Error on FTB 3510 may require amending returns. (FTB News).

Form FTB 3510, Credit for Prior Year Alternative Minimum Tax--Individuals or Fiduciaries, was revised incorrectly following legislation enacted in 1999. AB 1637 added exemption credits to California Revenue & Taxation Code Sec. 17039. This section lists credits that can reduce regular tax below the tentative minimum tax.

In connection with this change, Schedule P was redesigned to remove the tentative minimum tax limitation from exemption credits. The form FTB 3510 instructions also were changed. The section instructing taxpayers to include the exemption credits on line 30 along with credits reported in Sections A1 and A2 of Schedule P (540, 540NR or 541) was removed. These are the credits that reduce excess tax.

Taxpayers who incorrectly took advantage of the exemption credits twice on a 1999 or 2000 tax return should file an amended tax return. A corrected version of form FTB 3510 for 1999 and 2000 is available on the Forms page of the FTB's Web site at www.ftb.ca.gov.