This article was verified by our editors and Christina Taylor, MBA, Senior Manager of Fiscal Operations for Credit Karma. has been updated for fiscal year 2019.
Californians love many things about their state, but few probably include state taxes on their list of likes about the golden state.
California taxes the personal income of its residents to fund government operations and programs, such as health and human services, as well as education. the cost of all those services is a state and local tax burden that, according to the tax foundation, is the sixth highest in the country.
If you’re looking for tips on how to file your California state tax return, you’ll find helpful information here.
- California state tax basics
- California deductions, adjustments and credits to know
- how to file your california state tax return
- track your california tax refund
California State Tax Basics
tax agency
The California Franchise Tax Board administers the tax laws and collects taxes, including personal income tax, in California. the department’s general information number is 1-800-852-5711. there is also a live chat for general questions.
submission and payment deadline
For 2019 state taxes, the state has extended the filing and payment deadline. California residents now have until July 15, 2020 to file their state returns and pay any state taxes they owe. As with the federal deadline extension, California will not charge interest on unpaid balances between April 15 and July 15, 2020.
You don’t need to do anything to get this extension. It’s automatic for all California taxpayers. but keep in mind that if you expect a refund, you may want to go ahead and apply as soon as possible. During the coronavirus crisis, the state continues to process tax returns and issue refunds.
Although this year is a little different, in general, California tax day is the same as the deadline to file your federal income tax return: April 15. however, if the 15th falls on a Sunday or a holiday, the deadline may be extended.
marital status
California recognizes the following federal states for declaration purposes:
- single
- married filing jointly
- married filing separately
- head of household
- qualified widow(er)
In addition, California recognizes registered domestic partnerships and accepts joint and separate filings from partners in those unions.
Generally, you should use the same filing status on your California state tax return as you do on your federal return, unless you are in a registered partnership and file your federal return as single. In that case, you must file as married (either jointly or separately) on your California state return.
california income tax rates
For 2019, California has income tax brackets ranging from 1% to 12.30%. As with federal income tax rates, more than one California tax rate may apply to your income. the highest tax bracket that applies to your income determines your marginal tax rate.
California deductions, adjustments and credits to know
california standard deduction
In California, you can take a standard deduction or itemize your tax deductions. If you’re married or in a domestic partnership filing separately, you and your spouse/registered domestic partner must itemize or take the standard deduction.
These are the standard deductions for most people by filing status in 2018.
- single: $4,537
- married/rdp filing jointly: $9,074
- married/rdp filing separately: $4,537
- head of household: $9,074
- qualifying widow(er): $9,074
personal exemptions
California allows personal exemptions of $122 each for taxpayers and their spouses, and $378 for up to three qualified dependents. there are additional exemption amounts for taxpayers and spouses (or registered domestic partners) who are blind or age 65 or older.
adjustments and deductions
- Mortgage Interest Deduction: Federal law limits to $750,000 the amount of home purchase debt for which a married couple filing jointly may deduct interest on a loan obtained in 2018. limit is $375,000 for married couples filing separately. If the amount of interest on your mortgage exceeded the federal limit, you may be able to deduct the amount over the federal limit on your California state tax return.
- Savings account distributions For Health: If you had a tax-free HSA distribution for qualified medical expenses, you may be able to deduct the portion of those expenses that exceeds 7.5% of your federal adjusted gross income. In addition, if you took an HSA distribution for a nonqualified medical expense and had to include that amount in your federal taxable income, the amount is not taxable on your California state tax return. however, your contributions to an hsa are not deductible for california state tax purposes.
- mortgage interest credit deduction: if you took a mortgage interest deduction on your federal return and had to reduce the deduction for the amount of your mortgage interest credit, you may be able to deduct the amount of the federal mortgage interest credit on your California state tax return.
- California Lottery Winnings: If you win money playing the California Lottery, you don’t have to pay state income taxes! California excludes your state lottery winnings from taxable income.
California State Tax Credits
Available California tax credits include the following:
- Child adoption costs: 50% of qualified costs for a qualified adoption in the year the adoption is initiated.
- tax credit College Access: 50% of contributions to the College Access Tax Credit Fund, California’s Cal Grants financial aid program.
- College Access Tax Credit Earned Income: Similar to the federal earned income tax credit, the California credit is for low-income working people. if your income qualifies you, the amount of the credit depends on your income and the number of qualifying children you have.
how to file your california state tax return
You have multiple options for preparing, filing, and paying your California state income taxes.
- Electronic filing and free payment with calfile through the franchise tax board website. you will need to create an account.
- free filing through an online tax filing service.
- electronic filing through a fee-based tax filing service.</li
- download forms via the ftb website. You may complete and mail these forms to the Franchise Tax Board, PO Box 942840, Sacramento, CA 94240-0001, if no balance is due or a refund is due. if you are submitting a payment, please mail it to po box 942867, sacramento, ca 94267-0001.
if you owe and cannot pay
If you can’t pay your tax bill and it’s less than $25,000, you can set up an installment agreement. You can apply online, by phone, or by mail. there is a $34 setup fee and 60 months is the maximum payment term.
Please note that even with a payment plan, interest and penalties will continue to accrue until you pay your bill in full.
track your california tax refund
just like the irs, california has a tool to help you track your refund. Math errors, incorrect forms, missing or incomplete information, the need for additional review for accuracy, or identity theft may delay your refund.
end result
living in the golden state, where gold was discovered in 1848, is not cheap. California has one of the highest state income tax rates in the US. uu. Be sure to apply by the deadline, and if you are due a refund, you can expect to receive it within two weeks if you file electronically or four weeks if you file on paper.
christina taylor is a senior manager of fiscal operations for credit karma. she has more than a dozen years of experience in tax, accounting, and business operations. ella christina founded her own accountancy consultancy and managed it for more than six years. she co-developed an online DIY tax preparation product, and served as COO for seven years. She is the current treasurer of the National Association of Computerized Tax Processors and has a bachelor’s degree in business administration/accounting from Baker College and an MBA from Meredith College. you can find it on linkedin.