![]() ![]() Mortgage Interest Deduction - If you have a mortgage on a first or second home, you may deduct mortgage interest paid as defined in 26 U.S.C.This deduction generally applies to individuals who are self-employed or small business owners. Self-Employment Deductions - If you pay both the employee and the employer's half of the payroll tax, you may deduct the employer's half from your gross income.Business Deductions - Qualifying business expenses, business losses, and losses due to theft or depreciation may be itemized and deducted.The deduction limits for 2012 are $5,000 per year for individuals under 50, and $6,000 per year for individuals 50 or over. IRA Contribution Deduction - You can deduct a limited contribution to your qualifying Individual Retirement Account every year.Here's a list of some of the most popular itemized deductions. Before you attempt to claim any itemized deductions you must verify that it is allowed on your California tax return, even if you were able to claim it on your Federal return.Ī variety of expenses can be itemized as deductions on your California tax return. ![]() Children claimed as dependants must be age 18 or younger, or a student age 23 or younger § 152(c)(3).Ĭalifornia supports most of the IRS-approved itemized deductions you can claim on your Federal income tax, but with some California-specific limitations. You may claim one dependent examption for each of the children, relatives, or others who live with and are supported by you as described § 152 of the IRC (Internal Revenue Code). You may not, however, claim a personal exemption if someone else has declared you as a dependent on their tax return.Ĭalifornia has a dependent exemption of $353.00. You can deduct one personal exemption from your gross income if you are responsible for supporting yourself financially. You should only file an itemized deduction you have enough qualified expenses to receive a larger income tax deduction.Ĭalifornia's personal income tax exemptions include a personal exemption of $114.00 for single individuals and $114.00 apiece for couples filing jointly. The standard deduction may be chosen instead of filing an itemized deduction on your California tax return. The California standard deduction is $4,236.00 for individuals and $8,472.00 for married couples filing jointly. You may be able to reuse many of your Federal income tax deductions, including any itemized deductions from your Federal 1040 Schedule A.Ĭalifornia may have different rules or cut-offs for certain deductions, so you should still double check to ensure that your deductions are permitted under California tax law.įor more information about the California income tax, see the main California income tax page. California income tax deductions are above-the-line expenses that can be deducted from your gross income before you calculate your taxable income.īy carefully choosing your deductions in order to minimize your taxable income, you can ensure that you get the largest possible refund when you file your California and Federal income taxes.Ĭalifornia supports many of the same deductions as the IRS does for your federal income tax return.
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