topic Form CA (540) Subtraction from Pension in Retirement tax questions

Form CA (540) Subtraction from Pension

Phammike — Fri, 30 Apr 2021 18:58:19 GMT

How do I calculate the Subtraction to input into CA (540) Part I, Section A, Line 5b. That is subtraction for pension for California Tax Form CA (540).

Re: Form CA (540) Subtraction from Pension

BillM223 — Fri, 30 Apr 2021 20:33:34 GMT

The CA instructions say:

Generally, no adjustments are made on this line.

However, if you received Tier 2 railroad retirement benefits or partially taxable distributions from a pension plan, you may need to make the following adjustments.
If you received a federal Form RRB-1099-R, Annuities or Pensions by the Railroad Retirement Board, for railroad retirement benefits and included all or part of these benefits in taxable income in column A, enter the taxable benefit amount in column B.
If you began receiving a retirement annuity between July 1, 1986, and January 1, 1987, and elected to use the three-year rule for California purposes and the annuity rules for federal purposes, enter in column C the amount of the annuity payments you excluded for federal purposes.
You may have to pay an additional tax if you received a taxable distribution from a qualified retirement plan before reaching age 59½ and the distribution was not rolled over into another qualified plan. Get form FTB 3805P for more information.

Do any of these four situations apply to you? If so, which one?

Re: Form CA (540) Subtraction from Pension

Phammike — Fri, 30 Apr 2021 20:44:45 GMT

None of the 4 options applied to me.

Your first sentence:"Generally, no adjustments are made on this line"is applied to me.

Because in the Form 1099-R from my private sector company, the taxable amount from CA State is the same as from Federal.

Thanks for your prompt response.