CA - why is Schedule CA(540) getting generated when I selected standard deduction on my Federal return? Same with Schedule P(AMT) when AMT is 0. I have a desktop version.

[TerryA]

TT Calif supports only Form 540 for Calif resident returns - Form 540 2EZ hasn't been supported for a couple of years or so now due to low usage.

Schedule P has a complicated set of rules for when it should be a part of a filed return. You've said there is no AMT (line 26 is 0) but there are other rules about: a credit(s) being reduced by tentative minimum tax (see Part III); the number of certain credits having > $0 amounts; components of Part I summing to < 0; other Part I components summing to > line 22; and a few others. So, if it's a part of your return then the FTB expects it to be there.

[rramirx]

Hi Terry, Thank you for the response. I guess my question is, why is it getting generated in the first place when i selected standard deduction?

[TerryA]

Why is the Form 540 generated when you select the standard deduction? It doesn't matter if you itemize or take the standard deduction - the 540 is used in both cases.

[rramirx]

i'm sorry for my confusion. I meant to say Schedule CA (540), not Form 540. It is generated even if selected standard deduction on both Federal and State.

[TerryA · Accepted solution]

Oh, there are a few scenarios in which the Sch CA will be part of the return:
* If lines 22 or 36 have a subtraction or addition amount, or
* Form 3801 is in the return, or
* Form 540 line 18 doesn't equal your standard deduction