Section 18501 Of Article 1. Individuals And Fiduciaries From California Revenue And Taxation Code >> Division 2. >> Part 10.2. >> Chapter 2. >> Article 1.
18501
. (a) Every individual taxable under Part 10 (commencing with
Section 17001) shall make a return to the Franchise Tax Board,
stating specifically the items of the individual's gross income from
all sources and the deductions and credits allowable, if the
individual has any of the following for the taxable year:
(1) An adjusted gross income from all sources in excess of eight
thousand dollars ($8,000), if single.
(2) An adjusted gross income from all sources in excess of sixteen
thousand dollars ($16,000), if married.
(3) A gross income from all sources in excess of ten thousand
dollars ($10,000), if single, and twenty thousand dollars ($20,000),
if married, regardless of the amount of adjusted gross income.
(4) In the case of an individual described in Section 63(c)(5) of
the Internal Revenue Code, relating to limitation on basic standard
deduction in the case of certain dependents, a gross income from all
sources that exceeds the amount of the standard deduction allowed
under that section.
(b) If a husband and wife have for the taxable year an adjusted
gross income from all sources in excess of sixteen thousand dollars
($16,000) or a gross income from all sources in excess of twenty
thousand dollars ($20,000), each shall make a return or the income of
each shall be included on a single joint return as otherwise
provided in this article.
(c) For any individual described in paragraph (1) or (2), the
Franchise Tax Board shall recompute the amounts provided in
subdivision (b) and paragraphs (1) to (3), inclusive, of subdivision
(a) as follows:
(1) For any individual eligible to claim the credit described in
subdivision (c) of Section 17054, the Franchise Tax Board shall
increase the income amounts described in subdivision (b) and
paragraphs (1) to (3), inclusive, of subdivision (a), as adjusted by
subdivision (d), by the quotient provided by dividing the credit
described in subdivision (c) of Section 17054, as adjusted in
subdivision (i) of Section 17054, by 2 percent.
(2) For any individual or married couple eligible to claim the
credit described in subdivision (d) of Section 17054, the Franchise
Tax Board shall increase the income amounts described in subdivision
(b) or paragraphs (1) to (3), inclusive, of subdivision (a), as
adjusted by subdivision (d), by the quotient provided by dividing
each credit described in subdivision (d) of Section 17054, as
adjusted in subdivision (i) of Section 17054, by the following:
(A) If the individual or married couple is not eligible to claim
the credit allowed in subdivision (c) of Section 17054, 3 percent for
the first dependent credit and 4 percent for the second dependent
credit, if any.
(B) If the individual or married couple is eligible to claim the
credit allowed in subdivision (c) of Section 17054, 4 percent for the
first dependent credit and 5 percent for the second dependent
credit, if any.
(d) For each taxable year beginning on or after January 1, 1996,
the Franchise Tax Board shall recompute the income amounts prescribed
in paragraphs (1) to (3), inclusive, of subdivision (a) and in
subdivision (b), as follows:
(1) The Department of Industrial Relations shall transmit annually
to the Franchise Tax Board the percentage change in the California
Consumer Price Index for all items from June of the prior calendar
year to June of the current calendar year, no later than August 1 of
the current calendar year.
(2) The Franchise Tax Board shall do both of the following:
(A) Compute an inflation adjustment factor by adding 100 percent
to the percentage change figure that is furnished pursuant to
paragraph (1) and dividing the result by 100.
(B) Multiply the income amounts for the preceding taxable year by
the inflation adjustment factor determined in subparagraph (A) and
round off the resulting products to the nearest one dollar ($1).
(e) The changes to subdivision (c) made by the act adding this
subdivision shall apply to each taxable year beginning on or after
January 1, 1999.