California Instructions and Forms for Schedule CA (540)

Instructions and Forms for Schedule CA (540)
2023 Schedule CA (540) California Adjustments - ResidentsTAXABLE 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

Extracted from PDF file 2023-california-form-540-schedule-ca-ins.pdf, last modified December 2023

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More about the California Form 540 Schedule CA INS Individual Income Tax TY 2023

For taxable years beginning on or after January 1, 2015, the California law conforms to the Internal Revenue Code (IRC) as of January 1, 2015. However, there are continuing differences between California and federal law. Form 540 Schedule CA INS requires you to list multiple forms of income, such as wages, interest, or alimony .

We last updated the Instructions and Forms for Schedule CA (540) in January 2024, so this is the latest version of Form 540 Schedule CA INS, fully updated for tax year 2023. You can download or print current or past-year PDFs of Form 540 Schedule CA INS directly from TaxFormFinder. You can print other California tax forms here.

Related California Individual Income Tax Forms:

TaxFormFinder has an additional 174 California income tax forms that you may need, plus all federal income tax forms. These related forms may also be needed with the California Form 540 Schedule CA INS.

Form Code	Form Name
Form 540 Schedule CA	California Adjustments - Residents
Form 540 Schedule D	California Capital Gain or Loss Adjustment
Form 540 Schedule P	Alternative Minimum Tax and Credit Limitations - Residents Tax Credit
Form 540 Schedule G-1	Tax on Lump-Sum Distributions
Form 540 Schedule S	2019 Instructions Schedule S Tax Credit
Form 540 Schedule D-1	Sales of Business Property

Download all CA tax forms View all 175 California Income Tax Forms

Form Sources:

California usually releases forms for the current tax year between January and April. We last updated California Form 540 Schedule CA INS from the Franchise Tax Board in January 2024.

Show Sources >

About the Individual Income Tax

The IRS and most states collect a personal income tax, which is paid throughout the year via tax withholding or estimated income tax payments.

Most taxpayers are required to file a yearly income tax return in April to both the Internal Revenue Service and their state's revenue department, which will result in either a tax refund of excess withheld income or a tax payment if the withholding does not cover the taxpayer's entire liability. Every taxpayer's situation is different - please consult a CPA or licensed tax preparer to ensure that you are filing the correct tax forms!

Historical Past-Year Versions of California Form 540 Schedule CA INS

We have a total of seven past-year versions of Form 540 Schedule CA INS in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:

2023 Form 540 Schedule CA INS

2023 Schedule CA (540) California Adjustments - Residents

2022 Form 540 Schedule CA INS

2022 Schedule CA (540) California Adjustments - Residents

2021 Form 540 Schedule CA INS

2021 Instructions for Schedule CA (540), California Adjustments - Residents

2020 Form 540 Schedule CA INS

2019 Instructions for Schedule CA (540)

2019 Form 540 Schedule CA INS

2019 Instructions for Schedule CA (540)

2018 Form 540 Schedule CA INS

2018 Schedule CA (540) California Adjustments - Residents Instructions

2017 Form 540 Schedule CA INS

2017 Schedule CA (540) - Instructions for Schedule CA (540)

TaxFormFinder Disclaimer:

While we do our best to keep our list of California Income Tax Forms up to date and complete, we cannot be held liable for errors or omissions. Is the form on this page out-of-date or not working? Please let us know and we will fix it ASAP.