1. YOU are required to file a California tax return if your gross income exceeds:
a. Single – $16,256 (no dependent).
b. Head of household – $27,489 (with one dependent).
c. Married filing jointly – $32,514 (no dependent).
Taxpayers with dependents or who are aged 65 or over have higher filing thresholds. You turned 65 at the end of 2015 if you are 65 by January 1, 2016.
2. Head of Household (HOH) filing status taxpayers are required to file form FTB 3532 beginning taxable year 2015 to determine if qualified. If you do not qualify and you claim HOH, you will receive a notice of proposed assessment.
3. Taxpayers who do not itemize deductions for mortgage interest, property taxes, medical, contributions and other personal deductions can use the following standard deductions:
a. Single, married filing separate – $4,044 (from $3,992).
b. Head of household, surviving spouse, married filing joint – $8,088 (from $7,984).
4. Personal exemption credits have increased as follows:
a. Single, married filing separate, head of household – $109 (from $108).
b. Married filing joint, qualified widow(er) – $218 (from $216).
c. Blind or seniors aged 65 or over – add $109.
d. Dependents – $337 (from $333) each.
5. Dependent/s Social Security Number (SSN) beginning taxable year 2015taxpayers claiming an exemption credit must write dependent/s SSN in line 10 of Form 540 or line 8 on of Form 5402EZ.
6. Earned Income Tax Credit (Cal EITC) refundable credit of up to $2,653 is available beginning 2015 tax returns to California households with adjusted gross income of
a. Less than $6,580, if no qualifying children
b. Less than $9,880, with one qualifying child
c. Less than $13,870, with two or more qualifying children.
The credit is available to taxpayers with earned income (exclude income from self-employment) within California and lived for more than six months.
7. Disaster Losses beginning taxable year 2014 and before January 1, 2024 loss sustained from city, county in California proclaimed by the Governor to be state of emergency, taxpayer may deduct disaster loss.
8. Taxpayers may make voluntary contributions to two new funds
a. State Children’s Trust Fund for the Prevention of Child abuse (bill number AB 924)
b. Prevention of Animal Homelessness & Cruelty Fund (bill number AB 485)
9. Financial Incentive for Seismic Improvement under bill SB 102 beginning taxable year 2015 taxpayer can exclude from income any amount received as loan, loan forgiveness, grant, credit, rebate, voucher, or other financial incentive as long as the amount is issued by the California Residential Mitigation Program or the California Earthquake Authority.
10. Other Credits
a. Natural Heritage Preservation Credit. Credit carryover has been extended to 15 years or until exhausted whichever comes first for qualified contributions made on and after January 1, 2015.
b. Enterprise Zone (EZ) Sales or Use Tax Credit. Taxpayers can claim EZ sales or use tax credit carryover from previous years but cannot generate the EZ sales or use tax credit on or after January 1, 2015.
11. Extend the Time for Payment of Taxes for Corporations Expecting Net Operating Loss (NOL) Carry back file form FTB 3593 to extend the time for payment of taxes for immediate preceding tax year 2015 if a corporation or exempt organization expects NOL in tax year 2016.
12. Minimum Wage on or after January 1, 2016 minimum wage is $10.00 (previously $9.00) per hour.
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Sy Al-os Accountancy Corporation provides accounting and tax services to individuals, corporations, LLCs and business entities. The Firm has a niche in defending taxpayers audited by the IRS and other governmental agencies. The firm celebrates its 38th anniversary in 2015.
