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CA AB1550
Bill
Status
Introduced
1/7/2026
Primary Sponsor
Kate Sanchez
Click for details
AI Summary
- Allows California taxpayers to deduct qualified tips and qualified overtime compensation from taxable income for tax years 2026 through 2028, conforming to federal tax law
- Deductions for tips and overtime can be taken in addition to the standard deduction, rather than requiring itemization
- Standard deduction amounts are $1,880 for single filers and $3,760 for heads of household, surviving spouses, or married couples filing jointly
- Requires the Franchise Tax Board to submit a report to the Legislature by December 1, 2029, detailing the number of taxpayers using these deductions and the average dollar value deducted
- Takes effect immediately as a tax levy
Legislative Description
Personal income taxes: deductions: tips: overtime compensation.
Last Action
From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended.
3/16/2026
Committee Referrals
Revenue and Taxation2/2/2026
Full Bill Text
No bill text available