Landmark Tax Group

2014 CA Franchise Tax Board Deductions

The Franchise Tax Board (FTB) released the 2014 state tax brackets. Brackets are “indexed” each year by adjusting them to reflect changes in the California Consumer Price Index (CPI).
 
Filing requirement thresholds, the standard deduction, and certain credits were adjusted along with income tax brackets based on the inflation rate of 2.2 percent, as measured by the California CPI for all urban consumers from June 2013 to June 2014. Last year, California had an inflation rate that measured 1.7 percent.

Below are some of the changes to various items:

2014 Amounts

2013 Amounts

Standard deduction for single or married filing separate taxpayers

$3,992

$3,906

Standard deduction for joint, surviving spouse, or head of household taxpayers

$7,984

$7,812

Personal exemption credit amount for single, separate, and head of household taxpayers

$108

$106

Personal exemption credit amount for joint filers or surviving spouses

$216

$212

Dependent exemption credit

$333

$326

Renter’s Credit is available for single filers with adjusted gross incomes

$37,768

$36,955 or less

Renter’s Credit is available for joint filers with adjusted gross incomes

$75,536 or less

$73,910 or less

In addition, FTB provides minimum filing requirement thresholds to ensure that most people who will not owe taxes are not required to file a state tax return. FTB adjusts these tables each year to include the added senior exemption and the dependent exemption credits. For example, most single people under 65 years old with no dependents would not need to file a tax return until they have adjusted gross income of $12,562 or more. Adjusted gross income is total income increased or reduced by specific adjustments, before taking the standard or itemized deduction.

See: Deductible vs. Non-Deductible – A Simple Guide 

See: Filing Your IRS Tax Return – What You Should Know 

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