Bill Text: CA SB1352 | 2017-2018 | Regular Session | Amended
Bill Title: Personal income taxes: credit: ABLE account contributions.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2018-05-25 - May 25 hearing: Held in committee and under submission. [SB1352 Detail]
Download: California-2017-SB1352-Amended.html
|
Amended
IN
Senate
May 15, 2018 |
|
Amended
IN
Senate
March 22, 2018 |
| Senate Bill | No. 1352 |
| Introduced by Senator Stone |
February 16, 2018 |
LEGISLATIVE COUNSEL'S DIGEST
The Personal Income Tax Law, in modified conformity with federal income tax laws, allows various deductions from gross income in computing adjusted gross income under that law, including deductions for payments to individual retirement accounts, alimony payments, and interest on educational loans.
This bill, for each taxable year beginning on or after January 1, 2019, would allow to qualified taxpayers, as defined, a deduction from gross income for qualified expenses related to the care of a dependent parent or stepparent. The bill would also, for each taxable year beginning on or after January 1, 2019, allow to qualified taxpayers, as defined, a deduction from gross income for qualified expenses related to the care of a dependent child, as
defined. The bill would additionally, for each taxable year beginning on or after January 1, 2019, allow to qualified taxpayers, as defined, a deduction from gross income for amounts contributed to a trust fund to pay for the care and medical expenses of a dependent child or dependent parent or stepparent, as provided.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 17053.32 is added to the Revenue and Taxation Code, to read:17053.32.
(a) For each taxable year beginning on or after January 1, 2019, and before January 1, 2024, there shall be allowed as a credit against the “net tax,” as defined in Section 17039, an amount equal to 20 percent of a qualified contribution paid or incurred by a taxpayer during the taxable year, not to exceed seven hundred fifty dollars ($750).SEC. 2.
This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.(a)Section 62 of the Internal Revenue Code, relating to adjusted gross income defined, shall apply, except as otherwise provided.
(b)Section 62(a)(2)(D) of the Internal Revenue Code, relating to certain expenses of elementary and secondary school teachers, shall not apply.
(c)Section 62(a)(21) of the Internal Revenue Code, relating to attorneys fees relating to awards to whistleblowers, shall not apply.
(d)For each taxable year beginning on or after January 1, 2019, Section 62(a) of the Internal Revenue Code is modified to provide that the deductions
under Sections 17209, 17210, and 17211 shall be allowed in determining adjusted gross income.
(a)For each taxable year beginning on or after January 1, 2019, there shall be allowed as a deduction an amount equal to the qualified expenses paid or incurred during the taxable year by a qualified taxpayer for the care of the qualified taxpayer’s dependent parent or stepparent.
(b)For purposes of this section:
(1)“Dependent parent or stepparent” means the parent or stepparent of a qualified taxpayer who can no longer care for himself or herself, as documented by a health care professional, including, but not limited to, an allopathic physician, an osteopathic physician, or a registered nurse practitioner.
(2)“Qualified expenses” mean those expenses for the care of the qualified taxpayer’s dependent parent or stepparent that are greater than five thousand dollars ($5,000) and do not exceed thirty thousand dollars ($30,000).
(3)“Qualified taxpayer” means:
(A)Taxpayers who filed as married individuals filing a joint return, filed a head of household return, or filed as a surviving spouse, who have a gross income for the taxable year of no more than two hundred fifty thousand dollars ($250,000).
(B)A taxpayer who filed as a single taxpayer or filed as a married individual filing a separate return, who has a gross income for the taxable year of no more than one hundred twenty five thousand dollars ($125,000).
(c)For each taxable year
beginning on or after January 1, 2020, the Franchise Tax Board shall recompute the gross income amounts and qualified expenses amounts prescribed in subdivision (b) in the manner described in subdivision (h) of Section 17041, except that the amounts should be adjusted to the nearest one hundred dollars ($100). If the gross income amount or qualified expenses amount ends in fifty dollars ($50), the amount shall be rounded up to the nearest one hundred dollars ($100).
(a)For each taxable year beginning on or after January 1, 2019, there shall be allowed as a deduction an amount equal to the qualified expenses paid or incurred during the taxable year by a qualified taxpayer for the care of the qualified taxpayer’s dependent child.
(b)For purposes of this section:
(1)“Dependent child” means the child, stepchild, or a child of whom the qualified taxpayer is the guardian who is a child with special needs, including, but not limited to, a child with Down syndrome, Asperger syndrome, autism, or cerebral palsy.
(2)“Qualified expenses” mean those expenses for the care of the qualified
taxpayer’s child that are greater than five thousand dollars ($5,000) and do not exceed thirty thousand dollars ($30,000).
(3)“Qualified taxpayer” means:
(A)Taxpayers who filed as married individuals filing a joint return, filed a head of household return, or filed as a surviving spouse, who have a gross income for the taxable year of no more than two hundred fifty thousand dollars ($250,000).
(B)A taxpayer who filed as a single taxpayer or filed as a married individual filing a separate return, who has a gross income for the taxable year of no more than one hundred twenty five thousand dollars ($125,000).
(c)For each taxable year beginning on or after January 1, 2020, the Franchise Tax Board shall recompute the gross income amounts and qualified
expenses amounts prescribed in subdivision (b) in the manner described in subdivision (h) of Section 17041, except that the amounts should be adjusted to the nearest one hundred dollars ($100). If the gross income amount or qualified expenses amount ends in fifty dollars ($50), the amount shall be rounded up to the nearest one hundred dollars ($100).
(a)(1)For each taxable year beginning on or after January 1, 2019, there shall be allowed as a deduction an amount equal to contributions made by a qualified taxpayer during the taxable year to a qualified trust fund.
(2)The deduction allowed by this section shall not exceed thirty thousand dollars ($30,000) per taxable year.
(b)For purposes of this section:
(1)“Dependent child” means a child with special needs, including, but not limited to, a child with Down syndrome, Asperger syndrome, autism, or cerebral palsy.
(2)“Dependent parent or stepparent” means the parent or stepparent of a qualified taxpayer who can no longer care for himself or herself, as documented by a health care professional, including, but not limited to, an allopathic physician, an osteopathic physician, or a registered nurse practitioner.
(3)“Qualified taxpayer” means a parent, stepparent, guardian, or grandparent of a dependent child, or the child or stepchild of a dependent parent or stepparent.
(4)“Qualified trust fund” means a trust fund established to pay for the care, as recommended by a health care professional, and medical expenses of a dependent child or dependent parent or stepparent.
(c)For each taxable year beginning on or after January 1, 2020, the Franchise Tax Board shall recompute the deduction limit prescribed in paragraph
(2) of subdivision (a) in the manner described in subdivision (h) of Section 17041, except that the limit should be adjusted to the nearest one hundred dollars ($100). If the limit amount ends in fifty dollars ($50), the amount shall be rounded up to the nearest one hundred dollars ($100).
This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.
