Why is California's income filing threshold GREATER than the standard deduction?
For California, the tax instruction booklet says that you need to file the income tax forms if your income is over ,693 "gross" or ,154 "adjusted".
However, the state's standard deduction is only ,401!
So this leads to a seemingly bizarre situation that if your income is, say, ,000, you have a tax liability, but don't actually have to file a return.
What am I missing here?
(1)1 Comments
Sorted by latest first Latest Oldest Best
You are forgetting the exemption credits. An adjusted gross income of ,154, subtracting the standard deduction of ,401, leaves a ,753 taxable income, which for the Single filing status results in a tax of 1 (from the Form 540 tax table). Then you subtract the 8 exemption tax credit for Single with no dependents, and you have 0 tax.
Terms of Use Privacy policy Contact About Cancellation policy © freshhoot.com2025 All Rights reserved.