×
tax forms found in
Tax Form Code
Tax Form Name

California Free Printable CALIFORNIA 540 2EZ Forms & Instructions 2020 Personal Income Tax Booklet for 2021 California Personal Income Tax Booklet (540-2EZ)

Tax season is open, and returns are due on April 15th! Save by eFiling early with TurboTax start now

It appears you don't have a PDF plugin for this browser. Please use the link below to download 2020-california-540-2ez-booklet.pdf, and you can print it directly from your computer.

Personal Income Tax Booklet (540-2EZ)
CALIFORNIA 540 2EZ Forms & Instructions 2020 Personal Income Tax Booklet

CALIFORNIA 540 2EZ Forms & Instructions 2020 Personal Income Tax Booklet Members of the Franchise Tax Board Betty T. Yee, Chair Antonio Vazquez, Member Keely Bosler, Member COVER GRAPHICS OMITTED FOR DOWNLOADING SPEED Table of Contents What’s New and Other Important Information for 2020 . . . . . . . . . . . Qualifying to Use Form 540 2EZ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Steps to Determine Filing Requirements . . . . . . . . . . . . . . . . . . . . . . . Instructions for Form 540 2EZ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Filing Status Check List . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Paying Your Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Direct Deposit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Assembling Your Tax Return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mailing Your Tax Return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Nonrefundable Renter’s Credit Qualification Record . . . . . . . . . . . . . . Voluntary Contribution Fund Descriptions . . . . . . . . . . . . . . . . . . . . . Frequently Asked Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Additional Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 4 4 5 5 10 10 11 11 12 13 14 15 California Use Tax General Information . . . . . . . . . . . . . . . . . . . . . . . . Instructions for Filing a 2020 Amended Return . . . . . . . . . . . . . . . . . Form 540 2EZ, California Resident Income Tax Return . . . . . . . . . . . . Form FTB 3514, California Earned Income Tax Credit . . . . . . . . . . . . . Instructions for Form FTB 3514 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . California Earned Income Tax Credit Table . . . . . . . . . . . . . . . . . . . . . 2020 California 2EZ Single Tax Table . . . . . . . . . . . . . . . . . . . . . . . . . 2020 California 2EZ Married/RDP Filing Jointly or Qualifying Widow(er) Tax Table . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2020 California 2EZ Head of Household Tax Table . . . . . . . . . . . . . . . Need Assistance? We’re Here to Help . . . . . . . . . . . . . . . . . . . . . . . . . Franchise Tax Board Privacy Notice on Collection . . . . . . . . . . . . . . . . 15 16 19 23 27 33 41 47 58 63 63 What’s New and Other Important Information for 2020 Dependent Exemption Credit with No ID – For taxable years beginning on or after January 1, 2018, taxpayers claiming a dependent exemption credit for a dependent who is ineligible for a Social Security Number (SSN) and a federal Individual Taxpayer Identification Number (ITIN) may provide alternative information to the Franchise Tax Board (FTB) to identify the dependent. To claim the dependent exemption credit, taxpayers complete form FTB 3568, Alternative Identifying Information for the Dependent Exemption Credit, attach the form and required documentation to their tax return, and write “no id” in the SSN field of line 8, Dependents, on Form 540 2EZ, California Resident Income Tax Return. For each dependent being claimed that does not have an SSN and an ITIN, a form FTB 3568 must be provided along with supporting documentation. Taxpayers may amend their 2018 and 2019 tax returns to claim the dependent exemption credit. For more information on how to amend your tax returns, see “Instructions for Filing a 2020 Amended Return” on page 16. Expansion for Credits Eligibility – For taxable years beginning on or after January 1, 2020, California expanded Earned Income Tax Credit (EITC) and Young Child Tax Credit (YCTC) eligibility to allow either the federal ITIN or SSN to be used by all eligible individuals, their spouses, and qualifying children. If an ITIN is used, eligible individuals should provide identifying documents upon request of the FTB. Any valid SSN can be used, not only those that are valid for work. Additionally, upon receiving a valid SSN, the individual should notify the FTB in the time and manner prescribed by the FTB. The YCTC is available if the eligible individual or spouse has a qualifying child younger than six years old. For more information, get form FTB 3514, California Earned Income Tax Credit, or go to ftb.ca.gov and search for eitc. Resident State Tax Filers List – For taxable years beginning on or after January 1, 2020, taxpayers will include on their Form 540 2EZ the address and county of their principal residence as part of the FTB’s annual reporting requirements to the jury commissioner. Taxpayers that are required to provide this information include persons who are 18 years of age or older and have filed a California resident income tax return for the preceding taxable year. The list of resident state tax filers will be used as one of the source lists for jury selection by the jury commissioner’s office. For more information, see specific line instructions or California Revenue and Taxation Code (R&TC) Sections 19548.4 and 19585. Minimum Essential Coverage Individual Mandate – For taxable years beginning on or after January 1, 2020, California requires residents and their dependents to obtain and maintain minimum essential coverage (MEC), also referred to as qualifying health care coverage. Individuals who fail to maintain qualifying health care coverage for any month during taxable year 2020 will be subject to a penalty unless they qualify for an exemption. For more information, see Specific Line Instructions for Form 540 2EZ, line 27 or get form FTB 3853, Health Coverage Exemptions and Individual Shared Responsibility Penalty. Page 2 Form 540 2EZ Tax Booklet 2020 Young Child Tax Credit – For taxable years beginning on or after January 1, 2019, the refundable YCTC is available to taxpayers who also qualify for the California EITC and who have at least one qualifying child who is younger than six years old as of the last day of the taxable year. The maximum amount of credit allowable for a qualified taxpayer is $1,000. The credit amount phases out as earned income exceeds the “threshold amount” of $25,000, and completely phases out at $30,000. For more information, see the instructions for line 24 of Form 540 2EZ, and get form FTB 3514. California Earned Income Tax Credit – For taxable years beginning on or after January 1, 2018, the age limit for an eligible individual without a qualifying child is revised to 18 years or older. For more information, go to ftb.ca.gov and search for eitc, or get form FTB 3514. For taxable years beginning on or after January 1, 2017, California conforms to federal law to include in the definition of earned income net earnings from self employment. If you have self-employment income, you cannot use Form 540 2EZ. Get Form 540, California Resident Income Tax Return at ftb.ca.gov/forms or e-file. Earned income thresholds have also increased. You may now qualify for the refundable EITC if you have earned income of less than $30,001. Real Estate Withholding Statement – Effective January 1, 2020, the real estate withholding forms and instructions have been consolidated into one new Form 593, Real Estate Withholding Statement. For more information, get Form 593. Schedule X, California Explanation of Amended Return Changes – For taxable years beginning on or after January 1, 2017, use Schedule X to determine any additional amount you owe or refund due to you, and to provide reason(s) for amending your previous filed income tax return. For additional information, see “Instructions for Filing a 2020 Amended Return” on page 16. Improper Withholding on Severance Paid to Veterans – The Combat-Injured Veterans Tax Fairness Act of 2016 gives veterans who retired from the Armed Forces for medical reasons additional time to claim a refund if they had taxes improperly withheld from their severance pay. If you filed an amended return with the Internal Revenue Service (IRS) on this issue, you have two years to file your amended California return. Electronic Funds Withdrawal (EFW) – Make extension payments using tax preparation software. Check with your software provider to determine if they support EFW for extension payments. Payments and Credits Applied to Use Tax – For taxable years beginning on or after January 1, 2015, if a taxpayer includes use tax on their personal income tax return, payments and credits will be applied to use tax first, then towards income tax, interest, and penalties. Additional information can be found in the Form 540 2EZ instructions for line 26. MyFTB – Make tax time less taxing! Check MyFTB for information about your FTB-issued 1099-Gs, Report of State Income Tax Refund; 1099INTs, Statement of Interest Income; California wage and withholding data; and more! Go to ftb.ca.gov and login or register for MyFTB. Direct Deposit Refund – You can request a direct deposit refund on your tax return whether you e-file or file a paper return. Be sure to fill in the routing and account numbers carefully and double-check the numbers for accuracy. Direct Deposit for ScholarShare 529 College Savings Plans – If you have a ScholarShare 529 College Savings Plan account maintained by the ScholarShare Investment Board, you may have your refund directly deposited to your ScholarShare account. Please visit scholarshare529.com for instructions. Mandatory Electronic Payments – You are required to remit all your payments electronically once you make an estimate or extension payment exceeding $20,000 or you file an original tax return with a total tax liability over $80,000. Once you meet this threshold, all subsequent payments regardless of amount, tax type, or taxable year must be remitted electronically. The first payment that would trigger the mandatory e-pay requirement does not have to be made electronically. Individuals who do not send the payment electronically will be subject to a 1% noncompliance penalty. You can request a waiver from mandatory e-pay if one or more of the following is true: • You have not made an estimated tax or extension payment in excess of $20,000 during the current or previous taxable year. • Your total tax liability reported for the previous taxable year did not exceed $80,000. • The amount you paid is not representative of your total tax liability. For more information or to obtain the waiver form, go to ftb.ca.gov/e-pay. Electronic payments can be made using Web Pay on the FTB’s website, EFW as part of the e-file tax return, or your credit card. Registered Domestic Partners (RDP) – Under California law, RDPs must file their California income tax return 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 unless otherwise specified. 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. For purposes of California income tax, references to a spouse, husband, or wife also refer to an 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. For more information on RDPs, get FTB Pub. 737, Tax Information for Registered Domestic Partners. Head of Household – California requires taxpayers who use head of household (HOH) filing status to file form FTB 3532, Head of Household Filing Status Schedule, to report how the HOH filing status was determined. If you do not attach a completed form FTB 3532 to your tax return, we will deny your HOH filing status. For more information about the HOH filing requirements, go to ftb.ca.gov and search for hoh. To get form FTB 3532, see “Automated Phone Service” or go to ftb.ca.gov/forms. Form 540 2EZ Tax Booklet 2020 Page 3 Qualifying to Use Form 540 2EZ Check the table below to make sure you qualify to use Form 540 2EZ. General Filing Status You May Dependents Types of Income Total Income • • • • • • • • • • • Adjustments to Income Deduction Payments Exemptions California resident entire year • Not blind Single • Head of household Married/RDP filing jointly • Qualifying widow(er) Be claimed as a dependent by another taxpayer (see Note below) Be 65 or older and claim the senior exemption. If your (or your spouse’s/RDP’s) 65th birthday is on January 1, 2021, you are considered to be age 65 on December 31, 2020. 0 – 3 allowed Wages, salaries, and tips • Pension Taxable scholarship and fellowship compensation grants • Unemployment (only if reported on federal Form W-2) • Paid Family Leave Capital gains from mutual funds (reported on federal Form 1099-DIV, box 2a only) • U.S. Social Security Interest and Dividends • Tier 1 and Tier 2 Railroad Retirement $100,000 or less (single or head of household) $200,000 or less (married/RDP filing jointly or qualifying widow[er]) Total income includes wages, salaries, tips, taxable scholarship or fellowship grants, interest, dividends, pensions, and capital gains from mutual funds. No adjustments to total income, such as student loan interest deduction, IRA deduction, etc. Standard deduction only. If you use the modified standard deduction for dependents, see Note below. Only withholding shown on federal Form(s) W-2 and 1099-R • Personal exemption (see Note below) • Senior exemption • Up to three dependent exemptions Credits • Nonrefundable Renter’s Credit • Refundable California Earned Income Tax Credit • Refundable Young Child Tax Credit Note: You cannot use Form 540 2EZ if you can be claimed as a dependent and any of the following are true: • You have a dependent of your own. • You are single and your total income is less than or equal to $15,251. • You are married/RDP filing jointly or a qualifying widow(er) and your total income is less than or equal to $30,552. • You are head of household and your total income is less than or equal to $21,652. • You are required to use a modified standard deduction for dependents. See Frequently Asked Questions, question 1, Do I have to file? If you do not qualify, go to ftb.ca.gov for information about CalFile and e-file or download and print Form 540 at ftb.ca.gov/forms. If you are a nonresident or part-year resident, get Form 540NR, California Nonresident or Part-Year Resident Income Tax Return. See “Automated Phone Service”, or go to ftb.ca.gov/forms. Steps to Determine Filing Requirements Step 1: Is your gross income (all income you received in the form of money, goods, property, and services from all sources that are not exempt from tax) more than the amount shown in the California Gross Income chart below for your filing status, age, and number of dependents? If yes, you have a filing requirement. If no, go to Step 2. Step 2: Is your adjusted gross income (federal adjusted gross income from all sources reduced or increased by all California income adjustments) more than the amount shown in the California Adjusted Gross Income chart below for your filing status, age, and number of dependents? If yes, you have a filing requirement. If no, you do not have a filing requirement. If you do not have a filing requirement, you must file a tax return to claim your withholding. You may be eligible for the federal Earned Income Tax Credit; see page 63 for more information. On 12/31/20, my filing status was: and on 12/31/20, my age was: (If your 65th birthday is on January 1, 2021, you are considered to be age 65 on December 31, 2020.) California Gross Income Dependents 0 1 2 or more California Adjusted Gross Income Dependents 2 0 1 or more Single or Head of Household Under 65 65 or older 18,496 24,696 31,263 34,271 40,838 41,931 14,797 20,997 27,564 30,572 37,139 38,232 Married/RDP filing jointly Under 65 (both spouses/RDPs) 65 or older (one spouse/RDP) 65 or older (both spouses/RDPs) 36,996 43,196 49,396 49,763 52,771 58,971 59,338 60,431 66,631 29,599 35,799 41,999 42,366 45,374 51,574 51,941 53,034 59,234 Qualifying widow(er) Under 65 65 or older 31,263 34,271 40,838 41,931 27,564 30,572 37,139 38,232 Dependent of another person – Any filing status Any age (Get FTB Pub. 1540, California Head of Household Filing Status.) (The income of both spouses/RDPs must be combined.) Page 4 Form 540 2EZ Tax Booklet 2020 More than your standard deduction, see Frequently Asked Questions, question 1. 2020 Instructions for Form 540 2EZ References in these instructions are to the Internal Revenue Code (IRC) as of January 1, 2015, and the California Revenue and Taxation Code (R&TC). Things you need to know before you complete Form 540 2EZ Determine if you qualify to use Form 540 2EZ. See “Qualifying to Use Form 540 2EZ” on page 4. You cannot use Form 540 2EZ if: # You file a joint tax return and either spouse/RDP was a nonresident in 2020. Use Form 540NR, California Nonresident or Part-Year Resident Income Tax Return. This form is available online at ftb.ca.gov/forms or file online using e-file. # You are married/RDP and file a separate tax return. Get Form 540 online at ftb.ca.gov/forms or file online through CalFile or e-file. # You have income from a source outside of California. # You have income from a source not listed on this form. # You made estimate payments or have an estimated tax payment transfer from 2019. # You have real estate or other withholding from Form 592-B, Resident and Nonresident Withholding Tax Statement, or Form 593, Real Estate Withholding Statement. Note: The lines on Form 540 2EZ are numbered with gaps in the line number sequence. For example, lines 14 through 15 do not appear on Form 540 2EZ, so the line number that follows line 13 on Form 540 2EZ is line 16. If you need to amend your California resident income tax return, complete an amended Form 540 2EZ and check the box at the top of Form 540 2EZ indicating AMENDED return. Attach Schedule X, California Explanation of Amended Return Changes, to the amended Form 540 2EZ. For specific instructions, see “Instructions for Filing a 2020 Amended Return” on page 16. Social security benefits may be taxable for federal tax purposes but are not taxable for California tax purposes. Specific Line Instructions Name(s) and Address Print your first name, middle initial, last name, and address in the spaces provided at the top of the form. Suffix Use the Suffix field for generational name suffixes such as “SR”, “JR”, “III”, “IV”. Do not enter academic, professional, or honorary suffixes. Additional Information Use the Additional Information field for “In-Care-Of” name and other supplemental address information only. Foreign Address If you have a foreign address, follow the country’s practice for entering the city, county, province, state, country, and postal code, as applicable, in the appropriate boxes. Do not abbreviate the country name. Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) Enter your SSN or ITIN in the spaces provided. If you file a joint tax return, enter the SSN or ITIN in the same order as the names. If you do not have an SSN because you are a nonresident or a resident alien for federal tax purposes, and the Internal Revenue Service (IRS) issued you an ITIN, enter the ITIN in the space provided for the SSN. An ITIN is a tax processing number issued by the IRS to foreign nationals and others who have a federal tax filing requirement and do not qualify for an SSN. The ITIN is a nine-digit number that always starts with the number 9. Date of Birth (DOB) Enter your DOB (mm/dd/yyyy) in the spaces provided. If your filing status is married/RDP filing jointly or married/RDP filing separately, enter the DOBs in the same order as the names. Prior Name If you filed your 2019 tax return under a different last name, write the last name only from the 2019 tax return. Principal Residence Only complete this section if you are 18 or older and you have filed a California resident income tax return in the prior year. # County – Enter the county where you have your principal/physical residence on the date that you file your Form 540 2EZ. If you reside in a foreign country at the time of filing, leave the county field blank. # If your principal/physical residence address at the time of filing is the same as the address you provided at the top of this form, check the box provided on this line. # If your principal/physical residence address at the time of filing is different from the address at the top of this form, provide the address of your principal/physical residence in the spaces provided. # If you reside in a foreign country at the time of filing, enter the city, province or state, and country in the city field. Follow the country’s practice for entering the postal code. Do not abbreviate the country name. If you are under 18 years old or have not filed a California resident income tax return in the prior year, then leave the county and principal/physical address fields blank. Line 1 through Line 5 – Filing Status Check the box on Form 540 2EZ for the filing status that applies to you. If your California filing status is different from your federal filing status, check the box above the filing status. Filing Status Checklist Choose only one filing status. Your filing status for California must be the same as the filing status you used on your federal income tax return. Exception: Registered domestic partners (RDP) who file single for federal must file married/RDP filing jointly or married/RDP filing separately for California. If you are an RDP and file head of household for federal, you may file head of household for California only if you meet the requirements to be considered unmarried or considered not in a registered domestic partnership. Single You are single if any of the following was true on December 31, 2020: # You were not married or in an RDP. # You received a final decree of divorce or legal separation, or your RDP was terminated. # You were widowed before January 1, 2020, and did not remarry or enter into another RDP in 2020 (see Qualifying Widow[er]). Married/RDP Filing Jointly You may file married/RDP filing jointly if any of the following is true: # You were married/RDP as of December 31, 2020, even if you did not live with your spouse/RDP at the end of 2020. # Your spouse/RDP died in 2020 and you did not remarry or enter into another RDP in 2020. # Your spouse/RDP died in 2021 before the 2020 tax return was filed. A married couple or RDPs may file a joint return even if only one had income or if they did not live together all year. However, both must sign the tax return. Head of Household For the specific requirements that must be met to qualify for head of household filing status, get FTB Pub. 1540, California Head of Household Filing Status. In general, head of household filing status is for unmarried individuals and certain married individuals or RDPs living apart who provide a home for a specified relative. You may be entitled to use head of household filing status if all of the following apply: # You were unmarried and not in an RDP, or you met the requirements to be considered unmarried or considered not in an RDP on December 31, 2020. Form 540 2EZ Tax Booklet 2020 Page 5 Instructions: Form 540 2EZ CalFile – California’s free, fast, easy, and secure e-file option # You paid more than one-half the cost of keeping up your home for the year in 2020. # For more than half the year, your home was the main home for you and one of the specified relatives who by law can qualify you for head of household filing status. # The relative who lived with you met the requirements to be a qualifying child or qualifying relative. # You were not a nonresident alien at any time during the year. For a child to qualify as your foster child for head of household purposes, the child must be placed with you by an authorized placement agency or by order of a court. California requires taxpayers who use head of household filing status to file form FTB 3532, Head of Household Filing Status Schedule, to report how the head of household (HOH) filing status was determined. To get form FTB 3532, see “Automated Phone Service” or go to ftb.ca.gov/forms. born and died in 2020 and you do not have an SSN for the child, enter “Died” in the SSN field and include a copy of the child’s birth certificate, death certificate, or hospital records. The document must show the child was born alive. If you claim more than three dependents get Form 540 online at ftb.ca.gov/forms or file online through CalFile or e-file. For taxable years beginning on or after January 1, 2018, taxpayers claiming a dependent exemption credit for a dependent who is ineligible for an SSN and a federal ITIN may provide alternative information to the Franchise Tax Board (FTB) to identify the dependent. To claim the dependent exemption credit, taxpayers complete form FTB 3568, Alternative Identifying Information for the Dependent Exemption Credit, attach the form and required documentation to their tax return, and write “no id” in the SSN field of line 8, Dependents, on Form 540 2EZ. For each dependent being claimed that does not have an SSN and an ITIN, a form FTB 3568 must be provided along with supporting documentation. Taxpayers may amend their 2018 and 2019 tax returns to claim the dependent exemption credit. These taxpayers should complete an amended Form 540 2EZ, write “no id” in the SSN field on the Dependents line, and attach Schedule X. To complete Schedule X, check box m for “Other” on Part II, line 1, and write the explanation “Claim dependent exemption credit with no id and form FTB 3568 is attached” on Part II, line 2. Make sure to attach form FTB 3568 and the required supporting documents in addition to the amended tax return and Schedule X. If taxpayers do not claim the dependent exemption credit on their original 2020 tax return, they may amend their 2020 tax return following the same procedure as for 2018 and 2019 amended tax returns. Do you have Child and Dependent Care Expenses? If so, you may qualify for a credit. For more information, get form FTB 3506, Child and Dependent Care Expenses Credit. The easiest way to claim the credit is to CalFile or e-file. This credit may not be claimed on Form 540 2EZ. Qualifying Widow(er) You are a qualifying widow(er) if all of the items below apply: # Your spouse/RDP died in 2018 or 2019, and you did not remarry or enter into another RDP in 2020. # You have a child, stepchild, or adopted child (not a foster child) whom you can claim as a dependent or could claim as a dependent except that, for 2020: = The child had gross income of $4,300 or more; = The child filed a joint return, or = You could be claimed as a dependent on someone else’s return. If the child isn’t claimed as your dependent, enter the child’s name in the entry space under the “Qualifying widow(er)” filing status. # This child lived in your home for all of 2020. Temporary absences, such as for school, vacation, or medical care, 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 tax return with your spouse/RDP the year he or she died, even if you actually did not do so. Enter the year of your spouse’s/RDP’s death on your tax return. Line 6 – Can you be claimed as a dependent? If someone else can claim you (or your spouse/RDP) as a dependent on his or her tax return, even if they choose not to, and your total income is less than or equal to the following amounts based on your filing status or you have a dependent, you cannot use Form 540 2EZ. Get Form 540 online at ftb.ca.gov/forms or file online through CalFile or e-file. Single Married/RDP filing jointly or Qualifying widow(er) Head of Household $15,251 $30,552 $21,652 Note: You cannot use Form 540 2EZ if your total wages are less than the following amounts based on your filing status: Single . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,251 Married/RDP filing jointly, head of household, or qualifying widow(er) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $8,852 If you can be claimed as a dependent and can use Form 540 2EZ, check the box on line 6 and follow the instructions on line 17. Line 7 – Senior If you (or if married/RDP, your spouse/RDP) are 65 or older, enter 1; if both are 65 or older, enter 2. If your (or if married/RDP, your spouse’s/RDP’s) 65th birthday is January 1, 2021, you are considered to be age 65 on December 31, 2020. Line 8 – Dependents You must enter the first name, last name, SSN, and relationship of each of the dependents you are allowed to claim. If your dependent child was Page 6 Form 540 2EZ Tax Booklet 2020 Line 9 – Total Wages Enter the amount from federal Form W-2, box 16. If you have more than one federal Form W-2, add all amounts shown in box 16. Generally, federal Form W-2, box 1 and box 16 should contain the same amounts. If they are different because you had income from a source outside California, you cannot file Form 540 2EZ. Get Form 540 or Form 540NR at ftb.ca.gov/forms or file online through CalFile or e-file. Line 10 – Total Interest Income Enter interest income shown on federal Form 1099-INT, Interest Income, box 1. Do not include amounts shown on federal Form 1099-INT, Tip box 3, Interest on U.S. Savings Bonds and Treasury Obligations. This interest is not taxed by California. Line 11 – Total Dividend Income Generally, the amount of dividend income taxable by California is the same as the amount taxable under federal law. However, there may be federal/state differences in the taxable amount of dividend income, if you received it from any of the following sources: # Exempt interest dividends from mutual funds. # Non-cash patronage dividends from farmers’ cooperatives or mutual associations. # Federal exempt interest dividends from other states or their municipal obligations and/or from mutual funds. # Controlled foreign corporation dividends in the year distributed. # Regulated investment company capital gains in the year distributed. # Distributions of pre-1987 earnings from an S corporation. If you have a federal/state difference in the taxable amount of dividend income, you cannot file Form 540 2EZ. Get Form 540 at ftb.ca.gov/forms or file online through CalFile or e-file. FREE e-file at ftb.ca.gov Instructions: Form 540 2EZ Line 12 – Total Pension Income Line 18 – Senior Exemption Generally, the amount of pension income taxable by California is the same as the amount taxable under federal law. However, there may be federal/state differences in the taxable amount of pension income, if you received it from any of the following sources: # Tier 2 railroad retirement benefits. # Partially taxable distributions from a pension plan. # Retirement annuity between July 1, 1986, and January 1, 1987, and elected to use the three-year rule for California purposes and annuity rules for federal purposes. For information regarding the federal Pension Protection Act of 2006, go to ftb.ca.gov and search for conformity. If you have a federal/state difference in the taxable amount of pension income, you cannot file Form 540 2EZ. Get Form 540 at ftb.ca.gov/forms or e-file. If you entered 1 in the box on line 7, enter $124. If you entered 2 in the box on line 7, enter $248. You cannot claim this exemption credit if someone else can claim you as a dependent on their tax return. Line 13 – Total Capital Gain Distributions from Mutual Funds Generally, the amount of capital gains taxable by California is the same as the amount taxable under federal law. If you received capital gain distributions from a mutual fund, report them on line 13, if both of the following apply: # You received federal Form 1099-DIV with an amount in box 2a. # The federal Form 1099-DIV does not have amounts in box 2b, 2c, or 2d. If you have other capital gains, you cannot use Form 540 2EZ. Get Form 540 at ftb.ca.gov/forms or e-file. Line 17 – Tax The standard deduction and personal exemption credit are built into the 2EZ Tables and not reported on the tax return. If you did not check the box on line 6 follow the instructions below. Use the California 2EZ Table for your filing status to complete line 17. The 2EZ Tables in this booklet give you credit for the standard deduction for your filing status, your personal exemption credit, and dependent exemption credits. There are three different tables. Make sure you use the right one. If your filing status is: Single Married/RDP filing jointly or Qualifying widow(er) Head of Household Go to page 41 Go to page 47 Go to page 58 If you checked the box on line 6, complete the Dependent Tax Worksheet below. Dependent Tax Worksheet 1. Using the amount from Form 540 2EZ, line 16, and your filing status, enter the tax from the 2EZ Table: If your filing status is: • Single, go to page 41. • Married/RDP filing jointly or Qualifying . . . . . . . . 1 widow(er), go to page 47. • Head of household, go to page 58 2. • If single or head of household, enter $124 • If married/RDP and both spouses/RDPs can be claimed as a dependent by another taxpayer, enter $248 ........2 • If married/RDP and only one spouse/RDP can be claimed, enter $124 • If qualifying widow(er), enter $248 3. Add line 1 and line 2. Enter here and include on Form 540 2EZ, line 17 . . . . . . . . . . . . . . . . . . . . . . . . 3 } } Line 19 – Nonrefundable Renter’s Credit If you were a resident of California and paid rent on property in California which was your principal residence, you may qualify for a credit that you can use to reduce your tax. Answer the questions on page 12 to see if you qualify. Line 22 – Total Tax Withheld Enter the amount from federal Form(s) W-2, box 17, or federal Form 1099-R, box 14. If you have more than one federal Form W-2, add all amounts shown in box 17. If you have more than one federal Form 1099-R, add all amounts shown in box 14. The FTB verifies all withholding claimed from federal Forms W-2 or 1099-R with the Employment Development Department (EDD). Line 23 – Earned Income Tax Credit (EITC) Enter your Earned Income Tax Credit from form FTB 3514, California Earned Income Tax Credit, line 20. Line 24 - Young Child Tax Credit (YCTC) Enter your YCTC from form FTB 3514, line 28. Use Tax Line 26 – Use Tax You are required to enter a number on this line. If the amount due is zero, you must check the applicable box to indicate that you either owe no use tax, or you paid your use tax obligation directly to the California Department of Tax and Fee Administration. You may owe use tax if you make purchases from out-of-state retailers (for example, purchases made by telephone, online, by mail, or in person) where California sales or use tax was not paid and you use those items in California. If you have questions about whether a purchase is taxable, go to the California Department of Tax and Fee Administration’s website at cdtfa.ca.gov, or call its Customer Service Center at 1.800.400.7115 (CRS:711) (for hearing and speech disabilities). Some taxpayers are required to report business purchases subject to use tax directly to the California Department of Tax and Fee Administration. However, they may report certain personal purchases subject to use tax on the FTB income tax return. You may not report business purchases subject to use tax on your income tax return if you: # Have or are required to hold a California seller’s permit. # Receive $100,000 or more per year in gross receipts from business operations. # Are otherwise registered or required to be registered with the California Department of Tax and Fee Administration to report use tax. Note: You may not report use tax on your income tax return for certain types of transactions. These types of transactions are described in detail below in the instructions. The Use Tax Worksheet and Estimated Use Tax Lookup Table will help you determine how much use tax to report. If you owe use tax but you do not report it on your income tax return, you must report and pay the tax to the California Department of Tax and Fee Administration. For information on how to report use tax directly to the California Department of Tax and Fee Administration, go to their website at cdtfa.ca.gov and type “Find Information About Use Tax” in the search bar. Form 540 2EZ Tax Booklet 2020 Page 7 Instructions: Form 540 2EZ Failure to report and pay timely may result in the assessment of interest, penalties, and fees. See page 15 for a general explanation of California use tax. Use Tax Worksheet You must use the Use Tax Worksheet to calculate your use tax liability, if any of these apply: # You prefer to calculate the amount of use tax due based upon your actual purchases subject to use tax, rather than based on an estimate. # You owe use tax on any item purchased for use in a trade or business and you are not registered or required to be registered with the California Department of Tax and Fee Administration to report sales or use tax. # You owe use tax on purchases of individual items with a purchase price of $1,000 or more each. Example 1: You purchased a television for $2,000 from an out-of-state retailer that did not collect tax. You must use the Use Tax Worksheet to calculate the tax due on the price of the television, since the price of the television is $1,000 or more. Example 2: You purchased a computer monitor for $300, a rare coin for $500, and designer clothing for $250 from out-of-state retailers that did not collect tax. Although the total price of all the items is $1,050, the price of each item is less than $1,000. Since none of these individual items are $1,000 or more, you are not required to use the Use Tax Worksheet and may choose to use the Estimated Use Tax Lookup Table. If you have a combination of individual non-business items purchased for $1,000 or more each, and/or items purchased for use in a trade or business in addition to individual, non-business items purchased for less than $1,000, you may either: # Use the Use Tax Worksheet to compute use tax due on all purchases, or # Use the Use Tax Worksheet to compute use tax due on all individual items purchased for $1,000 or more plus all items purchased for use in a trade or business. # Use the Estimated Use Tax Lookup Table to estimate the use tax due on individual, non-business items purchased for less than $1,000, then add the amounts and report the total use tax on Line 26. Example 3: The total price of the items you purchased from out-of-state retailers that did not collect use tax is $2,300, which includes a $1,000 television, a $900 painting, and a $400 table for your living room. # You may choose to calculate the use tax due on the total price of $2,300 using the Use Tax Worksheet, or # You may choose to calculate the use tax due on the $1,000 price of the television using the Use Tax Worksheet and estimate your use tax liability for the painting and table by using the Estimated Use Tax Lookup Table, then add the amounts and report the total use tax on Line 26. Page 8 Form 540 2EZ Tax Booklet 2020 CalFile – California’s free, fast, easy, and secure e-file option Use Tax Worksheet (See instructions below) Use whole dollars only. 1. Enter purchases from out-of-state sellers made without payment of California sales/use tax. If you choose to estimate the use tax due on individual, non-business items purchased for less than $1,000 each, only enter purchases of items with a purchase price of $1,000 or more plus items purchased for use in a trade or business not registered with the California Department of Tax and Fee Administration. . . . . . . $ 2. Enter the applicable sales and use tax rate. . . . . . . 3. Multiply Line 1 by the tax rate on Line 2. Enter result here . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4. If you choose to estimate the use tax due on individual, non-business items purchased for less than $1,000 each, enter the use tax amount due from the Estimated Use Tax Lookup Table. If all of your purchases are included in Line 1, enter -0-. . . $ 5. Add Lines 3 and 4. This is your total use tax . . . . . $ 6. Enter any sales or use tax you paid to another state for purchases included on Line 1. See worksheet instructions below . . . . . . . . . . . . . . . . . . . . . . . . . $ 7. Subtract Line 6 from Line 5. This is the total use tax due. Enter the amount due on Line 26. If the amount is less than zero, enter -0- . . . . . . . . . . . . . $ .00 .00 .00 .00 .00 .00 Worksheet, Line 1, Purchases Subject to Use Tax Report purchases of items that would have been subject to sales tax if purchased from a California retailer unless your receipt shows that California tax was paid directly to the retailer. For example, generally, you would include purchases of clothing, but not exempt purchases of food products or prescription medicine. For more information on nontaxable and exempt purchases, you may visit the California Department of Tax and Fee Administration’s website at cdtfa.ca.gov. # Include handling charges. # Do not include any other state’s sales or use tax paid on the purchases. # Enter only purchases made during the year that corresponds with the tax return you are filing. # If you traveled to a foreign country and hand-carried items back to California, generally use tax is due on the purchase price of the goods you listed on your U.S. Customs Declaration less an $800 per person exemption. For the hand carried items, you should report the amount of purchases in excess of the $800 per-person exemption. This $800 exemption does not apply to goods sent or shipped to California by mail or other common carrier. For goods sent or shipped, you should report the entire amount of the purchases. # If your filing status is “married/RDP filing separately,” you may elect to report one-half of the use tax due or the entire amount on your income tax return. If you elect to report one-half, your spouse/RDP may report the remaining half on his or her income tax return or on the individual use tax return available from the California Department of Tax and Fee Administration. Note: You cannot report the following types of purchases on your income tax return. # Vehicles, vessels, and trailers that must be registered with the Department of Motor Vehicles. # Mobile homes or commercial coaches that must be registered annually as required by the Health and Safety Code. # Vessels documented with the U.S. Coast Guard. # Aircraft. # Rental receipts from leasing machinery, equipment, vehicles, and other tangible personal property to your customers. FREE e-file at ftb.ca.gov # Cigarettes and tobacco products when the purchaser is registered with the California Department of Tax and Fee Administration as a cigarette and/or tobacco products consumer. Worksheet, Line 2, Sales and Use Tax Rate Enter the sales and use tax rate applicable to the place in California where the property was used, stored, consumed, or given away. To find your sales and use tax rate, please go to the California Department of Tax and Fee Administration’s website at cdtfa.ca.gov and type “City and County Sales and Use Tax Rates” in the search bar. You may also call their Customer Service Center at 800.400.7115 (CRS:711) (for hearing and speech disabilities). Worksheet, Line 6, Credit for Tax Paid to Another State This is a credit for tax paid to other states on purchases reported on Line 1. You cannot claim a credit for more than the amount of use tax that is imposed on your use of property in this state. For example, if you paid $8.00 sales tax to another state for a purchase, and would have paid $6.00 in California, you can claim a credit of only $6.00 for that purchase. Estimated Use Tax Lookup Table You may use the Estimated Use Tax Lookup Table to estimate and report the use tax due on individual non-business items you purchased for less than $1,000 each. This option is only available if you are permitted to report use tax on your income tax return and you are not required to use the Use Tax Worksheet to calculate the use tax owed on all your purchases. Simply include the use tax liability that corresponds to your California Adjusted Gross Income (found on Line 16) and enter it on Line 26. You will not be assessed additional use tax on the individual non business items you purchased for less than $1,000 each. You may not use the Estimated Use Tax Lookup Table to estimate and report the use tax due on purchases of items for use in your business or on purchases of individual non-business items you purchased for $1,000 or more each. See the instructions for the Use Tax Worksheet if you have a combination of purchases of individual non-business items for less than $1,000 each and purchases of individual non-business items for $1,000 or more. Adjusted Gross Income (AGI) Range Use Tax Liability Less Than $10,000 $0 $10,000 to $19,999 $1 $20,000 to $29,999 $2 $3 $30,000 to $39,999 $4 $40,000 to $49,999 $4 $50,000 to $59,999 $5 $60,000 to $69,999 $6 $70,000 to $79,999 $7 $80,000 to $89,999 $8 $90,000 to $99,999 $9 $100,000 to $124,999 $11 $125,000 to $149,999 $13 $150,000 to $174,999 $15 $175,000 to $199,999 More than $199,999 – Multiply AGI by 0.008% (x 0.00008) Enter your use tax liability on Line 4 of the worksheet, or if you are not required to use the worksheet, enter the amount on Line 26 of your income tax return. ISR Penalty Line 27 – Individual Shared Responsibility (ISR) Penalty Enter your Individual Shared Responsibility Penalty from form FTB 3853, Health Coverage Exemptions and Individual Shared Responsibility Penalty, Part IV, line 1. Instructions: Form 540 2EZ If you, your spouse/RPD (if filing a joint return), and anyone you can or do claim as a dependent had minimum essential coverage (also referred to as qualifying health care coverage) that covered all of 2020 tax year, check the “Full-year health care coverage” box on Form 540 2EZ, line 27. If you check the box on Form 540 2EZ, line 27, you do not owe the individual shared responsibility penalty and do not need to file form FTB 3853. For more information, get form FTB 3853. Overpaid Tax/Tax Due Line 32 – Overpaid Tax If the amount on line 30 is more than the amount on line 21, your payments and credits are more than your tax. Subtract the amount on line 21 from line 30. Enter the result on line 32. Refund Intercept – FTB administers the Interagency Intercept Collection (IIC) program on behalf of the State Controller’s Office. The IIC program intercepts (offsets) refunds when individuals and business entities owe delinquent debts to government agencies including the IRS and California colleges. All refunds are subject to interception. FTB only intercepts the amount owed. Refunds from joint tax returns may be applied to the debts of the taxpayer or spouse/RDP. After all tax liabilities are paid, any remaining credit will be applied to requested voluntary contributions, if any, and the remainder will be refunded. If the debt was previously paid to the requestor and FTB also intercepted the refund, any overpayment will be refunded by the agency that received the funds. For more information, go to ftb.ca.gov and search for interagency intercept collection. Line 33 – Tax Due If the amount on line 30 is less than the amount on line 21, subtract the amount on line 30 from the amount on line 21. Enter the result on line 33. Your tax is more than your credits and withholdings. Increasing your withholding could eliminate the need to make a large payment with your tax return. To increase your withholding, complete EDD Form DE 4, Employee’s Withholding Allowance Certificate, and give it to your employer’s appropriate payroll staff. You can get this form from your employer or by calling the EDD at 888.745.3886. You can download the DE 4 at edd.ca.gov or go to ftb.ca.gov and search for de 4. If you did not pay enough through withholding, you may have an underpayment penalty. The FTB will figure the underpayment penalty for you. Contributions You can make voluntary contributions to the funds listed on Form 540 2EZ, Side 3. See “Voluntary Contribution Fund Descriptions” for more information. You may also contribute any amount to the State Parks Protection Fund/Parks Pass Purchase. To receive a single annual park pass, your contribution must equal or exceed $195. When applicable, FTB will forward your name and address from your tax return to the Department of Parks and Recreation (DPR) who will issue a single Vehicle Day Use Annual Pass to you. Only one pass will be provided per tax return. You may contact DPR directly to purchase additional passes. If there is an error on your tax return in the computation of total contributions or if we disallow the contribution you requested because there is no credit available for the tax year, your name and address will not be forwarded to DPR. Any contribution less than $195 will be treated as a voluntary contribution and may be deducted as a charitable contribution. For more information, go to parks.ca.gov/annualpass/ or email [email protected] Line 34 – Total Contributions Add code 400 through code 444. Enter the result on line 34. Form 540 2EZ Tax Booklet 2020 Page 9 Instructions: Form 540 2EZ CalFile – California’s free, fast, easy, and secure e-file option Line 35 – Amount You Owe Request Monthly Installments If you do not have an amount on line 32, add the amount on line 29, line 31, line 33, and line 34. Enter the result on line 35. If you have an amount on line 32 and the amount on line 34 is more than line 32, subtract line 32 from line 34. Enter the difference on line 35. Pay as much as you can when you file your tax return. If you cannot pay your taxes in full, you can request approval to make monthly payments. However, you will be charged interest and penalties. You will need to complete form FTB 3567, Installment Agreement Request. To submit your request electronically, go to ftb.ca.gov and search for installment agreement. To submit your request by mail, go to ftb.ca.gov/forms to download and print form FTB 3567 or call 800.338.0505, and follow the recorded instructions. Enter code 949 when instructed. Mail the completed form to the FTB at the address shown on the form. Paying Your Taxes You must pay 100% of the amount you owe by April 15, 2021, to avoid interest and underpayment penalties. However, the underpayment penalty will be waived if 90% of the tax shown on the tax return is paid by the original due date of the tax return. There are several ways to pay your tax: # Electronic funds withdrawal (e-file only) # Pay online/Web Pay # Credit card # Check or money order # Monthly installments Electronic Funds Withdrawal If you CalFile or e-file, instead of paying by check, you can use this convenient option. Simply provide your bank information, the amount you want to pay, and the date you want the amount to be withdrawn from your account. You can find the routing and account numbers on your check or by contacting your financial institution. Use the check illustration on the next page to find your bank information. Your tax preparation software will offer this option. Web Pay Enjoy the convenience of online payment with the FTB. This secure service lets you pay the current amount you owe, extension payments, estimated tax payments, and prior year balances. For more information, go to ftb.ca.gov/pay. Credit Card Use your Discover, MasterCard, American Express, or Visa card to pay your personal income taxes (including tax return balance due, extension payments, estimated tax payments, and prior year balances). The FTB has partnered with Official Payments Corporation to offer you this service. Official Payments Corporation charges a convenience fee based on the amount of your payment. Go to the Official Payments Corporation online payment center at officialpayments.com or call 800.2PAY.TAX or 800.272.9829 and follow the recorded instructions. Official Payments Corporation provides customer assistance at 877.297.7457 Monday through Friday, 5 a.m. to 5 p.m. PST. Payment Date: Confirmation Number: Check or Money Order (no cash please) Using black or blue ink, make your check or money order payable to the “Franchise Tax Board.” Do not send cash or other items of value (such as stamps, lottery tickets, foreign currency, and gift cards). Write your SSN or ITIN and “2020 Form 540 2EZ” on the check or money order. Enclose, but do not staple your check or money order to the tax return. Make all checks or money orders payable in U.S. dollars and drawn against a U.S. financial institution. e-file: If you e-filed your tax return, mail your check or money order with form FTB 3582, Payment Voucher for Individual e-filed Returns. Do not mail a copy of your e-filed tax return. A penalty may be imposed if your payment is returned by your bank for insufficient funds. Page 10 Form 540 2EZ Tax Booklet 2020 Line 36 – Refund or No Amount Due Did you report an amount on line 34? No Enter the amount from line 32 on line 36. This is your refund amount. If it is less than $1, attach a written statement to your Form 540 2EZ requesting the refund. Yes If the amount on line 34 is: # Less than the amount on line 32, subtract line 34 from line 32 and enter the difference on line 36. This is your refund amount. # More than the amount on line 32, enter zero on line 36. Direct Deposit Direct deposit is fast, safe, and convenient. To have your refund directly deposited into your bank account, fill in the account information on Form 540 2EZ, Side 4, line 37 and line 38. Fill in the routing and account numbers and indicate the account type. Verify routing and account numbers with your financial institution. Do not attach a voided check or deposit slip. See the illustration on the following page. An individual taxpayer may request that his or her refund be electronically deposited into more than one checking or savings account. This allows more options for managing your refund. For example, you can request part of your refund go to your checking account to use now and the rest to your savings account to save for later. The routing number must be nine digits. The first two digits must be 01 through 12 or 21 through 32. On the sample check, the routing number is 250250025. The account number can be up to 17 characters and can include numbers and letters. Include hyphens, but omit spaces and special symbols. On the sample check, the account number is 202020. Check the appropriate box for the type of account. Do not check more than one box for each line. Enter the portion of your refund you want directly deposited into each account. When filing an original return, the total of line 37 and line 38 must equal the total amount of your refund on line 36. If line 37 and line 38 do not equal line 36, the FTB will issue a paper check. When filing an amended return, only complete the amended Form 540 2EZ through line 36. Next complete Schedule X. The amount from Schedule X, line 11 is your additional refund amount. This amount will be carried over to your amended Form 540 2EZ and will be entered on line 37 and line 38. The total of the amended Form 540 2EZ, line 37 and line 38 must equal the total amount of your refund on Schedule X, line 11. If the total of the amended Form 540 2EZ, line 37 and line 38 do not equal Schedule X, line 11, the FTB will issue a paper check. Adjusted Refunds – If there is a change made to your refund, you will still receive your refund via direct deposit. For more information on direct deposit of adjusted refunds, go to ftb.ca.gov and search for direct deposit. Caution: Check with your financial institution to make sure your deposit will be accepted and to get the correct routing and account numbers. The FTB is not responsible for a lost refund due to incorrect account information entered by you or your representative. FREE e-file at ftb.ca.gov Instructions: Form 540 2EZ Prior to depositing the refund, FTB may first verify with your financial institution that the name on the account you designated to receive the direct deposit refund matches the name provided on the tax return. Some financial institutions will not allow a joint refund to be deposited to an individual account. If the direct deposit is rejected, the FTB will issue a paper check. John Doe Mary Doe 1234 Main Street Anytown, CA 99999 1234 15-0000/0000 20 PAY TO THE ORDER OF $ DOLLARS ANYTOWN BANK Anytown, CA 99999 Routing number Account number Do not include the check number For I:250250025 I:202020•1234 Direct Deposit for ScholarShare 529 College Savings Plans – If you have a ScholarShare 529 College Savings Plan account maintained by the ScholarShare Investment Board, you may have your refund directly deposited to your ScholarShare account. Please visit scholarshare529.com for instructions. Sign Your Tax Return Sign your tax return on Side 4. If you file a joint tax return, your spouse/RDP must also sign it. If you file a joint tax return, both you and your spouse/RDP are generally responsible for tax and any interest or penalties due on the tax return. If one spouse/RDP does not pay the tax, the other spouse/RDP may have to. See “Innocent Joint Filer Relief” under Additional Information section for more information. Include your preferred phone number and email address in case the FTB needs to contact you regarding your tax return. By providing this information the FTB will be able to provide you better customer service. The authorization will automatically end no later than the due date (without regard to extensions) for filing your 2021 tax return. This is April 15, 2022, for most people. To revoke the authorization before it ends, notify us by telephone at 800.852.5711 or in writing at Franchise Tax Board, PO Box 942840, Sacramento CA 94240-0040. Include your name, SSN (or ITIN), and the designee’s name. Assembling Your Tax Return Assemble your tax return and mail it to the FTB. To help with our processing costs, enclose, but do not staple, your payment. Attach your federal Form(s) W-2 to the lower front of your tax return. Include California supporting forms and schedules behind Side 4 of Form 540 2EZ. Do not enclose a copy of your federal tax return or any other document with your Form 540 2EZ. Mailing Your Tax Return Mail your tax return to the following address if your tax return shows an amount due: FRANCHISE TAX BOARD PO BOX 942867 SACRAMENTO CA 94267-0001 Mail your tax return to the following address if your tax return shows a refund, or no amount due: FRANCHISE TAX BOARD PO BOX 942840 SACRAMENTO CA 94240-0001 Paid Preparer’s Information If you pay a person to prepare your Form 540 2EZ, that person must sign and complete the area at the bottom of Side 4 including an identification number. The IRS requires a paid tax preparer to get and use a preparer tax identification number (PTIN). If the preparer has a federal employer identification number (FEIN), it should be entered only in the space provided. A paid preparer must give you a copy of your tax return to keep for your records. Third Party Designee If you want to allow your preparer, a friend, family member, or any other person you choose to discuss your 2020 tax return with the FTB, check the “Yes” box in the signature area of your tax return. Also print the designee’s name and telephone number. If you check the “Yes” box, you, and your spouse/RDP if filing a joint tax return, are authorizing the FTB to call the designee to answer any questions that may arise during the processing of your tax return. You are also authorizing the designee to: • Give the FTB any information that is missing from your tax return. • Call the FTB for information about the processing of your tax return or the status of your refund or payments. • Receive copies of notices or transcripts related to your tax return, upon request. • Respond to certain FTB notices about math errors, offsets, and return preparation. You are not authorizing the designee to receive any refund check, bind you to anything (including any additional tax liability), or otherwise represent you before the FTB. If you want to expand or change the designee’s authorization, go to ftb.ca.gov/poa. Form 540 2EZ Tax Booklet 2020 Page 11 Nonrefundable Renter’s Credit Qualification Record e-file and skip this page! The software you use to e-file will help you find out if you qualify for this credit and will figure the correct amount of the credit automatically. You can claim the nonrefundable Renter’s Credit using CalFile. Tip If you were a resident of California and paid rent on property in California, which was your principal residence, you may qualify for a credit that you can use to reduce your tax. Answer the questions below to see if you qualify. Do Not Mail This Record. Keep With Your Tax Records. 1. Were you a resident of California for the entire year in 2020? Military personnel: If you are not a legal resident of California, you do not qualify for this credit. However, your spouse/RDP may claim this credit if he or she was a resident during 2020 and is otherwise qualified. YES. Go to question 2. NO. Stop here. File Form 540NR. Go to ftb.ca.gov/forms for more information regarding these forms. 2. Is your California adjusted gross income, the amount on Form 540 2EZ, line 16: • $43,533 or less if single; or • $87,066 or less if married/RDP filing jointly, head of household, or qualifying widow(er)? YES. Go to question 3. NO. Stop here. You do not qualify for this credit. 3. Did you pay rent, for at least half of 2020, on property (including a mobile home that you owned on rented land) in California, which was your principal residence? YES. Go to question 4. NO. Stop here. You do not qualify for this credit. 4. Can you be claimed as a dependent by a parent, foster parent, legal guardian, or any other person in 2020? NO. Go to question 6. YES. Go to question 5. 5. For more than half the year in 2020, did you live in the home of the person who can claim you as a dependent? NO. Go to question 6. YES. Stop here. You do not qualify for this credit. 6. Was the property you rented exempt from property tax in 2020? You do not qualify for this credit if, for more than half of the year, you rented property that was exempt from property taxes. Exempt property includes most government-owned buildings, church-owned parsonages, college dormitories, and military barracks. However, if you or your landlord paid possessory interest taxes for the property you rented, then you may claim this credit. NO. Go to question 7. YES. Stop here. You do not qualify for this credit. 7. Did you claim the homeowner’s property tax exemption anytime during 2020? You do not qualify for this credit if you or your spouse/RDP received a homeowner’s property tax exemption at any time during the year. However, if you lived apart from your spouse/RDP for the entire year and your spouse/RDP received a homeowner’s property tax exemption for a separate residence, then you may claim this credit if you are otherwise qualified. NO. Go to question 8. YES. If your filing status is single, stop here, you do not qualify for this credit. If your filing status is married/RDP filing jointly, go to question 9. 8. Were you single in 2020? YES. Go to question 11. NO. Go to question 9. 9. Did your spouse/RDP claim the homeowner’s property tax exemption anytime during 2020? You do not qualify for this credit if you or your spouse/RDP received a homeowner’s property tax exemption at any time during the year. However, if you lived apart from your spouse/RDP for the entire year and your spouse/RDP received a homeowner’s property tax exemption for a separate residence, then you may claim this credit if you are otherwise qualified. NO. Go to question 11. YES. If both you and your spouse/RDP claimed the homeowner’s property tax exemption, stop here, you do not qualify for this credit. Otherwise, go to question 10. 10. Did you and your spouse/RDP maintain separate residences for the entire year in 2020? YES. Go to question 11. NO. Stop here. You do not qualify for this credit. 11. If you are: • Single, enter $60 on Form 540 2EZ, line 19. • Head of household or qualifying widow(er), enter $120 on Form 540 2EZ, line 19. • Married/RDP filing jointly, enter $120 on Form 540 2EZ, line 19. (Exception: If one spouse/RDP claimed the homeowner’s tax exemption and you lived apart from your spouse/RDP for the entire year, enter $60 on Form 540 2EZ, line 19.) Fill in the street address(es) and landlord information below for the residence(s) you rented in
Extracted from PDF file 2020-california-540-2ez-booklet.pdf, last modified December 2020

More about the California 540-2EZ Booklet Individual Income Tax Tax Return TY 2020

This booklet includes California's Form 540-2EZ (for taxpayers with simple returns), instructions, and all of the additional forms and schedules you will need to complete your California income tax return.

We last updated the Personal Income Tax Booklet (540-2EZ) in February 2021, so this is the latest version of 540-2EZ Booklet, fully updated for tax year 2020. You can download or print current or past-year PDFs of 540-2EZ Booklet directly from TaxFormFinder. You can print other California tax forms here.


eFile your California tax return now

eFiling is easier, faster, and safer than filling out paper tax forms. File your California and Federal tax returns online with TurboTax in minutes. FREE for simple returns, with discounts available for TaxFormFinder users!

File Now with TurboTax

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 540-2EZ Booklet.

Form Code Form Name
Form 540-2EZ California Resident Income Tax Return
540-2EZ INS 540-2EZ Instructions
540-2EZ SP Folleto Folleto de Impuesto Sobre el Ingreso Personal

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 540-2EZ Booklet from the Franchise Tax Board in February 2021.

Show Sources >

540-2EZ Booklet is a California Individual Income Tax form. Like the Federal Form 1040, states each provide a core tax return form on which most high-level income and tax calculations are performed. While some taxpayers with simple returns can complete their entire tax return on this single form, in most cases various other additional schedules and forms must be completed, depending on the taxpayer's individual situation, to create a complete income tax return package.

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 540-2EZ Booklet

We have a total of six past-year versions of 540-2EZ Booklet in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:


2020 540-2EZ Booklet

CALIFORNIA 540 2EZ Forms & Instructions 2020 Personal Income Tax Booklet

2019 540-2EZ Booklet

CALIFORNIA 540 2EZ Forms & Instructions 2019 Personal Income Tax Booklet

2018 540-2EZ Booklet

2018 Form 540 2EZ - Personal Income Tax Booklet

2017 540-2EZ Booklet

2017 Form 540 2EZ Booklet - Forms and Instructions

2016 540-2EZ Booklet

2016 540 2EZ Personal Income Tax Booklet

2015 540-2EZ Booklet

2015 540 2EZ Booklet -- Personal Income Tax Booklet


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.

** This Document Provided By TaxFormFinder.org **
Source: http://www.taxformfinder.org/california/540-2ez-booklet