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Blank California 3800 PDF Form

The California Form 3800 is used to calculate the tax for certain children with investment income exceeding $1,900. This form must be attached to the child's Form 540 or Long Form 540NR. Completing the California 3800 form accurately ensures that the child's tax is computed at the parent's rate, if applicable.

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Article Guide

The California Form 3800, officially titled "Tax Computation for Certain Children with Investment Income," serves as a crucial tool for parents managing the tax obligations of their children under specific circumstances. Designed for children aged 18 and under, or students under 24, this form is applicable when the child has investment income exceeding $1,900. The form is attached to the child’s Form 540 or Long Form 540NR and helps determine the tax rate based on the parent’s income, particularly when the parent's tax rate is higher than the child's. The form includes sections for reporting the child's net investment income, calculating tentative tax based on the parent's income, and ultimately determining the child's tax liability. It is essential for parents to complete this form accurately to ensure compliance with California tax regulations while optimizing their tax outcomes. Understanding the nuances of Form 3800 can significantly impact the financial responsibilities of families, particularly those with children who have substantial investment earnings.

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	TAXABLE YEAR	Tax Computation for Certain Children			CALIFORNIA FORM
2011		with Investment Income			3800

Attach ONLY to the child’s Form 540 or Long Form 540NR
Child’s name as shown on return			Child’s SSN or ITIN
				-	-

Parent’s name (ﬁrst, initial, and last). (Caution: See instructions before completing.)			Parent’s SSN or ITIN
			-		-

Parent’s ﬁling status (check one):

฀ Single ฀ Married/RDP ﬁling jointly ฀ Married/RDP ﬁling separately ฀ Head of household ฀ Qualifying widow(er)

Enter number of exemptions claimed on parent’s return. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Part I Child’s net investment income

1Enter the child’s investment income, such as taxable interest, ordinary dividends, and capital gains.

See instructions. If this amount is $1,900 or less, stop here; do not ﬁle this form . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

2If the child did not itemize deductions on Form 540 or Long Form 540NR, enter $1,900. If the child itemized

deductions, see instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

3Subtract line 2 from line 1. If zero or less, stop here; do not complete the rest of this form but attach

it to the child’s return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

4 Enter the child’s taxable income from Form 540, line 19 or total taxable income from Long Form 540NR, line 19 . . . . . . 4

5 Net investment income. Enter the smaller of line 3 or line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Part II Tentative tax based on the tax rate of the parent listed above

6Enter the parent’s taxable income from Forms 540/540A, line 19; or total taxable income

from Long or Short Form 540NR, line 19. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

7Enter the total net investment income, if any, from form(s) FTB 3800, line 5, of all other children of the

parent identiﬁed above. Do not include the amount from line 5 above. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

8 Add line 5 through line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

9Enter the tax on the amount on line 8 based on the parent’s ﬁling status. Use the tax table or tax rate schedules

found in the 2011 instructions for Forms 540/540A. See instructions for Long or Short Form 540NR ﬁlers . . . . . . . . . . . 9

10Enter the parent’s tax from Forms 540/540A, line 31. See instructions for Long or Short Form 540NR ﬁlers.

Do not include any tax from FTB 3803 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

11Subtract line 10 from line 9. If you did not enter an amount on line 7, then enter the amount from

line 11 on line 13 and skip line 12a and line 12b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

12 a	Add line 5 and line 7	12a	00
b	Divide line 5 by line 12a. Enter the result as a decimal (rounded to four places)		. . . . . .12b X . ____ ____ ____ ____

13 Multiply line 11 by the decimal amount on line 12b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Part III Child’s tax

If the amounts on line 4 and line 5 above are the same, enter -0- on line 15 and go to line 16.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14 Subtract line 5 from line 4

15Enter the tax on the amount on line 14 based on the child’s ﬁling status. Use the tax table or tax rate schedules

found in the 2011 instructions for Form 540. See instructions for Long Form 540NR ﬁlers . . . . . . . . . . . . . . . . . . . . . . . . 15

16 Add line 13 and line 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

17Enter the tax on the amount on line 4 based on the child’s ﬁling status. Use the tax table or tax rate schedules

found in the 2011 instructions for Form 540. See instructions for Long Form 540NR ﬁlers . . . . . . . . . . . . . . . . . . . . . . . . 17

18Compare the amounts on line 16 and line 17. Enter the larger of the two amounts here and on the child’s Form 540, line 31. Also ﬁll in the circle labeled “FTB 3800’’ on the child’s tax return.

See instructions for Long Form 540NR ﬁlers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

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FTB 3800 2011

Instructions for Form FTB 3800

Tax Computation for Certain Children with Investment Income

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

For taxable years beginning on or after January 1, 2010, California conforms to the provision of the Small Business and Work Opportunity Act of 2007 which increased the age of children to 18 and under or

a student under age 24 for elections made by parents reporting their child’s interest and dividends.

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.

Purpose

For certain children, investment income over $1,900 is taxed at the parent’s rate if the parent’s rate is higher. Use form FTB 3800, Tax Computation for Certain Children with Investment Income, to ﬁgure the child’s tax.

Complete form FTB 3800 if all of the following apply:

•The child is 18 and under or a student under age 24 at the end of 2011. A child born on January 1, 1994, is considered to be age 18 at the end of 2011. A child born on January 1, 1988, is considered to be age 24 at the end of 2011.

•The child had investment income taxable by California of more than $1,900.

•At least one of the child’s parents was alive at the end of 2011.

If the child uses form FTB 3800, ﬁle Form 540, California Resident Income Tax Return, or Long Form 540NR, California Nonresident or Part-Year Resident Income Tax Return.

If the child does not ﬁle form FTB 3800, ﬁgure the tax in the normal manner on the child’s Forms 540/540A, or Long or Short Form 540NR.

Parents of children 18 and under or a student under age 24 at the end of 2011, may elect to include the child’s investment income on the parent’s tax return. To make this election, the child must have had income only from interest and dividends. The election is not available if estimated tax payments were made in the child’s name. Get form FTB 3803, Parents’ Election to Report Child’s Interest and Dividends, for more information. If parents make this election, the child will not have to ﬁle a California tax return or form FTB 3800.

If you elect to report your child’s income on your federal income tax return, but not on your California income tax return, be sure to make an adjustment on your Schedule CA (540 or 540NR), line 21f.

Speciﬁc Line Instructions

Parent’s Name and Social Security Number (SSN) or Individual Taxpayer Identiication Number (ITIN)

If federal Form 8615, Tax for Certain Children Who Have Investment Income of More Than $1,900, was ﬁled with the child’s federal tax return, enter the name and SSN or ITIN of the same parent who was identiﬁed at the top of federal Form 8615.

If the child’s parents were married to each other or in an RDP and ﬁled a joint 2011 California tax return, enter the name and SSN or ITIN of the parent who is listed ﬁrst on the joint return.

If the parents were married or in an RDP but ﬁled separate California tax returns, enter the name and SSN or ITIN of the parent with the higher taxable income.

If the parents were unmarried, treated as unmarried for tax purposes, or separated either by a divorce or separate maintenance decree, enter the name and SSN or ITIN of the parent who had custody of the child for most of 2011.

Exception. If the custodial parent remarried or entered into an RDP and ﬁled a joint return with the new spouse/RDP, enter the name and SSN or ITIN of the person listed ﬁrst on the joint return, even if that person is not the child’s parent. If the custodial parent and the new spouse/RDP ﬁled separate California tax returns, enter the name and SSN or ITIN of the person with the higher taxable income, even if that person is not the child’s parent.

If the child’s parents were unmarried but lived together during the year with the child, enter the name and SSN or ITIN of the parent who had the higher taxable income.

Part I Child’s Net Investment Income

Line 1 – Enter the child’s investment income. Include income such as taxable interest, dividends, capital gains, rents, annuities, and income received as a beneﬁciary. In most cases, this will be the same as the amount entered on federal Form 8615, include only income taxable by California. Also, include investment income that was not taxed on the child’s federal tax return but is taxable under California law. For more information, get the instructions for Schedule CA (540 or 540NR), line 8 and line 9.

If the child had earned income (deﬁned below), use the following worksheet to ﬁgure the amount to enter on form FTB 3800, line 1.

1.Enter the amount of the child’s adjusted gross income from Form 540, line 17 or

Long Form 540NR, line 17, whichever applies . . . . . . 1 __________

2.Enter the child’s earned income . . . . . . . . . . . . . . . . . . 2 __________

(wages, tips, and other payments received for personal services performed)

3.Subtract line 2 from line 1. Enter the result

here and on form FTB 3800, line 1 . . . . . . . . . . . . . . . 3 __________

Line 2 – If the child itemized deductions, enter the greater of:

$950 plus the portion of the amount on Form 540 or Long Form 540NR, line 18, that is directly connected with the production of the investment income shown on form FTB 3800, line 1 or $1,900.

Part II Tentative Tax Based on Parent’s Tax Rate

If the parent used Form 540 2EZ, reﬁgure your tax by referring to the tax table for Forms 540/540A in order to complete this part. Using Form 540 2EZ will not produce the correct result.

Line 6 – Enter the taxable income from Forms 540/540A, line 19; or total taxable income from Long or Short Form 540NR, line 19 of the parent whose name is shown at the top of form FTB 3800. If the parent’s taxable income is less than zero, enter -0- on line 6. If the parent ﬁled a joint California tax return, enter the taxable income shown on that return even if the parent’s spouse/RDP is not the child’s parent.

Line 7 – If the individual identiﬁed as the parent on this form FTB 3800 is also identiﬁed as the parent on any other form FTB 3800, add the amounts, if any, from line 5 on each of the other forms FTB 3800 and enter the total on line 7.

Line 9 – Use the California tax table or tax rate schedules in the 2011 instructions for Forms 540/540A to ﬁnd the tax for the amount on line 8, based on the parent’s ﬁling status.

FTB 3800 2011 Page 1

Long or Short Form 540NR Filers: To ﬁgure a revised California adjusted gross income and a tentative tax based on the parent’s tax rate, complete the following worksheet.

AEnter the child’s portion of the net investment income that must be included in the child’s

	CA adjusted gross income	____________
B	Enter parent’s CA adjusted gross income from
	Long or Short Form 540NR, Line 32	____________
C	Add line A and line B	____________
D	Enter the child’s investment income
	(form FTB 3800, line 5)	____________
E	Enter parent’s adjusted gross income from all
	sources from Long or Short Form 540NR, line 17. . .	____________
	If the parents have other children for whom form
	FTB 3800 was completed, add the other children’s
	net investment income to the parent’s CA adjusted
	gross income on line B and to the parent’s adjusted
	gross income from all sources on line E.
F	Add line D and line E	____________
G	Divide line C by line F (not to exceed 1.0)	____________

HEnter the parent’s total itemized deductions or standard deduction from Long or Short

	Form 540NR, line 18	____________
I	Multiply line H by line G	____________
J	Subtract line I from line C	____________
K	Subtract line H from line F	____________

LFind the tax on the amount on line K for the parent’s ﬁling status (Use the tax table or tax rate schedules in the 2011 instructions for

	Long or Short Form 540NR)	____________
M	Divide line L by line K	____________
N	Multiply line J by line M. Enter the result on form
	FTB 3800, line 9	____________

Line 10 – Enter the tax shown on the tax return of the parent identiﬁed at the top of form FTB 3800 from Forms 540/540A, line 31.

If the parent ﬁled a joint tax return, enter on line 10 the tax shown on that tax return even if the parent’s spouse/RDP is not the child’s parent.

Long Form 540NR Filers: If the parent’s tax amount on Long

Form 540NR, line 37 does not include an amount from form FTB 3803, then enter the parent’s tax amount from Long Form 540NR, line 37.

If the parent’s tax amount on Long Form 540NR, line 37 includes an amount from form FTB 3803, revise the parent’s tax by completing the following worksheet.

A	Enter the tax from the parent’s
	Long Form 540NR, line 31	____________
B	Enter the tax from form FTB 3803	____________
C	Subtract line B from line A	____________
D	Enter the amount from the parent’s
	Long Form 540NR, line 19	____________
E	Divide line C by line D	____________
F	Enter the amount from the parent’s
	Long Form 540NR, line 35	____________
G	Multiply line F by line E. Enter the result
	on form FTB 3800, line 10	____________

Part III Child’s Tax

Line 15 – Use the California tax table or tax rate schedules in the 2011 instructions for Form 540 to ﬁnd the tax for the amount on line 14 based on the child’s ﬁling status.

Long Form 540NR Filers: To ﬁgure a revised California adjusted gross income for the child and the child’s tax, complete the following worksheet.

A Enter the child’s CA adjusted gross income
from Long Form 540NR, line 32	____________

BEnter the portion of the child’s net investment income that must be included in the child’s

	CA adjusted gross income	____________
C	Subtract line B from line A	____________
D	Enter the child’s adjusted gross income from all
	sources from Long Form 540NR, line 17	____________
E	Enter the child’s investment income
	(form FTB 3800, line 5)	____________
F	Subtract line E from line D	____________
G	Divide line C by line F (not to exceed 1.0)	____________

HEnter the child’s total itemized deductions or standard deduction from Long or Short

	Form 540NR, line 18	____________
I	Multiply line H by line G	____________
J	Subtract line I from line C	____________
K	Subtract line H from line F	____________

LFind the tax on the amount on line K for the child’s ﬁling status (Use the tax table or tax rate schedules in the 2011 instructions for

	Long Form 540NR)	____________
M	Divide line L by line K	____________
N	Multiply line J by line M. Enter the result on
	form FTB 3800, line 15	____________

Line 17 – Use the California tax table or tax rate schedules found in the 2011 instructions for Form 540 to ﬁnd the tax for the amount on line 4, based on the child’s ﬁling status.

Long Form 540NR Filers:
A Enter the amount from form FTB 3800, line 4	____________

BFind the tax for the amount on line A, by using the tax table or tax rate schedules in the 2011 instructions for Long Form 540NR based on

	the child’s ﬁling status	____________
C	Divide line B by line A	____________
D	Enter the amount from the child’s
	Long Form 540NR, line 35	____________
E	Multiply line D by line C. Enter the result on
	form FTB 3800, line 17	____________

Line 18 – Compare the amounts on line 16 and line 17 and enter the larger of the two amounts on line 18. Be sure to ﬁll in the circle labeled “FTB 3800” on Form 540, line 31 of the child’s tax return.

Long Form 540NR Filers: Divide the child’s Long Form 540NR, line 35 by the child’s Long Form 540NR, line 19 to determine the child’s percentage. Divide the larger of line 16 or line 17, by the percentage. Enter the amount on line 18 and on the child’s Long Form 540NR, line 31. Be sure to the ﬁll in the circle labeled “FTB 3800” on the child’s Long Form 540NR.

Note: The amount entered on 540NR, line 31 reﬂects your tax on total taxable income before applying the California tax rate to your California source income. Follow the instructions for Long Form 540NR to determine your ﬁnal California tax.

Page 2 FTB 3800 2011

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Form Specifications

Fact Name	Details
Purpose	The California Form 3800 is used to calculate the tax for children with investment income exceeding $1,900, which is taxed at the parent's rate if higher.
Eligibility Criteria	To use Form 3800, the child must be 18 or younger, or a student under 24, and have investment income over $1,900.
Filing Requirement	This form must be attached to the child’s Form 540 or Long Form 540NR when filing taxes.
Investment Income Definition	Investment income includes taxable interest, dividends, and capital gains. Only income taxable by California is reported.
Governing Laws	The form operates under the California Revenue and Taxation Code (R&TC) and conforms to the Internal Revenue Code (IRC) as of January 1, 2009.
Tax Calculation	The tax is calculated based on the parent’s taxable income and the child’s net investment income, utilizing tax tables provided in the instructions.

California 3800: Usage Guidelines

Completing the California Form 3800 is an essential step for parents of children with investment income exceeding $1,900. This form helps determine the tax liability for the child based on the parent's tax rate. After filling out the form, it should be attached to the child's Form 540 or Long Form 540NR when filing. Below are the steps to guide you through the process of filling out the California 3800 form.

At the top of the form, enter the taxable year for which you are filing.
Provide the child’s name as it appears on their tax return.
Input the child’s Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN).
Fill in the parent’s name (first, initial, and last).
Enter the parent’s SSN or ITIN.
Select the parent’s filing status by checking the appropriate box: Single, Married/RDP filing jointly, Married/RDP filing separately, Head of household, or Qualifying widow(er).
Indicate the number of exemptions claimed on the parent’s return.

Next, proceed to Part I, where you will calculate the child’s net investment income. Follow the instructions carefully to ensure accuracy.

On line 1, enter the child’s total investment income, including taxable interest, ordinary dividends, and capital gains.
If the child did not itemize deductions, enter $1,900 on line 2. If itemized deductions were claimed, refer to the instructions for the correct amount.
Calculate line 3 by subtracting line 2 from line 1. If the result is zero or less, stop here and attach the form to the child's return.
On line 4, enter the child’s taxable income from Form 540 or Long Form 540NR.
For line 5, enter the smaller amount between line 3 and line 4.

Now, you will move on to Part II, which focuses on calculating the tentative tax based on the parent’s tax rate.

On line 6, input the parent’s taxable income from Forms 540/540A or Long or Short Form 540NR.
For line 7, enter the total net investment income from all other children of the parent, excluding the amount from line 5.
Add the amounts from lines 5 through 7 and enter the total on line 8.
Use the tax table or tax rate schedules to find the tax for the amount on line 8 and enter it on line 9.
On line 10, enter the parent’s tax from Forms 540/540A or Long Form 540NR.
Calculate line 11 by subtracting line 10 from line 9. If no amount was entered on line 7, proceed to line 13.
On line 12a, add lines 5 and 7. For line 12b, divide line 5 by line 12a and round to four decimal places.
Multiply the amount on line 11 by the decimal from line 12b and enter the result on line 13.

Finally, in Part III, you will determine the child’s tax.

If the amounts on lines 4 and 5 are the same, enter 0 on line 15 and skip to line 16. Otherwise, subtract line 5 from line 4 for line 14.
Use the tax table or tax rate schedules to find the tax for the amount on line 14 based on the child’s filing status and enter it on line 15.
Add the amounts from lines 13 and 15 and enter the result on line 16.
For line 17, find the tax on the amount from line 4 based on the child’s filing status.
Compare the amounts on lines 16 and 17. Enter the larger amount on line 18 and also on the child’s Form 540, line 31. Remember to fill in the circle labeled “FTB 3800” on the tax return.

Your Questions, Answered

What is the purpose of the California 3800 form?

The California 3800 form is used to calculate the tax for certain children who have investment income exceeding $1,900. If a child meets specific criteria, their investment income may be taxed at the parent's rate, which could be higher than the child's tax rate.

Who needs to file the California 3800 form?

Children aged 18 and under, or students under 24, who have investment income over $1,900 must file this form. Additionally, at least one parent must be alive at the end of the tax year for the form to be applicable.

What types of income should be reported on the form?

Report all taxable investment income, including interest, dividends, capital gains, and other relevant income. Make sure to include only the income that is taxable by California, even if it was not taxed on the federal return.

What should I do if my child's investment income is $1,900 or less?

If the child's investment income is $1,900 or less, you do not need to file the California 3800 form. Simply stop there and do not submit the form with the child’s tax return.

How do I determine the parent’s taxable income for the form?

To find the parent’s taxable income, refer to the parent’s California tax return, specifically Forms 540/540A or Long/Short Form 540NR, and enter the amount from line 19. If the parent's income is zero or less, enter -0- on the form.

What if the child has earned income?

If the child has earned income, you will need to calculate the net investment income by subtracting the earned income from the child’s adjusted gross income. This amount should be reported on line 1 of the California 3800 form.

What happens if the child itemized deductions?

If the child itemized deductions on their tax return, you will need to enter a specific calculation on line 2 of the form. This amount is either $950 plus the portion of the deductions related to the investment income or $1,900, whichever is greater.

How is the tentative tax calculated?

The tentative tax is based on the parent's tax rate. You will enter the parent’s taxable income and any net investment income from other children on the form. The total will help determine the tax amount using the tax tables provided in the instructions.

What do I do with the completed California 3800 form?

Attach the completed California 3800 form to the child’s Form 540 or Long Form 540NR when filing. Ensure that you fill in the circle labeled “FTB 3800” on the child’s tax return to indicate that this form has been used.

Common mistakes

Incorrect Parent Information: Many people fail to enter the correct name and Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) of the parent. This can lead to delays or rejections.
Missing Child’s Investment Income: Some individuals overlook the requirement to accurately report the child’s investment income. This includes taxable interest, dividends, and capital gains. If the amount is $1,900 or less, the form should not be filed at all.
Errors in Taxable Income: Entering the wrong taxable income from the parent’s tax return is a common mistake. Ensure that the income is taken from the correct line on Forms 540 or 540NR.
Incorrect Filing Status: Selecting the wrong filing status for the parent can lead to incorrect calculations. Be sure to check the appropriate box for single, married, head of household, or qualifying widow(er).
Omitting Other Children’s Income: When multiple children are involved, parents sometimes forget to add the net investment income from other children on the form. This can affect the overall tax calculation.
Not Following Instructions: Ignoring the specific line instructions can lead to errors. Each line has detailed guidance, and it’s important to read these before completing the form.

Documents used along the form

The California 3800 form is essential for calculating the tax owed for certain children with investment income. However, it is often accompanied by other forms and documents that help clarify and support the tax filing process. Below is a list of these documents, along with a brief description of each.

Form 540: This is the California Resident Income Tax Return. It is used by residents to report their income, claim deductions, and calculate their tax liability.
Long Form 540NR: This is the California Nonresident or Part-Year Resident Income Tax Return. It is for individuals who do not reside in California for the entire year but have California-source income.
Form 8615: This form calculates the tax for certain children who have investment income exceeding $2,300. It is essential when determining if the child’s income should be taxed at the parent’s rate.
Form FTB 3803: This form allows parents to elect to report their child’s interest and dividends on their tax return. It simplifies the process for families with children who have investment income.
Schedule CA (540 or 540NR): This schedule is used to adjust federal income to California income. It is important for reporting any differences between federal and state tax rules.
Form W-2: This form reports wages and tax withheld from an employee's paycheck. It is crucial for verifying earned income and tax withholdings.
Form 1099-INT: This form reports interest income earned by an individual. It helps in documenting investment income that may be subject to taxation.
Form 1099-DIV: This form reports dividend income received during the year. It is essential for accurately reporting investment income on tax returns.
Form 1099-B: This form reports proceeds from broker transactions, including sales of stocks or bonds. It is necessary for calculating capital gains or losses.

Each of these documents plays a vital role in ensuring accurate tax reporting and compliance with California tax laws. Properly gathering and submitting these forms alongside the California 3800 can help streamline the tax filing process for families with children who have investment income.

Similar forms

The California Form 3800 is used to calculate the tax for certain children with investment income. It has similarities to several other tax-related documents. Below is a list of ten forms that share similarities with the California Form 3800:

Form 8615: This federal form is used to calculate tax for certain children who have investment income exceeding a specific threshold. Like Form 3800, it addresses how investment income is taxed at the parent's rate if it exceeds $1,900.
Form 540: This is the California Resident Income Tax Return. It serves as the main form for reporting income and taxes for California residents, including any investment income reported on Form 3800.
Form 540NR: This form is for California Nonresidents or Part-Year Residents. Similar to Form 3800, it accounts for income earned while living in California, including investment income.
Form 540 2EZ: This simplified version of the California income tax return is designed for eligible taxpayers. It shares similarities in reporting income, although it may not provide the same level of detail for investment income as Form 3800.
Form FTB 3803: This form allows parents to elect to report their child’s interest and dividends. It is directly related to Form 3800, as both deal with how a child's investment income is taxed.
Schedule CA (540): This schedule is used to adjust California income tax returns for differences between federal and state tax laws. It helps clarify how investment income is treated, similar to the adjustments made on Form 3800.
Form 1040: The standard federal income tax return form, which includes reporting of investment income. Form 3800 relates to how this income is taxed when it falls under certain thresholds.
Form 8862: This form is used to claim the Earned Income Tax Credit after it was previously disallowed. While not directly related to investment income, it shows how certain credits and deductions can affect overall tax liability, similar to the calculations in Form 3800.
Form 8863: This form is used for education credits. Like Form 3800, it includes calculations that can significantly impact tax obligations, especially for families with children.
Form 8880: This form is for the Credit for Qualified Retirement Savings Contributions. It represents another aspect of tax credits that can influence overall tax calculations, similar to the adjustments made in Form 3800.

Dos and Don'ts

When filling out the California 3800 form, follow these guidelines:

Provide accurate information for the child's name and Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN).
Ensure the parent's information is complete, including their name and SSN or ITIN.
Double-check the child's net investment income to ensure it is reported correctly.
Use the correct tax table or tax rate schedules based on the parent's filing status.
Attach the form only to the child's Form 540 or Long Form 540NR.
Review the instructions carefully before completing each section of the form.

Things to avoid when completing the form:

Do not leave any required fields blank.
Avoid using outdated tax tables or incorrect filing statuses.
Do not include income that is not taxable by California.
Refrain from making assumptions about exemptions or deductions without verifying.
Do not forget to sign and date the form where required.
Avoid filing the form if the child's investment income is $1,900 or less; stop here and do not file.

Misconceptions

Misconceptions about the California 3800 Form

Misconception 1: The California 3800 form is only for children under 18.

This is not entirely true. The form applies to children who are 18 or younger or students under 24. Therefore, some 18-year-olds can still qualify.

Misconception 2: You must always file the 3800 form if your child has investment income.

If the child's investment income is $1,900 or less, you do not need to file this form. In such cases, simply stop here.

Misconception 3: The 3800 form is only for high-income families.

This form can apply to families of various income levels. It specifically addresses how to handle a child's investment income, regardless of the family's overall financial situation.

Misconception 4: Parents must report all of their child's income on their tax return.

Parents can choose to report only the child's investment income on their return. If the child has earned income, it is not included in this calculation.

Misconception 5: Completing the 3800 form is the same as filing the child's tax return.

The 3800 form is an attachment to the child's Form 540 or Long Form 540NR. It helps calculate the tax but does not replace the child's tax return.

Misconception 6: You cannot make adjustments if you file the 3800 form.

Adjustments can be made, especially if the child has other sources of income or deductions. It's essential to follow the specific instructions provided for accurate reporting.

Key takeaways

The California 3800 form is necessary for children under 19 or students under 24 with investment income exceeding $1,900. If the child qualifies, this form must be attached to their Form 540 or Long Form 540NR.
Parents should carefully enter their information, including their name and Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN). The correct parent must be identified based on custody and filing status.
Investment income must be reported accurately. This includes taxable interest, dividends, and capital gains. If the child’s investment income is $1,900 or less, the form does not need to be filed.
To determine the child’s tax, compare the calculated amounts on lines 16 and 17 of the form. The larger amount should be reported on the child’s Form 540, along with marking the “FTB 3800” circle.