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Blank California 3800 Form

The California Form 3800 serves as the Tax Computation for Certain Children with Investment Income. This form is specifically designed for children aged 18 and under, or students under age 24, who have investment income exceeding $1,900. By utilizing this form, parents can calculate the appropriate tax rate applicable to their child's investment earnings, ensuring compliance with California tax regulations.

Outline

The California Form 3800 serves as a vital tool for parents navigating the complexities of tax obligations related to their children’s investment income. Specifically designed for children aged 18 and under, or students under the age of 24, this form is required when a child has investment income exceeding $1,900. By completing Form 3800, parents can ensure that any investment income is taxed at their own tax rate, which is often higher than the child’s rate. The form requires essential information, including the child’s name and Social Security Number (SSN), as well as the parent’s filing status and income details. It breaks down the calculation of the child’s net investment income and determines the tentative tax based on the parent’s tax rate. Furthermore, it guides parents through various scenarios, such as when to stop completing the form based on specific income thresholds. By understanding the purpose and requirements of Form 3800, families can effectively manage their tax responsibilities and potentially minimize their overall tax burden.

Sample - California 3800 Form

FTB 3800 2011

Tax Computation for Certain Children

with Investment Income

TAXABLE YEAR

2011

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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .



7441113

CALIFORNIA FORM

3800

- -

Part I Child’s net investment income

1 Enter 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 00

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

deductions, see instructions

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 00

3 Subtract 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 00

4 Enter the child’s taxable income from Form 540, line 19 or total taxable income from Long Form 540NR, line 19. . . . . . 4 00

5 Net investment income. Enter the smaller of line 3 or line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 00

Part II

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

6 Enter 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 00

7 Enter 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 00

8 Add line 5 through line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 00

9 Enter 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 00

10 Enter 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 00

11 Subtract 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 00

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 00

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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 00

15 Enter 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 00

16 Add line 13 and line 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 00

17 Enter 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 00

18 Compare 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 00

FTB 3800 2011 Page 1

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 Identiﬁcation 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.

Page 2 FTB 3800 2011

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.

A Enter 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) . . . . . . . . . ____________

H Enter 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. . . . . . . . . . . . . . . . . . . . . ____________

L Find 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

. . . . . . . . . . . . . . . . ____________

B Enter 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) . . . . . . . . . ____________

H Enter 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. . . . . . . . . . . . . . . . . . . . . ____________

L Find 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 . . . . . . ____________

B Find 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.

Click for PDF

Form Information

Fact Name	Details
Form Purpose	This form calculates tax for certain children with investment income exceeding $1,900.
Eligibility Criteria	Children must be 18 or younger, or students under 24, with living parents at the end of the tax year.
Filing Requirement	The form must be attached to the child's Form 540 or Long Form 540NR.
Investment Income Threshold	If the child's investment income is $1,900 or less, this form does not need to be filed.
Governing Law	California Revenue and Taxation Code (R&TC) governs the use of this form.
Parent's Tax Rate	Tax on the child's investment income is calculated at the parent's tax rate if it is higher.
Form Version	This is the 2011 version of the FTB 3800 form.
Additional Forms	Form FTB 3803 may be required for parents electing to report their child's interest and dividends.

Detailed Guide for Filling Out California 3800

Filling out the California Form 3800 is essential for determining the tax owed by certain children with investment income. This process requires careful attention to detail to ensure accuracy. After completing the form, it must be attached to the child's Form 540 or Long Form 540NR for submission.

At the top of the form, enter the taxable year.
Provide the child’s name as shown on the return.
Enter the child’s Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN).
Fill in the parent’s name (first, initial, and last).
Input the parent’s SSN or ITIN.
Select the parent’s filing status by checking the appropriate box.
Enter the number of exemptions claimed on the parent’s return.

Proceed to Part I to calculate the child's net investment income.

On line 1, enter the child’s total investment income, including taxable interest, dividends, and capital gains.
If the child did not itemize deductions, enter $1,900 on line 2. If itemized, refer to the instructions.
Subtract line 2 from line 1 and enter the result on line 3.
Enter the child’s taxable income from Form 540 or Long Form 540NR on line 4.
On line 5, enter the smaller of line 3 or line 4.

Move to Part II to calculate the tentative tax based on the parent's tax rate.

Enter the parent’s taxable income from Forms 540/540A or Long Form 540NR on line 6.
Input any net investment income from other children on line 7.
Add lines 5 through 7 and enter the total on line 8.
Calculate the tax on line 8 based on the parent’s filing status and enter it on line 9.
Enter the parent’s tax from Forms 540/540A on line 10.
Subtract line 10 from line 9 and enter the result on line 11.
For lines 12a and 12b, perform the calculations as instructed.
Multiply line 11 by the decimal from line 12b and enter the result on line 13.

In Part III, calculate the child’s tax.

Subtract line 5 from line 4 and enter the result on line 14.
Calculate the tax on line 14 based on the child’s filing status and enter it on line 15.
Add lines 13 and 15 and enter the total on line 16.
Calculate the tax on line 4 based on the child’s filing status and enter it on line 17.
Finally, compare the amounts on lines 16 and 17. Enter the larger amount on line 18 and ensure to fill in the circle labeled “FTB 3800” on the child’s tax return.

Obtain Answers on California 3800

What is the purpose of California Form 3800?
California Form 3800, also known as the Tax Computation for Certain Children with Investment Income, is designed to calculate the tax for children who have investment income exceeding $1,900. If a child qualifies, their investment income is taxed at the parent's tax rate, which may be higher than the child's rate. This form must be attached to the child's Form 540 or Long Form 540NR when filing.
Who needs to file Form 3800?
Form 3800 is required for children who meet the following criteria:
- The child is 18 years old or younger, or a student under the age of 24 at the end of the taxable year.
- The child has investment income taxable by California that exceeds $1,900.
- At least one parent must be alive at the end of the taxable year.
What types of income should be reported on Form 3800?
When filling out Form 3800, parents should report the child's net investment income, which includes:
- Taxable interest
- Ordinary dividends
- Capital gains
- Rents and annuities
- Income received as a beneficiary
It is essential to only include income that is taxable under California law.
How is the tax calculated on Form 3800?
The tax calculation involves several steps:
- Determine the child's net investment income and taxable income.
- Calculate the tentative tax based on the parent's tax rate.
- Compare the calculated tax amounts and enter the larger amount on the child's tax return.
Detailed instructions are provided on the form to guide you through each calculation step.
What if the child does not have to file Form 3800?
If the child's investment income is $1,900 or less, they do not need to file Form 3800. Instead, the tax can be calculated using the regular methods on the child's Forms 540/540A or Long or Short Form 540NR.
Can parents elect to report their child's investment income on their tax return?
Yes, parents may elect to include their child's investment income on their own tax return if the child only has income from interest and dividends. This election allows the child to avoid filing a separate tax return or Form 3800. However, if estimated tax payments were made in the child's name, this option is not available.
What information is required about the parent on Form 3800?
When completing Form 3800, the parent’s name and Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) must be provided. If the parents are married and filed jointly, the information of the parent listed first on the joint return should be used. In cases where parents are separated or unmarried, the information of the custodial parent is generally required.

Common mistakes

Filling out the California 3800 form can be a bit tricky, and mistakes are common. One common error is not accurately reporting the child's net investment income. Line 1 asks for this income, which includes taxable interest, dividends, and capital gains. If you mistakenly leave this line blank or enter an incorrect amount, it can lead to significant issues. Always double-check to ensure the income reported matches what is taxable under California law.

Another frequent mistake is related to the parent’s information. When entering the parent’s name and Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN), it’s crucial to follow the guidelines carefully. For example, if the parents filed a joint return, the name and SSN of the first parent listed should be used. Failing to do this can cause confusion and delays in processing the form.

People also often overlook the importance of checking the child’s filing status. The form requires you to determine whether the child is filing as a dependent or has investment income exceeding $1,900. If you mistakenly indicate the wrong status, it can lead to incorrect tax calculations. Be sure to review the instructions to understand how to classify the child correctly.

Lastly, many individuals forget to attach the California 3800 form to the child’s Form 540 or Long Form 540NR. This is a crucial step. If the form isn’t attached, it may not be considered during the tax assessment, potentially leading to penalties or missed deductions. Always ensure that you follow the submission guidelines to avoid this mistake.

Documents used along the form

The California 3800 form is used to calculate the tax for certain children with investment income. When filling out this form, several other documents may be required to ensure accurate reporting and compliance with tax regulations. Below is a list of forms and documents that are often used alongside the California 3800 form, along with a brief description of each.

Form 540: This is the California Resident Income Tax Return. It is the primary form used by residents to report their income and calculate their state tax liability.
Form 540NR: The California Nonresident or Part-Year Resident Income Tax Return is used by individuals who were not full-year residents of California. It helps determine the tax owed based on income earned while in the state.
Form 8615: This federal form is used to calculate the tax for certain children who have investment income exceeding $2,300. It helps determine if the child's income will be taxed at the parent's tax rate.
Form FTB 3803: This form allows parents to elect to report their child’s interest and dividends on their own tax return. It can simplify tax reporting if the child has minimal income.
Schedule CA (540): This is used to adjust income and deductions when preparing the California tax return. It reconciles differences between federal and state income tax calculations.
Form FTB 3519: This form is for making estimated tax payments. If the child has a significant amount of investment income, this form may be necessary to avoid penalties for underpayment.
Form W-2: This is the wage and tax statement provided by employers. It reports the child’s earned income, which is important for determining total income on tax returns.
Form 1099-INT: This form reports interest income earned by the child. It is essential for accurately reporting investment income on the California 3800 form.

Having these forms and documents ready can streamline the tax filing process and ensure that all necessary information is accurately reported. It is always beneficial to consult with a tax professional if there are any uncertainties regarding the completion of these forms or the tax implications for children with investment income.

Similar forms

The California Form 3800 is used to calculate the tax for certain children with investment income. Several other tax forms share similarities with the California 3800 form, particularly in their purpose and structure. Below are seven documents that are similar to the California 3800 form, along with explanations of how they relate to it.

Federal Form 8615: This form is used to determine the tax for certain children who have investment income exceeding $2,300. Like the California 3800, it calculates tax based on the parent's tax rate for children under 19 or full-time students under 24.
Form 540: This is the California Resident Income Tax Return. It is the main form for filing state taxes and is where the results from Form 3800 are reported. Both forms work together to ensure accurate tax calculations for children with investment income.
Form 540NR: This is the California Nonresident or Part-Year Resident Income Tax Return. Similar to Form 540, it is used by individuals who do not reside in California for the entire year. The 3800 form can be attached to this return to calculate taxes for children with investment income.
Form FTB 3803: This form allows parents to elect to report their child's interest and dividends on their tax return. Like Form 3800, it addresses the taxation of children's investment income but offers an option to simplify the filing process.
Form 1040: The U.S. Individual Income Tax Return is the federal equivalent for reporting income and taxes. While it does not specifically focus on children, it includes provisions for reporting investment income, similar to how the California 3800 form does at the state level.
Form 8862: This form is used to claim the Earned Income Credit after disallowance. While it serves a different purpose, it shares a similar format and requires detailed information about income, much like the California 3800 form does for investment income.
Form 8880: This form is used to claim the Credit for Qualified Retirement Savings Contributions. It involves calculations based on income and tax rates, similar to the way the California 3800 form calculates tax based on a child's investment income and the parent's tax rate.

Dos and Don'ts

When filling out the California Form 3800, it is essential to approach the task with care and attention. Here’s a guide on what to do and what to avoid to ensure a smooth process.

Do read the instructions carefully before starting. Understanding the requirements will help you avoid mistakes.
Do ensure you have all necessary information on hand, including the child’s name, Social Security Number (SSN), and the parent’s details.
Do double-check the investment income amount. Ensure it accurately reflects what is taxable by California.
Do use the correct tax tables or rate schedules based on the parent’s filing status when calculating tax.

Don't leave any sections blank. If a question does not apply, write "N/A" instead.
Don't forget to attach the form to the child’s Form 540 or Long Form 540NR. It must accompany the return.
Don't include any income not taxable by California. Only report investment income that is relevant.
Don't rush through the calculations. Taking your time can help prevent errors that could lead to complications.

By following these guidelines, you can navigate the completion of the California Form 3800 with confidence. Taking the time to ensure accuracy will help avoid unnecessary issues down the line.

Misconceptions

Understanding the California 3800 form is essential for parents managing their children's investment income. However, several misconceptions can lead to confusion. Here are ten common misconceptions and clarifications:

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

This is incorrect. The form applies to children who are 18 and under or students under 24 at the end of the tax year.

Misconception 2: You must file the form if the child has any investment income.

Not true. The form is only necessary if the child's investment income exceeds $1,900.

Misconception 3: Parents can report any type of income on this form.

This is misleading. Only specific types of investment income, such as interest and dividends, should be reported.

Misconception 4: The child must file their own tax return if using the 3800 form.

Actually, if parents elect to report the child's income on their return, the child does not need to file a separate return.

Misconception 5: The form is the same for all tax years.

Each tax year may have different requirements and thresholds. Always check the specific instructions for the relevant year.

Misconception 6: Only one parent needs to be involved in the filing process.

Both parents should ensure they understand their responsibilities, especially if they are filing separately.

Misconception 7: You can file the form without any supporting documentation.

This is not advisable. Supporting documentation is essential to substantiate the information reported on the form.

Misconception 8: The form applies to all children in the household.

Only the child with qualifying investment income should be reported on this form.

Misconception 9: Filing the form guarantees a lower tax rate.

The form calculates tax based on the parent's rate, which may not always be lower.

Misconception 10: Completing the form is optional if the child has investment income.

If the child's income exceeds the threshold, filing the form is necessary to comply with tax regulations.

Key takeaways

Here are some key takeaways regarding the California 3800 form, which is used for computing taxes for certain children with investment income:

Purpose of the Form: The California 3800 form is specifically designed to calculate tax for children under 18 or students under 24 with investment income exceeding $1,900.
Eligibility Criteria: To use this form, the child must have investment income over $1,900, be under 18 or a student under 24, and have at least one living parent.
Filing Requirement: If the child meets the criteria, the form must be attached to the child's Form 540 or Long Form 540NR.
Investment Income: Include all taxable income such as interest, dividends, and capital gains when reporting the child’s investment income.
Parental Information: The form requires the name and Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) of the parent whose tax rate will apply.
Tax Computation: The tax on the child’s investment income is calculated based on the parent’s tax rate, which may be higher than the child’s rate.
Exemptions: The number of exemptions claimed on the parent’s return must be entered on the form, which can affect the tax calculation.
Line Instructions: Each line of the form has specific instructions that must be carefully followed to ensure accurate reporting and calculation.
Comparison of Taxes: The final tax liability is determined by comparing the amounts calculated on different lines of the form and selecting the larger amount.
Filing Status Impact: The parent’s filing status (e.g., single, married, head of household) influences the tax rates applied to the child’s investment income.