California AB1550 allows deductions for tips and overtime compensation for tax years 2026-2028, exempting them from federal rules requiring social.
California AB1550 amends the Revenue and Taxation Code to allow deductions for qualified tips and overtime compensation for tax years beginning on or after January 1, 2026, and before January 1, 2029. This change exempts these deductions from federal rules requiring social security numbers. The bill also mandates the Franchise Tax Board to compute an inflation adjustment factor and adjust standard deduction amounts accordingly.
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