2019 ProSeries/California ReadMe

Release 2019.450

Click on any of the links below to go directly to the topic of your choice

What's new for ProSeries/California
Forms that can be filed now
California forms that can't be filed now
Forms
Electronic filing
Additional information

What's new for ProSeries/California

The following items are new for tax year 2019

Federal Form 1040NR now transfers to California and can be electronically filed.
California Expands EITC and creates refundable Young Child Tax Credit.
California now conforms to the following TCJA provisions:

- ABLE Program

- Student loan discharged on account of death or disability

- FDIC Premiums

- Excess employee compensation

- Excess business loss

Alimony. California does not conform to changes made by the TCJA to federal law.
Like-kind exchanges. Exclusion of gain or loss on exchange limited to real property for individuals with AGI of $250,000 ($500,000).
Net Operating Loss (NOL) carrybacks are not allowed for taxable years beginning on or after January 1, 2019.

Forms that can be filed now

The following forms have been updated and finalized:

Form 540, California Resident Income Tax Return
Form 540NR, California Nonresident or Part-Year Resident Income Tax Return
Form 540-ES, Estimated Tax for Individuals
Schedule X, California Explanation of Amended Return Changes
Form 3506, Child and Dependent Care Expenses Credit
Form 3510, Credit for Prior Year Alternative Minimum Tax
Form 3514, California Earned Income Tax Credit
Form 3519, Payment for Automatic Extension for Individuals
Form 3520, Power of Attorney
Form 3521, Low-Income Housing Credit
Form 3523, Research Credit
Form 3526, Investment Interest Expense Deduction
Form 3532, Head of Household Filing Status Schedule
Form 3533, Change of Address
Form 3540, Credit Carryover Summary
Form 3547, Donated Agricultural Products Transportation Credit
Form 3548, Disabled Access Credit for Eligible Small Businesses
Form 3554, New Employment Credit
Form 3567, Installment Agreement Request
Form 3582, Payment Voucher for E-Filed Returns
Form 3592, College Access Tax Credit
Form 3596, Paid Preparer's California Earned Income Tax Credit Checklist
Form 3800, Tax Computation for Certain Children with Investment Income
Form 3801, Passive Activity Loss Limitations
Form 3801-CR, Passive Activity Credit Limitations
Form 3803, Parents' Election to Report Child's Interest and Dividends
Form 3805E, Installment Sale Income
Form 3805P, Additional Taxes on Qualified Plans (Including IRAs)
Form 3805V, Net Operating Loss (NOL) Computation and NOL and Disaster Loss Limitations
Form 3805Z, Enterprise Zone Deduction and Credit Summary
Form 3806, Los Angeles Revitalization Zone Net Operating Loss (NOL) Carryover Deduction
Form 3840, California Like-Kind Exchanges
Form 3885A, Depreciation and Amortization Adjustments
Form 3903, Moving Expenses
Form 5805, Underpayment of Estimated Tax by Individuals and Fiduciaries
Form 5805F, Underpayment of Estimated Tax by Farmers and Fishermen
Form 8453, E-File Return Authorization for Individuals
Form 8454, E-File Opt-Out Record for Individuals
Form 8455, E-File Payment Record for Individuals
Form 8879, E-File Signature Authorization for Individuals
Form 8879(PMT), Electronic Funds Withdrawal Payment Signature Authorization for Individuals
Schedule CA (540), California Adjustments - Residents
Schedule CA (540NR), California Adjustments - Nonresidents or Part-Year Residents
Schedule D, Capital Gain or Loss Adjustment
Schedule D-1, Sales of Business Property
Schedule G-1, Tax on Lump-Sum Distributions
Schedule P, Alternative Minimum Tax and Credit Limitations - Residents
Schedule P (540NR), Alternative Minimum Tax and Credit Limitations - Nonresidents or Part-Year Residents
Schedule S, Other State Tax Credit
Schedule W-2, Wage and Tax Statement
Form 2106, California Employee Business Expenses
Form 4835, California Farm Rental Income and Expenses Worksheet
Form 6198, California At-Risk Limitations Worksheet
Form 8824, Like-Kind Exchanges
Form 8829, Expenses for Business Use of Your Home
Schedule C, California Profit or Loss from Business Worksheet
Schedule E, California Schedule E (Rentals) Worksheet
Schedule F, California Profit or Loss from Farming Worksheet
Schedule K-1 Worksheets:

Estates and Trusts

Partnerships/LLC

S Corporations

California forms that can't be filed now

The following forms and schedules have not been finalized for filing in this version of ProSeries/California. When you open a form in the program, you might see DO NOT FILE in the upper-right corner of the form, and you might see the non-scrolling Form Status bar at the top of the form. The phrase DO NOT FILE - FORM NOT FINAL appears on the printed copy of the forms that are included in this version of ProSeries/California. If your client's return contains any of the following, do not file that return until ProSeries/California has been updated with a final, approved-for-filing version of each form included in that return

The California Franchise Tax Board has approved for filing all forms and schedules included in ProSeries/California.

Forms

Electronic filing

General information for electronic filing

IRS Electronic filing is available on January 27, 2020.

PDF attachments

PDF attachments are supported for electronic filing with California returns. As you create returns for electronic filing, ProSeries will automatically track attachments required to be submitted with the California e-file return. If you would like to attach some or all of these attachments as PDF files you can now access that option for the California return under the e-file menu (either from within the return or on the HomeBase when the return is highlighted). The Electronic PDF attachments section of the California Information Worksheet, Part VII keeps track of required attachments that have been attached as PDF.

For a list of forms that can be e-filed, go to What's New This Year in Help Center.

E-File Mandate for Tax Professionals

If you prepare more than 100 California income tax returns annually and prepare one or more using tax preparation software, California requires that you e-file all personal income tax returns.

More information is available at https://www.ftb.ca.gov/professionals/efile/m_e_file.shtml

Additional information

Check all returns after printing

The California Franchise Tax Board scans computer-generated forms to quickly process the income tax returns it receives. To meet the requirements for producing computer-generated forms, ProSeries is required to limit the width of the tax information printed on forms that are scanned. In certain cases, data you entered may be truncated. After completing a tax return, review the information that prints (for example, mailing address information), make any necessary changes, and reprint the return before mailing it.

To avoid delays in the processing of tax returns, the Franchise Tax Board requests that all mailed tax returns are printed single sided only. Duplex printed tax returns can increase the amount of time to process the return.

California forms text data

The Franchise Tax Board requires that all text data be printed in capital letters for imaging purposes. This does not apply to worksheets or any other non-FTB form.

Printing of payment vouchers

The California Franchise Tax Board requires ProSeries to print only one payment voucher per page to enable these forms to be read by an automated scanner.

End of ProSeries/California ReadMe file