State tax filing simplified for many

Nearly a third of California taxpayers, including some families earning up to $200,000, can now file their income tax using the state’s simplest tax form, the 540 2EZ. Also, this year via ReadyReturn the state will actually fill out a return for a select group of taxpayers, according to the Franchise Tax Board.

“Filling out a tax return is a pain in the neck,” stated State Controller and FTB Chair Steve Westly. “We’re giving more taxpayers a chance to spare themselves the headaches that come with tax paperwork.”

Changes made to the 540 2EZ now allow taxpayers with greater income amounts to use the form. The 540 2EZ has gained wide appeal for its simplicity in reducing the required lines of tax information needed and eliminating several math calculations. It is available to single or head of household taxpayers earning up to $100,000 and married taxpayers earning up to $200,000 who do not itemize deductions and have three or fewer dependents.

The FTB offers free e-file services through its own CalFile service. CalFile is the FTB’s no-cost, direct-to-government e-file program. It is available to taxpayers who file the 540 2EZ, 540A, and, to a limited degree, the 540 long form. CalFile accepts income of nearly $280,00, itemized deductions, and some tax credits. Many commercial e-file companies offer free e-file services to certain customers. Find CalFile and all other e-file services at http://www.ftb.ca.gov.

For a select group of people, the filing burden has been reduced. The FTB will actually do the tax return for them. The FTB is piloting ReadyReturn. Using W-2 information already collected by the state, the FTB is completing returns for taxpayers who file the simplest returns; that is, their only source of income and tax payments are from wages and withholding. Taxpayers will review the return for accuracy. If they agree with the information, they can sign the return and mail it or file the return online. If taxpayers disagree with the return they can simply correct it and then submit it, or if they do not want to use it, they can discard it.