This article explains how to claim the CA renter's credit on an individual return, who qualifies for the credit, and the credit amounts.
To claim the CA renter's credit
- Go to Screen 53, Other Credits and select California Other Credits.
- Check the box Qualified renter. Lacerte will determine the amount of credit based on the tax return information.
- Depending upon the CA main form used, the output will appear on Line 46 of the Form 540 or Line 19 of Form 540 2EZ.
To qualify for the CA renter's credit:
- Client paid rent in California for at least half the year.
- The property rented wasn't exempt from California property tax.
- Client didn't live with another person who can claim client as a dependent.
- Client or client's spouse/RDP wasn't granted a homeowner's property tax exemption during the tax year.
- Client may still qualify for the credit if his or her spouse/RDP claimed a homeowner's exemption and client maintained a separate residence for the entire year.
- Client's California adjusted gross income (AGI) must be within the AGI limitations set by CA Franchise Tax Board yearly. See the Form 540 instructions for the yearly limitation. If the AGI is too high you'll receive Diagnostic ref #1095 Taxpayer does not qualify for the California renter's credit due to AGI limitation.
- $60 for single or married/RDP filing separately.
- $120 for head of household, widow(er), married/RDP filing jointly.
The program applies the income limitations and the limitations for taxpayers claimed as a dependent.