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Changes to 2006 Form

Updates to the 2006 540NR Booklet -- Nonresident or Part-Year Resident Booklet

The revised Internet version is available for download as of 01/16/2009.

Revision Details: These changes were made to reference the correct section and line numbers from Schedule P (540NR).

  • Page 18, column 2, paragraph 2, sentence 2

Previously read:

Instead, enter the total amount of these credits from Schedule P (540NR), Part III, Section A1, line 4 through line 11, on Long Form 540NR, line 31.

Revised to:

Instead, enter the total amount of these credits from Schedule P (540NR), Part III, Section B1, line 12 through line 14, on Long Form 540NR, line 31.


2006 Updates to Schedule CA (540NR)

Revision Date: 04/19/2007

Revision Details: Side 1, 2006 Schedule CA (540NR) Flat; page 49, 2006 Non Resident Booklet; Page 289, Package X.

This revision is required to be compliance with Federal Privacy Act.

This change does not impact tax liability. The Disclosure Section ensures the department is in compliance with the Information Practices Act of 1977. State agencies must provide a notice with forms that request personal information individual taxpayer.

The Privacy Notice, FTB Form 1131, must:

  • Include name and division of agency requesting the information.
  • Include authority for requesting the information.
  • State whether information is voluntary or madatory.
  • State consequences for providing the information.

Our forms must also meet the Federal Privacy Act if we request social security numbers from individual.

  • Schedule CA (540NR), Side 1, bottom left

It should read:

For Privacy Notice, get form FTB 1131.

The revised internet version is available for download.


2006 Updates to Schedule CA (540NR) Instructions

Revision Date: 03/05/07

Revision Details: In 2004 the following information was in the instructions for the Schedule CANR.

  • Page 5, second column, third paragraph

2004 Vehicle License Fee (VLF) Refund: If you paid a VLF and included the fee in itemized deductions in 2003, the VLF refund received in 2004 is treated as a recovery of the amount you deducted as am itemized deduction. Generally, the amount of the refund is included in income in the year received and taxed the same by the federal and California. If the taxable amount is smaller for California than federal, enter the difference in column B, line 21f. If the taxable amount is larger for Califonria than federal, enter the difference in column C, line 21f. For additional information, get FTB Pub. 1001, Supplemental Guidelines to California Adjustments.
Caution: If you itemized for California in 2003 and used the standard deduction for federal, report the taxable portion of the refund in column C, line 21f. If you itemized for federal and used the standard deduction for California, the refund is not taxable for California. Enter the amount of the refund included in federal income in column B, line 21f.

2004 Vehicle License Fee (VLF) Refund: During 2003 the VLF increased for a short time. Some taxpayers paid the higher registration fee to DMV and deducted the amount as an itemized deduction.

The Vehicle license FEE Refund paragraph was deleted in the first review process of 2005. Unfortunately the caution information was inadvertently left in. Therefore in 2005 and 2006 this information appeared under Grants paid to low-income individuals. The caution paragraph is no longer applicable.

This revision does not have a tax impact. This revision needs to be noted in printed products 2006 Schedule CA (540NR) flat, page 5; 2006 Form 540/540A Booklet, page 43; and 2006 Package X, page 295.

The revised internet version is available for download.


2006 Updates to Schedule CA (540NR) Instructions

Revision Date: 03/05/07

Revision Details: Replace the language on line 3 of the Student Loan Interest Deduction Worksheet

  • Page 6, Student Loan Interest Deduction Worksheet, Line 3

It should read:

From Form 1040, add line 33 (Student loan interest deduction) to line 37 (AGI). Enter the result here.

This revision does have a tax impact because the taxpayer's deduction could be overstated. By not adding back form 1040, line 33 (Student loan interest deduction) taxpayers would take a larger deduction than allowable. This revision needs to be noted in printed products 2006 Schedule CA (540NR) flat, page 6; 2006 Nonresident Booklet, page 44; and 2006 Package X, page 296.

The revised internet version is available for download.


2006 Updates to Schedule CA (540NR)

Revision Date: 02/08/07

Revision Details: Schedule CA (540NR) Instructions.

This revision is being made in order to have tax information flow in a logical manner and be less confusing for the taxpayer. The instructions currently are not in logical order. By revising the instructions we will group the instructions for the Student Loan Interest deduction together and we will group all of the line 35 instructions together. (Domestic production activities deduction and Tuition Fees).

  • Page 6 of the Schedule CA (540NR) Instructions:

It should read:

  • Line 33 (Student Loan Interest Deduction) - California conforms to federal law regarding student loan interest deduction except for non California domiciled military taxpayers. Military taxpayers use the Student Loan Interest Deduction Worksheet below to compute the amount to enter on line 33. See FTB Pub. 1032,Tax Information for Military Personnel for more information.
  • Line 35 (Domestic production activities deduction) - California does not conform to the federal law regarding the Domestic production activities deduction. If you made an adjustment on your federal return for Domestic production activities, enter that amount in column B.

Federal law allows a deduction for Tuition Fees and Domestic Production Activities. California does not conform to these deductions. The amount claimed as Tuition Fees Deduction for federal purposes should be entered on line 35, column B, with the notation "Tuition and Fees Deduction". If entries in column B are required for both "Domestic Production Activities Deduction" and "Tuition Fees Deduction" add a statement in the space provided below line 35 showing the break down for each adjustment.

This revision does not have a tax impact. This revision needs to be noted in printed products 2006 Schedule CA (540NR) flat, page 6; 2006 Nonresident Booklet page, 44; 2006 Package X, pages 296.

The revised internet version is available for download.


Revision Date: 01/18/07

Revision Details: 540NR Non Booklet Instructions

  • Page 23 of the Form 540NR Booklet, instructions for line 75, change the reference from line 71 to line 74.:

It should read:

More than line 54, subtract line 54 from the sum of line 70, line 72, and line 73 and enter the result on line 74. For payments options, see line 71 instructions.

This revision does not have a tax impact. This is in printed products 2006 Form 540NR Booklet, page 23 and 2006 Package X, page 287.

The revised internet version is available for download.


2006 Updates to Schedule CA (540NR)

Revision Date: 01/18/07

Revision Details: Schedule CA (540NR) Instructions.

Add additional language to inform taxpayers where to go to get additional information regarding the reporting requirements for interest income and capital gains for children between the ages of 14 and 18.

  • Page 2, second column, line 8, add the following language:

(For more information, get FTB Pub. 1001, Supplemental Guidelines to California Adjustments)

  • Page 4, first column, add new bulleted item:

Capital gain distribution for children between the ages of 14 and 18.

These revisions do not have a tax impact. These revisions are in the printed products 2006 Schedule Ca (540NR) flat pages 2 and 4; 2006 Form 540NR Booklet pages 40 and 42; 2006 Package X pages 292 and 294.

The revised internet version is available for download.


2006 Updates to Schedule CA (540NR)

Revision Date: 12/29/06

Revision Details: Schedule CA (540NR) Instructions.

President Bush signed Tax Relief and Health Care Act which extended the federal deductions for "Educator expense", "Tuition and Fees Deduction", and "Sales Tax Deduction." California does not conform to the Educator expense and Tuition and Fees Deductions. Therefore an adjustment needs to be made on the Schedule CA (540NR). California does include in line 39 either local general sales and use taxes or state and local income taxes.

  • Remove shading on Schedule CA (540NR), side 2, line 23, column B:

  • Page 5 (page 43 of Form 540NR Booklet), Line 23 (Educator Expense)

It should read:

Federal law allows a deduction for Educator Expense. California does not conform to this deduction. The amount claimed as Educator Expense for federal purposes should be entered on line 23, column B, with the notation "Educator Expense".

  • Include this additional language on Page 6 (page 44 of Form 540NR Booklet):

Federal law allows a deduction for Tuition Fees and Domestic Production Activities. California does not conform to these deductions. The amount claimed as Tuition Fees Deduction for federal purposes should be entered on line 35, column, B, with the notation "Tuition and Fees Deduction". If entries in column B are required for both "Domestic Production Activities Deduction" and "Tuition Fees Deduction" add a statement in the space provided below line 35 showing the break down for each adjustment.

  • Include this additional language on Page 8 (page 46 of Form 540NR Booklet):

If you are deducting either local general sales and use taxes or state and local income taxes as an itemized deduction on federal Schedule A, line 5, enter the amount on Schedule CA (540NR), line 39.

These revisions have tax impact. The revisions are in printed products 2006 Schedule CA (540NR) flat, pages 5, 6, and 8; 2006 Form 540NR Booklet pages 43, 44, 46 and 50; and Package X pages 290, 295, 296, and 299.

The revised internet version is available for download.

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