Filing status

filing status

2. Married person filing jointly or surviving spouse

3. Married person filing separately

4. Head of household

5. Qualifying window(er) with dependent child

The filing status is important because a person's tax bracket (and therefore the amount he or she must pay) is determined by marital status, number of children, occupation and several other factors. You must file your status honestly, or it will be considered fraudulent and penalties will be assessed.

Investment dictionary . Academic . 2012 .

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filing status

Determine the proper filing status and compute the tax liability.

Determining the correct filing status is an important step in calculating the amount of a California taxpayer’s tax liability. Taxpayers qualify to file under one of five filing statuses: single, married filing jointly, married filing separately, head of household, and qualifying widow(er).

In general, a taxpayer’s filing status for California is the same as the filing status for the federal income tax return. However, there is one exception: married taxpayers who file a joint federal income tax return may file either a joint return or separate returns if either spouse was:

An active member of the U.S. armed forces or any auxiliary military branch during the year; or

A nonresident for the entire year and had no income from California during the year.

If taxpayers file a joint return and if either spouse was a nonresident during the year, they must file Form 540NR Form 540NR California income tax form used by nonresidents or part-year residents. , California Nonresident or Part-Year Resident Income Tax Return. See ChapterВ 3, Income: Personal Wages and Investments for California nonresident tax provisions.

Single . California taxpayers who are unmarried on December 31 and do not qualify as head of household file as single taxpayers (Schedule X) for the year. State law determines whether a taxpayer is married, divorced, or legally separated.

Married . California taxpayers who are married on December 31 are treated as married for the entire year and must use married filing jointly (Schedule Y) or married filing separately tax rates (Schedule X).

Head of household . A taxpayer may file as head of household (Schedule Z) if the following conditions are met:

He/she is unmarried on December 31,

He/she provides over one-half the cost of a household, and

He/she has a dependent relative, as defined in the Internal Revenue Code, living in the household for more than half the year.

Certain unmarried relatives such as a child need not qualify as a dependent, and a dependent parent of the taxpayer need not live in the taxpayer’s home. See Form 540 instructions for other special situations (e.g., foster children) that allow California taxpayers to qualify for head of household filing status.

Qualifying widow(er) . A taxpayer who maintains a household for a dependent child may file as a surviving spouse (Schedule Y) for the two years immediately following the death of a spouse. In the year of death, the widow(er) files jointly (Schedule Y) because he or she is considered married for the year of death.

Tax computation . California Tax Tables and Tax Rate Schedules are found in the Form 540 Instructions. The tables have the taxpayer filing status built in them. Tax tables are used unless the taxpayer’s California taxable income is more than $100,000; above $100,000, the California Tax Rate Schedules are used. Single or married filing separate taxpayers use Tax Rate Schedule X, married taxpayers or qualifying widows(ers) use Tax Rate Schedule Y, and head of household files use Tax Rate Schedule Z. For quick reference, the Tax Rate Schedules are also located in Chapter 18, Appendix E: California Tax Reference.

There are six California individual income tax brackets [17] (1.0%, 2.0%, 4.0%, 6.0%, 8.0%, and 9.3%).

[17] There are six official personal income tax brackets up to 9.3%, but an unofficial tax bracket exists for higher income. A 1% Mental Health Service Tax is levied on all personal taxable income over $1 million. Taxpayers with a taxable income over $1 million pay a rate of 9.3% up to $1 million and 10.3% on income over $1 million.

Katie is a single taxpayer with California adjusted gross income of $150,000 and California taxable income of $120,000. Her tax liability using the 2008 Tax Rate Schedule X is calculated as follows:

$2,071.76 + 9.3% Г— (120,000 в€’ 47,055) = $8,855.64 rounded to $8,856

Indicate the filing status (or statuses) in each of the following independent cases:

Married filing jointly

Married filing separately

Head of household

Lance is single and supports his mother, who lives in her own home. Status:_____________________________________________________

Linda is single and has a dependent child living with her. Status:_____________________________________________________

Lee’s final divorce decree was granted on December 30 of the current year. He has no dependents. Status:_____________________________________________________

Lisa is divorced, and her three children lived with her all year. Status:_____________________________________________________

Luther’s wife died last year. His 6-year-old dependent son lives with him. Status:_____________________________________________________

In 2008, Ethan has California taxable income of $108,000. He is single and claims two exemptions and no dependent exemptions on his tax return.

What is Ethan’s California tax liability after any exemption credit amount? $________

If Ethan’s California taxable income is $47,372, what is his California tax liability after any exemption credit amount? $________

Determine from the California tax tables, the amount of income tax for each of the following taxpayers for 2008.


filing status

Filing status

Filing status

Filing status

Filing status

1. You are unmarried or considered unmarried on the last day of the year.

2. You paid more than half the cost of keeping up your home for the year.

3. A Qualifying Person lived with you in the home for more than half the year.

1. Cannot take the credit for child and dependent care expenses, the Earned Income Credit, or the education credits.

2. Cannot exclude any interest income from qualified U. S. savings bonds that you used to pay higher education expenses.

3. Must include up to 85% of your social security income if your spouse lived with you at any time during the year.

4. Cannot roll over amounts from a traditional IRA to a Roth IRA if your spouse lived with you at any time during the year.

5. Will be subject to reduced deductions and credits for capital losses, the child tax credit, retirement savings contribution credit.

1. You do not file a joint return

2. You paid more than half the cost of keeping up a home

3. Your spouse did not live in your home at any time during the last six months of the year.

4. Your home was the main home for your child, stepchild, or eligible foster child for more than half the year.

5. You can claim an exemption for the child.

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