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Changes to 2009 Forms

Updates to the 540/540A Booklet on 04/15/2010 -- Personal Income Tax Booklet

We replaced text on the 540/540A Booklet on:

  1. Page 47, Instructions, Column 2, third paragraph (also on page 5 on Schedule CA (540) Instructions)


  2. Page 47, Instructions, Column 2, fourth paragraph (also on page 5 on Schedule CA (540) Instructions)

Previous Version

  1. Mortgage relief upon sale or other disposition of principal residence. If you excluded from federal income the discharge of indebtedness from the disposition of your principal residence, include the amount of debt relief on line 21f, column C.


  2. Hokie Spirit Memorial Fund exclusion. Enter in column C the amount excluded from federal income. For more information, get FTB Pub. 1001.

Revised Version

  1. Mortgage forgiveness debt relief. If the amount of debt relief for federal purposes is more than the California limit, include the amount in excess of the California limit on line 21f, column C.


  2. Deleted previous version content.

Reason for the changes

  1. The Conformity Act of 2010 (SB 401) placed California in modified conformity with federal law for mortgage forgiveness debt relief on discharges of indebtedness occurring on or after January 1, 2009.


  2. The Conformity Act of 2010 (SB 401) placed California in conformity with federal law to exclude from income any amounts received from the Hokie Spirit Memorial Fund retroactively to the 2007 taxable year.

Impact

These revisions may decrease tax liability.


Updates to the 540/540A Booklet on 03/24/2010 –– Personal Income Tax Booklet

We replaced text on the 540/540A Booklet on:

  1. Page 43, Instructions, Column 1, after the second paragraph (also on page 1 on Schedule CA (540))
  2. Page 49, Instructions, Column 2, after the second paragraph (also on page 7 on Schedule CA (540))

Previous Version

  1. N/A (added a new paragraph)
  2. N/A (added a new paragraph)

Revised Version

  1. Charitable Contributions for 2010 Haiti Earthquake Disaster - A recently enacted federal law allows a 2009 charitable contribution deduction for cash contributions made after January 11, 2010, and before March 1, 2010, for the relief of victims in areas affected by the earthquake in Haiti on January 12, 2010. As of March 15, 2010, California law conforms to the federal law with regards to 2010 Haiti earthquake disaster contributions. If you filed your 2009 California tax return prior to March 15, 2010, and reported the charitable contribution for the 2010 Haiti disaster as a negative amount on line 41 on Schedule CA (540), use Form 540X, Amended Individual Tax Return, and report the negative amount as a positive amount on line 5, column B.

  2. Charitable Contributions for 2010 Haiti Earthquake Disaster - California conforms to the federal law which allows a 2009 charitable contribution deduction for cash contributions made after January 11, 2010, and before March 1, 2010, for the relief of victims in areas affected by the earthquake in Haiti on January 12, 2010. You may claim the deduction on your 2009 or 2010 California tax return, but not both.

    To claim the deduction, you may choose one of the following three options:

    • If you choose to claim the deduction in the same year for both federal and California, no California adjustment is required.
    • If you choose to claim the deduction on your 2009 California tax return but choose to claim the deduction on your 2010 federal tax return, enter the deduction as a positive amount on line 41.
    • If you choose to claim the deduction on your 2010 California tax return but claimed the deduction on your 2009 federal tax return, enter the deduction as a negative amount on line 41.

Reason for the changes

A new federal law allows taxpayers to deduct certain 2010 cash contributions for Haiti relief on their 2009 tax returns. California conforms (AB 347, chaptered 03/14/2010).

Impact

If a taxpayer chooses to claim the deduction in 2009, it may reduce their 2009 tax liability and increase their 2010 tax liability.

Back to Tax Form Changes for 2009