prop 30 and marriage penalty

Oct 30, 2012 4 Replies

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For that portion of taxable income that is over three hundred forty thousand dollars ($340,000) but not over four hundred eight thousand dollars ($408,000), the tax rate is 10.3 percent of the excess over three hundred forty thousand dollars ($340,000).



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Do the above numbers apply to both single and married taxpayers? For the other tax brackets the thresholds are doubled for married taxpayers, meaning that it if the 1% bracket starts at 3,650 for single taxpayers, then it starts at 7,300 for married taxpayers.



I know that the mental health services tax (an extra income tax of 1% on incomes over $1 million) is the same for single and married taxpayers, and not adjusted for inflation.



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17045. In the case of a joint return of a husband and wife under Section 18521, the tax imposed by Section 17041 shall be twice the tax which would be imposed if the taxable income were cut in half. For purposes of this section, a return of a surviving spouse (as defined in Section 17046) shall be treated as a joint return of a husband and wife.

Ach, you beat me to it!

For completeness, we should add that the Prop 30 language specifically references Sec. 17041 of R&TC.

In addition, to address removeps-groups' comment above, the mental health tax specifically states that no MFJ adjustment will apply. I do not see that same language in Prop. 30, implying that the marriage adjustment does apply.

I have never actually dug into this part of the CA tax code, it is a little obtuse. I suppose this means CA will not add a marriage penalty for 2014 even if the Bush tax cuts expire at the federal level.

17041 != 17045.

So is the Brown tax also inflation adjusted?

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