Schedule P (540NR): Alternative Minimum Tax and Credit Limitations - Nonresidents and Part-Year Residents (2025)
California · FTB · Used for tax years 2025
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
Have Form 540NR available. Schedule P uses amounts from that return, along with your name and Social Security number or ITIN.
Depending on which lines apply to you, you may also need:
- Schedule CA (540NR), for income, deductions, and net operating loss amounts.
- Federal Schedule A (Form 1040) and federal Form 1040 or 1040-SR, for the medical and dental expense calculation.
- Schedule K-1 (541), line 12a, if you are a beneficiary of an estate or trust.
- Forms for the credits you claim. Part III specifically reminds you to attach your credit forms to Form 540NR.
How to file
Attach Schedule P (540NR) to Form 540NR. If you claim credits in Part III, attach your credit forms to Form 540NR as well.
The supplied form does not give a mailing address or e-filing directions.
Common mistakes
- Including a state income tax refund on Part I, line 6. The form explicitly says not to include it there.
- Overlooking California and federal differences. Part I tells you to consult the instructions about these differences.
- Entering more than 1.0000 on Part II, line 38. The form caps the AMT itemized deduction percentage at that amount.
- Forgetting credit forms. Part III reminds you to attach them to Form 540NR.
- Ignoring the business credit limitation. If you are subject to this limitation, total business credits used in Part III, Sections A and B, column (b), cannot exceed $5,000,000.
Questions people ask
What does Schedule P (540NR) calculate?
The schedule covers alternative minimum tax and credit limitations for nonresidents or part-year residents. Part I calculates alternative minimum taxable income, Part II calculates alternative minimum tax, and Part III figures 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 lines 32 and 40, and skip lines 33 through 39.
What if my alternative minimum tax calculation is zero or less?
Part II, line 45, tells you to enter 0 there 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 carryover and commercial solar energy credit carryover as credits that may reduce alternative minimum tax. Line 25 directs you to enter the adjusted AMT on Form 540NR, line 71.