5870-A: Tax on Accumulation Distribution of Trusts (2024)
California · FTB · Used for tax years 2024
California Form 5870A calculates tax on trust accumulation distributions and distributions of previously untaxed trust income. It includes calculations for Mental Health Services Tax and is attached to the beneficiary’s tax return.
Who files this form
California Form 5870A is for a beneficiary’s tax on accumulation distributions from trusts. The 2024 form covers:
- Tax on accumulation distributions under Internal Revenue Code Section 667.
- Tax on distributions of previously untaxed trust income under Revenue and Taxation Code Section 17745(b) and (d).
- Mental Health Services Tax under Revenue and Taxation Code Section 17043.
The form directs you to attach it to the beneficiary’s tax return and enter the number of trusts from which you received accumulation distributions during the taxable year.
What you'll need
Have the following information and schedules ready for the parts you complete:
- Your name as shown on your tax return and your SSN or ITIN.
- The trust’s name, FEIN, and address.
- The number of trusts that made accumulation distributions to you during 2024.
- Schedule J (541), line 30, columns (a), (b), and (c), for Part I.
- Your taxable income before the distribution for the prior years requested. Part I lists 2023, 2022, 2021, 2020, and 2019.
- The amount of accumulated income, the number of years it accumulated, and your residency status for the years requested in Part II.
- A schedule supporting any tax credit adjustment. The form says to attach this schedule.
- Mental Health Services Tax paid on taxable income before the distribution, for Part III.
How to file
Attach Form 5870A to the beneficiary’s tax return.
For Parts II and III, complete Section A if the income accumulated over five taxable years or more. Complete Section B if it accumulated over fewer than five taxable years.
Part II directs you to report the calculated tax from Section A, line 14, or Section B, line 16, on Form 540, line 34; Form 540NR, line 41; or Form 541, line 21b.
Part III directs you to report the total from line 6 of the applicable section on Form 540, line 62; Form 540NR, line 72; or Form 541, line 27.
The supplied form does not give a mailing address or e-file instructions.
Common mistakes
Keep these printed reminders in mind:
- Attach Form 5870A to the beneficiary’s tax return.
- Attach a schedule for tax credit adjustments.
- In Part II, answer “No” for nonresident years. Include only years marked “Yes” when totaling the tax on Section A, line 14, or Section B, line 16.
- In Parts II and III, use Section A for income accumulated over five taxable years or more and Section B for income accumulated over fewer than five taxable years.
- On Part I, line 26, enter zero if the result is zero or less.
Questions people ask
Which prior years does Part I use on the 2024 form?
Line 11 asks for taxable income before the distribution for 2023, 2022, 2021, 2020, and 2019. Line 12 then tells you to eliminate the highest and lowest taxable income years and enter the remaining amounts and years.
Which section of Part II should I complete?
Complete Section A if the income accumulated over five taxable years or more. Complete Section B if it accumulated over fewer than five taxable years.
How do I answer the residency questions in Part II?
Check “Yes” for each year you were a resident or part-year resident. Answer “No” for nonresident years.
Where do I report the income amount calculated in Part II?
Section A, line 2, and Section B, line 4, direct you to enter the amount on Schedule CA (540), Part I, Section B, line 8z, column C, or Schedule CA (540NR), Part II, Section B, line 8z, column C.