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Tax News 2010 State Income Tax Rate Schedules Adjusted

We released the 2010 California state tax brackets. The brackets are indexed each year to reflect changes in the California Consumer Price Index (CPI) from June through July of the past year. The personal income tax rate schedules, return filing thresholds, standard deduction amounts, itemized deduction limitation amounts, personal and dependent exemption credits, credit amounts, and alternative minimum tax exemption amounts were adjusted based on a 0.9 percent inflation rate for the period from July 2009 through June 2010. Last year, California had a deflation rate that measured 1.5 percent.

Below are some of the changes:

 
2010 Amounts
2009 Amounts

Standard deduction for single or “married filing separate” taxpayers

$3,670 $3,637

Standard deduction for joint, surviving spouse, or head of household taxpayers

$7,340 $7,274

Personal and dependent exemption credit amount for single, separate, and head of household taxpayers

$99 $98

Personal exemption credit amount for joint filers or surviving spouses

$198 $196

Renter’s Credit is available for single filers with adjusted gross incomes

$34,722 or less $34,412 or less

Renter’s Credit is available for joint filers with adjusted gross incomes

$69,443 or less $68,824 or less

 

A new tax law sets the dependent exemption credit for tax years 2009 and 2010 to the indexed personal exemption credit.

The minimum filing requirement thresholds are also adjusted each year to include the added senior exemption and the dependent exemption credits. For example, most single people under 65 years old with no dependents would not need to file a state return until they have adjusted gross income of $11,803 or more compared to last year’s threshold of $11,698 or more.

Other tax credits affected by indexing include the Joint Custody Head of Household Credit, Dependent Parent Credit, and Qualified Senior Head of Household Credit.

More information about the 2010 tax rates and exemptions and other tax matters is available at ftb.ca.gov.

Back to September 2010 Tax News