APPENDIX
B
Personal Income Tax
FOOTNOTES
1999 Taxable Year
| a | Statewide Statistical Appendix Tables 1 through 5 were derived from data collected in a stratified random sample of 1999 personal income tax returns (before audit) filed during the 2000 filing season. Of the 127,000 returns sampled, 103,745 were resident returns. County Tables 6 and 7, and Table 9 were created from the Personal Income Tax Master File, which included data from current year returns before audit (prior year and amended returns were excluded). Because of the different sources, statewide tables and county tables are not strictly comparable. Detail may not add to totals due to rounding and suppression. (See Footnote f.) |
| b | Data was not available. |
| c | Population estimated by California Department of Finance. |
| d | Unable to determine county of residence from tax return. |
| e | Resident returns filed with an out-of-state address. |
| f | Statewide frequency data are not shown for cells with fewer than three (3) returns. County level frequency data are not shown for cells with fewer than ten (10) returns, however; data are included in the appropriate totals. |
| g | Includes resident data only. May not be comparable to 1989 and prior years, which include resident, part-year resident and nonresident return data. |
| h | The sampling method was modified for 1994 and subsequent years to improve the reliability and precision of estimates. The improved method induced minor changes in the estimates. |
| 1 | Starting in 1982, nonresidents and part-year residents computed their tax on their total income and apportioned tax based on their California income. In prior years, the tax was based on California taxable income. Because of this change, adjusted gross income is not strictly comparable to 1982 and prior years. |
| 2 | Includes itemized zero bracket amount and nonitemized charitable contributions for taxable years 1984-1986. For taxable years 1983-1986, the standard deduction refers to taxpayers with zero deductions, because the Tax Tables already allowed for the deductions. |
| 3 | California adjustments include adjustments to federal income. These include items such as unemployment compensation, social security benefits, various California interest incomes, railroad retirement benefits, California lottery winnings, IRA distributions and net operating loss carryovers. |
| 4 | Taxable income for 1967 and subsequent taxable years is not comparable to earlier years. In 1967, exemption credits were substituted for exemption exclusions, and taxable income was redefined as adjusted gross income less deductions rather than adjusted gross income less deductions and exemption exclusions. |
| 5 | Total tax liability is tax computed on taxable income minus tax credits, which include personal, dependent, blind and senior exemption credits, child and dependent care credits, manufacturer's investment credit, residential rental and farm sales credit, child adoption credit, and other special credits, plus other taxes, such as alternative minimum tax. |
| 6 | When an individual return reported income from two or more sole proprietorships, all of the proprietorship incomes, profits and losses were combined and the resulting net profit or loss was recorded. |
| 7 | When an individual return reported income from two or more partnerships or S corporations, all of the partnership and S corporation incomes, profits and losses were combined and the resulting net profit or loss was recorded. |
| 8 | Net sale of capital assets changed significantly in 1987 from prior California law (1972-1986). Due to the enactment of the Tax Reform Act of 1986, the entire amount of capital assets post-1986 is included in gross income. Gains are also realized on income from collections on pre-1987 installment sales. Beginning in 1987, capital losses from carryovers and carrybacks are fully deductible against capital gains. Up to $3,000 ($1,500 single and married filing separate) of excess capital loss is deductible against ordinary income. California has conformed to federal holding period rules with regard to long- and short-term gains and losses. California has also enacted a separate credit for gains from the sale of residential rental or farm property. |
| 9 | All other federal income sources include net income from estates and trusts, net income for the disposition of noncapital assets, alimony received, miscellaneous income sources, social security and unemployment income and income from state and local income tax refunds. It also includes net losses from estates and trusts, from miscellaneous income and from noncapital assets. |
| 10 | Amounts listed are self-assessed before audit. Because of major differences between federal and state law regarding deductible contribution limitations, actual amounts after audit reveal that these figures are generally overstated. |
| 11 | Total adjustments include amounts for IRA exclusion, moving expense, alimony paid, half self-employment tax, self-employed health insurance plan exclusion, self-employed retirement plan exclusion, and the penalty on early withdrawal of savings. |
| 12 | Total interest includes interest paid on home mortgages and other nonbusiness items. |
| 13 | Total contributions combine current-year contributions of cash and other than cash with contributions carried over from the previous year. Taxpayers may be required to limit contribution deductions when contributions exceed a certain percentage of adjusted gross income. The difference between the total of cash, noncash and carryover contributions and total contributions reflects this limitation. |
| 14 | All other deductions include unreimbursed employee expenses, union dues, employment education expenses, handicap repairs, gambling losses and other miscellaneous deductions that exceed two percent of adjusted gross income. |
| 15 | Personal exemption credit increased for 1978 and subsequent taxable years and, therefore, is not comparable to that of earlier years. |
| 16 |
Services:
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| 17 | Data for Alpine County were aggregated, because most categories of income have less than ten (10) as the number of returns. |
| 18 | Includes contributions to both Individual Retirement Accounts and to Spousal Individual Retirement Accounts. |
| 19 | Table includes credits claimed on all returns processed during 1999, including nonresident and part-year resident returns. Data were derived from Return Processing Master File rather than from the stratified random sample. |
| 20 | Totals may not add due to rounding. |