Updated October 24, 2026. Quick answer: Line 61 of California Form 540 is where alternative minimum tax (AMT) goes, with Schedule P (540) attached. The booklet’s instructions say who may owe it and the Special Credits section has three boxes that send some filers to Schedule P (540). The amount on line 61 is added with other lines to make total tax on line 64.
What this line does
The form’s label for the line reads “Alternative Minimum Tax. Attach Schedule P (540)”. The booklet’s instruction heading is “Alternative Minimum Tax”, and it sits under the booklet’s “Other Taxes” heading on Form 540 Side 3. This page is part of the California Form 540 line by line series.
The boxes in the booklet’s Special Credits section reach the same schedule from another direction. That section begins “A variety of California tax credits are available to reduce your tax if you qualify.” It adds: “the total amount you may claim for all credits is limited by tentative minimum tax (TMT); go to Box A to see if your credits are limited.”
Who it applies to
The line 61 instruction states the conditions as printed: “If you claim certain types of deductions, exclusions, and credits, you may owe AMT if your total income is more than:”
A child under age 19 or a full-time student under age 24 has a separate test: “A child under age 19 or a full-time student under age 24 may owe AMT if the sum of the amount on line 19 (taxable income) and any preference items listed on Schedule P (540) and included on the return is more than the sum of $9,750 and the child’s earned income.”
And for business income: “AMT income does not include income, adjustments, and items of tax preference related to any trade or business of a qualified taxpayer who has gross receipts, less returns and allowances, during the taxable year of less than $1,000,000 from all trades or businesses.”
What the instructions say
The first table is the line 61 instruction. The second is the three boxes in the Special Credits section on booklet page 14.
| Part | What the form says |
|---|---|
| Line 61 on the form | “Alternative Minimum Tax. Attach Schedule P (540)” |
| Section heading | “Attach the specific form or statement required for each item below.” |
| Income test | “If you claim certain types of deductions, exclusions, and credits, you may owe AMT if your total income is more than:” |
| Child or student | “A child under age 19 or a full-time student under age 24 may owe AMT” |
| Small business | “AMT income does not include income, adjustments, and items of tax preference related to any trade or business of a qualified taxpayer” |
| More information | “Get Schedule P (540) for more information.” |
| Box | What the form says |
|---|---|
| Box A question | “Did you complete federal Schedule C, D, E, or F and claim or receive any of the following” |
| Box A note | “If your business gross receipts are less than $1,000,000 from all trades or businesses, you do not have to report alternative minimum tax” |
| Box A items (first six) | “Accelerated depreciation in excess of straight-line” “Intangible drilling costs” “Depletion” “Circulation expenditures” “Research and experimental expenditures” “Mining exploration/development costs” The box lists more items; read the rest on page 14 of the booklet. |
| Box A, yes | “Get and complete Schedule P (540), Alternative Minimum Tax and Credit Limitations” |
| Box A, no | “Go to Box B.” |
| Box B question | “Did you claim or receive any of the following:” |
| Box B items | “Investment interest expense” and “Income from incentive stock options in excess of the amount reported on your tax return”. The box lists one more item; read it on page 14 of the booklet. |
| Box B, yes | “Get and complete Schedule P (540).” |
| Box C question | “Is Form 540, line 17 more than:” |
| Box C, single or head of household | “Single or head of household” “$347,808” |
| Box C, married/RDP filing jointly | “Married/RDP filing jointly or qualifying surviving spouse/RDP” “$463,745” |
| Box C, married/RDP filing separately | “Married/RDP filing separately” “$231,868” |
| Box C, yes | “Get and complete Schedule P (540).” |
| Box C, no | “Your credits are not limited.” |
The figures the form prints
Each total income threshold is a bullet line in the line 61 instruction: “$123,667 married/RDP filing jointly or qualifying surviving spouse/RDP”, “$92,749 single or head of household” and “$61,830 married/RDP filing separately”.
The Box C amounts quoted in the table above are each printed on their own line beside a filing status. The booklet’s Box A note repeats the gross receipts figure for business income: “If your business gross receipts are less than $1,000,000 from all trades or businesses, you do not have to report alternative minimum tax”.
Where the result goes next
Line 61 is added into total tax on the form: “Add line 48, line 61, line 62, and line 63. This is your total tax.” The line 61 instruction ends with “Get Schedule P (540) for more information.” For the federal side of the same idea, see Form 6251, and for the state’s retirement tax picture, see California retirement taxes.
Edition and line numbers
This page reads California 540 Forms and Instructions, 2025 Personal Income Tax Booklet, and Form 540, California Resident Income Tax Return (2025), both from the Franchise Tax Board, 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
- Treating line 61 as a line everyone fills in. The instruction says “you may owe AMT if your total income is more than:” and lists the thresholds.
- Missing the separate rule for a child or student. The booklet says “A child under age 19 or a full-time student under age 24 may owe AMT” under a different test.
- Leaving the schedule off. The form’s line label reads “Alternative Minimum Tax. Attach Schedule P (540)”
Related: California retirement taxes, California tax brackets, Form 6251, Form 6251 lines 8 to 11, and Form 1040 lines 22 to 24.
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- 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.