STATE INCOME TAX RATES FOR TAX Y2000.California's personal income tax amounts will be indexed by 3.6 percent for the 2000 tax year, says the FTB. Indexing takes the inflation rate into account and adjusts tax brackets, filing requirement thresholds, the standard deduction Standard Deduction A base amount of income not subject to tax. This base amount can be used to reduce a taxpayer's adjusted gross income (AGI) if he/she does not choose the itemized deduction method of calculating taxable income. The amount of the standard deduction is based on a taxpayer's filing status, age and whether he or she is blind or claimed as a dependent on someone else's tax return., and certain credits to ensure Californians do not pay additional taxes from year to year solely due to inflation. The minimum filing requirement thresholds are designed to ensure that most people who will not owe taxes are not required to file a tax return. The FTB adjusts these tables to include the additional senior exemption credits and the dependent exemption credits. The tax threshold -- the amount of income reached where a tax liability is incurred -- has risen to $9,286 of adjusted gross income Adjusted gross income (AGI) Gross income less allowable adjustments, which is the income on which an individual is taxed by the federal government. for single taxpayers and $18,572 for married, surviving spouse and head-of-household taxpayers. The standard deduction will increase for single or separate taxpayers from $2,711 to $2,809, and for joint, qualifying widow(er) or head-of-household taxpayers from $5,422 to $5,618. The personal exemption will increase for single, separate or head of household Head of Household Someone who is unmarried and resides with a dependent.Notes: Head of Household status in certain jurisdictions can result in a lower tax rate. See also: Dependent, Household Expenses taxpayers from $72 to $75 and for joint or surviving spouses from $144 to $150. The dependent exemption will increase from $227 to $235 for each dependent. Tax credits affected by indexing include: joint custody joint custody n. in divorce actions, a decision by the court (often upon agreement of the parents) that the parents will share custody of a child. There are two types of custody, physical and legal. Joint physical custody (instead of one parent having custody with the other having visitation, does not mean exact division of time with each parent, but can be based on reasonable time with each parent either specifically spelled out (certain days, weeks, head-of-household, dependent parent, qualified senior head-of-household, and the renter's tax credit. |
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