Tax board warns of error

An error on a printed California tax form may lead some California taxpayers to understate their home mortgage interest deductions, the Franchise Tax Board announced recently. The error is on early versions of Schedule CA (540), California Adjustments, which is used to make adjustments to federal adjusted gross income and claim federal itemized deductions.

Line 38 of the Schedule CA form incorrectly states "Enter the total amount of itemized deductions from your federal form 1040, Schedule A, lines 4, 9, 13, 19, 20, 27, and 28." It should have listed line number 15 instead of 13. This error could lead taxpayers to miss claiming their home mortgage interest, points, qualified mortgage insurance premiums and investment interest.

The FTB in December mailed 1.1 million California 540 and 540A booklets to taxpayers, and another 1.3 million were sent to public distribution sites, including libraries, post offices and FTB district offices. The instructions in the California 540 and 540A tax booklet are correct.

Those who want a corrected form may download it from the FTB's website at www.ftb.ca.gov. Corrected forms will be available at public distribution sites by the end of January.

Taxpayers who have already filed a paper tax return and followed the incorrect line numbers may have their returns corrected by calling (800) 852-5711. The FTB will correct any overstated tax liability that results from the error and will notify affected taxpayers.