California Form 540 Line 97: Overpaid Tax (2025 Return)

Updated October 24, 2026. Quick answer: Line 97 of California Form 540 is where an overpayment shows up: payments and credits on line 95 that are larger than the total tax on line 64. From there line 98 lets you apply part of it to 2026 estimated tax, line 99 shows what is left, and line 115 carries the refund, which lines 116 and 117 can send to a bank account.

What this line does

The form’s label for the line is “Overpaid tax. If line 95 is more than line 64, subtract line 64 from line 95.”, and the booklet’s heading is “Overpaid Tax” under the group heading “Overpaid Tax or Tax Due”. This page follows the refund path through lines 97, 98, 99, 115, 116 and 117; the whole form is laid out in California Form 540 line by line.

Who it applies to

The booklet gives one condition: “If the amount on line 95 is more than the amount on line 64, your payments and credits are more than your tax.” In that case it says to “Subtract the amount on line 64 from the amount on line 95.” The withholding that often feeds those payments is covered in California tax withholding on pension payments.

What the instructions say

Line	What the form says
Line 97	“If the amount on line 95 is more than the amount on line 64, your payments and credits are more than your tax.” “Subtract the amount on line 64 from the amount on line 95. Enter the result on line 97.”
Line 97 on the form	“Overpaid tax. If line 95 is more than line 64, subtract line 64 from line 95.”
Heading note	“If you received a refund for 2024, you may receive a federal Form 1099-G, Certain Government Payments.”
Heading note, continued	“The refund amount reported on your federal Form 1099-G will be different from the amount shown on your tax return if you claimed the refundable California Earned Income Tax Credit, the Young Child Tax Credit, and/or the Foster Youth Tax Credit.”
Line 98	“Apply all or part of the amount on line 97 to your estimated tax for 2026.” “Enter on line 98 the amount of line 97 that you want applied to your 2026 estimated tax.”
Line 98 election	“An election to apply an overpayment to estimated tax is binding.” “Once the election is made, the overpayment cannot be applied to a deficiency after the due date of the tax return.”
Line 99	“If you entered an amount on line 98, subtract it from the amount on line 97. Enter the result on line 99.”
Line 99 choices	“Choose to have this entire amount refunded to you or make voluntary contributions from this amount.”
Line 115, no amounts on lines 110, 112 or 113	“Enter the amount from line 99 on line 115. This is your refund amount.”
Line 115, amounts on those lines	“Combine the amounts from line 110, line 112, and line 113.” “subtract the sum of line 110, line 112, and line 113 from line 99 and enter the result on line 115. This is your refund amount.”
Lines 116 and 117	“To have your refund directly deposited into your bank account, fill in the account information on line 116 and line 117.”
Account details	“Fill in the routing and account numbers and indicate the account type.” “Verify routing and account numbers with your financial institution.”
What not to attach	“Do not attach a voided check or deposit slip.”
Routing number	“The routing number must be nine digits. The first two digits must be 01 through 12 or 21 through 32.”
Account number	“The account number can be up to 17 characters and can include numbers and letters.”
Account type	“Check the appropriate box for the type of account. Do not check more than one box for each line.”
Splitting a refund	“Individual taxpayers may request that their refund be electronically deposited into more than one checking or savings account.”
Deposit amounts	“Enter the portion of your refund you want directly deposited into each account.” “When filing an original return, the total of line 116 and line 117 must equal the total amount of your refund on line 115.”
If the totals differ	“If line 116 and line 117 do not equal line 115, the FTB will issue a paper check.”
Caution	“Check with your financial institution to make sure your deposit will be accepted and to get the correct routing and account numbers.”
Responsibility	“The FTB is not responsible for a lost refund due to incorrect account information entered by you or your representative.”

Lines 98 and 99 are labelled on the form as “Amount of line 97 you want applied to your 2026 estimated tax” and “Overpaid tax available this year. Subtract line 98 from line 97”. Line 115 is labelled “REFUND OR NO AMOUNT DUE. Subtract the sum of line 110, line 112, and line 113 from line 99.” and the direct deposit block begins “Fill in the information to authorize direct deposit of your refund into one or two accounts.”

The figures the form prints

Each figure here sits inside one sentence. The refund rule for small amounts reads “If it is less than $1, attach a written statement to your Form 540 requesting the refund.” The deposit rule reads “Each deposit must be at least $1.” The routing number sentence is quoted in the table above, and the account number sentence gives the 17 character limit.

No other dollar limit is read from a table on this page.

Where the result goes next

Line 97 feeds line 98 and line 99. From the booklet: “Enter on line 98 the amount of line 97 that you want applied to your 2026 estimated tax.” and “Enter the result on line 99.” Line 99 then feeds line 115, and “Enter the amount from line 99 on line 115. This is your refund amount.”

The amounts you put on lines 116 and 117 must add to line 115 on an original return, as the table states. For the federal side of the same steps, see Form 1040 lines 34, 35 and 36, Form 1040 line 26 and Form 1040 lines 32 and 33.

The booklet also notes “Some financial institutions will not allow a joint refund to be deposited to an individual account.” and “If the direct deposit is rejected, the FTB will issue a paper check.”

Edition and line numbers

This page reads California 540 Forms and Instructions, 2025 Personal Income Tax Booklet 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 the line 98 choice as reversible. The booklet says “An election to apply an overpayment to estimated tax is binding.”
Entering deposit amounts that do not match the refund. The booklet says “When filing an original return, the total of line 116 and line 117 must equal the total amount of your refund on line 115.”
Attaching a voided check. The booklet says “Do not attach a voided check or deposit slip.”

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Sources

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.

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