Please provide clarification.
- Do you have a specific question?
- Are you referring to California Form FTB 3804, Pass-Through Entity Elective Tax Calculation?
- Who is asking you to file Form 3804?
- Are you a partner, shareholder, or member of a pass-through entity?
California law allows a credit against income tax to certain taxpayers who are partners, shareholders, or members of a qualified entity that elects to pay an elective tax.
According to Purpose in the 2022 Instructions for Form FTB 3804, Pass-Through Entity Elective Tax Calculation, taxpayers use California's Form FTB 3804, Pass-Through Entity Elective Tax Calculation,
[T]o report the elective tax on [an] electing qualified [Pass-Through Entities] qualified net income. Form FTB 3804 also includes a Schedule of Qualified Taxpayers that requires the electing qualified PTE to identify the qualified taxpayers, report the pro-rata share or distributive share and guaranteed payments of qualified net income amounts, and calculate the elective tax credit amounts. This schedule will allow the FTB to trace the elective tax credit payments from the electing qualified PTE return to the qualified taxpayers’ returns upon receipt of the completed form FTB 3804.
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