California tax rates and exemptions for 2018 tax returns

AMOUNTS for tax returns in 2018 are compared with amounts in 2017.

Exemption credits:

a. $118 from $114 – Single, Married filing separately, Head of Household.

b. $236 from $228 – Married filing jointly.

c. $367 from $353 – Dependent.

d. $118 from $114 – Age 65 or older.

You are considered to be 65 at the end of 2017 if you turn 65 in January 1, 2018.

Exemption credits are phased out by $6 or $12 for each $1,250 or $2,500 that federal AGI exceeds certain amounts over $194,504 from $187,203.

Itemized deductions are also phased out if federal AGI exceeds certain amounts over $187,203 from $182.459.

Standard deductions:

a. $4,401 from $4,2,36 – Single and filing married filing separate.

b. $8,802 from $8,472 – Married filing joint, head of household, surviving spouse.

c. $1,050 from $1,050  – Minimum standard deduction for dependents.

Non-refundable enter’s credit:

a. $60 –  Single or married filing separate with California AGI of $41,641 or less from $40,078 or less.

b. $120 – Married filing joint, head of household, or surviving spouse with California AGI of $83,282 from $80,156 or less.

Individual tax rates:

a. 12.30% – Maximum rate for regular income tax.

b. 7.00% – Alternative Minimum Tax (AMT).

c. 1.00% – The Mental Health Services Tax Rate for taxable income in excess of $1,000,000.

Corporate tax rates:

a. 8.84% – Income tax rate for regular C corporations.

b. 1.50% –  Income tax rate for S corporations.

c. 6.65% – AMT rate for regular C corporations.

AMT exemptions:

a. $47,685 from $45,895- Married filing separate, estates, and trusts.

b. $71,531 from $68,846 – Single and head of household.

c. $95,373 from $91,793 – Married filing joint, surviving spouse.

FTB (Franchise Tax Board) recovery fees:

a. $81  – Personal income tax filing enforcement fee.

b. $266 – Personal income tax collection fee.

c. $100 – Corporation filing enforcement fee.

d. $365 – Corporation collection fee.

Miscellaneous credits

a. 2% of California taxable income or maximum credit of $1,434 from $1,380 – Qualified senior head of household credit with maximum California AGI of $76,082.

b.  30% of net tax or maximum credit of 451- Joint custody head of household credit/dependent parent credit.

* * *

Disclaimer: Any accounting, business or tax advice contained in this communication is neither intended as a thorough, in-depth analysis of specific issues, nor a substitute for a formal opinion, nor is it sufficient to avoid tax-related penalties.

* * *

Al-os & Associates  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 Filipino-American Community Newspaper. Your News. Your Community. Your Journal. Since 1991.

Copyright © 1991-2023 Asian Journal Media Group.
All Rights Reserved.