The California Form 3803 is a tax document that allows parents to report their child's interest and dividend income on their own California income tax return. This form is particularly useful for parents whose children are under 19 years old or under 24 and enrolled as full-time students, as it simplifies the tax filing process for families. If you need to fill out this form, please click the button below to get started.
The California Form 3803, also known as the Parents’ Election to Report Child’s Interest and Dividends, plays a significant role in simplifying the tax filing process for families with children earning interest and dividend income. This form allows parents to report their child's income on their own California income tax return, potentially relieving the child from the obligation of filing a separate return, provided certain conditions are met. To qualify, the child must be under the age of 19 or a full-time student under the age of 24, and their income must solely consist of interest and dividends, totaling less than $9,500. The form is structured into two parts: the first part focuses on calculating the child's interest and dividend income, while the second part determines any additional tax owed on that income. Parents must ensure they meet specific criteria, such as filing a joint return or having higher taxable income than the child's other parent, to utilize this election effectively. By completing and attaching Form 3803 to their Form 540 or Long Form 540NR, parents can streamline their tax obligations while also ensuring compliance with California tax regulations.
TAXABLE YEAR
Parents’ Election to Report
CALIFORNIA FORM
2012
Child’s Interest and Dividends
3803
Attach to Parents’ Form 540 or Long Form 540NR
Name(s) as shown on return
Child’s name (first, initial, and last)
Your SSN or ITIN
- -
Child’s SSN or ITIN
If more than one form FTB 3803 is attached, check here . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Part I — Child’s interest and dividend income to report on your return (the child must be under age 19 or under age 24 and a full time student, see instructions).
1 a Enter your child’s taxable interest income
1a
|00
bEnter your child’s tax-exempt interest income. Do not include this amount
on line 1a
1b
2Enter your child’s ordinary dividends. If none, enter -0-. If your child received any dividends as a nominee,
see instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2
3Enter your child’s capital gain distributions. If your child received any capital gain distributions as a nominee,
see instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3
4Add line 1a, line 2, and line 3. If the total is $1,900 or less, skip line 5 and line 6 and go to line 7.
If the total is $9,500 or more, do not file this form. Your child must file his or her own return to report the income. . . . . . .4
5 Base amount. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5
6 Subtract line 5 from line 4. See instructions for where to report this amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6
Go to line 7 below
$1,900 |00 |00
Part II — Tax on the first $1,900 of child’s interest and dividend income.
7
Amount not taxed
$ 950 |00
8
Subtract line 7 from line 4. If zero or less, enter -0-
9
Tax. Is the amount on line 8 less than $950?
No.
Enter $10.00 here and see the Note below.
Yes.
Multiply line 8 by 1% (.01). Enter the result here and see the Note below
Note: Add the amount of tax from each form FTB 3803, line 9 to any tax you enter on Form 540 or Long Form 540NR, line 31 and check the box labeled “FTB 3803.”
Instructions for Form FTB 3803
Parents’ Election to Report Child’s Interest and Dividends
References in these instructions are to the Internal Revenue Code (IRC) as of January 1, 2009, and to the California Revenue and Taxation Code (R&TC).
General Information
In general, for taxable years beginning on or after January 1, 2010, California law conforms to the Internal Revenue Code (IRC) as of January 1, 2009. However, there are continuing differences between California and federal law. When California conforms to federal tax law changes, we do not always adopt all of the changes made at the federal level. For more information, go to ftb.ca.gov and search for conformity. Additional information can be found in FTB Pub. 1001, Supplemental Guidelines to California Adjustments, the instructions for California Schedule CA (540 or 540NR), and the Business Entity tax booklets.
The instructions provided with California tax forms are a summary of California tax law and are only intended to aid taxpayers in preparing their state income tax returns. We include information that is most useful to the greatest number of taxpayers in the limited space available. It is not possible to include all requirements of the California Revenue and Taxation Code (R&TC) in the tax booklets. Taxpayers should not consider the tax booklets as authoritative law.
For taxable years beginning on or after January 1, 2010, California conforms to the provision of the Small Business and Work Opportunity Tax Act of 2007 which increased the age of children to under age 19 or a student under age 24 for elections made by parents reporting their child’s interest and dividends.
For Privacy Notice, get form FTB 1131.
7481123
FTB 3803 2012
Registered Domestic Partners (RDP)
For purposes of California income tax, references to a spouse, husband, or wife also refer to a California RDP, unless otherwise specified.
When we use the initials RDP they refer to both a California registered domestic “partner” and a California registered domestic “partnership,” as applicable. For more information on RDPs, get FTB Pub. 737, Tax Information for Registered Domestic Partners.
A Purpose
Parents may elect to report their child’s income on their California income tax return by completing form FTB 3803, Parents’ Election to Report Child’s Interest and Dividends. If you make this election, the child will not have to file a return. You may report your child’s income on your California income tax return even if you do not do so on your federal income tax return. You may make this election if your child meets all of the following conditions:
•Was under age 19 or a student under age 24 at the end of 2012. A child born on January 1, 1994, is considered to be age 19 at the end of 2012. A child born on January 1, 1989, is considered to be age 24 at the end of 2012.
•Is required to file a 2012 income tax return.
•Had income only from interest and dividends.
•Had gross income for 2012 that was less than $9,500.
•Made no estimated tax payments for 2012.
•Did not have any overpayment of tax shown on his or her 2011 return applied to the 2012 estimated taxes.
•Had no state income tax withheld from his or her income (backup withholding).
As a parent, you must also qualify as explained in Section B.
B Parents Who Qualify to Make the Election
You qualify to make this election if you file Form 540, California Resident Income Tax Return, or Long Form 540NR, California Nonresident or Part- Year Resident Income Tax Return, and if any of the following applies to you:
•You and the child’s other parent were married to each other or in a registered domestic partnership and you file a joint return for 2012.
•You and the child’s other parent were married to each other or in a registered domestic partnership but you file separate returns for 2012 AND you had the higher taxable income. If you do not know if you had the higher taxable income, get federal Publication 929, Tax Rules for Children and Dependents.
•You were unmarried, treated as unmarried for state income tax purposes, or separated from the child’s other parent by a divorce, separate maintenance decree, or termination of a domestic partnership and you had custody of your child for most of the year (you were the custodial parent). If you were the custodial parent and you remarried or entered into another registered domestic partnership, you may make the election on a joint return with your new spouse/RDP (your child’s stepparent). But if you and your new spouse/RDP do not file a joint return, you qualify to make the election only if you had higher taxable income than your new spouse/RDP.
If you and the child’s other parent were not married or in a registered domestic partnership but you lived together during the year with the child, you qualify to make the election only if you are the parent with the higher taxable income.
If you elect to report your child’s income on your return, you may not reduce that income by any deductions that your child would be entitled to claim on his or her own return, such as the penalty on early withdrawal of child’s savings or any itemized deductions. For more information, get the instructions for federal Form 8814, Parents’ Election to Report Child’s Interest and Dividends.
C How to Make the Election
To make the election, complete and attach form FTB 3803 to your Form 540 or Long Form 540NR and file your return by the due date (including extensions).
File a separate form FTB 3803 for each child whose income you choose to report.
Specific Line Instructions
Use Part I to figure the amount of the child’s income to report on your return. Use Part II to figure any additional tax that must be added to your tax.
Name and Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN). Enter your name as shown on your tax return. If filing a joint return, include your spouse’s/RDP’s name but enter the SSN or ITIN of the person whose name is shown first on the return.
For more information about interest, dividends, and capital gain distributions taxable by California, get the instructions for Schedule CA (540), California Adjustments — Residents, or Schedule CA (540NR), California Adjustments — Nonresidents or Part-Year Residents.
Part I Child’s Interest and Dividend Income to Report on Your Return
Line 1a
Enter all interest income taxable by California and received by your child in 2012. If, as a nominee, your child received interest that actually belongs to another person, write the amount and the initials “ND” (for “nominee distribution”) on the dotted line to the left of line 1a. Do not include amounts received by your child as a nominee in the total entered on line 1a.
If your child received Form 1099-INT, Interest Income, showing California tax-exempt interest or Form 1099-OID, Original Issue Discount, get the instructions for federal Form 8814.
Line 1b
If your child received any interest income exempt from California tax, such as interest on United States savings bonds or California municipal bonds, enter the total tax-exempt interest on line 1b. Also include any exempt- interest dividends your child received as a shareholder in a mutual fund or other regulated investment company. Do not include this interest on line 1a. Get the instructions for Schedule CA (540 or 540NR), line 8, for more information.
Line 2
Enter ordinary dividends received by your child in 2012. Ordinary dividends should be shown on Form 1099-DIV, Dividends and Distributions, box 1. Also, include ordinary dividends your child received through a partnership, an S corporation, an estate, or trust.
If your child received, as a nominee, ordinary dividends that actually belong to another person, enter the amount and the initials “ND” on the dotted line to the left of line 2. Do not include amounts received as a nominee in the total for line 2.
Line 3
Enter the capital gain distributions taxable by California and received by your child in 2012. Capital gain distributions should be shown on Form 1099-DIV, box 2a. Also, see the instructions for line 6. If your child received, as a nominee, capital gain distributions that actually belong to another person, enter the amount and the initials “ND” on the dotted line to the left of line 3. Do not include amounts received as a nominee in the total for line 3.
Line 6
If the total amount on line 6 of all form(s) FTB 3803 is less than the total amount on line 6 of all your federal Form(s) 8814, enter the difference on Schedule CA (540 or 540NR), line 21f, column B and write “FTB 3803” on line 21f.
If the total amount on line 6 of all form(s) FTB 3803 is more than the total amount on line 6 of all your federal Form(s) 8814, enter the difference on Schedule CA (540 or 540NR), line 21f, column C and write “FTB 3803” on line 21f.
If you did not file federal Form 8814, enter the amount from form
FTB 3803, line 6, on Schedule CA (540 or 540NR), line 21f, column C and write “FTB 3803” on line 21f.
If your child received capital gain distributions (shown on Form 1099-DIV, box 2a and box 2b) and you have other gains or losses to report on your Schedule D, California Capital Gain or Loss Adjustment, you must report part or all of your child’s capital gain distributions on your Schedule D instead of on form FTB 3803, line 6. Get federal Publication 929 for more information on how to figure the amount to report on your Schedule D.
Part II Tax on the First $1,900 of Child’s Interest and Dividend Income
Line 9
Add the amount of tax from each form FTB 3803, line 9 to any tax you enter on Form 540 or Long Form 540NR, line 31 and check the box labeled “FTB 3803.”
Page 2 FTB 3803 2012
Completing the California 3803 form requires careful attention to detail. This form allows parents to report their child's interest and dividends on their tax return, provided certain conditions are met. The following steps outline the process for accurately filling out the form.
Once the form is completed, it should be attached to your California Form 540 or Long Form 540NR when filing your tax return. Be mindful of deadlines to ensure timely submission and compliance with state tax regulations.
What is the California Form 3803?
The California Form 3803, also known as the Parents’ Election to Report Child’s Interest and Dividends, allows parents to report their child's income on their own tax return. This form is particularly useful for children under 19 or under 24 if they are full-time students. By using this form, parents can include their child's interest and dividend income on their tax return, which may simplify the filing process for families.
Who can use Form 3803?
Parents can use Form 3803 if their child meets specific criteria. The child must be under 19 years old or under 24 and a full-time student. Additionally, the child should have income only from interest and dividends, and their total gross income must be less than $9,500. If these conditions are met, parents can elect to report the child’s income on their tax return.
What types of income can be reported on Form 3803?
Form 3803 allows parents to report their child's taxable interest income, tax-exempt interest income, ordinary dividends, and capital gain distributions. It is important to accurately list these amounts to ensure proper reporting and compliance with tax laws.
What happens if my child's total income exceeds $9,500?
If your child's total income from interest and dividends exceeds $9,500, they must file their own tax return. In this case, Form 3803 cannot be used, and the child will need to report their income independently.
How do I fill out Form 3803?
To complete Form 3803, enter your name and Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) at the top. Then, fill in your child's name and SSN or ITIN. Use Part I to report the child’s income, and in Part II, calculate any additional tax owed. Ensure you attach the completed form to your California Form 540 or Long Form 540NR when you file your return.
Can I report my child's income on my federal tax return?
No, Form 3803 is specific to California state tax returns. While you can report your child's income on your California tax return using this form, you cannot use it for federal income tax purposes. Each tax return must be filed according to its respective guidelines.
What if I am married but filing separately?
If you are married and filing separately, you can still use Form 3803 if you have the higher taxable income compared to your spouse. If you and your spouse file jointly, you can report your child's income together on the same form.
What if my child received interest or dividends as a nominee?
If your child received interest or dividends as a nominee, you must indicate this on Form 3803. Write "ND" next to the amounts received to clarify that these funds do not belong to your child. Only report the income that is genuinely theirs to ensure accurate tax reporting.
Is there a tax on my child's income reported on Form 3803?
Yes, there is a tax on the first $1,900 of your child's interest and dividend income. If the total income reported exceeds this amount, you will need to calculate the tax accordingly. The form provides specific lines to help determine the tax owed based on the child's income.
Where can I find more information about Form 3803?
For more details on Form 3803, including instructions and eligibility requirements, you can visit the California Franchise Tax Board's website. They provide comprehensive resources and publications to assist taxpayers in understanding their obligations and completing the form correctly.
Filling out the California Form 3803 can be a straightforward process, but many people make common mistakes that can lead to confusion or even delays in processing. One frequent error is failing to correctly identify the child’s income sources. Parents often overlook the distinction between taxable and tax-exempt interest. For example, if a child has received interest from U.S. savings bonds, this amount should not be included in the taxable income section. Instead, it belongs in the tax-exempt section. This oversight can result in inaccurate reporting and potential issues with the tax authorities.
Another common mistake involves the eligibility criteria for reporting the child’s income. Parents sometimes assume their child qualifies without verifying the specific requirements. For instance, the child must be under age 19 or under age 24 and a full-time student. If the child does not meet these criteria, the election to report their income on the parents’ return is not valid. This can lead to unnecessary complications when filing taxes and may require the child to file their own return instead.
Additionally, many parents neglect to check the box indicating that multiple Form 3803s are attached when filing for more than one child. This simple oversight can cause confusion for the tax authorities and may delay the processing of the returns. It’s essential to ensure that all forms are correctly indicated to facilitate smooth processing.
Lastly, parents often miscalculate the tax owed on the child’s interest and dividend income. The tax calculation can be tricky, especially with the thresholds set at $1,900 and $9,500. If the total income is less than $1,900, parents can skip certain lines, but if it exceeds $9,500, the child must file their own return. Misunderstanding these thresholds can lead to filing errors that may result in penalties or additional taxes owed. Always double-check the calculations and guidelines to avoid these pitfalls.
The California Form 3803 is used by parents to report their child's interest and dividend income on their state tax return. This form is typically filed along with other documents that support the tax filing process. Below is a list of forms and documents that are often used in conjunction with the California 3803 form, along with a brief description of each.
Understanding these forms and documents can simplify the tax filing process for parents reporting their child's income. Each form serves a specific purpose and helps ensure compliance with both state and federal tax regulations.
The California Form 3803, which allows parents to report their child's interest and dividends on their tax return, shares similarities with several other tax documents. Each of these forms serves a specific purpose related to income reporting or tax calculations. Below is a list of documents that are similar to Form 3803, along with a brief explanation of their similarities:
Understanding these similarities can help ensure accurate reporting and compliance with tax regulations. It is crucial to review each form's requirements carefully to avoid potential issues during tax season.
When filling out the California 3803 form, it’s important to follow certain guidelines to ensure accuracy and compliance. Here are five things you should do and five things you shouldn't do.
Understanding the California Form 3803 can be complicated. Here are five common misconceptions about this form:
This is incorrect. Parents can report children who are under age 19 or under age 24 if they are full-time students.
In some cases, this is true, but if your child's income exceeds $9,500, they must file their own tax return.
This is not accurate. You can only report your child's interest and dividend income, not other types of income.
This is false. When you report your child's income on your return, you cannot deduct any amounts that your child could claim on their own return.
This is misleading. Regardless of how you file, you must attach Form 3803 to your Form 540 or Long Form 540NR if you choose to report your child's income.
Here are key takeaways regarding the California 3803 form: