To taxpayers who have faithfully filed tax returns for years,
it may be surprising to find that they may not have to file.
Generally, you do not need to file a federal tax return for
2006 if your income is under these amounts:
Single - and not claimed
by someone else.
Under age 65:
$8,450
65 or older:
9,700
Head of Household:
Under 65:
10,850
65 or older:
12,100
Married filing jointly:
Under 65:
16,900
One spouse 65 or older:
17,900
Both 65 or older:
18,900
Married filing separately:
Any age:
3,300
Qualifying Widow (er)
with qualifying dependent:
Under 65:
13,600
65 or older:
14,600
However... you must file a return if you
had self-employment income of $400 or more. Also, you should
file a return even if your income is under these limits
if you:
Had income tax withheld on wages,
pensions, retirement distributions or investment
accounts.
Are eligible for an earned income
credit.
Someone else (such as a parent) can
claim you as a dependent
California Return filing requirements for 2006
On 12/31/06, My filing status
was:
and on 12/31/06, my age
was(6):
California Gross Income
Dependents
0
1 2 or More
Single or Head of Household
Under 65
65 or Older
13,713 23,213 30,338
18,263 25,338 31,088
Married filing jointly or
Married filing separately(4)
Under 65 (both spouses)
65 or older (one spouse)
65 or older (both spouses)
27,426 36,926 44,051
31,926 39,101 44,801
36,526 43,651 49,351
Qualifying widower)
Under 65
65 or older
23,213
30,338
25,388
31,088
Dependent of another person
Any filing status
Any age
More than your standard deduction
(5)
Notes:
1. California gross income is all income you received
in the form of money, goods, property, and services from
all sources that are not exempt from tax. Gross income
does not include any adjustments or deductions.
2. California adjusted gross income is your
federal adjusted gross income from all sources
reduced or increased by all California income adjustments.
3. See page 9 of the 540 Personal Income
Tax Booklet.
4. The income of both spouses must be combined:
both spouses may be required to file a return even
if only one spouse had income over the amounts
listed.
5. Use the California Standard Deduction
Worksheet for Dependents on page 11 or page 17
to figure your standard deduction.
6. If your 65th birthday is on January l,
2007, you are considered to be age 65 on December
31, 2006.
Requirement for children With Investment
Income
California law is the same as
federal law for the income of children under age
18. For each child under age 14 who received more
that $1,600 of investment income in 2005, complete
Form 540 and form FTB 3800, Tax Computation for Children
Under Age 14 with Investment Income, to figure the
tax on a separate Form 540 for your child.
Note: If you qualify, you may elect
to report your child's income of $8,000 or less (but
not less that $800) on your return by completing
form FTB 3803, Parents' Election to Report Child's
Interest and Dividends. To make this election, your
child's income must be only from
interest and/or dividends.
Other Situation When You Must File
If you owe any of the following taxes for 2006,
you must file Form 540.
* Tax on a lump-sum distribution;
* Tax on a qualified retirement plan, including an
individual retirement arrangement (IRA) or an Archer
medical savings account (MSA)
* Tax for children under age 18 who have investment
income greater that $1,600 (see paragraph above);
* Alternative minimum tax;
* Recapture taxes;
* Deferred tax on certain installment obligations:
or
* tax on an accumulation distribution from a trust.
A copy of the 540 Personal Income Tax Booklet 2006
can be found at
Personal exemptions for 2005 are $3,200 per person. You are
entitled to claim one exemption apiece for yourself, your
spouse if married, and each dependent you can claim. If someone
else (such as your parent) claims you as a dependent, you
cannot take an exemption for yourself.
The IRS excludes from your taxable income a specified amount
of expenses, called a "standard deduction." If your actual
expenses in the allowed categories total more than the standard
deduction amount, you may deduct those actual expenses, which
is called "itemizing." If your itemized deductions are less
than the standard amount, you are better off to use the standard
deduction.
Income tax is based on your income after personal exemptions,
standard or itemized deductions, and other adjustments are
subtracted. A tax bracket is the rate at which the top of
your income is taxed, but not all of it. Someone in
a 33 percent tax bracket has part of their income taxed at
10,15, 25 and 28 percent, with only the highest portion at
33 percent. The tax bracket tells you how much you will have
to pay in federal income tax on each additional dollar you
make.
2006 Tax Rate Schedules
Schedule X — Single
If
taxable income
is over--
But
not over--
The
tax is:
$0
$7,550
10% of the amount
over $0
$7,550
$30,650
$755 plus 15%
of the amount over
7,550
$30,650
$74,200
$4,220.00 plus
25% of the amount
over 30,650
$74,200
$154,800
$15,107.50 plus
28% of the amount
over 74,200
$154,800
$336,550
$37,675.50 plus
33% of the amount
over 154,800
$336,550
no limit
$97,653.00 plus
35% of the amount
over 336,550
Schedule Y-1 — Married
Filing Jointly or Qualifying
Widow(er)
If
taxable income
is over--
But
not over--
The
tax is:
$0
$15,100
10% of the amount
over $0
$15,100
$61,300
$1,510.00 plus
15% of the amount
over 15,100
$61,300
$123,700
$8,440.00 plus
25% of the amount
over 61,300
$123,700
$188,450
$24,040.00 plus
28% of the amount
over 123,700
$188,450
$336,550
$42,170.00 plus
33% of the amount
over 188,450
$336,550
no limit
$91,043.00 plus
35% of the amount
over 336,550
Schedule Y-2 — Married
Filing Separately
If
taxable income
is over--
But
not over--
The
tax is:
$0
$7,550
10% of the amount
over $0
$7,550
$30,650
$755.00 plus
15% of the amount
over 7,550
$30,650
$61,850
$4,220.00 plus
25% of the amount
over 30,650
$61,850
$94,225
$12,020.00 plus
28% of the amount
over 61,850
$94,225
$168,275
$21,085.00 plus
33% of the amount
over 94,225
$168,275
no limit
$45,521.50 plus
35% of the amount
over 168,275
Schedule Z — Head
of Household
If
taxable income
is over--
But
not over--
The
tax is:
$0
$10,750
10% of the amount
over $0
$10,750
$41,050
$1,075.00 plus
15% of the amount
over 10,750
$41,050
$106,000
$5,620.00 plus
25% of the amount
over 41,050
$106,000
$171,650
$21,857.50 plus
28% of the amount
over 106,000
$171,650
$336,550
$40,239.50 plus
33% of the amount
over 171,650
$336,550
no limit
$94,656.50 plus
35% of the amount
over 336,550
The federal Form 1040 actually collects several other
taxes including:
Self employment (Social Security and
Medicare) tax
Social Security and Medicare tax on
tip income
Early withdrawal tax on IRA's and retirement
plans
Every taxpayer, dependent and person on which an Earned Income
Credit is based must have a Social Security number. (Individuals
such as foreign citizens who are not eligible to get a Social
Security number can be issued an Individual Tax Identification
Number, or
"ITIN.")
Social Security numbers are issued by the Social Security
Administration, not the IRS. To apply for a Social
Security number, fill out a Form SS-5 and
take it with original documents for identification to your
nearest Social Security office. (You may mail the application,
but that is not recommended because of risk of losing the
documents you must send).
For the nearest Social Security office, check the Yellow
Pages. The Social Security Administration can be reached:
