The California Franchise Tax Board (FTB) has updated certain aspects of tax return filing starting with returns for tax year 2017. The standard deduction for taxpayers filing as single increased to $4,236; for taxpayers who are married filing jointly, the new standard deduction is $8,472. Personal exemptions were also raised to $114 and $228, respectively.
California introduced the Schedule X, a new form which will replace the Form 540X for amending returns, along with five new voluntary funds to which taxpayers may contribute to support specific causes. For taxable years between January 1, 2017 and January 1, 2023, taxpayers may qualify for a College Access Tax Credit (CATC), which credits 50 percent of the amount a taxpayer contributes to the CATC Fund.
The Paperless Schedules K-1 (565 and 568) program was discontinued due to increasing participation in the business e-file program.
For more details, read the FTB's February newsletter here.