New
Tax advisor change for California conformity 2025
A tax advisory product that is accurate and dependable needs to be useful to where a majority of your customers work and/or have clients. So this change is obvious. (I really shouldn't have to post it here as someone on the ITA team needs to track and manage California tax changes. It shouldn't be your customers.)
California recently enacted the following changes. Effective beginning with the 2025 tax year, California now conforms to provisions that:
- Allow taxpayers age 70½ and older to make deductible contributions to their IRAs, effective for federal purposes beginning with the 2020 tax year;
- Index the IRA $1,000 catch-up contributions for inflation for taxpayers age 50 and older;
- Increase the SIMPLE contribution rates for taxpayers age 50 and older; and
- Allow higher catch-up contributions for taxpayers age 60 through 63 who are enrolled in an employer retirement plan or SIMPLE plan.
posted 12-2-2025
