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Tax Facts at a Glance

This information on this page is provided to assist businesses and individuals.   It is accurate to the best of our knowledge. 

Tax Facts Updated March, 2008 with 2007 changes

However, nothing on this page should be used to answer any particular financial question or be considered professional advice.

Please contact us for specific advice. 

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Deductions
For the 2007 Tax Year

(see below for 2008)

 

Federal

California

Standard Deductions

Single

$5,350

$3,516

Married Filing Jointly or Surviving Spouse
or Domestic Partner (California only)

$10,700

$7.032

Married Filing Separately

$5,350

$3,516

Head of Household

$7,850

$7,032

Additional for 65 or Older or Blind - Married

$1,050

 

Additional for 65 and Older Blind - Unmarried

$1,250

 

Taxpayer claimed as a dependent

$850* on $300 + of earned income

$850

Personal/Dependent Exemption
Social Security Number is required - $50 penalty

$3,400

 

 

 

 

Contact Information

 

Deductions
For the 2008 Tax Year

(see above for 2007)

  Federal California
Standard Deductions
Single $5,450 Not yet available
Married Filing Jointly or Surviving Spouse $10,900
Married Filing Separately $5,450
Head of Household $8,000
Additional for 65 or Older or Blind - Married $1,050
Additional for 65 and Older Blind - Unmarried $1,350
Taxpayer claimed as a dependent $900 on $300 + of earned income

Personal/Dependent Exemption
Social Security Number is required - $50 penalty

$3,300
Tax and Financial Planning Guide for 2007-8 Cover Picture

Automobile Standard Mileage Allowances

 

2007

2008

Business

48.5/mil

.505/mile

Charity

.14/mile

.14/mile

Medical/Moving

.20/mile

.19/mile

Contact Information

Tax Preparation for Businesses and High Net Worth Individuals by Accounting Professionals

California Credits
For the 2007 Tax Year

 

 

California

California Exemption Credits

Single/Separate or Head of Household

 

$94

Joint/Surviving Spouse/Domestic Partner

 

$188

Dependent

 

$294

Blind or over 65

 

$94

Senior Head of Household Credit

2% of California taxable income, maximum California AGI of $60,791 maximum credit of $1,146

Joint Custody Head of Household Credit     - and -
Dependent Parent Credit

Each is 30% of net tax, with maximum credit of $374

Child and Dependent Care Credit
California allows a  percentage of federal credit based on the California AGI .
California allows these credits:

California AGI from $0  to $40,000

 

50%

California AGI from $40,001  to $70,000

 

43

California AGI from $70,001  to $100,000

 

34

California AGI over $100,001

 

0%

Renter's Credit

Joint/Head-of-Household/Surviving Spouse if AGI is below $66,544

 

$120

Single/Married Filing Separate if AGI is below $33,272

 

$60

 
Contact Information

Tax Data 2007
for Tax Year 2007 unless otherwise indicated

 

  Federal California
Section 179 Deduction 125,000 25,000

Beginning of Personal Exemption Phase-out
Range based on Federal AGI

Single $156,400 California doesn't have Personal Exemptions which are handled in the same way as the federal
Married Filing Jointly $234,600
Married Filing Separately $117,300
Head of Household $195,500
Surviving Spouse $234,600

Beginning of Itemized Deduction Phase-out
Range based on AGI

Single $156,400 $155,416
Married Filing Jointly/Surviving Spouse/Domestic Partner (for California only) $156,400 $310,837
Married/Domestic Partner (for California only) Filing Separately $78,200 $155,416
Head of Household $156,400 $233,129
Rate Reduced over federal AGI  limits 3% 6%

Schedule A Threshold/Limits

Medical (of AGI ) based on federal threshold 7.5% Follows federal
Miscellaneous (of AGI ) based on federal threshold 2%

Alternative Minimum Tax (AMT) Rate

AMTI Less Exemption up to $175,000 26% 7%
AMTI Less Exemption over $175,000
($87,500) if Married Filing Separately
28% 7%

AMT Exemption Amounts

Married Filing Jointly/Surviving Spouse/Domestic Partner (for California only) $66,250 $70,531
Single, Head of Household $44,350 $52,898
Married Filing Separately, Estates and Trusts $33,125 $35,263

AMT Exemption Phase-out Amounts

Married Filing Jointly/Surviving Spouse $150,000 $264,488
Single and Head of Household $112,500 $198,366
Married Filing Separately/Domestic Partner Filing Separately (for California only), Estates, and Trusts $75,000 $132,242

Self-Employed Health Insurance
Adjustment for AGI :

Percentage of total qualifying payments for health insurance 100% Follows federal

Maximum Rate SEP -IRA and Keogh Profit Sharing

20%

Beginning/Ending of U.S. Savings Bond Interest Exclusion
Based on Modified AGI

Joint Return $98,400/ $128,400 Federal rules only
Unmarried $65,600/ $80,600
Married/Domestic Partner (for California only) Filing Separately No Exclusion

California SDI
(Deductible as a tax for federal purposes.  Amounts paid to a voluntary program in lieu of the state programs are not deductible, but may be creditable on Form 540 with multiple employees.)

  2007 2008
Wages – Total annual limit 83,389 86,698
Rate 0.69% 0.8%
Tax $500.33 $635.34
Tax and Financial Planning Guide for 2007-8 Cover Picture

Tax Preparation for Businesses and High Net Worth Individuals by Accounting Professionals

Federal Tax Rate Schedule
2007

Taxable Income is Over

But Not over

Pay

+ %

Of the Amount Over

Single Individuals

$0

$7,825

$0

10%

$0

$7,825

$31,850

$782.50

15%

$7,825

$31,850

$77,100

$4,386.25

25%

$31,850

$77,100

$160,850

$15,698.75

28%

$77,100

$160,850

$349,700

$39,148.75

33%

$160,850

$349,700

and more

$101,469.25

35%

$349,700

Unmarried Head of Household

$0

$11,200

$0

10%

$0

$11,200

$42,650

$1,120

15%

$11,200

$42,650

$110,100

$5,837.50

25%

$42,650

$110,100

$178,350

$22,700

28%

$110,100 

$178,350

$349,700

$41,810

33%

$178,350

$349,700

and more

$98,355.50

35%

$349,700

Married Individuals Filing Jointly and Qualifying widow(er)

$0

$15,650

$0

10%

$0

$15,650

$63,700

$1,565

15%

$15,650

$63,700

$128,500

$8,772.50

25%

$63,700

$128,500

$195,850

$24,972.50

28%

$128,500

$195,850

$349,700

$43,850.50

33%

$195,850

$349,700

and more

$94,601

35%

$349,700

Married Individuals Filing Separately

$0

$7,825

$0

10%

$0

$7,825

$31,850

$782.50

15%

$7,825

$31,850

$64,250

$4,386.25

25%

$31,850

$64,250

$97,925

$11,658.75

28%

$64,250

$97,925

$174,850

$21,915.25

33%

$97,925

$174,850

and more

$47,300.50

35%

$174,850

 

Contact Information

 

California Tax Rate Schedule
2007

Taxable Income is Over

But Not over

Pay

+ %

Of the Amount Over

Single Individuals, Married/Domestic Partner Filing Separately, Fiduciary Tax Returns

$0

$6,827

$0

1%

$0

$6,827

$16,185

$68.27

2%

$6,827

$16,185

$25,544

$255.43

4%

$16,185

$25,544

$35,460

$629.79

6%

$25,544

$35,460

$44,814

$1,224.75

8%

$35,460

$44,814

and more

$1,973.07

9.3%

$44,814

Married/Domestic Partner Filing Jointly, Qualifying Widow(er)

$0

$13,654

$0

1%

$0

$13,654

$32,370

$136.54

2%

$13,654

$32,370

$51,088

$510.86

4%

$32,370

$51,088

$70,920

$1,259.58

6%

$51,088

$70,920

$89,628

$2,449.50

8%

$70,920

$89,628

and more

$3,946.14

9.3%