California Tax Information for Registered Domestic Partners

Tax Information for Registered Domestic Partners
2023 FTB Publication 737 Tax Information for Registered Domestic Partners
FTB Publication

737

2023
Tax Information for Registered
Domestic Partners

Contents
Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Do I Have to File a California Income Tax Return?  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Filing Status . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
General Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Married/RDP Filing Separately  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
California RDP Adjustments Worksheet  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Instructions for CA RDP Adjustments Worksheet – Recalculated Federal Adjusted Gross Income  . . . . . . . . . . . . . . . . . .  11
Frequently Asked Questions  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  19
Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Additional Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
How to Get California Tax Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
General Phone Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Franchise Tax Board Privacy Notice on Collection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

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Page 2  FTB Pub. 737  2023

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Purpose
This publication is primarily to assist registered domestic
partners (RDPs), as defined in California Family Code
Sections 297 et seq., in filing their California income tax
returns, if they have RDP adjustments.

Introduction
For purposes of California income tax, references to
a spouse, husband, or wife also refer to a California
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.
In general, California affords the same rights and
responsibilities to RDPs that previously were available
only to married individuals. For California tax purposes,
the same long-standing rules applicable to married
individuals (relating to filing status, community property
income, etc.) now apply to RDPs. However, because the
federal government does not recognize domestic partners
as married individuals for federal tax purposes, RDPs
shall continue to file as unmarried individuals on their
federal tax returns.
The Internal Revenue Service (IRS) in a May 5, 2010,
Chief Counsel Advice (CCA) memorandum stated that
California RDPs shall report one-half of their community
income on his or her federal income tax return, unless
the RDPs previously executed an agreement opting out of
community property treatment. For more information, get
federal Pub. 555, Community Property.
The CCA only addresses the treatment of community
income of RDPs; it does not change the RDP’s federal
filing status. For federal purposes, an RDP shall continue
to use the single or head of household filing status.
RDP adjustments may be required on the California tax
return because the filing status of an RDP for California
purposes is not the same as the filing status that the
RDP uses for federal purposes. Under California law,
RDPs must file their California income tax returns using
either the married/RDP filing jointly or married/RDP
filing separately filing status. RDPs are not allowed to
use a married filing status on their federal tax returns.
Frequently, the dollar limits for a single taxpayer and a
married couple are the same and the dollar limit for a
married person filing separately is one-half the amount for
a single person or a married couple. To apply the correct
dollar limits on the California tax return, an RDP might be
required to reduce the amount of a deduction reflected on
a federal tax return.

Another category of adjustment occurs when the
substantive rule for a transaction is different for a married
person. For example, no gain or loss is recognized when
spouses transfer property among themselves. Since
an RDP is treated as a spouse for California purposes,
no gain or loss is recognized for California purposes
when one RDP transfers property to his or her domestic
partner. However, this transfer is not likely to get the same
treatment for federal purposes and gain or loss might be
recognized for federal purposes.
RDP adjustments include, but are not limited to
the following:
•	 Division of community property
•	 Capital losses
•	 Transactions between RDPs
•	 Sale of residence
•	 Dependent care assistance
•	 Investment interest
•	 Qualified residence acquisition loan & equity
loan interest
•	 Expense depreciation property limitations
•	 Individual Retirement Account
•	 Education loan interest
•	 Rental real estate passive loss
•	 Rollover of publicly traded securities gains into
specialized small business investment companies
There are three possible methods to file if you are an
RDP.
If you do not have any RDP adjustments:
1.	 Combine the amount on federal Form 1040, U.S.
Individual Income Tax Return, line 11 from each
individual federal Form 1040 filed with the IRS and
transfer the combined amount to Form 540, California
Resident Income Tax Return, or Form 540NR,
California Nonresident or Part-Year Resident Income
Tax Return, line 13.
	Note: RDPs who split their community income on their
federal tax return and have no RDP adjustments may
use this method.
If you have RDP adjustments, you will need to recalculate
your federal adjusted gross income (AGI), before
completing your California income tax return. You may
use either one of the following methods:
2.	 Complete the California RDP Adjustments Worksheet
– Recalculated Federal Adjusted Gross Income
(included in this publication).
3.	 Complete a pro forma federal Form 1040 using the
same filing status used on your California tax return.
A pro forma federal Form 1040 is a federal tax return
completed in the same manner that a married couple
would report income and expenses.
The pro forma federal Form 1040 is used only to assist
you in completing your California tax return. DO NOT file
the pro forma federal Form 1040 with the IRS.
To complete the pro forma federal Form 1040 or the
worksheet, follow the federal Form 1040 instructions
along with the instructions provided in this publication.

FTB Pub. 737  2023  Page 3

Do I Have to File a California Income Tax Return?
Filing Requirements for RDP Residents, Nonresidents, and Part-Year Residents
Residents – File a California tax return if either your gross income (which consists of all income you received from all sources in the
form of money, goods, property, and services, that is not exempt from tax) or your adjusted gross income (AGI) (which consists of your
federal AGI from all sources, reduced or increased by all California income adjustments) is more than the amounts shown on the chart
below for your filing status, age, and number of dependents.
Nonresidents and Part-Year Residents – File a California tax return if you have any income from California sources and your gross
income (which consists of all income you received from all sources in the form of money, goods, property, and services, that is not
exempt from tax) or AGI (which consists of your federal AGI from all sources, reduced or increased by all California income adjustments)
is more than the amounts shown on the chart below for your filing status, age, and number of dependents.
Note: If your gross income or adjusted gross income is less than the amounts listed on the chart, you may still have a filing requirement.
For more information, get California Form 540 Personal Income Tax Booklet or California Form 540NR Nonresident or Part-Year
Resident Booklet.
On 12/31/23,
my filing status was:

and on 12/31/23,
my age was:

(If your 65th birthday is on
January 1, 2024, you are considered to
be age 65 on December 31, 2023)

California Gross Income
Dependents
0

1

2
or more

California Adjusted Gross Income
Dependents
2
0
1
or more

Head of household

Under 65
65 or older

21,561
28,761

36,428
39,911

47,578
48,831

17,249
24,449

32,116
35,599

43,266
44,519

Married/RDP filing jointly
Married/RDP filing separately

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

43,127
50,327
57,527

57,994
61,477
68,677

69,144
70,397
77,597

34,503
41,703
48,903

49,370
52,853
60,053

60,520
61,773
68,973

Qualifying surviving spouse/RDP

Under 65
65 or older

36,428
39,911

47,578
48,831

Dependent of another person –
Any filing status

Any age

(Get FTB Pub.1540, Tax Information for
Head of Household Filing Status)

(Combine the income of both spouses/
RDPs; both spouses/RDPs may be required
to file a tax return even if only one spouse/
RDP had income over the amounts listed.)

32,116
43,266
35,599
44,519
More than your standard deduction (Use the California Standard Deduction
Worksheet for Dependents in the 540 or 540NR booklets to figure your
standard deduction.)

Filing Status
Note: If you are filing as an RDP, be sure to check the box next to the question in the Filing Status section of the tax return that asks
“If your California filing status is different from your federal status, check the box here.” Use the following guidelines in determining the
proper filing status for your California tax return.
Married/RDP Filing Jointly
If any of the following is true, you may be able to file as Married/RDP Filing Jointly:
•	 You were an RDP as of December 31, 2023, even if you did not live with your RDP at the end of 2023.
•	 Your RDP died in 2023 and you did not re-register as an RDP or marry in 2023.
•	 Your RDP died in 2024 before you filed a 2023 tax return.
RDPs may file a joint return even if only one had income or if they did not live together all year.
Married/RDP Filing Separately
•	 Community property rules apply to the division of income if you use the married/RDP filing separately status. For more information,
get FTB Pub. 1031, Guidelines for Determining Resident Status, or FTB Pub. 1032, Tax Information for Military Personnel.
•	 You cannot claim a personal exemption credit for your RDP even if your RDP had no income, is not filing a tax return, and is not
claimed as a dependent on another person’s tax return.
•	 You may be able to file as head of household if your child lived with you and you lived apart from your RDP during the entire last
six months of 2023.
Head of Household
For specific requirements 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 is for individuals who are unmarried and not in a registered domestic partnership and for certain
married/RDP individuals living apart (considered unmarried or considered not in a registered domestic partnership) who provide a home
for certain relatives. For more information, go to ftb.ca.gov and search for hoh.
Qualifying Surviving Spouse/RDP
RDPs qualify for this filing status if all five of the following apply:
•	 Your RDP died in 2021 or 2022 and you did not marry or enter into another registered domestic partnership in 2023.
•	 You have a child, stepchild, adopted child, or foster child whom you claim as a dependent.
•	 This child lived in your home for all of 2023. Temporary absences, such as for vacation or school, 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 return with your RDP the year he or she died, even if you actually did not do so.

Page 4  FTB Pub. 737  2023

General Information
In general, for taxable years beginning on or after
January 1, 2015, California law conforms to the Internal
Revenue Code (IRC) as of January 1, 2015. However,
there are continuing differences between California and
federal law. When California conforms to federal tax law
changes, we do not always adopt all of the changes
made at the federal level. For more information, go to
ftb.ca.gov and search for conformity. Additional
information can be found in FTB Pub. 1001, Supplemental
Guidelines to California Adjustments, the instructions
for California Schedule CA (540), California
Adjustments – Residents, or Schedule CA (540NR),
California Adjustments – Nonresidents or Part-Year
Residents, and the Business Entity tax booklets.
The instructions provided with California tax forms are a
summary of California tax law and are only intended to
aid taxpayers in preparing their state income tax returns.
We include information that is most useful to the greatest
number of taxpayers in the limited space available. It is
not possible to include all requirements of the California
Revenue and Taxation Code (R&TC) in the instructions.
Taxpayers should not consider the instructions as
authoritative law.
Filing Requirements – Under California law, RDPs
file their California income tax returns 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.
Substantially Equivalent – 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.

Registered Domestic
Partnership Requirements
A domestic partnership is established in California when
both persons file a Declaration of Domestic Partnership
with the California Secretary of State and meet the
eligibility criteria under Title II of the Social Security
Act as defined in 42 U.S.C. Section 402(a) for old-age
insurance benefits or Title XVI of the Social Security Act
as defined in 42 U.S.C. Section 1381 for aged individuals.
•	 Both persons have a common residence.
•	 Neither person is married to someone else or is
a member of another domestic partnership with
someone else that has not been terminated,
dissolved, or adjudged a nullity.
•	 The two persons are not related by blood in a way that
would prevent them from being married to each other
in California.
•	 Both persons are at least 18 years of age.
•	 Both persons are capable of consenting to the
domestic partnership.
The definition of “common residence” means that both
domestic partners share the same residence. It is not
necessary that the legal right to possess the common
residence be in both of their names. Two people have a
common residence even if one or both have additional
residences. Domestic partners do not cease to have a
common residence if one leaves the common residence
but intends to return.
For additional domestic partner registration information,
go to the California Secretary of State website at
sos.ca.gov and search for domestic partners registry,
also view legislative history, or call 916.653.3984. For
more detailed information, go to ftb.ca.gov and search
for rdp.

Married/RDP Filing Separately
Division of Income – The domicile of the RDP earning
the income determines the division of income between
the RDPs when separate returns are filed. Each RDP
shall follow the laws of his or her state of domicile to
determine if the income is separate or community
property. California is a community property state. If
the state of domicile is a community property state,
when filing separate returns, each RDP reports half of
the community property plus all separate income on
his or her return. For California purposes, use federal
Form 8958, Allocation of Tax Amounts Between Certain
Individuals in Community Property States, to assist in the
division of income.
If required to revise your federal AGI, have the
following information available:
•	 Federal income tax return and supporting schedules
for each RDP.
•	 Copy of federal Form 1040 instructions including
worksheets, as needed.
•	 If filing separately, a copy of federal Form 8958.
FTB Pub. 737  2023  Page 5

California Community/Separate
Property
Community property is the total of the following property
acquired and earnings received:
•	 By an RDP during a registered domestic partnership
while domiciled in a community property state.
•	 By an RDP that is not separate property.
Each RDP owns one-half of all community property.
Separate property is:
•	 All property owned separately by an RDP before
entering into a registered domestic partnership.
•	 All property acquired separately after entering into
a registered domestic partnership, such as gifts,
inheritances, and property purchased with separate
funds.
•	 Money earned while domiciled in a separate property
state.
•	 All property declared separate property in a valid
agreement entered into before or after registration of
the domestic partnership.
Community income is all income from community
property, wages, salaries, and other compensation for
personal services of either RDP while in a registered
domestic partnership. Community income is divided
equally between RDPs.
Under California law, community status ends in any of the
following situations:
•	 Upon the death of either RDP.
•	 When the decree of dissolution or termination of
registered domestic partnership becomes final.
•	 When RDPs separate with no immediate intention of
reconciliation.
Income from separate property is income of the RDP who
owns the property.
When filing separate returns, the domicile of the RDP
who earns the income determines the division of income
between the RDPs. For income tax purposes, the income
of RDPs domiciled in a community property state may be
community income or separate income. When RDPs file
separate returns, each RDP reports the following:
•	 One-half of the community income.
•	 All of his or her separate income.
For more information on community property, get federal
Pub. 555. RDPs will use the rules in federal Pub. 555 for
married people for California income tax purposes. The
note in the “Introduction” section of the federal Pub. 555
regarding California RDPs applies only to the filing of your
federal return.

Page 6  FTB Pub. 737  2023

Pension Plans
For qualified pension plans, an RDP will not be treated
as the spouse where such treatment would result in the
disqualification for federal income tax purposes of a
pension plan.
Anti-alienation provisions, applicable to qualified pension
plans, prohibit assignment or transfer of plan assets
except through a qualified domestic relations order
(QDRO) or by certain survivor benefits. A QDRO is
generally a court-ordered division of a qualified pension
plan between spouses in relation to a divorce, a property
division, or provision for child support. Because federal
law does not recognize an RDP as a spouse, a plan will
not be disqualified for California income tax purposes if
a QDRO between RDPs is not recognized or if survivor
benefits are not available to RDPs.

IRAs/Roth IRAs/Tax-Favored
Accounts
An RDP will not be treated as a spouse where such
treatment would result in a tax-favored account, such as
an Achieving a Better Life Experience (ABLE) Account,
Individual Retirement Account (IRA), Roth IRA, Coverdell
Education Savings Account (ESA), Archer Medical
Savings Account (MSA), or IRC Section 529 plan
(Qualified Tuition Program), no longer being qualified as a
tax-favored account for federal purposes.
For example, under federal law, the beneficiary of a
Coverdell ESA may transfer the remaining balance in
an ESA to a new beneficiary. This new beneficiary shall
be “a member of the family,” which is defined broadly to
include the following relatives of the original beneficiary:
spouse, child, brother, sister, stepbrother, stepsister,
stepfather, stepmother, etc. Because federal law does
not recognize an RDP as a spouse, the transfer of the
balance in an ESA to a taxpayer’s RDP or an RDP’s
child would result in the Coverdell ESA no longer being
treated as a qualified tax-favored account for federal
income tax purposes. Instead, the change in beneficiary
would be considered a non-qualified distribution from
the tax-favored account subject to additional tax of
10% for federal tax purposes and 2.5% for California
tax purposes. Therefore, for California purposes, an
RDP would not be treated as a spouse for purposes of
changing the beneficiary of a Coverdell ESA.
In the event of a distribution from an IRA, Roth IRA, or
other tax-favored account, because federal law does not
recognize RDPs, a taxpayer whose RDP or RDP’s child
receives distributions from the taxpayer’s IRA, Roth IRA,
or other tax-favored account, may incur additional tax
penalties for federal income tax purposes, but not for
California income tax purposes.

For example, in an IRA, if you take an early distribution
from your IRA to pay the higher education expenses of
your RDP or the child of your RDP, for federal purposes
you would probably owe an additional tax of 10%, but
for California purposes you would not owe the additional
tax of 2.5%. However, for both federal and California
tax purposes, you would need to include in your taxable
income the early distribution from your IRA, unless you
have a basis in the IRA that may be recovered tax-free.
For California income tax purposes, if you and/or your
RDP is covered by an employer-provided retirement plan,
then your California deduction for an IRA contribution may
be limited. See the example for line 20 in the instructions
for California RDP Adjustments Worksheet (included in
this publication). The amount of a nondeductible IRA
contribution creates a California‑only IRA basis that is
recoverable from IRA distributions that would otherwise
be taxable for California income tax purposes. Keep
track of your California basis in your IRA. For general
information about recovery of a California‑only basis, get
FTB Pub. 1005, Pension and Annuity Guidelines.
For California income tax purposes, if you or your RDP
contributed to a Roth IRA in 2023, you need to review
the income phase out limitations. The allowable Roth IRA
contribution may be reduced based on your and your
RDP’s combined federal modified AGI.
2023 Filing Status

Federal Modified AGI

Married/RDP Filing Jointly or
Qualifying Surviving Spouse/RDP

at least $218,000 but
less than $228,000

Single, Head of Household, or
Married/RDP filing separately and
you did not live with your
spouse/RDP for all of 2023

at least $138,000 but
less than $153,000

Married/RDP Filing Separately and
you lived with your spouse/RDP at
any time in 2023

more than zero but less
than $10,000

Related Parties
In applying the IRC for California purposes:
•	 The definition of related parties includes RDPs.
(IRC Section 267)
•	 The definition of spouse includes RDPs. Therefore, no
gain or loss will be allowed for any transfer of property
between RDPs. (IRC Section 1041)
•	 An RDP will be treated as a spouse for purposes
of determining ownership of stock. However, if the
treatment of an RDP as a spouse will lead to the
disqualification of the taxpayer’s choice of business
entity, then the RDP will not be treated as a spouse
for California purposes. (IRC Section 318)

Example:
Chris, Taxpayer One, and Pat, Taxpayer Two, are RDPs.
Chris made a contribution to his Roth IRA of $5,000.
Chris’s federal modified AGI is $90,000. Pat made a
contribution to his Roth IRA of $5,000. Pat’s federal
modified AGI is $150,000. Chris and Pat’s combined
federal modified AGI exceeds the $228,000 limitation
for an allowable Roth IRA contribution. Because their
combined federal modified AGI exceeds the limitation, for
California purposes the Roth IRA contributions of Chris
and Pat are treated as “excess contributions.” However,
California does not impose the 6% excise tax that is
imposed under federal law on excess contributions to
Roth IRAs.
If Chris or Pat receives a “qualified distribution” from a
Roth IRA, the “qualified distribution” is tax-free and is not
includible in their California taxable income. This tax‑free
treatment applies even if the “qualified distribution”
includes earnings attributable to a previous “excess
contribution” for California purposes.

FTB Pub. 737  2023  Page 7

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Page 8  FTB Pub. 737   2023

TAXABLE YEAR

2023

California RDP Adjustments Worksheet —
Recalculated Federal Adjusted Gross Income

Name(s) as shown on return

Part I  Income Adjustment Worksheet

Section A – Income from federal Form 1040 (See instructions.)
 1 a	 Total amount from federal Form(s) W-2, box 1  . . . . . . .   1a
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 . . . . . . . . . . . . . . . . . . . . . . . . . . . .   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  . . . . . . . . . . . . . . . . . . . . . . . . . . .   1h
i	 Nontaxable combat pay election . . . . . . . . . . . . . . . . . . .   1i
z	 Add line 1a through line 1h . . . . . . . . . . . . . . . . . . . . . . .   1z
 2 Taxable interest.	
a TP1___________________
	
a TP2_________________ . . . . . . .    2b
 3 Ordinary dividends.	
a TP1___________________
	
a TP2_________________ . . . . . . .    3b
 4 IRA distributions.	
a TP1___________________
	
a TP2_________________ . . . . . . .    4b
 5 Pensions and annuities.	a TP1___________________
	
a TP2_________________ . . . . . . .    5b
 6 Social security benefits.	a TP1___________________
	
a TP2_________________ . . . . . . .    6b
 7 Capital gain or (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   7

SSN or ITIN
Taxpayer One

Section B – A
 dditional Income from federal Schedule 1 (Form 1040) (See instructions.)
 1 Taxable refunds, credits, or offsets of state and local
income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    1
 2 a	 Alimony received. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   2a
 3 Business income or (loss).  . . . . . . . . . . . . . . . . . . . . . . . . .    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
 8 Other income: 
a	 Federal net operating loss . . . . . . . . . . . . . . . . . . . . . . . .   8a (
)(
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

For Privacy Notice, get FTB 1131 EN-SP.

Taxpayer Two

amounts from
Ayour(taxable
B (taxable amounts from C	
original federal return) your original federal return)

8111233

Adjustments

Adjusted Federal Amounts
(using the same rules
applicable to spouses)

D

)

(

)

)

(

)

CA RDP Adj. Worksheet  2023  Side 1

Taxpayer One
Taxpayer Two
Section B – A
 dditional Income from federal Schedule 1 (Form 1040) A (taxable
amounts from
B (taxable amounts from
your original federal return) your original federal return)
(continued)
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  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   8z
 9 a	 Total other income. Add line 8a through line 8z . . . . . . .   9a
10 	 Total. Combine Section A, line 1z through line 7, and
Section B, line 1 through line 7, and line 9a in column D.  10
Section C – A
 djustments to Income from federal Schedule 1 (Form 1040) (See instructions.)
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.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   14
15 Deductible part of self-employment tax . . . . . . . . . . . . . . . .   15
16 Self-employed SEP, SIMPLE, and qualified plans . . . . . . . . .   16
17 Self-employed health insurance deduction. . . . . . . . . . . . . .   17
18 Penalty on early withdrawal of savings  . . . . . . . . . . . . . . . .   18
19 a  Alimony paid. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   19a
20 IRA deduction  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   20
21 Student loan interest deduction . . . . . . . . . . . . . . . . . . . . . .   21
22 Reserved for future use . . . . . . . . . . . . . . . . . . . . . . . . . . . .   22
23 Archer MSA deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   23
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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   24z
25 Total other adjustments. Add line 24a through line 24z . . . .   25
26 Add line 11 through line 23 and line 25 in column D . . . . . .   26
27 Total. Subtract line 26 from line 10 in column D. Enter
the amount here and on Form 540 or 540NR, line 13  . . . . .   27

C	

Adjustments

Adjusted Federal Amounts
(using the same rules
applicable to spouses)

D

(

Part II  Adjustments to Federal Itemized Deductions
Federal itemized deductions. Complete a federal Schedule A (Form 1040), Itemized Deductions, for each taxpayer. Combine the line items for both
taxpayers to arrive at the amounts for Column A of Schedule CA (540), Part II or Schedule CA (540NR), Part III.

Side 2  CA RDP Adj. Worksheet  2023

8112233

)

Instructions for California RDP Adjustments Worksheet –
Recalculated Federal Adjusted Gross Income
References to these instructions are to the Internal Revenue Code (IRC).

Registered domestic partners (RDP) may use the
California RDP Adjustments Worksheet or a pro forma
federal Form 1040 to make RDP adjustments to calculate
federal AGI for California tax purposes.
To complete this worksheet, have the following
information available:
•	 Federal income tax return and supporting schedules
for each RDP.
•	 Copy of federal Form 1040 Instructions including
worksheets, as needed.
•	 If filing separately, a copy of federal Pub. 555.
Note: Attach a copy of either the California RDP
Adjustments Worksheet or federal pro forma Form 1040, if
used to complete your Form 540.
RDPs who file a California tax return and have no RDP
adjustments between federal and California do not
need to complete this worksheet. If you do not have
any RDP adjustments, combine the amount on line 11
from each individual RDP’s federal Form 1040 filed
with the IRS and transfer the combined amount to
Form 540 or Form 540NR, line 13.
RDP adjustments include but are not limited to the following:
•	 Division of community property, if not reported as
community property on your federal tax return
•	 Capital losses
•	 Transactions between RDPs
•	 Sale of residence
•	 Dependent care assistance
•	 Investment interest
•	 Qualified residence acquisition loan & equity loan interest
•	 Expense depreciation property limitations
•	 Individual Retirement Account
•	 Education loan interest
•	 Rental real estate passive loss
•	 Rollover of publicly traded securities gain into
specialized small business investment companies
RDPs filing as married/RDP filing jointly or
married/RDP filing separately, and former RDPs filing
single, with RDP adjustments will complete a pro
forma federal Form 1040 using the same filing status
as their California tax return or use this worksheet
and instructions.
RDP adjustments occur when, for California purposes, you
recalculate your federal tax return from a filing status of
single or head of household to married/RDP filing jointly or
married/RDP filing separately. RDP changes result in an
increase or decrease to income or deductions. To complete
this worksheet:
•	 Add column A and column B
•	 Add or subtract column C
•	 Enter the amount on column D
(column A + column B) ± column C = column D

Example:
Chris, Taxpayer One, and Pat, Taxpayer Two, each has a
capital loss on their separate federal tax returns, as shown
below. Capital losses are limited to $3,000. When they
recalculate their federal tax return as if married, they will
make a $2,000 filing status adjustment in Part I, Section A,
line 7, column C, of this worksheet. (A $3,000 loss plus a
$2,000 loss equals a $5,000 loss; since they are limited to a
$3,000 loss, the adjustment will be $2,000.)
Part I  Income Adjustments Worksheet
	
Section A – Income
7  Capital gain or (loss)
A

B

C

D

Taxpayer One

Taxpayer Two

Adjustments

Adjusted
Federal Amounts

($3,000)

($2,000)

$2,000

($3,000)

If Chris and Pat are filing separately, they are each limited
to a $1,500 loss. Therefore, Chris will make a $1,500 filing
status adjustment and Pat will make a $500 filing status
adjustment on their separately filed tax returns. Because
Chris and Pat are filing separately, each one is considered
Taxpayer One as shown below.
Part I  Income Adjustments Worksheet
	
Section A – Income
7  Capital gain or (loss)
A

Taxpayer One

B

Taxpayer Two

($3,000)

A

Taxpayer One
($2,000)

B

Taxpayer Two

C

D

Adjustments

Adjusted
Federal Amounts

$1,500

($1,500)

C

D

Adjustments

Adjusted
Federal Amounts

$500

($1,500)

Transfer Between Registered Domestic Partners
California conforms to IRC Section 1041, which provides
that no gain or loss is recognized on transfers of property
between spouses. For federal tax purposes, because
federal law does not recognize RDPs, transfers between
RDPs are not treated as transfers between spouses.
However, beginning January 1, 2007, for California tax
purposes, because California treats RDPs the same as
spouses, no gain or loss is recognized on transfers of
property between RDPs. This also applies to transfers
between former RDPs if the transfer is related to
termination of the registered domestic partnership. For
more information on transfers to a spouse, see Property
Settlements in federal Pub. 504, Divorced or Separated
Individuals.

CA RDP Adjustments Worksheet Instructions  2023  Page 11

Instructions for Column A,
Column B, and Column C
Column A – Taxpayer One: Federal Form 1040 and
Federal Schedule 1 (Form 1040)
Taxpayer One, transfer the amounts from your federal
Form 1040, line 1a through line 7 and line 1 through line 26
from federal Schedule 1 (Form 1040), Additional Income
and Adjustments to Income, to column A of the worksheet.
Column B – Taxpayer Two: Federal Form 1040 and
Federal Schedule 1 (Form 1040)
For RDP filing jointly: Taxpayer Two, transfer the amounts
from your federal Form 1040, line 1a through line 7 and
line 1 through line 26 from federal Schedule 1 (Form 1040)
to column B of the worksheet.
For RDP filing separately or former RDP filing single, no
amount will be shown in column B. All adjustments for
community property will be made in column C.
For more information on community property, get federal
Pub. 555. RDPs will use the rules in federal Pub. 555 for
married people to determine how to apply those rules for
California income tax purposes. The note in the “Introduction”
section of the federal Pub. 555 regarding California RDPs
applies to the filing of your federal tax return.
Column C – Adjustments
Use column C to make California RDP adjustments in
Part I, Section A, line 1a through line 7; Section B, line 1
through line 8z; and Section C, line 11 through line 24z
following the specific line instructions below. For additional
information, use the federal Form 1040 and federal
Schedule 1 (Form 1040) instructions. If the amount is less
than zero (negative), enter the result in parentheses. For
example: (12,345).

Part I	 Income Adjustment
	Worksheet
Section A – Income
Columns A, B, and C
Line 1a – Total amount from federal Form(s) W-2, box 1
Enter the total amount shown on box 1 of your federal
Form(s) W-2, Wage and Tax Statement.
If you received a pension or annuity from a nonqualified
deferred compensation plan or a nongovernmental IRC
Section 457(b) plan, and this amount was reported on
federal Form W-2, box 1, do not include this amount on
line 1a. Report that type of income on Section B, line 8t.
For additional information, get the federal Form 1040
instructions for line 1a.
Line 1b – Household employee wages not reported on
federal Form(s) W-2
Enter the total wages you received as a household
employee that was not reported on federal Form(s) W-2.
For additional information, get the federal Form 1040
instructions for line 1b.
Line 1c – Tip income not reported on line 1a
Enter the total of your tip income that was not reported
on federal Form 1040, line 1a. This should include any tip
Page 12  CA RDP Adjustments Worksheet Instructions  2023

income you did not report to your employer, allocated tips,
and the value of any noncash tips you received.
For additional information, get the federal Form 1040
instructions for line 1c.
Line 1d – Medicaid waiver payments not reported on
federal Form(s) W-2
Enter the total taxable amount of Medicaid waiver
payments received that was not reported on federal
Form(s) W-2. Include the nontaxable amount that was not
reported on federal Form(s) W-2 if you choose to include
the nontaxable amounts in federal earned income for
purposes of claiming a federal credit or other tax benefit.
For additional information, get the instructions for federal
Schedule 1 (Form 1040), line 8s.
Line 1e – Taxable dependent care benefits from federal
Form 2441, line 26
Enter the amount of taxable dependent care benefits from
federal Form 2441, Child and Dependent Care Expenses,
line 26. Dependent care benefits should be shown in
box 10 of your federal Form(s) W-2.
For additional information, get the federal Form 1040
instructions for line 1e.
Adjustment:
Dependent care assistance programs (IRC Section 129)
The amount which may be excluded for dependent care
assistance with respect to dependent care services
provided during a taxable year shall not exceed $5,000
($2,500 in the case of a separate tax return filed by a
married/RDP individual).
For RDPs filing jointly, if you and your RDP excluded
more than $5,000 on your federal tax returns, your federal
AGI for California purposes is increased by the amount
which exceeds $5,000. For RDPs filing separately, if you
excluded more than $2,500 on your federal tax return,
your federal AGI for California purposes is increased by
the amount which exceeds $2,500.
Line 1f – Employer-provided adoption benefits from
federal Form 8839, line 29
Enter the total of employer-provided adoption benefits from
federal Form 8839, Qualified Adoption Expenses, line 29.
Employer-provided adoption benefits should be shown in
box 12 of federal Form(s) W-2 with code T. However, part
or all of the benefits may be nontaxable.
For additional information, get the federal Form 8839
instructions.
Line 1g – Wages from federal Form 8919, line 6
Enter the total of your wages from federal Form 8919,
Uncollected Social Security and Medicare Tax on Wages,
line 6.
For additional information, get the federal Form 8919
instructions.
Line 1h – Other earned income
For additional information, get the federal Form 1040
instructions for line 1h.
Adjustment:
Exclusion for medical expenses reimbursement
California allows an exclusion from gross income for
employer-provided accident or health insurance, and

medical expense reimbursement for RDPs and their
partner’s dependents if they were not previously deducted.
Enter the amount included in federal income as a negative
number on line 1h, column C.
Line 2a – Tax-exempt interest
If you received any tax-exempt interest, such as from
municipal bonds, each payer should send you a federal
Form 1099-INT, Interest Income. If you received any
exempt-interest dividends from a mutual fund or other
regulated investment company, each payer should send
you a federal Form 1099-DIV, Dividends and Distributions.
Enter the total on line 2a.
For additional information, get the federal Form 1040
instructions for line 2a.
Line 2b – Taxable interest
Each payer should send you a federal Form 1099-INT or
federal Form 1099-OID, Original Issue Discount. Enter
your total taxable interest income on line 2b.
For additional information, get the federal Form 1040
instructions for line 2b.
Line 3a – Qualified dividends
Enter your total qualified dividends on line 3a.
For additional information, get the federal Form 1040
instructions for line 3a.
Line 3b – Ordinary dividends
Each payer should send you a federal Form 1099-DIV.
Enter your total ordinary dividends on line 3b.
For additional information, get the federal Form 1040
instructions for line 3b.
Line 4a and Line 4b – IRA distributions
An RDP will not be treated as a spouse where such
treatment would result in a tax-favored account not being
qualified as a tax-favored account for federal income tax
purposes.
Adjustment: An RDP may have an adjustment to line 4
if the RDP has a California-only basis in an IRA, which is
recoverable from an IRA distribution. For example, an RDP
may have a California-only basis in an IRA if the RDP’s
partner is covered by an employer-provided retirement plan.
Based on the RDPs’ combined adjusted gross income, the
available deduction for an IRA contribution may be reduced
for California income tax purposes. The amount disallowed
for an IRA contribution on this worksheet creates a
California-only basis in the IRA. RDPs shall keep track of
their California-only basis in order to recover it tax-free from
IRA distributions reported on line 4 in future years.
You should receive a federal Form 1099-R, Distributions
From Pensions, Annuities, Retirement or Profit-Sharing
Plans, IRAs, Insurance Contracts, etc., showing the
amount of any distribution from your IRA before income
tax or other deductions were withheld. Unless otherwise
noted in the line 4a and line 4b instructions, an IRA
includes a traditional IRA, Roth IRA, simplified employee
pension (SEP) IRA, and a savings incentive match plan
for employees (SIMPLE) IRA. Except as provided in the
federal Form 1040 instructions for line 4a and line 4b, leave
line 4a blank and enter the total distribution on line 4b.
For additional information, get the federal Form 1040
instructions for line 4a and line 4b.

Line 5a and Line 5b – Pensions and annuities
You should receive a federal Form 1099-R showing the
amount of your pension and annuity payments before
income tax or other deductions were withheld.
For additional information, get the federal Form 1040
instructions for line 5a and line 5b.
Line 6a and Line 6b – Social security benefits
You should receive a Form SSA-1099, Social Security
Benefit Statement, showing in box 3 the total social
security benefits paid to you.
For additional information, get the federal Form 1040
instructions for line 6a and line 6b.
Adjustment: A portion of your benefits may be taxable. How
much is taxable depends on the total amount of your benefits
and other income. Generally, the higher that total amount,
the greater the taxable part of your benefits. To figure the total
taxable amount of your social security benefits, calculate the
taxable benefit amount using the Social Security Benefits
Worksheet found in the federal Form 1040 instructions.
Subtract that amount from the total of the amounts on line 6,
combine column A and column B on your California RDP
Adjustment Worksheet. Enter the result on line 6, column C.
Line 7 – Capital gain or (loss)
If you had a capital gain or loss, including any capital
gain distributions or a capital loss carryover from 2022,
complete and attach federal Form 8949, Sales and
Other Dispositions of Capital Assets, and Schedule D
(Form 1040), Capital Gains and Losses.
For additional information, get federal Form 1040
instructions for line 7.
Adjustments:
For California purposes, RDPs are treated as spouses in
provisions where the spouses are treated as one person.
RDPs are not treated as one person at the federal level.
If your capital losses are more than your capital gains,
you can claim a capital loss deduction. The capital loss
deduction for RDPs who file jointly is limited to $3,000
($1,500 if you are an RDP filing separately).
Gain on the sale of a principal residence
(IRC Section 121):
RDPs are allowed an exclusion of gain on the sale of their
principal residence. RDPs filing jointly are able to exclude
up to $500,000 ($250,000 if you file separately).
If you sold your principal residence and excluded a gain of
$250,000 on your federal tax return and are an RDP filing
jointly, enter the difference between your total gain (up to
$500,000) and the amount you excluded from your federal
income on line 7, column C, as a negative number.

Section B – Additional Income
Columns A, B, and C
Line 1 – Taxable refunds, credits, or offsets of state
and local income taxes
If you received a refund, credit, or offset of state or local
income taxes in 2023, you may receive a federal Form
1099-G, Certain Government Payments.
For additional information, get the federal Schedule 1
(Form 1040) instructions for line 1.

CA RDP Adjustments Worksheet Instructions  2023  Page 13

Line 2a – Alimony received
Enter amounts received as alimony or separate maintenance.
Under federal law, alimony and separate maintenance
payments are not includable in the income of the
receiving spouse, if made under any divorce or separation
agreement executed after December 31, 2018, or
executed on or before December 31, 2018, and modified
after that date (if the modification expressly provides that
the amendments apply).
For additional information, get the federal Schedule 1
(Form 1040) instructions for line 2a.
Line 3 – Business income or (loss)
Enter your business income or loss.
For additional information, get the federal Schedule 1
(Form 1040) instructions for line 3.
Adjustments:
Election to treat certain depreciable business assets
as an expense (IRC Section 179(b))
You may elect to treat the cost of any IRC Section 179
property as an expense, which is not chargeable to
capital account. Any cost so treated shall be allowed
as a deduction for the taxable year in which the IRC
Section 179 property is placed in service.
If you are an RDP filing separately, your deduction is
limited to 50% of the total allowable. Enter 50% of the total
deduction as a positive number on line 3, column C.
Election to treat certain reforestation expenditures as
an expense (IRC Section 194)
In the case of any qualified timber property with respect
to which the taxpayer has made an election, the taxpayer
shall treat reforestation expenditures that are paid or
incurred during the taxable year with respect to such
property as an expense that is not chargeable to capital
account. The reforestation expenditures shall be allowed
as a deduction. The aggregate amount of reforestation
expenditures, with respect to each qualified timber
property, shall not exceed $10,000 ($5,000 if you file as
married/RDP filing separately).
If you claimed a reforestation expense deduction in the
amount of $5,000 on your federal tax return and you
are an RDP filing jointly, enter the difference between
your total reforestation expense (up to $10,000 for each
qualified timber property) and the amount you deducted
on your federal tax return on line 3, column C, as a
negative number.
Line 4 – Other gains or (losses)
If you sold or exchanged assets used in a trade or
business, get the instructions for federal Form 4797, Sales
of Business Property.
Line 5 – Rental real estate, royalties, partnerships,
S corporations, trust, etc.
Enter the amount from federal Schedule E (Form 1040),
Supplemental Income and Loss, line 26 or line 41, here.
Adjustment: Get federal Form 8582, Passive Activity
Loss Limitations, if your modified AGI is over $100,000.
If you or your RDP actively participated in a passive
rental real estate activity, you can deduct up to $25,000
of loss from the activity from your nonpassive income.
This special allowance is an exception to the general
rule disallowing losses in excess of income from passive
Page 14  CA RDP Adjustments Worksheet Instructions  2023

activities. The maximum amount of the special allowance
is reduced if your modified AGI is more than $100,000
($50,000 if you are an RDP filing separately).
If you have a loss, subtract the total allowable loss shown
on your recalculated federal Form 8582 from the total of
the amounts on line 5, column A and column B. Enter the
result on line 5, column C, as a positive number.
Line 6 – Farm income or (loss)
Enter the amount from federal Schedule F (Form 1040),
Profit or Loss From Farming, line 34 here.
Adjustment: Election to treat certain depreciable
business assets as an expense (IRC Section 179(b))
You may elect to treat the cost of any IRC Section 179
property as an expense, which is not chargeable to
capital account. Any cost so treated shall be allowed
as a deduction for the taxable year in which the IRC
Section 179 property is placed in service.
If you are an RDP filing separately, your deduction is
limited to 50% of the total allowable. Enter 50% of the total
deduction as a positive number on line 6, column C.
Line 7 – Unemployment compensation
You should receive a federal Form 1099-G showing the
total unemployment compensation paid to you in 2023.
For additional information, get the federal Schedule 1
(Form 1040) instructions for line 7.
Line 8a – Federal net operating loss (NOL)
Enter on line 8a any NOL deduction from an earlier year.
For additional information, get federal Pub. 536, Net
Operating Losses (NOLs) for Individuals, Estates, and Trusts.
Line 8b – Gambling
Enter on line 8b any gambling winnings. Gambling winnings
include lotteries, raffles, a lump-sum payment from the sale
of a right to receive future lottery payments, etc.
For details on gambling losses, get the instructions for
federal Schedule A (Form 1040), Itemized Deductions,
line 16.
Line 8c – Cancellation of debt
Enter on line 8c any canceled debt. Canceled debt
may be shown on federal Form 1099-C, Cancellation of
Debt, in box 2. However, part or all of your income from
cancellation of debt may be nontaxable.
For additional information, get federal Pub. 4681,
Canceled Debts, Foreclosures, Repossessions, and
Abandonments (For Individuals).
Adjustments:
Mortgage Forgiveness Debt Relief Act
Federal allows taxpayers to exclude from income up
to $750,000 ($375,000 for married filing separately) of
mortgage forgiveness debt. For RDPs filing jointly, if you and
your RDP excluded more than $750,000 on your federal tax
returns, your federal AGI for California purposes is increased
by the amount which exceeds $750,000. For RDPs filing
separately, if you excluded more than $375,000 on your
federal tax return, your federal AGI for California purposes is
increased by the amount which exceeds $375,000.
Certain employer payments of student loans
An employee currently may exclude $5,250 from income
for benefits from an employer-sponsored educational
assistance program.

For RDPs filing jointly, if you and your RDP excluded more
than $10,500 on your federal tax returns, your federal AGI
income for California purposes is increased by the amount
which exceeds $10,500. For RDPs filing separately, if you
excluded more than $5,250 on your federal tax return, your
federal AGI for California purposes is increased by the
amount which exceeds $5,250.
Line 8d – Foreign earned income exclusion from
federal Form 2555
Enter the amount of your foreign earned income and
housing exclusion from federal Form 2555, Foreign
Earned Income, line 45.
Line 8e – Income from federal Form 8853
Enter the total amounts from federal Form 8853, Archer
MSAs and Long-Term Care Insurance Contracts, line 8,
line 12, and line 26.
For additional information, get federal Pub. 969, Health
Savings Accounts and Other Tax-Favored Health Plans.
Line 8f – Income from federal Form 8889
Enter the total amounts from federal Form 8889, Health
Savings Accounts (HSAs), line 16 and line 20.
Line 8g – Alaska Permanent Fund dividends
Enter your Alaska Permanent Fund dividends.
Line 8h – Jury duty pay
Enter amounts for jury duty pay. Also, see the instructions
for line 24a.
Line 8i – Prizes and awards
Enter prizes and awards. Also, see the instructions for
line 8m.
Line 8j – Activity not engaged in for profit income
Enter amounts for activity not engaged in for profit income.
For additional information, get federal Pub. 525, Taxable
and Nontaxable Income.
Line 8k – Stock options
Enter on line 8k any income from the exercise of stock
options not otherwise reported on your federal Form 1040
or 1040-SR, line 1h.
Line 8l – 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
Enter income from the rental of personal property as
described above. Also, see the instructions for line 24b.
Line 8m – Olympic and Paralympic medals and USOC
prize money
The value of Olympic and Paralympic medals and the
amount of United States Olympic Committee (USOC)
prize money you receive on account of your participation
in the Olympic or Paralympic Games may be nontaxable.
These amounts should be reported to you on federal
Form 1099-MISC, Miscellaneous Information, box 3. To
see if these amounts are nontaxable, first figure your
adjusted gross income, including the amount of your
medals and prize money.
If your AGI is not more than $1,000,000 ($500,000 if
married filing separately), these amounts are nontaxable
and you should include the amount from federal Form
1099-MISC, box 3, on line 8m, then subtract it by including
it on line 24c.

Line 8n – IRC Section 951(a) inclusion
IRC Section 951 generally requires that a U.S. shareholder
of a controlled foreign corporation include in income its
pro rata share of the corporation’s subpart F income and
its amount determined under IRC Section 956.
For additional information, get the federal Schedule 1
(Form 1040) instructions for line 8n.
Line 8o – IRC Section 951A(a) inclusion
IRC Section 951A generally requires that a U.S.
shareholder of a controlled foreign corporation include in
income its global intangible low-taxed income (GILTI).
For additional information, get the federal Schedule 1
(Form 1040) instructions for line 8o.
Line 8p – IRC Section 461(l) excess business loss
adjustment
Enter the amount of your excess business loss from
federal Form 461, Limitation on Business Losses, line 16.
Line 8q – Taxable distributions from an ABLE account
Distributions from this type of account may be taxable
if (a) they are more than the designated beneficiary’s
qualified disability expenses, and (b) they were not
included in a qualified rollover.
For additional information, get federal Pub. 907, Tax
Highlights for Persons With Disabilities.
Line 8r – Scholarship and fellowship grants not
reported on federal Form(s) W-2
Enter the amount of scholarship and fellowship grants
not reported on federal Form W-2. If you were a degree
candidate, include only the amounts you used for
expenses other than tuition and course-related expenses.
For example, amounts used for room, board, and travel
must be reported on line 8r.
Line 8s – Nontaxable amount of Medicaid waiver
payments included on federal Form 1040, line 1a or
line 1d
Certain Medicaid waiver payments you received for
caring for someone living in your home with you may be
nontaxable. If you include the nontaxable amount on federal
Form 1040, line 1a or line 1d, enter that amount on line 8s.
For additional information, get the federal Schedule 1
(Form 1040) instructions for line 8s.
Line 8t – Pension or annuity from a nonqualified
deferred compensation plan or a nongovernmental
IRC Section 457 plan
Enter the amount that you received as a pension or
annuity from a nonqualified deferred compensation plan
or a nongovernmental IRC Section 457 plan. This amount
may be shown in box 11 of federal Form W-2.
For additional information, get the federal Schedule 1
(Form 1040) instructions for line 8t.
Line 8u – Wages earned while incarcerated
Enter the amount that you received for work performed
while an inmate in a penal institution. You may receive a
federal Form(s) W-2 or Form(s) 1099.
Line 8z – Other income
Use line 8z to report any taxable income not reported
elsewhere on your tax return or other schedules.
For additional information, get the federal Schedule 1
(Form 1040) instructions for line 8z.
CA RDP Adjustments Worksheet Instructions  2023  Page 15

Section C – Adjustments to Income
Columns A, B, and C
Line 11 – Educator expenses
If you were an eligible educator in 2023, you can deduct
up to $300 of qualified expenses you paid in 2023. If
you and your RDP are filing jointly and both of you were
eligible educators, the maximum deduction is $600.
However, neither RDP can deduct more than $300 of
his or her qualified expenses. An eligible educator is
a kindergarten through grade 12 teacher, instructor,
counselor, principal, or aide in a school for at least 900
hours during a school year.
For additional information, get federal Schedule 1
(Form 1040) instructions for line 11 and federal Pub. 529,
Miscellaneous Deductions.
Line 12 – Certain business expenses of reservists,
performing artists, and fee-basis government officials
Include the following deductions on line 12:
•	 Certain business expenses of National Guard and reserve
members who traveled more than 100 miles from home to
perform services as a National Guard or reserve member.
•	 Performing-arts-related expenses as qualified
performing artist.
•	 Business expenses of fee-basis state or local
government officials.
For additional information, get the federal Schedule 1
(Form 1040) instructions for line 12.
Adjustment: RDPs may only claim expenses as a
performing artist if they file jointly, unless they lived apart
from their RDP for the entire year.
Line 13 – Health savings account deduction
If contributions (other than employer contributions,
rollovers, and qualified HSA funding distributions from
an IRA) were made to your HSA for 2023, you may be
able to take this deduction. Get federal Form 8889.
A “tax-favored account” means an individual account, plan,
or arrangement that is exempt from tax under federal law,
including an HSA. Where the treatment of an RDP as a
spouse would result in a tax-favored account that would
not be qualified as a tax-favored account for federal income
tax purposes, the RDP will not be treated as a spouse for
California tax purposes with respect to that account.
Line 14 – Moving expenses
You can deduct moving expenses if you are a member of
the Armed Forces on active duty and due to a military order
you move because of a permanent change of station.
For additional information, get the federal Schedule 1
(Form 1040) instructions for line 14.
Line 15 – Deductible part of self-employment tax
Enter the deductible part of self-employment tax.
For additional information, get the federal Schedule 1
(Form 1040) instructions for line 15.

Page 16  CA RDP Adjustments Worksheet Instructions  2023

Line 16 – Self-employed SEP, SIMPLE, and qualified
plans
If you were self-employed or a partner, you may be able
to take this deduction. Get federal Pub. 560, Retirement
Plans for Small Business (SEP, SIMPLE, and Qualified
Plans), or, if you were a minister, get federal Pub. 517,
Social Security and Other Information for Members of the
Clergy and Religious Workers.
Line 17 – Self-employed health insurance deduction
You may be able to deduct the amount you paid for health
insurance coverage (established under