Today's Law As Amended

PDF |Add To My Favorites | print page

AB-1041 Personal income taxes: education savings accounts.(2015-2016)

As Amends the Law Today


 Section 17072 of the Revenue and Taxation Code is amended to read:

 (a) Section 62 of the Internal Revenue Code, relating to adjusted gross income defined, shall apply, except as otherwise provided.
(b) Section 62(a)(2)(D) of the Internal Revenue Code, relating to certain expenses of elementary and secondary school teachers, shall not apply.
(c) Section 62(a)(21) of the Internal Revenue Code, relating to attorneys fees relating to awards to whistleblowers, shall not apply.
(d) For taxable years beginning on or after January 1, 2014, Section 62(a) of the Internal Revenue Code is modified to provide that the deduction allowed under Section 17208 shall be allowed in determining adjusted gross income.

SEC. 2.

 Section 17208 is added to the Revenue and Taxation Code, to read:

 (a) Notwithstanding any other provision of this part or Part 11 (commencing with Section 23001) to the contrary, a deduction shall be allowed for an amount contributed by a taxpayer during the taxable year to a Coverdell education savings account, not to exceed seven hundred fifty dollars ($750) per taxable year, except as otherwise provided in this section.
(b) For purposes of this section, “Coverdell education savings account” shall have the same meaning as that term is defined by Section 530 of the Internal Revenue Code, as modified by Section 23712.
(c) For purposes of applying Section 530 of the Internal Revenue Code, relating to Coverdell education savings accounts, the basis of the Coverdell education savings account shall be reduced by any amount deducted pursuant to this section.
SEC. 3.
 This act provides for a tax levy within the meaning of Article IV of the Constitution and shall go into immediate effect.