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California allows a nonrefundable renter's credit for certain individuals. To claim the renter’s credit for California, all of the following criteria must be met:

• The taxpayer must be a resident of California for the entire year if filing Form 540, or at least six months if filing Form 540NR as a part-year resident. Nonresidents cannot claim this credit.
• The taxpayer’s California adjusted gross income must be below a given threshold if single or married filing separate, or below a given threshold if married filing joint, head of household, or qualifying widow(er).
• The taxpayer must have paid rent for at least half the year on property (including a mobile home that the taxpayer owned on rented land) in California, which was the taxpayer’s principal residence.
• The taxpayer was either not claimed as a dependent on another return, or the taxpayer was claimed as a dependent but did not live with the claimant for more than half the year.
• The property the taxpayer rented cannot be exempt from property taxes for the year.
• The taxpayer did not claim the homeowner’s property tax exemption any time during the year.

When an amount is entered in the Renter’s credit (Force) field in Screen CACr-2, the amount entered transfers to Schedule P (540) or P (540NR). When the force field is blank and detailed data is entered in the Nonrefundable renter’s credit fields in Screen CACr-2, the California Nonrefundable Renter’s Credit Worksheet calculates and prints.

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