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February 24, 2024
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February 24, 2024

February 24, 2024

CA Tax Filing Information

CA Tax Filing Information

California Tax Filing Requirements

Residents must file if California gross income (money, goods, property, and services from all sources) is more than the following amounts.

  • Single Under 65 and gross income is: $17,029 (with no dependents), $28,796 (with one dependent), or $37,621 (with two or more dependents)
  • Single Over 65 and gross income is: $22,729 (with no dependents), $31,554 (with one dependent), $38,614 (with two or more dependents)
  • Married Filing Jointly, both spouses under 65 and gross income is: $34,060 (with no dependents), $45,827 (with one dependent), $54,652 (with two or more dependents)
  • Married Filing Jointly, one spouse under 65 and gross income is: $39,760 (with no dependents), $48,585 (with one dependent), $55,645 (with two or more dependents)
  • Married Filing Jointly, both spouses over 65 and gross income is: $45,460 (with no dependents), $54,285 (with one dependent), $61,345 (with two or more dependents)

If CA gross income is not higher than the thresholds laid out above, residents may still have a filing requirement if:

  • Single Under 65 and CA AGI is: $13,623 (with no dependents), $25,390 (with one dependent), or $34,215 (with two or more dependents)
  • Single Over 65 and CA AGI is: $19,323 (with no dependents), $28,148 (with one dependent), $35,208 (with two or more dependents)
  • Married Filing Jointly, both spouses under 65 and CA AGI is: $27,249 (with no dependents), $39,016 (with one dependent), $47,841 (with two or more dependents)
  • Married Filing Jointly, one spouse under 65 and CA AGI is: $32,949 (with no dependents), $41,774 (with one dependent), $48,834 (with two or more dependents)
  • Married Filing Jointly, both spouses over 65 and CA AGI is: $38,649 (with no dependents), $47,474 (with one dependent), $54,534 (with two or more dependents)

Part-year residents must file if total taxable California income (income from all sources while a California resident and California-source income while a nonresident) is more than the amount in either list, above.

Nonresidents must file if they have any California source income and income from all sources is more than the amount in either list for filing status, above.

Dependents of any age and any filing status may have to file if California gross income or California AGI is more than the standard deduction for dependents ($1,050 for 2017).

Taxpayers must also file if they owe:

  • Tax on a lump-sum distribution.
  • Tax on a qualified retirement plan, IRA, or an Archer MSA.
  • Tax for children under age 19 or student under age 24 who have investment income greater than $2,100.
  • Alternative minimum tax (AMT).
  • Recapture taxes.
  • Deferred tax on certain installment obligations.
  • Tax on an accumulation distribution of a trust.

Return Due Dates

  • Individual Return Due Date: April 15th
  • C/S Corporate Return Due Date: March 15th
  • Partnership/LLC: April 15th

Extension Information

California has an automatic six-month extension to file an individual tax return. No form is required to request an extension.

Business Taxes and Fees

California has a franchise tax, which is essentially a tax on doing business in California, that applies to most entities.

For S-Corporations, the franchise tax is 1.5% of the corporation’s net income with a minimum tax of $800.

For LLCs, the franchise tax is a flat fee on gross income as follows:

  • income less than $250,000 = $800 tax
  • income from $250,000 to $499,999 = $900 tax
  • income from $500,000 to $999,999 = $2,500 tax
  • income from $1,000,000 to $4,999,999 = $6,000 tax; and
  • income of $5,000,000 or more = $11,790 tax.

In San Francisco, Residential Landlords that rent four or more units, with annual gross receipts less than $1,090,000 and payroll expense less than $300,000 are required to file an annual tax return.

Real Estate Withholding

Real estate withholding is a prepayment of income (or franchise) tax due from sellers or transferors on the gain from the sale of California real property. It is not an additional tax on the sale of real estate.

Withholding is required by the buyer; however, the withholding may be performed by the real estate escrow person (REEP) on the buyer’s behalf.

Real estate withholding is required whenever there is a transfer of title on California real property. Examples are:

  • Sales or transfers of real property (including exchanges and gifts).
  • Leaseholds/options.
  • Short sales.
  • Easements.
  • Personal property sold with real property (if not stated separately).
  • Deferred exchanges.
  • Vacant land.

In California all transferees (buyers) are required to withhold 3 1/3% of the total sales price unless exempt by reasons listed below.

  • The property qualifies as the seller’s or transferor’s (or decedent’s, if sold by the decedent’s estate or trust) principal residence within the meaning of Internal Revenue Code (IRC) Section 121.
  • The seller or transferor (or decedent, if sold by the decedent’s estate or trust) last used the property as the seller’s or transferor’s (decedent’s) principal residence within the meaning of IRC Section 121 without regard to the two-year time period.
  • The seller or transferor has a loss or zero gain for California income tax purposes on this sale. To select this, you must complete Form 593-E, Real Estate Withholding-Computation of Estimated Gain or Loss, and have a loss or zero gain on line 16.
  • The property is being compulsorily or involuntarily converted and the seller or transferor intends to acquire property that is similar or related in service or use to qualify for nonrecognition of gain for California income tax purposes under IRC Section 1033.
  • The transfer qualifies for nonrecognition treatment under IRC Section 351 (transfer to a corporation controlled by the transferor) or IRC Section 721 (contribution to a partnership in exchange for a partnership interest).
  • The seller or transferor is a corporation (or a limited liability company (LLC) classified as a corporation for federal and California income tax purposes) that is either qualified through the California Secretary of State (SOS) or has a permanent place of business in California.
  • The seller or transferor is a California partnership or a partnership qualified to do business in California (or an LLC that is classified as a partnership for federal and California income tax purposes and is not a single member LLC that is not disregarded for federal and California income tax purposes). If this is selected, the partnership or LLC must still withhold on nonresident partners or members.
  • The seller or transferor is a tax-exempt entity under California or federal law.
  • The seller or transferor is an insurance company, individual retirement account, qualified pension/profit sharing plan, or charitable remainder trust.

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