CA Dependent Exemption Reduced

California has reduced the exemption amount for dependents for Tax Year 2009.

While the exemption amounts for you and your spouse (if applicable) and the additional exemption amount for blind and/or seniors has only been reduced by $1.00,  the dependent exemption amount, i.e., for children, has been reduced from $309 on your 2008 Tax Year return to $98 for your 2009 Tax Year return.

If you have one or more dependents, this change to the dependent exemption amount WILL (dollar for dollar) either reduce your expected refund or increase your balance due for tax year 2009.