3870: Election for Refundable Credit (2024)
California · FTB · Used for tax years 2024
California Form 3870 lets you elect to make available qualified credits refundable in future years. It lists the credits and amounts elected, totals those amounts, and calculates an annual refundable credit amount at 20% of the total.
Who files this form
Form 3870 is used to elect to treat available qualified credit as refundable in future years. Attach it to your California tax return.
The form does not state who is required to make this election or provide detailed eligibility rules.
What you'll need
Have these records available to complete the form:
- Your California tax return, for the name or names shown on the return.
- Your applicable credit forms, showing the available qualified credit amounts.
- Form FTB 3544, Part B, if credits were assigned to you and claimed there.
- Your applicable identification information: SSN or ITIN, California corporation number, FEIN, or California Secretary of State file number.
How to file
Attach Form 3870 to your California tax return.
To complete it:
- Enter your name or names as shown on your California tax return and the applicable identification information.
- On line 1, list each credit's name, code, and amount you elect to make refundable in future years. List credits assigned to you and claimed on Form FTB 3544, Part B separately.
- On line 2, enter the total of line 1, column (c).
- On line 3, multiply line 2 by 20% (.20) to calculate the annual refundable credit amount.
The supplied form does not give a mailing address or e-file directions.
Common mistakes
- Forgetting to attach Form 3870 to your California tax return. The form expressly requires this attachment.
- Failing to list assigned credits separately. The form says to separately list credits assigned to you and claimed on Form FTB 3544, Part B.
Questions people ask
What does Form 3870 do?
It records your election to treat available qualified credit as refundable in future years.
Where do I get the credit amounts for line 1?
Use the available qualified credit amounts from your applicable credit forms. Enter the credit name, credit code, and amount being elected.
How do I calculate the annual refundable credit amount?
Add the amounts in line 1, column (c), and enter the total on line 2. Multiply line 2 by 20% (.20) and enter the result on line 3.
How do I report credits assigned to me?
List credits assigned to you and claimed on Form FTB 3544, Part B separately on Form 3870.