The 2010 state tax brackets were “indexed” and released today by the Franchise Tax Board (FTB). Each year the numbers are adjusting to reflect changes in California’s Consumer Price Index (CPI).
As well as income tax brackets, filing requirement thresholds, the standard deduction, and certain credits were also adjusted, based on California’s calculated inflation rate of 0.9 percent. The California CPI is measured for all urban consumers from June 2009 to June 2010. Last year was a deflationary year, and California had a deflation rate of 1.5 percent.
Some of the changes:
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2010 Amounts
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2009 Amounts
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Standard deduction for single or “married filing separate” taxpayers
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$3,670
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$3,637
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Standard deduction for joint, surviving spouse, or head of household taxpayers
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$7,340
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$7,274
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Personal exemption credit amount for single, separate, and head of household taxpayers
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$99
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$98
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Personal exemption credit amount for joint filers or surviving spouses
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$198
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$196
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Renter’s Credit is available for single filers with adjusted gross incomes
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$34,722 or less
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$34,412 or less
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Renter’s Credit is available for joint filers with adjusted gross incomes
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$69,443 or less
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$68,824 or less
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This year, a new tax law sets the dependent exemption credit for tax years 2009 and 2010 to the indexed personal exemption credit of $99.
The Franchise Tax Board also provides minimum filing requirement thresholds to ensure that most people who will not owe taxes are not required to file a tax return. FTB adjusts these tables 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.
Indexing also affects 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.
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