AB 576

Under current law, an individual income tax personal exemption exists in the

amount of $700 for each taxpayer who is required to file an income tax return and

$700 for the taxpayer's spouse, except if the spouse is filing separately or as a head

of household. A taxpayer may also claim a $700 exemption for each dependent for

whom he or she is entitled to claim an exemption under the Internal Revenue Code.

In general, additional exemptions of $250 may be claimed by a taxpayer for the

taxpayer and for the taxpayer's spouse, if the taxpayer or spouse has reached the age

of 65 before the close of the taxable year to which the tax return relates.

For taxable years beginning after December 31, 2009, this bill increases the

exemption amount for dependents from $700 to $1,200.

Because this bill relates to an exemption from state or local taxes, it may be

referred to the Joint Survey Committee on Tax Exemptions for a report to be printed

as an appendix to the bill.