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While California Schedule P (540) Alternative Minimum Tax and Credit Limitations - Residents may be part of your return, it does not necessarily mean that your return is subject to alternative minimum tax. As explained below, there are other reasons your return may need to contain California Schedule P.

Per the California Instructions for Schedule P (540):

Who Must File

Complete Schedule P (540) to see if AMT applies to you. Attach it to Form 540 only if any one of the following apply:

  • You owe AMT.
  • You have more than two credits.
  • You have credits that are reported in Part III, Section A1, Section A2, or Section C. See the Credit Table on page 8 for a list of credits.
  • The total of Part I, line 7 through line 13 is negative and you would be liable for AMT without taking those lines into account.
  • Schedule P (540), Part I, line 21, Alternative Minimum Taxable Income, (AMTI), is more than Part II, line 22, Exemption Amount, and you have one or more adjustments on Part I, line 4 or line 7 through line 13l.

The list of credits that require Schedule P to be part of your return are contained in the TaxAct instructions (available via the link "State Form Instructions" which is on the right side of each screen when you are in the California Q&A) or via the link above (go to the last page of the instructions).


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