Do You Have to File California State Taxes?
If you are a resident of California, then you may be subject to the state's income tax, depending on your income and residency status. There are six income tax brackets ranging from (not less than) $7,300 to (not less than) $46,767 of annual taxable income. In addition, the rules for residency are somewhat complex, and if you have lived in the state only part of the year, you should become familiar with the residency law.
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Filing Requirements
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Filing requirements in California depend on your age, filing status, your gross income, your adjusted gross income and the number of dependents you claim. For an individual under age 65, for example, whose filing status is single with no dependents, the filing minimum is $14,754 of gross income, and $11,803 of adjusted gross income. The complete chart of filing requirements is available at the State of California Franchise Tax Board website.
Disability Benefits and Pensions
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If you are only earning Social Security disability or retirement benefits, or Veterans Administration disability benefits, your income is exempt from California state taxes. However, California considers all public and private pensions as taxable income. If you have taken an early distribution from a retirement account or pension plan, California taxes it at the rate of 2.5 percent.
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Business Income
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If you are a partner in an out-of-state business, but reside in California, then all of your business income is taxable -- no matter where it originates or is paid. In addition, if you have business or rental income in California, but reside in another state, then you are also subject to California income tax on those earnings.
Domicile Test
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You are considered a California resident if you keep a fixed, permanent home in the state and are not there temporarily or in transit. California also considers anyone who spends more than nine months in a year in the state to be a resident, no matter where they declare their permanent domicile to be. Anyone in California for six months or less, and who can show a permanent residence outside the state, is presumed to be in California on a temporary basis.
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References
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