Plain English Breakdown
The official status label 'Passed Legislature' conflicts with the text stating a hearing was canceled and the bill is described as introduced. The summary relies only on the written content of the bill introduction.
AB-2591: Linking the Standard Deduction to Federal Poverty Levels
This bill proposes allowing taxpayers to choose a standard deduction equal to the federal poverty level, adjusted for household size, starting in taxable years beginning on or after July 1, 2027.
What This Bill Does
- Allows taxpayers to elect a standard deduction equal to the federal poverty level instead of itemizing deductions.
- Adjusts the new deduction amount based on the number of people in the household.
- Applies these changes for taxable years beginning on or after July 1, 2027.
Who It Names or Affects
- Individuals who file personal income tax returns
- Estates and trusts subject to state taxation
Terms To Know
- Standard Deduction
- An amount taxpayers can subtract from their taxable income instead of listing specific expenses.
- Federal Poverty Level
- A yearly income threshold set by the federal government that changes based on family size.
Limits and Unknowns
- The bill text provided is an introduction; official status notes indicate a hearing was canceled at the author's request.
- Exact deduction amounts for future years depend on updates to the federal poverty level.