California – Personal Income Tax: 2009 Tax Rate Schedules, Exemption and Other Amounts Released
According to figures obtained from California Franchise Tax Board’s Tax Practitioner Liaisons Office, there will be decreases in the indexed 2009 California personal income tax rate schedules, return filing thresholds, standard deduction amounts, itemized deduction limitation amounts, personal exemption amounts, credit amounts, and alternative minimum tax exemption amounts. These figures are based on the negative 1.5% inflation rate, as measured by the California Consumer Price Index (CCPI) for all urban consumers from June of 2008 to June of 2009.
Tax Rate Schedules
For 2009, the indexed personal income tax rates, which includes the 0.25% surcharge, for single taxpayers and married taxpayers filing separately range from 1.25% of the first $7,060 (formerly, $7,168) of taxable income to 9.55% of taxable income over $46,349 (formerly, $47,055). For married taxpayers filing jointly and surviving spouses with a dependent child, the rates range from 1.25% of the first $14,120 (formerly, $14,336) of taxable income to 9.55% of taxable income over $92,698 (formerly, $94,110). For taxpayers filing as heads of households, the rates range from 1.25% of the first $14,130 (formerly, $14,345) of taxable income to 9.55% of taxable income over $63,089 (formerly, $64,050).
Return Filing Thresholds
For the 2009 taxable year, 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 $11,698 to $21,008 (formerly, $11,876 to $30,731), or if the taxpayer’s gross income exceeds an amount ranging from $14,622 to $23,932 (formerly, $14,845 to $33,700). A surviving spouse taxpayer with dependents must file a return if the taxpayer’s AGI exceeds an amount ranging from $14,965 to $21,008 (formerly, $22,176 to $30,731), or if the taxpayer’s gross income exceeds an amount ranging from $17,889 to $23,932 (formerly, $25,145 to $33,700). The corresponding AGI and gross income thresholds requiring married couples to file a return range from $23,396 to $37,606 (formerly, $23,752 to $47,557), and from $29,245 to $43,455 (formerly, $29,690 to $53,495), respectively. The number of dependents and the taxpayer’s age (under 65, or 65 or older) determine the filing threshold level that applies.
Standard Deduction
For 2009, the standard deduction decreases from $3,692 to $3,637 for single taxpayers and married taxpayers filing separate returns, and from $7,384 to $7,274 for married taxpayers filing jointly, surviving spouses, and heads of households.
Itemized Deduction Limitation Amounts
The AGI thresholds that activate the reduction of California itemized deductions for 2009 are $160,739 (formerly, $163,187) for single taxpayers and married taxpayers filing separately, $321,483 (formerly, $326,379) for married taxpayers filing jointly and surviving spouses, and $241,113 (formerly, $244,785) for heads of households.
Personal Exemptions
Personal exemption amounts for 2009 decrease to $98 (formerly, $99) for single taxpayers, married taxpayers filing separately, and heads of households, and to $196 (formerly, $198) for married taxpayers filing jointly and surviving spouses. The dependent exemption amount for 2009 decreases to $98 (formerly, $309) for each dependent claimed.
The adjusted gross income (AGI) thresholds that activate the reduction of California personal exemption credits for 2009 are $160,739 (formerly, $163,187) for single taxpayers and married taxpayers filing separately, $321,483 (formerly, $326,379) for married taxpayers filing jointly and surviving spouses, and $241,113 (formerly, $244,785) for heads of households.
Credit Amounts
The joint custody head of household credit and dependent parent credit are indexed for 2009 to the lesser of $387 (formerly, $393) or 30% of net tax.
The qualified senior head of household credit is indexed for 2009 to 2% of taxable income of up to $62,874 (formerly, $63,831), up to a $1,185 (formerly, $1,203) maximum credit amount.
The maximum AGI amounts for the renter’s credit are indexed for 2009 to $34,412 (formerly, $34,936) for single filers and $68,824 (formerly, $69,872) for joint filers.
Alternative Minimum Tax Exemption Amounts
The alternative minimum tax exemption amounts for 2009 are decreased to $59,114 (formerly, $60,014) for single or unmarried taxpayers, $39,407 (formerly, $40,007) for married taxpayers filing separately and estates and trusts, and $78,817 (formerly, $80,017) for married taxpayers filing jointly and surviving spouses. Exemption phaseouts begin at the following alternative minimum taxable income levels for 2009: $221,674 (formerly, $225,050) for single or unmarried taxpayers, $147,781 (formerly, $150,031) for married taxpayers filing separately and estates and trusts, and $295,564 (formerly, $300,065) for married taxpayers filing jointly and surviving spouses.