adjustments to Federal Itemized Deductions

Check the box if you did NOT itemize for federal but will itemize for California . . . . . . . . . . .

A

Federal Amounts

(from federal Schedule A
(Form 1040))

B

Subtractions

See instructions

C

Additions

See instructions

Medical and Dental Expenses See instructions.
1 Medical and
dental expenses . . . .
2 Enter amount from
federal Form 1040
or 1040-SR, line 11. .
3 Multiply line 2
by 7.5% (0.075) . . . .

1

2
3

4 Subtract line 3 from line 1.
If line 3 is more than line 1, enter 0 . . . . . . . . . . . . . .4
Taxes You Paid

5 a State and local income tax or general sales taxes. .5a
b State and local real estate taxes . . . . . . . . . . . . . . .5b
c State and local personal property taxes . . . . . . . . .5c
d Add line 5a through line 5c. . . . . . . . . . . . . . . . . . .5d
e Enter the smaller of line 5d or $10,000 ($5,000 if
married filing separately) in column A.
Enter the amount from line 5a, column B
in line 5e, column B.
Enter the difference from line 5d and line 5e,
column A in line 5e, column C . . . . . . . . . . . . . . . .5e
6 Other taxes. List type

6

7 Add line 5e and line 6 . . . . . . . . . . . . . . . . . . . . . . . . .7
Interest You Paid

8 a Home mortgage interest and points reported to
you on federal Form 1098 . . . . . . . . . . . . . . . . . . .8a
b Home mortgage interest not reported to you
on federal Form 1098 . . . . . . . . . . . . . . . . . . . . . . .8b
c Points not reported to you on federal Form 1098. .8c
d Reserved for future use . . . . . . . . . . . . . . . . . . . . .8d
e Add line 8a through line 8c. . . . . . . . . . . . . . . . . . .8e
9 Investment interest. . . . . . . . . . . . . . . . . . . . . . . . . . .9

10 Add line 8e and line 9 . . . . . . . . . . . . . . . . . . . . . . . .10

7735233

Schedule CA (540) 2023 Side 5

Part II

Adjustments to Federal Itemized Deductions
Continued

A

Federal Amounts

B

(from federal Schedule A
(Form 1040))

Subtractions

C

See instructions

Gifts to Charity
11 Gifts by cash or check. . . . . . . . . . . . . . . . . . . . . . . .11
12 Other than by cash or check. . . . . . . . . . . . . . . . . . .12
13 Carryover from prior year. . . . . . . . . . . . . . . . . . . . .13
14 Add line 11 through line 13 . . . . . . . . . . . . . . . . . . .14
Casualty and Theft Losses

15 Casualty or theft loss(es) (other than net qualified disaster
losses). Attach federal Form 4684. See instructions . .15
Other Itemized Deductions

16 Other—from list in federal instructions.. . . . . . . . . .16
17 Add lines 4, 7, 10, 14, 15, and 16 in
columns A, B, and C. . . . . . . . . . . . . . . . . . . . . . . . .17
18 Total. Combine line 17 column A less column B plus column C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

18

Job Expenses and Certain Miscellaneous Deductions
19 Unreimbursed employee expenses: job travel, union dues, job education, etc.
Attach federal Form 2106 if required. See instructions . . . . . . . . . . . . . . . . . . . . . . .

19

20 Tax preparation fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

20

21 Other expenses: investment, safe deposit
box, etc. List type . . . . . . . . . . . . . . . . . . . . . .

21

22 Add line 19 through line 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

22

23 Enter amount from federal Form 1040
or 1040-SR, line 11 . . . . . . . . . . . . . . . . . . . .
24 Multiply line 23 by 2% (0.02). If less than zero, enter 0. . . . . . . . . . . . . . . . . . . . . . .

24

25 Subtract line 24 from line 22. If line 24 is more than line 22, enter 0. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

25

26 Total Itemized Deductions. Add line 18 and line 25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

26

27 Other adjustments. See instructions. Specify.

27

28 Combine line 26 and line 27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

28

29 Is your federal AGI (Form 540, line 13) more than the amount shown below for your filing status?
Single or married/RDP filing separately . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $237,035
Head of household . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $355,558
Married/RDP filing jointly or qualifying surviving spouse/RDP . . . . . . . . . . . . . . . . $474,075
No. Transfer the amount on line 28 to line 29.
Yes. Complete the Itemized Deductions Worksheet in the instructions for Schedule CA (540), line 29 . . . . . . . . . . .

29

30 Enter the larger of the amount on line 29 or your standard deduction shown below:
Single or married/RDP filing separately. See instructions . . . . . . . . . . . . . . . . . . . . . $5,363
Married/RDP filing jointly, head of household, or qualifying surviving spouse/RDP . . $10,726
Transfer the amount on line 30 to Form 540, line 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

30

Side 6 Schedule CA (540) 2023

7736233

Additions

See instructions