The California Franchise Tax Board has adjusted the California personal income tax rate schedules, return filing thresholds, personal exemption amounts, standard deduction amounts, itemized deduction reduction thresholds, and other credit and exemption amounts for 2015. The adjusted figures are based on a 1.3% inflation rate for the period from June 2014 to June 2015.
Rates
For 2015, the personal income tax rates for single taxpayers and married taxpayers filing separately range from 1.0% of the first $7,850 of taxable income (formerly, $7,749 for 2014) to 12.3% of taxable income that is $526,443 and over (formerly, $519,687 and over for 2014). For married taxpayers filing jointly and surviving spouses with a dependent child, the rates range from 1.0% of the first $15,700 of taxable income (formerly, $15,498 for 2014) to 12.3% of taxable income that is $1,052,886 and over (formerly, $1,039,374 and over for 2014). For taxpayers filing as heads of households, the rates range from 1.0% of the first $15,710 of taxable income (formerly, $15,508 for 2014) to 12.3% of taxable income that is $715,962 and over (formerly, $706,774 and over for 2014).
Filing Thresholds
For 2015, a single taxpayer or head of household taxpayer must file a return if the taxpayer's adjusted gross income (AGI) exceeds an amount ranging from $13,005 to $33,620 (formerly, $12,838 to $33,223 for 2014) or if the taxpayer's gross income exceeds an amount ranging from $16,256 to $36,871 (formerly, $16,047 to $36,432 for 2014). A surviving spouse taxpayer with dependents must file a return if the taxpayer's AGI exceeds an amount ranging from $24,238 to $33,620 (formerly, $23,938 to $33,223 for 2014) or if the taxpayer's gross income exceeds an amount ranging from $27,489 to $36,871 (formerly, $27,147 to $36,432 for 2014). The corresponding AGI and gross income thresholds requiring married couples to file a return range from $26,012 to $52,077 (formerly, $25,678 to $51,463 for 2014) and from $32,514 to $58,579 (formerly, $32,097 to $57,882 for 2014), respectively. The number of dependents and the taxpayer's age (under 65, or 65 or older) determine the filing threshold level that applies.
Individuals who do not meet the filing thresholds but who had state income tax withheld or made estimated tax payments will need to file returns to receive their refunds. In addition, some individuals may qualify for the state's new earned income tax credit and may need to file to claim that refundable credit.
Personal Exemption
The personal exemption credits increase to $109 (previously, $108) for single taxpayers, married taxpayers filing separately, and heads of households and to $218 (previously, $216) for married taxpayers filing jointly and surviving spouses. The personal exemption amount for dependents increases to $337 (previously, $333).
The AGI thresholds that activate the phaseout of personal exemption credits for 2015 are $178,706 for single taxpayers and married taxpayers filing separately (formerly, $176,413 for 2014), $357,417 for married taxpayers filing jointly and surviving spouses (formerly, $352,830 for 2014), and $268,063 for heads of households (formerly, $264,623 for 2014).
Standard Deduction
The standard deduction increases to $4,044 (previously, $3,992) for single taxpayers and married taxpayers filing separate returns and to $8,088 (previously, $7,984) for married taxpayers filing jointly, surviving spouses, and heads of households.
Itemized Deduction Reduction Thresholds
The AGI thresholds that activate the reduction of itemized deductions for 2015 are $178,706 for single taxpayers and married taxpayers filing separately (formerly, $176,413 for 2014), $357,417 for married taxpayers filing jointly and surviving spouses (formerly, $352,830 for 2014), and $268,063 for heads of households (formerly, $264,623 for 2014).
Credits
The renter's credit will be available for single filers with adjusted gross incomes of $38,259 or less (previously, $37,768 or less) and for joint filers with adjusted gross incomes of $76,518 or less (previously, $75,536 or less).
The joint custody head of household credit and the dependent parent credit are increased for 2015 to the lesser of $431 (formerly, $425 for 2014) or 30% of net tax.
The qualified senior head of household credit is increased for 2015 to 2% of taxable income of up to $69,902 (formerly, $69,005 for 2014), up to a $1,317 (formerly, $1,300 for 2014) maximum credit amount.
Alternative Minimum Tax Exemption
The alternative minimum tax exemption amounts for 2015 are increased to $65,721 (formerly, $64,878 for 2014) for single or unmarried taxpayers, $43,812 (formerly, $43,250 for 2014) for married taxpayers filing separately and estates and trusts, and $87,627 (formerly, $86,502 for 2014) for married taxpayers filing jointly and surviving spouses. Exemption phaseouts begin at the following alternative minimum taxable income levels for 2015: $246,451 (formerly, $243,288 for 2014) for single or unmarried taxpayers, $164,299 (formerly, $162,191 for 2014) for married taxpayers filing separately and estates and trusts, and $328,601 (formerly, $324,384 for 2014) for married taxpayers filing jointly and surviving spouses.
Read full article from California ~ Personal Income Tax: 2015 Tax Rate Schedules, Filing Thresholds, Other Adjusted Figures Released |
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