Question

Please calculate NET California income tax liability Assume the standard deduction is used. Use Form 540, 540 Instructions or the California Individual Tax Formula:

Jose and Maria are married, filing joint, both are 35 years old and have 2 dependent children. They have California Adjusted Gross Income of $75,000. Net Tax Liability = ___________.

Jackson is head of household, age 50 with one dependent daughter and California Adjusted Gross Income of $29,000. Net Tax Liability = ___________.

Answer 1

Solution:-

Calculation of Income Tax Liability for Married Couple

California Adjusted Gross total Income (A)		75,000
Less:- Personal Exemption Allowed (B)
1. Per filer (Married) ($106 per filer)	2 persons	212
2. For Dependants ($326 per dependant)	2 dependants	652
Less- Standard Deduction allowed [C]
1. Married and filing jointly		7,812
California Taxable Income (A-B-C)=D		66,324
Income Tax Calculation
Upto $16,030= 1% = $160.30	160
From $16,031-$38,002= 2%=$439.44	439
From $38,002-$59,978= 4%=$879.04	879
From $59,978-$66324= 6%=$380.76	381	1,860
Net Tax Liability		1,860

Calculation of Income Tax Liability for Head of Household:-

California Adjusted Gross total Income (A)		29,000
Less:- Personal Exemption Allowed (B)
1. Per filer ($106 per filer)	1 persons	106
2. For Dependants ($326 per dependant)	1 dependants	326
Less- Standard Deduction allowed [C]
1. For Head of Household		3,906
California Taxable Income (A-B-C)=D		24,662
Income Tax Calculation
Upto $8,015= 1% = $80.15	80
From $8,015-$19,001= 2%=$219.72	220
From $19,001-$24,662= 4%=$226.44	226	526
Net Tax Liability		526