Credit Carryover and Recapture Summary
Use the California Tax Form Calculator California Tax Form 3540 as a stand alone tax form calculator to quickly calculate specific amounts for your 2026 California state tax return. Alternatively, you can use one of our Combined Federal and State Tax Estimators to quickly calculate your salary, tax, and take-home pay.
| Part I – Credit Carryover | |||||
| (a) Code | (b) Name of repealed credit | (c) Credit carryover available from prior years | (d) Credit carryover used this year | (e) Total credit assigned this year | (f) Credit carryover to future years |
| Part II – Credit Recapture (See Credit Recapture Instructions) | |||||
| Employer Childcare Program Credit (ECPC) | (a) Total credit claimed for all years | (b) Proration percentage: (60 months less number of months facility operated ÷ 60 months) | (c) Credit recapture amount column (a) x column (b) | ||
| Code 189 | |||||
| Farmworker Housing Credit (FWHC) | (a) Total credit claimed for all years | (b) Proration percentage: (360 months less number of months facility operated ÷ 360 months) | (c) Credit recapture amount column (a) x column (b) | ||
| Code 207 | |||||
| Community Development Financial Institution Investment Credit | (a) Total credit claimed for all years | (b) Proration percentage: If the qualified investment is withdrawn before the end of 60 months and not reinvested within 60 days, enter 1.0000. If the qualified investment is reduced before the end of the 60th month, but not below $50,000, enter 0.2000 | (c) Credit recapture amount column (a) x column (b) | ||
| Code 209 | |||||
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Frequently Asked Questions
How does community property affect my CA return?
Married/RDP filers may have community property allocation rules; see CA guidance.
Are employer retirement contributions taxed by CA?
Pre-tax 401(k)/403(b) contributions reduce federal and generally CA taxable wages.
Is there a separate Medicare surtax in CA?
Additional Medicare is federal; California PIT is separate and applies via its own brackets/credits.
Does CA tax out-of-state remote work?
CA generally taxes income earned while working in CA; non-CA work may be non-CA source—track days/location.
Can I deduct mortgage interest in CA?
Often yes, subject to CA limits/adjustments; compare standard vs itemized for CA.
Important Notes
All calculations are estimates for guidance only. Always review your return and consider professional advice when submitting official filings.