2015 California Tax Rates and Exemptions

Rate of inflation

The rate of inflation in California, for the period from July 1, 2014, through June 30, 2015, was 1.3%. The 2015 personal income tax brackets are indexed by this amount.

Corporate tax rates

Entity type Tax rate
Corporations other than banks and financials 8.84%
Banks and financials 10.84%
Alternative Minimum Tax (AMT) rate 6.65%
S corporation rate 1.5%
S corporation bank and financial rate 3.5%

Individual tax rates

  • The maximum rate for individuals is 12.3%
  • The AMT rate for individuals is 7%
  • The Mental Health Services Tax Rate is 1% for taxable income in excess of $1,000,000.

Exemption credits

Filing Status/Qualification Exemption amount
Married/Registered Domestic Partner (RDP) filing jointly or qualifying widow(er) $218
Single, married/RDP filing separately, or head of household $109
Dependent $337
Blind $109
Age 65 or older $109

Phaseout of exemption credits

Higher-income taxpayers’ exemption credits are reduced as follows:

Filing status Reduce each credit by: For each: Federal AGI exceeds:
Single $6 $2,500 $178,706
Married/RDP filing separately $6 $1,250 $178,706
Head of household $6 $2,500 $268,063
Married/RDP filing jointly $12 $2,500 $357,417
Qualifying widow(er) $12 $2,500 $357,417

When applying the phaseout amount, apply the $6/$12 amount to each exemption credit, but do not reduce the credit below zero. If a personal exemption credit is less than the phaseout amount, do not apply the excess against a dependent exemption credit.

Standard deductions

The standard deduction amounts for:

Filing status Deduction amount
Single or married/RDP filing separately $4,044
Married/RDP filing jointly, head of household, or qualifying widow(er) $8,088
The minimum standard deduction for dependents $1,050

Reduction in itemized deductions

Itemized deductions must be reduced by the lesser of 6% of the excess of the taxpayer’s federal AGI over the threshold amount or 80% of the amount of itemized deductions otherwise allowed for the taxable year.

Filing status AGI threshold
Single or married/RDP filing separately $178,706
Head of household $268,063
Married/RDP filing jointly or qualifying widow(er) $357,417

Nonrefundable Renter’s credit

This nonrefundable, non-carryover credit for renters is available for:

  • Single or married/RDP filing separately with a California AGI of $38,259 or less.
    • The credit is $60.
  • Married/RDP filing jointly, head of household, or qualifying widow(er) with a California AGI of $76,518 or less.
    • The credit is $120.

Miscellaneous credits

  • Qualified senior head of household credit
    • 2% of California taxable income
    • Maximum California AGI of $69,902
    • Maximum credit of $1,317
  • Joint custody head of household credit/dependent parent credit
    • 30% of net tax
    • Maximum credit of $431

AMT exemption

Filing status Amount
Married/RDP filing jointly or qualifying widow(er) $87,627
Single or head of household $65,721
Married/RDP filing separately, estates, or trusts $43,812

AMT exemption phaseout

Filing status Amount
Married/RDP filing jointly or qualifying widow(er) $328,601
Single or head of household $246,451
Married/RDP filing separately, estates, or trusts $164,299

FTB cost recovery fees

Fee type Fee
Bank and corporation filing enforcement fee $92
Bank and corporation collection fee $334
Personal income tax filing enforcement fee $79
Personal income tax collection fee $226

The personal income tax fees apply to individuals and partnerships, as well as limited liability companies that are classified as partnerships. The bank and corporation fees apply to banks and corporations, as well as limited liability companies that are classified as corporations. Interest does not accrue on these cost recovery fees.

2015 California Tax Rate Schedules

Schedule X — Single or married/RDP filing separately

If the taxable income is
Over But not over Tax is Of amount over
$0 $7,850 $0.00 plus 1.00% $0
$7,850 $18,610 $78.50 plus 2.00% $7,850
$18,610 $29,372 $293.70 plus 4.00% $18,610
$29,372 $40,773 $724.18 plus 6.00% $29,372
$40,773 $51,530 $1,408.24 plus 8.00% $40,773
$51,530 $263,222 $2,268.80 plus 9.30% $51,530
$263,222 $315,866 $21,956.16 plus 10.30% $263,222
$315,866 $526,443 $27,378.49 plus 11.30% $315,866
$526,443 AND OVER $51,173.69 plus 12.30% $526,443

Schedule Y — Married/RDP filing jointly, or qualifying widow(er) with dependent child

If the taxable income is
Over But not over Tax is Of amount over
$0 $15,700 $0.00 plus 1.00% $0
$15,700 $37,220 $157.00 plus 2.00% $15,700
$37,220 $58,744 $587.40 plus 4.00% $37,220
$58,744 $81,546 $1,448.36 plus 6.00% $58,744
$81,546 $103,060 $2,816.48 plus 8.00% $81,546
$103,060 $526,444 $4,537.60 plus 9.30% $103,060
$526,444 $631,732 $43,912.31 plus 10.30% $526,444
$631,732 $1,052,886 $54,756.97 plus 11.30% $631,732
$1,052,886 AND OVER $102,347.37 plus 12.30% $1,052,886

Schedule Z — Head of household

If the taxable income is
Over But not over Tax is Of amount over
$0 $15,710 $0.00 plus 1.00% $0
$15,710 $37,221 $157.10 plus 2.00% $15,710
$37,221 $47,982 $587.32 plus 4.00% $37,221
$47,982 $59,383 $1,017.76 plus 6.00% $47,982
$59,383 $70,142 $1,701.82 plus 8.00% $59,383
$70,142 $357,981 $2,562.54 plus 9.30% $70,142
$357,981 $429,578 $29,331.57 plus 10.30% $357,981
$429,578 $715,962 $36,706.06 plus 11.30% $429,578
$715,962 AND OVER $69,067.45 plus 12.30% $715,962

Individual Filing Requirements

If your gross income or adjusted gross income is more than the amount shown in the chart below for your filing status, age, and number of dependents, then you have a filing requirement.

Filing Status Age as of December 31, 2015* California Gross Income California Adjusted Gross Income
Dependents Dependents
0 1 2 or more 0 1 2 or more
Single or head of household Under 65 $16,256 $27,489 $35,914 $13,005 $24,238 $32,663
65 or older $21,706 $30,131 $36,871 $18,455 $26,880 $33,620
Married/RDP filing jointly or separately Under 65 (both spouses/RDPs) $32,514 $43,747 $52,172 $26,012 $37,245 $45,670
65 or older (one spouse) $37,964 $46,389 $53,129 $31,462 $39,887 $46,627
65 or older
(both spouses/RDPs)
$43,414 $51,839 $58,579 $36,912 $45,337 $52,077
Qualifying widow(er) Under 65 N/A $27,489 $35,914 N/A $24,238 $32,663
65 or older N/A $30,131 $36,871 N/A $26,880 $33,620
Dependent of another person (Any filing status) Under 65 More than your standard deduction
65 or older More than your standard deduction

* If you turn 65 on January 1, 2016, you are considered to be age 65 at the end of 2015.

Source

2015 California 540 Tax Forms – Personal Income Tax

540 Form 2015 California Resident Income Tax Return (Fill-in & Save)
540 Instructions 2015 Instructions for 540 Form, California Resident Income Tax Returns
540 Tax Table 2015 Tax Table for 540 Tax Return
540-2EZ Instructions 2015 Instructions for 540-2EZ Form, California Resident Income Tax Return
540-2EZ Tax Table 2015 Tax Table for 540-2EZ Tax Return
540-2EZ Form 2015 California Resident Income Tax Return (Fill-in with math features & save)
540-ES Form 2015 Estimated Tax for Individuals (Fill-in)
540-ES Instructions 2015 Instructions for 540-ES Form, Estimated Tax for Individuals
540-NR Form (Long) 2015 California Nonresident or Part-Year Resident Income Tax Return (Long) (Fill-in & Save)
540-NR Instructions (Long) 2015 Instructions for 540-NR Long Form, California Nonresident or Part-Year Resident Income Tax Return (Long)
540-NR Form (Short) 2015 California Nonresident or Part-Year Resident Income Tax Return (Short) (Fill-in & Save)
540-NR Instructions (Short) 2015 Instructions for 540-NR Short Form, California Nonresident or Part-Year Resident Income Tax Return (Short)
540-NR Tax Table 2015 Tax Table for 540-NR Tax Return
540-X Form 2015 Amended Individual Income Tax Return (Fill-in)
540-X Instructions 2015 Instructions for 540-X Form, Amended Individual Income Tax Return

2016 IRS Standard Mileage Rates

Beginning on Jan. 1, 2016, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

  • 54 cents per mile for business miles driven, down from 57.5 cents for 2015
  • 19 cents per mile driven for medical or moving purposes, down from 23 cents for 2015
  • 14 cents per mile driven in service of charitable organizations

The business mileage rate decreased 3.5 cents per mile and the medical, and moving expense rates decrease 4 cents per mile from the 2015 rates. The charitable rate is based on statute.

The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs.

Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for more than four vehicles used simultaneously.

Source

2008 IRS Standard Mileage Rates

From 1/01/2008 to 6/30/2008
IRS Medical Mileage Rate     $0.1900
IRS Moving Mileage Rate     $0.1900
IRS Business Mileage Rate     $0.5050
IRS Charitable Mileage Rate     $0.1400

From 7/01/2008 to 12/31/2008
IRS Business Mileage Rate     $0.5850
IRS Charitable Mileage Rate     $0.1400
IRS Medical Mileage Rate     $0.2700
IRS Moving Mileage Rate     $0.2700

SEC Proposes Rules Requiring Companies to Adopt Clawback Policies on Executive Compensation

Under the proposed new Rule 10D-1, listed companies would be required to develop and enforce recovery policies that  in the event of an accounting restatement, “claw back” from current and former executive officers incentive-based compensation they would not have received based on the restatement.  Recovery would be required without regard to fault.  The proposed rules would also require disclosure of listed companies’ recovery policies, and their actions under those policies.

Under the proposed rules, the listing standards would apply to incentive-based compensation that is tied to accounting-related metrics, stock price or total shareholder return.  Recovery would apply to excess incentive-based compensation received by executive officers in the three fiscal years preceding the date a listed company is required to prepare an accounting restatement.

Each listed company would be required to file its recovery policy as an exhibit to its annual report under the Securities Exchange Act.  In addition, a listed company would be required to disclose its actions to recover in its annual reports and any proxy statement that requires executive compensation disclosure if, during its last fiscal year, a restatement requiring recovery of excess incentive-based compensation was completed, or there was an outstanding balance of excess incentive-based compensation from a prior restatement.

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New York State: Investment Capital Identification Requirements for Article 9-A Taxpayers

The 2015-2016 New York State budget (Part T of Chapter 59 of the Laws of 2015) made significant changes to the definition of investment capital under Article 9-A of the Tax Law that are effective for tax years beginning on or after January 1, 2015. One of the amendments requires that stock acquired on or after October 1, 2015, must be identified as held for investment in a taxpayer’s records before the close of the day on which the stock was acquired in order to qualify as investment capital and stock acquired before October 1, 2015, must be identified prior to October 1, 2015. This memorandum describes this investment capital identification procedure requirement.

More: http://www.tax.ny.gov/pdf/memos/multitax/m15_4c_5i.pdf