CA Alternative Minimum Tax Form 3510
Form FTB 3510, titled "Credit for Prior Year Alternative Minimum Tax — Individuals or Fiduciaries," is used by California taxpayers to claim a credit for Alternative Minimum Tax (AMT) paid in a prior year. This form is specifically designed for individuals and fiduciaries who had an AMT credit carryover from the previous year or paid AMT in the prior year due to adjustments and tax preference items (excluding exclusions).
Who Must File Form 3510?
- Individuals and fiduciaries who had an AMT credit carryover from 2024.
- Those who paid AMT in 2024 and had adjustments and tax preference items other than exclusions.
- Estates and trusts must complete a second Schedule P (541) for exclusion items and skip lines 1–3 on Form 3510.
Key Instructions for Completing Form 3510
- Line 1–3: Estates and trusts skip these lines. For others, compute the AMT credit net operating loss deduction (AMTCNOLD) based on R&TC Sections 17276.2, 17276, 17276.21, 17276.22, and 17276.24.
- Line 4: Enter the amount from Schedule P (541), Part I, line 10 (adjusted for exclusion items). If line 4 is zero and you paid AMT in 2024, enter -0- on line 13 and proceed to Part II.
- Line 34: Residents enter exemption credits from Form 540, line 32 (or Form 541, line 22), plus other allowable credits from Schedule P (540 or 541), Section A1 and A2, column (b).
- Line 36: Enter the tentative minimum tax from Schedule P (540), Part I, line 24; Schedule P (540NR), Part II, line 43; or Schedule P (541), Part III, line 8.
- Line 32: If the result is zero or less, no AMT credit carryover exists. If positive, enter the amount and carry it forward to Schedule P (540), Part III, line 10; Schedule P (540NR), Part III, line 10; or Schedule P (541), Part IV, line 9.
Important Notes
- California conforms to federal rules for certain provisions, such as the tax computation for children with investment income under the Small Business and Work Opportunity Tax Act of 2007.
- California does not allow percentage depletion for specified natural resources (coal, oil shale, oil and gas wells) for taxable years beginning on or after January 1, 2024.
- Intangible drilling and development costs are not deductible under California law for oil and gas wells paid or incurred on or after January 1, 2024.
Source:
Form FTB 3510 Instructions
Disclaimer: Always verify details with official Federal or State Department of Revenue Forms and Instructions.