Overview

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  California's income tax scheme is administered by the State of California Franchise Tax Board, or FTB. Income tax in the state is charged progressively, meaning that as a person earns more, progressively higher rates of tax are applied to that income. Some people do not have to file a California tax return, and the Franchise Tax Board has provisions for taxpayers who are unable to pay their taxes.
  
  

Can't Pay

• What if I can't pay my income tax? If you do not have the money to pay the income tax that you owe on the date that it is due, you must still file your income tax return by the date that it is due. Although you will have to pay a penalty for the late payment of your tax, the penalty will be higher if you don't file your return on time. You can, and should, make a partial payment of whatever amount you are able to pay. The FTB will send you a bill for the amount that you still have to pay and the amount of any penalties and interest that you will have to pay. By completing FTB 3567, you can ask for an installment agreement, allowing you to pay what you owe in regular installments. It is possible to apply for an installment agreement online, if you owe less than $10,000 and agree to pay what you owe in 36 months or less.
  
  

Deceased

• Does a tax return have to be filed after a person's death? If a person dies during a calendar year when that person would normally be expected to file a return, such as when the person has already earned more than the income threshold, then an income tax return must be filed on behalf of the dead person. If the deceased person's estate has an appointed administrator, the administrator may file the tax return, or if the person has a surviving spouse, the surviving spouse may file the return. Someone who files a tax return on behalf of a deceased person should write "deceased," along with the date of death, at the top of the return, alongside the taxpayer's name. A surviving spouse who has not remarried during the tax year when your partner died may file a joint return, and indicate the circumstances by writing "surviving spouse" by your name at the top of the form.
  
  

Out Of State

• I live out of state. Do I have to file? You may have to file a California income tax return even if you do not live in the state. If you have income from sources in California, such as partnership income or rental income, you need to file a tax return if your income is $14,622 or greater. If you lived in California for part of the year, you must file a return including all income, from all sources, that you earned while you were living in California, and all income from California sources that you earned when you were not a resident of the state.