California parents beware: Those little tax deductions running around the house are now worth less (in a strictly financial sense, of course).
To help balance its budget, California has reduced the state tax credit for dependents.
The change will increase a family's California taxes for 2009 by about $210 per dependent compared with 2008.
A family with one dependent that normally gets a state-tax refund will get back $210 less when they file their 2009 return next year. A family that normally owes money will have to pay $210 more. Multiply that by two or more dependents, and it really adds up.
This may come as a shock to parents who have been too busy shuttling between soccer games and viola lessons to keep up with the state's budget fiasco. The Franchise Tax Board is trying to get the word out, so families can prepare.
SFGateMy, My, My. Such a regressive method of "raising taxes" for such a progressive state. They don't mention any type of income cutoff, so I assume even the bottom of the tax payers will see this loophole closed.
