Updated October 24, 2026. Quick answer: Line 34 of California Form 540 is the place for tax from Schedule G-1 and form FTB 5870A. The booklet sends you to Schedule G-1 for a “qualified lump-sum distribution in 2025” when the birth-date condition it prints is met, and to form FTB 5870A for accumulation distributions from certain trusts. Line 35 then adds line 34 to line 33.
What this line does
The booklet’s instruction is headed “Tax from Schedule G-1 and Form FTB 5870A”. On the form, line 34 reads “Tax. See instructions. Check the box if from:” and prints two boxes, “Schedule G-1” and “FTB 5870A”. It is on the page headed “Side 2 Form 540 2025”.
It comes after the exemption credits step on line 32, and the whole sequence is on California Form 540 line by line.
Who it applies to
Two situations are named. The first is “If you received a qualified lump-sum distribution in 2025 and you were born before January 2, 1936”, which the booklet ties to “get California Schedule G-1, Tax on Lump-Sum Distributions, to figure your tax by special methods that may result in less tax.”
The second is “If you received accumulation distributions from foreign trusts or from certain domestic trusts”, which the booklet ties to “get form FTB 5870A, Tax on Accumulation Distribution of Trusts, to figure the additional tax.”
For the form that reports retirement distributions, see 1099-R boxes explained.
What the instructions say
| Line | What the form says |
|---|---|
| Form, line 34 | “Tax. See instructions. Check the box if from:” with the boxes “Schedule G-1” and “FTB 5870A” |
| Booklet heading | “Tax from Schedule G-1 and Form FTB 5870A” |
| Schedule G-1, who | “If you received a qualified lump-sum distribution in 2025 and you were born before January 2, 1936, get California Schedule G-1, Tax on Lump-Sum Distributions, to figure your tax by special methods that may result in less tax.” |
| Schedule G-1, attach | “Attach Schedule G-1 to your tax return.” |
| FTB 5870A, who | “If you received accumulation distributions from foreign trusts or from certain domestic trusts, get form FTB 5870A, Tax on Accumulation Distribution of Trusts, to figure the additional tax.” |
| FTB 5870A, attach | “Attach form FTB 5870A to your tax return.” |
| Getting the forms | “To get these forms, see” the booklet’s Order Forms and Publications section |
Where the result goes next
The form’s next steps read “Add line 33 and line 34.” for line 35, and the form’s line 33 reads “Subtract line 32 from line 31. If less than zero, enter -0-”. The credits that follow are explained in the booklet’s special credits section, and the first of those line pages is California Form 540 line 43.
For the pension side of the state return see California retirement taxes, whether California taxes pensions and federal withholding on a pension lump sum.
Edition and line numbers
This page reads the California 540 Forms and Instructions, 2025 Personal Income Tax Booklet, and Form 540, California Resident Income Tax Return (2025), for tax year 2025, the current file the Franchise Tax Board served on 2026-10-24. Check the edition printed on your own form and use that edition’s line numbers.
Common mistakes
- Using Schedule G-1 without meeting the birth-date condition. The booklet says “If you received a qualified lump-sum distribution in 2025 and you were born before January 2, 1936”
- Forgetting to attach the schedule. The booklet says “Attach Schedule G-1 to your tax return.”
- Leaving out the trust form. The booklet says “Attach form FTB 5870A to your tax return.”
Related: California retirement taxes, whether California taxes pensions, 1099-R boxes explained, and federal withholding on a pension lump sum.
Find the right next step for your situation
About how much do you have invested? Pick the range that fits; your next step appears immediately below.
Talk to an advisor about retirement lump sums
For U.S. investors with $250,000 or more in investable assets. WiserAdvisor is an independent service matching you with 2 to 3 vetted advisers. Its form asks for your ZIP code and answers to a few questions; a match is not guaranteed.
Free to request, with no obligation to hire. By submitting, you consent to calls, texts and emails from WiserAdvisor and up to three advisers. Advisers pay for introductions.
Clear Money Guide may earn a referral payment for a qualifying completed form. An introduction is not a Clear Money Guide recommendation.
Opens on WiserAdvisor’s site in a new tab.
Explore advisor help with retirement distributions and taxes
Price the destination before you decide. The matching service below introduces you to advisers who pay to meet you.
Before you start, what actually happens. The form is run by Kapitalwise, our advisor-matching partner. Kapitalwise sends your details to advisers who pay for the introduction, so expect calls and texts. Clear Money Guide may earn a referral payment for a qualifying submitted form, whether or not you ever hire anyone. This is free to you and there is no obligation to hire anyone.
The Kapitalwise form opens here; you stay on this page.
What happens when you press the button
It asks about nine questions: age, investable assets, location; then your name, email and phone number, and verifies the phone by text. Nothing loads and nothing reaches Kapitalwise until you press the button.
Prefer flat-fee or hourly pricing instead? Compare ranges here.
Answer againSources
- California 540 Forms and Instructions, 2025 Personal Income Tax Booklet, Franchise Tax Board: www.ftb.ca.gov
- Form 540, California Resident Income Tax Return (2025), Franchise Tax Board: www.ftb.ca.gov
- Related official page (not quoted): Franchise Tax Board, 2025 Personal Income Tax Booklet page: www.ftb.ca.gov
Read from the state revenue documents linked above on October 24, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer or the state revenue department is the right place to confirm anything consequential.