Active Duty Military Pay
If you are an active duty military member and domiciled in a community property state (California, Arizona, Idaho, Louisiana, Nevada, Texas, New Mexico, Washington, Wisconsin, or the commonwealth of Puerto Rico)and your spouse is a California resident, your spouse is entitled to claim an adjustment for one-half of your military pay. If the military member is domiciled in a separate property state, do not make an entry here. Get FTB Pub 1032 for more information.

Sick Pay Received Under The Federal Insurance Contributions Act And Railroad Retirement Act
California excludes this items from income. Enter the amount of these benefits included in income here.

Ridesharing Fringe Benefit Differences
Under federal law, qualified transportation benefits are excluded from gross income. Under the Revenue and Taxation Code, there are no monthly limits for the exclusion of these benefits and California's definitions are more expansive. Enter the amount of ridesharing benefits received and included in federal income here.

Exclusion For Medical Expenses
California allows an exclusion from gross income for employer-provided accident, health insurance, and medical expense reimbursement for registered domestic partners and the partner's dependents if expenses were not previously deducted.

Exempt-Interest Dividends
Generally, you will not have a difference between the amount of dividends reported on your federal return and the amount reported using California law. However, California taxes dividends that are derived from other states and their municipal obligations. In addition, certain mutual funds pay "exempt-interest dividends". If the mutual fund has at least 50% of its assets invested in tax-exempt U.S. obligations and/or in California or its municipal obligations, that amount of dividend is exempt from California tax. The proportion of dividends that are tax-exempt will be shown on your annual statement or statement issued with Form 1099.

Add dividends received from the following exempt-interest dividends:

• The federally exempt interest dividends from other states, or their municipal obligations and/or from mutual funds that do not meet the 50% rule above.
• Controlled foreign corporation dividends in the year distributed;
• Regulated investment company (RIC)capital gains in the year distributed;
• Distributions of pre-1987 earnings from an S corporation;
• Non-cash patronage dividends from farmers cooperatives or mutual associations.
• Research and experimental expenditures.

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