Personal income tax: senior tax credit: dependents: qualifying child.
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Majority
Fiscal committee
No
Appropriation
No
Current location
Appropriations
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Senate
- Passed Assembly
- To Governor
- Became Law
Overview
This bill creates a new tax credit for California seniors to help cover the costs of caring for dependents. Beginning in 2026, qualified taxpayers who are 65 or older and whose income doesn’t include earned income can claim a credit of up to $1,500 per qualified dependent. The credit is reduced by 6% of the taxpayer’s federal adjusted gross income, up to a maximum amount, and any unused portion can be carried over for up to six years. The bill also requires the Franchise Tax Board to report on the credit’s usage and impact.
Key provisions
- Establishes a $1,500 senior tax credit per qualified dependent for taxpayers 65 or older.
- The credit is available for taxable years beginning after January 1, 2026, and before January 1, 2031.
- A reduction applies to the credit based on the taxpayer’s federal adjusted gross income.
- Unused credit can be carried over for up to six consecutive taxable years.
- Defines ‘qualified taxpayer’ as an individual with no earned income and 65 or older.
- Defines ‘qualified dependent’ as a qualifying child with no qualified foster care payments.
- Requires the Franchise Tax Board to report on credit usage and taxpayer numbers.
- The credit is set to expire on December 1, 2031.
Who is affected
- Senior citizens
- Taxpayers with dependents
- Taxpayers aged 65 or older
- California residents
- Individuals with low to moderate income
Bill text
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