Schedule P (540NR): Alternative Minimum Tax and Credit Limitations - Nonresidents and Part-Year Residents (2024)
California · FTB · Used for tax years 2024
California Schedule P (540NR) calculates alternative minimum taxable income and alternative minimum tax for nonresidents and part-year residents and addresses credit limitations. Attach this schedule to Form 540NR.
What you'll need
The schedule uses amounts from these forms, depending on which lines apply to you:
- Form 540NR, including your standard deduction, taxable income, and tax amounts.
- Schedule CA (540NR), including California income, deductions, and net operating loss amounts.
- Federal Schedule A (Form 1040) and Form 1040 or 1040-SR, for the medical and dental expense calculation if you itemized deductions.
- Schedule K-1 (541), line 12a, if you are reporting an amount as a beneficiary of an estate or trust.
- Credit forms for the credits you claim. The schedule says to attach your credit forms to Form 540NR.
Enter your name as shown on Form 540NR and your SSN or ITIN.
How to file
Attach Schedule P (540NR) to Form 540NR. Also attach your credit forms to Form 540NR when claiming credits in Part III.
The supplied form does not provide a mailing address or e-file directions.
Common mistakes
- Including a state income tax refund on Part I, line 6. The form specifically says not to include it there.
- Overlooking California and federal differences. Part I directs you to the instructions for these differences.
- Entering more than 1.0000 on Part II, line 38. The form caps the AMT itemized deduction percentage at 1.0000.
- Forgetting credit forms. Part III reminds you to attach them to Form 540NR.
- Exceeding the business credit limit when it applies. For taxpayers subject to the business credit limitation, total business credits in Part III, Sections A and B, column (b), cannot exceed $5,000,000.
Questions people ask
What does Schedule P (540NR) calculate?
Part I calculates alternative minimum taxable income (AMTI). Part II calculates alternative minimum tax (AMT). Part III figures allowable credits that reduce tax.
What if I did not itemize deductions?
In Part I, enter your standard deduction from Form 540NR, line 18, on line 1, then go to line 6. In Part II, enter the result from line 32 on both line 32 and line 40, and skip lines 33 through 39.
What if the AMT calculation on Part II, line 45, is zero or less?
Enter 0 on line 45 and on Form 540NR, line 71. Continue to Part III to figure your allowable credits.
Can any credits reduce alternative minimum tax?
Part III, Section C, lists solar energy credit carryovers and commercial solar energy credit carryovers as credits that may reduce AMT. Line 25 directs you to enter the adjusted AMT on Form 540NR, line 71.