When Do I Not Have to File a California State Income Tax Return?
California residents or residents from other states who earn business income within California must file state tax returns for the 2010 tax year by April 18, 2011, if their annual income exceeds the mandatory filing limits. California uses both adjusted gross income and gross income to determine individual filing requirements.
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Head of Household and Single Taxpayers
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Single or head of household filers who are under age 65, and do not have any dependents and earn less than $14,754, do not have to file a California income tax return. Single taxpayers age 65 or older, without dependents, are not required to file if their income is $19,704 or less. Single taxpayers with dependents are subject to higher income limits. Taxpayers under age 65 with two or more dependents do not have to file a tax return if their California gross income is $20,529 or less. Taxpayers age 65 or older, with two or more qualified dependents, do not have to file if their income is less than $24,159.
Married Filing Jointly or Separately
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California allows taxpayers who are married or have registered domestic partnership licenses to file their state tax returns jointly. This allowance is a departure from federal tax laws. The IRS does not allow same-sex partners to file their taxes jointly. When both spouses are younger than 65, have no dependents and have combined California gross incomes of $29,508, they do not have to file tax returns. For spouses 65 or older, they do not have to file when their combined income is $34,458 or less. For one dependent, the maximum thresholds increase by about $2,000. For two or more dependents, the allowance increases by about another $2,000.
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Exemption Credits
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Taxpayers receive California exemption credit allowances on their income tax returns. For single taxpayers, married or registered partners filing separately and head of household filers, they each receive a $99 state tax exemption. Married taxpayers, domestic partners and qualifying widow or widowers receive a $198 exemption amount. Each dependent the taxpayer may claim is equal to $99.
Tax Liabilities
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The California Franchise Tax Board uses a tax rate schedule to determine income tax liabilities. California uses a flat tax-plus-percentage system to calculate income tax liabilities. Taxpayers who file taxes using a single filing status, taxpayers who are married, and those with domestic partnership licenses, California taxes them at a rate of $89.05 plus an additional 2.25 percent on their income between $7,124 and $16,890. Taxpayers who are single or married filing separately pay state income taxes at 1.25 percent on income up to the $7,124 threshold. For married taxpayers filing jointly and qualifying widow or widowers with dependent children, they pay 1.25 percent in California income taxes for income between $0 and $14,248. For income between $14,248 and $33,780, they pay $178.10 plus an addition 2.5 percent in income taxes.
Considerations
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Since tax laws can frequently change, you should not use this information as a substitute for legal or tax advice. Seek advice through a certified accountant or tax attorney licensed to practice law in your jurisdiction.
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References
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