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Changes to 2001 Forms

2001 Updates to Publication 1001

Revision Date: 09/17/2004

Revision Details: Supplemental Guidelines to California Adjustments. The revision is required on the 2001 Publication 1001, page 1and 2; and Package X, page 3.

The Internet version of the form has been revised. A revised copy is available to download on the Internet. This revision is due to the California Legislature enactment of SB 615 (Stats. 2004 CH 388), which makes California law compatible with the Servicemembers Civil Relief Act (Public Law 108-189). ). Income exclusion may decrease total tax liability.

  • Under What's Changed?, page 1:

It should read:

The California legislature enacted SB 615 (Stats. 2004 CH. 688), which makes California law compatible with Servicemembers Civil Relief Act (Public Law 108-189). This means that servicemembers domiciled outside of California, and their spouses, may exclude the member's military compensation from gross income when computing the tax rate on nonmilitary income.

Requirements for military servicemembers domiciled in California remain unchanged. Military servicemembers domiciled in California must include their military pay in total income. In addition, they must include their military pay in California source income when stationed in California. However, military pay is not California source income when a servicemember is permanently stationed outside of California.

  • Under Differences Between Federal and California Law, page 1:

It should read:

Special rules apply to active duty military pay. Native Americans with military pay also see "Earning of American Indians" on this page.

  • Under Earnings of American Indians, page 2:

It should read:

Federal law taxes income received by Indians from reservation sources.

California does not tax income earned by tribal members who live in Indian country affiliated with their tribe and receive earning from the same tribal source of which they are members. Military compensation is considered income from tribal sources. For more information get FTB 674, Frequently Asked Questions about the Income Taxation of American Indians.

Native Americans who receive military compensation must re-figure any AGI percentage calculation(s) by first subtracting military compensation from Federal AGI.

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